SEA Venture Discovering the opportunity in a fragmented 1

Transcription

1 SEA Venture Discovering the opportunity in a fragmented 1

2 Jungle Ventures Who We Are Singapore-based venture firm investing in consumer internet category leaders in Southeast Asia and selective enterprise tech companies from Asia Team 15 Investing & Operating professionals with decades of experience at firms such as Limited Partners AUM of US$110m with top tier limited partners such as Partners & Advisors Stellar advisory board including Mr Ratan Tata, Chairman Emeritus of the Tata Group, India Track Record Over 30 investments, 4 exits in 4 years at 3.64X & ~215% IRR, <1% loss of 2

3 SEA is the Fastest Growing Internet Market In The World Projected to reach ½ billion internet users in 2020; +3.8m online users monthly SEA social media is growing at rates 50% higher than global average Majority young internet population spending > 6 hours online, daily SEA countries Median age (yrs) Internet users as % of population Avg time spent on online daily Thailand % 8 hr 49m Indonesia % 8 hr 44m Malaysia % 8 hr 31m Singapore % 6 hr 41m Vietnam % 6 hr 53m Philippines % 9hrs Source : Google-Temasek e-conomy SEA report & Wearesocial 2017 Digital in Asia : SouthEast 3

4 With A Projected US$200bil Online Opportunity by 2025! Source : Google-Temasek e-conomy SEA 4

5 However, Despite Headline Numbers, General Perception Remains That SEA is.. Highly fragmented market Collection of dissimilar emerging countries Under developed tech and venture ecosystem Not big enough to support large exit/ IPO 5

6 Looking closely at the Top 10 metros in 6

7 Respective SEA metro cities alone make up >20% of country GDPs. GDP/capita are ~2x higher than country average SEA Country ID TH MY SG VN PH Population (mn) Country nominal GDP (USD mn) Average GDP / capita (USD) ,290 5,792 9,570 51,000 2,039 2,840 Metro cities Jakarta Bangkok Kuala Lumpur Singapore Ho Chi Minh Manila Population (mn) % of total population 12% 23% 20% 100% 9% 13% Nominal GDP (USD) % to country GDP 27% 48% 45% 100% 22% 21% GDP / capita (USD) 7,207 12,251 21,750 51,000 5,100 4,763 No of times average GDP/capita 2.19x 2.11x 2.61x 1.0x 2.50x 1.6x Source : Brookings Institution; Worldbank; Wearesocial 2017 Digital in Asia : SouthEast Asia; Wikpedia; NESDB Thailand; National Statistical Coordination Board Philippines; Statistics Office of Vietnam; 7

8 Customers in metros demonstrate homogenous consumer behaviour Infrastructure solutions are available today via regional / global service providers Online media and Social networks Digital Products & Services Delivery and fulfilment options Digital Marketing & Advertising Aspirational brands Spending Power (as represented by GDP per capita) Bangkok $12,251 Jakarta $7,207 Delhi $3,580 Manila $4,763 Ho Chi Minh $5,100 Payment Networks Cloud / Computing / 8

9 Takeaway #1 Combined, Top 10 Metros of SEA is a ~100mn, homogenous market with projected US$50+B potential for online consumption ** ** ** Jungle Portfolio 9

10 Looking closely at Indonesia s middle 10

11 mil Indonesian middle & affluent consumers (MAC) projected to be >50% of population by 2020, with majority increase coming from outside Jakarta : 74mil 2016 : 108mil 2020 : 141mil Today, 50+mn MAC consumers are outside Jakarta, expected to double over this decade Poor Aspirant Emerging Middle Middle Upper middle Affluent Elite Source: BCG Population and Household Expenditure Report 2012 *MAC is defined as basic household monthly expenses (only includes expenses i.e. food, utilities, transport, communication, excludes discretionary spending) of over 11

12 Social network (90%+) and IM (50%+) usage is already high amongst both urban and rural populations who are online 91%+ online users are active on social networks and 50%+ use IM apps Implying substantial time spent and comfort with usage Online shoppers as % of total online population more than doubled in just Implying ecommerce is growing fast but still comprises ~30% of online population Source: Credit Suisse Indonesia Consumer Survey 12

13 Takeaway #2 Indonesia s growing MAC is a large homogenous market with significant online potential over the next decade for start-ups to dominate ** ** ** Jungle Portfolio 13

14 Investors and startups need to deeply evaluate what they are building / funding, and accordingly, plan to go wider and / or deeper in new markets Consumption-based Target the metro cities initially, build brand and go deeper with each customer s spend An ideal business at scale has presence in 5+ large metros and with 0.5m+ shoppers in each metro spending 100$+ per year on the platform sees net revenues of $250m+ with high gross margins of 30%+ Network-based Target large populations/ user bases and go broad with what you can layer on as services An ideal business at scale has user sets of 50m+ users spending 40$+ per year resulting in $2b+ in revenues/ GMV but with thinner gross margins (net take rate) of 14

15 Thank 15

16 IMPORTANT NOTICE TO RECIPIENTS These Materials ( Materials ) are based on information provided by independent third parties reasonably believed to be reliable and are being shared with a limited number of parties who have expressed interest in the same. These Materials do not constitute an offer or solicitation to sell or purchase any securities or investment advisory services. By accepting these Materials, the recipient agrees (in addition to any obligations it may have under a Confidentiality Agreement executed with Jungle Ventures) that neither it nor its agents, representatives, directors or employees will copy, reproduce or distribute to others these Materials, in whole or in part, at anytime without the prior written consent of Jungle Ventures and it will keep confidential all information contained herein or otherwise made available by Jungle Ventures. Neither Jungle Ventures nor any of their respective affiliates, employees or representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in these Materials or any other information (whether written or oral) made available in connection with the investigation of investment opportunities by Jungle Ventures. Only those particular representations and warranties, if any, which may be made to a party in a definitive written agreement regarding a transaction involving Jungle Ventures, when, as and if executed, and subject to such limitations and restrictions as may be specified therein, will have any legal effect. Jungle Ventures and their respective affiliates, employees or representatives expressly disclaim any and all liability relating to or resulting from the use of these Materials, any errors therein or omissions therefrom or the use of any other related information by a prospective investor or any of its affiliates, agents or representatives. These Materials do not purport to be all inclusive or necessarily to contain all information that may be material with respect to any potential investment led by Jungle Ventures. In all cases, each recipient should conduct their own independent investigation and analysis of the information contained in these 16