January 2008Mukul Singhal

Emerging Opportunities In High Growth Areas26th January PAN IIT Mentoring Workshop

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India Macro Trends

Outsourcing boom continues

Sustained high GDP growth

Passenger Vehicles

White Goods

Strong growth in consumption

Teledensity

33%

Vacations

30%

Mortgage

29%

11%8.3 %C

AG

R

Increased foreign direct investment

3.2

5.5

15.7

0

2

4

6

8

10

12

14

16

18

2004-05 2005-06 2006-07

FD

I ($

B)

120 %

* Source - Ministry of Commerce, GOI

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Mobile VAS

» Mobile Penetration, Handset Prices, Tariffs, Usage Behavior

» Opportunities› mCommerce – Mobile Banking, Ticketing, Travel & Holidays› Advertising – SMS, WAP› Payment Infrastructure› Entertainment – Group Messaging, Games, Dating, Chatting › SMS & IVR Based Data Services – Fleet Management, Sales

Force, Alerts

» Challenges› Payment infrastructure› Revenue share between operator and content provider› Low GPRS adoption

© Copyright 2007 Canaan Partners

Internet

» Access, Convenience and Discovery

» Opportunities› Information Services – Navigation, LBS, Travel & Holiday,

Local Search› Classified – Property, Auto› eCommerce› Online Financial Services – Comparative Shopping, Wealth

Management

» Challenges› Internet Penetration› Differentiation› Payment Infrastructure

© Copyright 2007 Canaan Partners

Software Products – Emerging Markets

» Scale and Centralization» Price Performance Gap

» Opportunities› Enterprise Automation – BFSI, Retail, Sales Force, CRM› Micro Payments – P2P Transfer, Pre Paid Top Ups, › Financial Inclusion

» Challenges› Target the right segment› Volume› Sales Capabilities

© Copyright 2007 Canaan Partners

Managed Services

» Outsourcing Still Lucrative!

» Opportunities› KPO – Analytics, Market Research› Direct to Consumers – Online Tutoring, Desktop Support,

Personal Assistance

» Challenges› Sales Capabilities› Scale

© Copyright 2007 Canaan Partners

Entrepreneurial Feedback

Source: Venturewoods 233 Votes

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Venture Catalysts for Next-Generation Market Leaders

» Early and Mid Stage Venture Capital Firm

» Sector Focus - Technology and Healthcare

» Celebrating our 20th anniversary in 2007

» $3 billion under management across 8 funds

» Current fund: Canaan VII - $450 million

» Developed over 250 venture companies

» 116 successful exits to date – 51 IPO’s and 65 M&A’s

www.canaan.com

Thank You