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Proven Product: Look at Auction houses globally
Big Market: Indian Market Assessment
Why Bidsvilla?
The Key Differentiators
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2
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5
Team and Culture
Financials
Showcase
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AUCTIONSGLOBALLY
Revenues 2014 of Global comparable
Global Auction Houses
Current Trends and What If
1700 1750 1800 1850 1900 1950 2000 2050$0.000 b
$1.000 b
$2.000 b
$3.000 b
$4.000 b
$5.000 b
$6.000 b
$7.000 b
$8.000 b
$9.000 b
Paddle 8, [Y VALUE]Auctionata, [Y VALUE]
Heritage Auctions, [Y VALUE]
Christies, [Y VALUE]
Sotheby's, [Y VALUE]
Bonhams, [Y VALUE]
Poly International, [Y VALUE]
Top line revenues 2013-2014
Traditional Auction Houses Online Auction Houses
How Global Auction Houses are Performing4
Formation year
Global Auction Houses5
Christie’sGlobal leader; $8.3 b revenues
Invested over $50b in expanding its online sales
Bonham’sLargest in UK
25% of the bids received online
Sotheby’s2nd Largest; $6b revenues
Partnered with E-bay for online auctions
Heritage AuctionsLeading Online/Collectible Auction HouseDiversification into many verticals
Paddle8$17m in fundingLeading Charity online auction house
AuctionataBiggest Online Auction house in Germany$90 m in Funding till date
Traditional Auction Houses Online Auction Houses
What If? Current Trends
Auctions are major source of revenue in the art market
English Auction | Simultaneous Auctions
Art
SBI and other banks auction their non-performing assets
English Auction System | Sealed Bid Auctions
Non-Performing Assets (NPA)
Flipkart auctions 100000 t-shirts
Disproportionate Discounting | Demand – Supply driven
Commodities
DLF auctions the Camellias penthouses (>$1 m each)
English Auction | Simultaneous/Sequential Auctions
Real Estate
BookMyShow auctions its exclusive show tickets
Reverse Auctions | Multi Unit Auctions
Booking
Exclusively.in auctions the season’s bridal collection
Limited Edition | Ascending Multi Unit Auctions
Fashion & lifestyleIPL players are auctioned among franchises
Sequential Auction | Ascending Auction
Tenders/Contracts
Globally huge auction market of collectibles. (>$10 b)
English / Dutch Auctions | Simultaneous Auctions
Collectibles and Premium Luxury
MARKETASSESSMENT
Auction Market Assessment
Segment in focus: Art, Antiques & collectibles
Segment in focus: Jewelry
Segment in focus: Real Estate, NPA & Public Sector
Market Segment in focus: Art, Antique & Collectibles
Information Asymmetry
Absence of a strong technology-based platform
Absence of authority on genuineness of Artwork
Handicaps
01
Strong methodology for authentication – Scientific Methods
Information – centric platform
Focus on showcasing methods and User Experience
Bidsvilla Advantage
02
Establish as the authority on Art & Collectibles through scientific authentication, expert alliances and efficient curation
03
Nascent Stage
Big Middle Class and inflating HNWI population
China Story: Can be repeated in India
Potential
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e0
500
1000
1500
2000
2500
1000
1500
2000
940
450 500650
950
1200 1200
1600
Market Size
INR
(Cr)
Market Segment in focus: Premium real estate
CAGR of 22% over the last 2 years
2.35 lakh crores from 45,000 crore in the year 2012
HNI population growing 20% YoY: 40% income spent on Housing
Potential01
Easy discovery of opportunities on aggregated platform
Custom auction design on various algorithms – for specific needs
Simplified and centralized processes
Bidsvilla Advantage
02
Differentiation and Branding opportunities - upgrade exclusive or last assets into super premium through auctioning
03
Short supply of premium real-estate
Untapped Demand Surplus
Cumbersome conventional practices
Handicaps
2006 2010 2015e 2020e0
20406080
100120140160180200
16
60
90
180
Market Size Linear (Market Size)
$ bi
llion
Market Segment in focus: Non-performing assets
Opaque Market
High Earnest Money Deposit (EMD)
Enrolling and on-boarding is a big hassle
Handicaps
01
Buyer centric | Hassle Free
Integrated processes increase participation
Help sellers to maximize revenues and increase sales
Bidsvilla Advantage
02
Buyers receive hassle-free experience on recurring auctions; Sellers achieve better price realization through integrated platforms
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CAGR of 25% over the last 6 years
Sell off NPAs: Government Mandate
>$100m worth of property listed every month for auctions online
Potential
2009 2010 2011 2012 2013 20150
5
10
15
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25
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50
-0.3%
0.2%
0.7%
1.2%
1.7%
2.2%
1.08% 1.12%1.00%
1.30%
1.70%
2.10%
NPA Value Percentage of Total Assets
Market Segment in focus: Jewelry, fashion & lifestyle
Absence of a market leader and aggregator
Need for differentiation in product for buyers willing to pay
Sellers can brand on exclusivity/ special/ last editions as premium
Handicap
01
Upgraded on new and online practices
Auctions not just as revenue generators but also differentiator
Sector already exposed to auction practices in a scattered way
Bidsvilla Advantage
02
New premium branding opportunities through differentiation – buyers willing to auction for exclusive goods for esteem/ social status
03
30% Growth YoY
35% of the contribution comes from tier 2 & tier 3 cities.
Trending in International Market; focused by Auctionata
Potential
2005 2006 2008 2010 2012 2016e 2018e0
100
200
300
400
500
600
700
800
64 74109
206
324
545
700
Jewelry
Market Size
INR
(Cr)
BIDSVILLA
The Auction House
Business Model
Tip of the iceberg: Art & Antiques
Retail Brand Synergies
EPEHEMERAL INDULGENCE, TIMELESS LEGACY
With efficient auction/trading algorithms, will achieve optimal price discovery in varied market conditions for revenue maximization
We will be
Amazon of Auctions
BidsVillaauctions
Business ModelTargeting the existing need for better price realization - Small & Big markets
75%
Auction MarketplaceSmall Sellers (by volume)
Fragmented Market
Inept at managing technology
> $40 Billion
Auction on Cloud Big players in premium segment
White collar product/service
Scope for premium branding, revenue increment
~ $12 Billion25%
TIP OF THE ICEBERG
BUSINESS TARGETSQuarterly auctions
Estimated Reserve Price > 10 crores
Presence across top 5 cities – Delhi NCR, Mumbai, Kolkata, Ludhiana, Bangalore
Focusing on 10 different categories in collectibles space per year
Upcoming auction: March, 2016
Categories in Focus: Modern & Contemporary Indian Art
Ubiquitous Model with slight variation across different product segments
Art Market
Current Auction Market Share of Art (India)
Saffronart: >94%Astaguru: ~100%Pundoles: ~100%
Market Perception:
Auction ≈ Art
Bidsvilla’s Strategy1. Enter through Art 2. Acquire buyer base & establish itself as an auction destination3. Expand to other verticals
Please click on this link to register for our upcoming Art Auction
Current Status2 Successfully conducted auctions: Our Vintage Publication Auctions had a 72% sales by volume $50000 in sales Bidsvilla is now a fairly acknowledged name in Indian Art World
RETAIL BRAND SYNERGIESSome identified low hanging fruits where auction model will be a direct benefit compared to traditional retail
Premium Real Estate Booking experience – shows, matches, events Premium & designer lifestyle
Event based e-commerce sales Client Synergy and Events Co-hosting Non-performing Assets
WHYBIDSVILLA
The four pillars of Bidsvilla
Technology
Knowledge Base
Momentum
Research
FOUR PILLARS
TECHNOLOGY
RESEARCH
KNOWLEDGE BASE
MOMENTUM
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3
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Slider
Content Ads
THE FOUR PILLARS: BIDSVILLA
01
Backend Technology StackScala | MySQL | Beanstalk | Play Framework | Socket JS Frontend Technology D3JS | ReactJS
With its technology and algorithmic research, Bidsvilla aims to create a state-of-art auction engine which caters to varied demand-supply scenario across all its product verticals.
Bidsvilla aims to create a trading engine which helps realize the optimal price point at which a particular commodity or a service can be traded.
TECHNOLOGY
02
Diligent market research in terms of current status and future prospects
Building over feedback from the market in product development
User Research & Cross vertical synchronization for a better experience
Individual Product Research to establish the rarity, uniqueness and authenticity
Algorithm Research to find the best fit for individual market dynamics
RESEARCH
03
• Thorough Research for individual products
• History, Story, Rarity, Authenticity
• Academically researched articles relevant to individual domains
• History, Personalities, Institutions
• Market Research across vertical published/unpublished
• Algorithmic Research Reports
• Plausible collaboration with Indian and Foreign Universities
KNOWLEDGE BASE
04
IN LAST SIX MONTHS
• Connected with almost all the top art galleries of India
• Conducted two successful unconventional auctions
• Conducted a charity exhibition: Touch (PR initiative)
• in association with JW Marriot, Aerocity
• Developed a fully functional auction platform with market feedback
• Highlights: Technology, Architecture, Design
• Sourced an inventory of over 10 cr for our upcoming art auction
• Revenues: $50000
MOMENTUM
KEY DIFFERENTIATORS
Fully featured Online Platform
Authentication Labs: Becoming the Authority
Varied and New Product verticals
Key DifferentiatorsThe key elements of the business which will enable us to take over existing competition while ensuring the creation of a high entry barrier for new players
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The next level Online PlatformBest Among peers UI/UX and back-end
technology
Patentable research in auction design
User –friendly content research for buyers
Aggressive vertical expansionThe model and platform are scalable to various verticals
Moving through art, collectibles, luxury, then to other high market verticals like NPA and real estate
Network effect: Collaborations & Brand Alliances
Authentication lab*No such solution exists in India
Capable of global standard scientific methodologies
Become authority on art amongst experts and buyers
The leading auction house in India, ready to scale the business up geographically.
TEAMAND CULTURE
A place investors can trust
Value for a good work culture
Directors say
A PLACE INVESTORS CAN TRUST
Ambarish GuptaFounder & CEOKnowlarity Communications Pvt. Ltd.
David AltunkaynakJiteshu Godara
DirectorMakeSense Derivatives B.V.
Financially prudent, the team has
achieved a good balance between attracting
good talent and keeping personnel costs
in an acceptable range. This has enhanced
their ability to disseminate funds effectively
on the marketing and brand building front successfully.
India as an emerging startup hub is
interesting for foreign investors like me.
The team, highly talented and
motivated, came with a unique idea,
which got me hooked. Looking at how the
company evolved and idea is taking shape,
makes me very excited for the future.
India is at a stage where the middle and upper middle class is now moving in the
sphere of luxury and showcase. Historically,
the best way to show that has been the arts and
antiquities of the time. Going by the China story, Indian diaspora is ready to invest in such
premium market and Bidsvilla is well
positioned to capture the boom in such a
scenario
DirectorStraight Options B.V.
VALUE OF A GOOD WORK CULTURESome of the earliest and senior most team-members
Jai Singh Chief Technology Officer
“For a startup, picking and investing in right set of technology and tools is a necessity. Here in Bidsvilla, we are working on cutting edge technology and building a top of class auctioning platform. I am hopeful that Bidsvilla is heading into the right direction and we would be pioneer in providing world class auctioning platform as service to the world.”
Nishtha Manchanda Head, Public Relations
“The opportunity I've got, to work with such a diverse group of people has been invaluable. There is a great team spirit and everyone understand their role and leave no stone unturned to give their best. This is a company where your good ideas are encouraged and fully supported. It is through curiosity and looking at opportunities in new ways that we've always mapped our path.”
Shrestha Mullick Head, Content & Curating
“Bidsvilla is a space where you learn and unlearn while connecting the dots in a flux. There are numerous possibilities when it comes to excavating and showcasing immense potential of cultural artefacts and discoveries. The camaraderie is unique and as each member brings out the best in the others so as to rise to the top.”
Rishi Raj Head, Business Development
“Working with Bidsvilla has been a singular experience where challenges emerge at breakneck pace only to be swatted away by the amazing team I have had the fortune to work with. The workplace is bubbling with unbridled passion and energy that complements our frantic speed of execution.”
DIRECTORS SAYSANCHITSARAFIITK Alumnus, a PhD dropout from University of Amsterdam. Derivatives trader for 3 years at Optiver. A puzzle expert, part-time researcher and great in mathematical modeling. Prides himself in his ability in solving problems, both quantitative and qualitative.
GIRIJESHJHAGirijesh started his journey as an entrepreneur when he was yet to move to his sophomore year at IITK. His endeavors recognized and often published in local and national media. Loves dwelling into socio-economic-political and philosophical issues. Strategy and execution are his strengths.
“Bidsvilla’s approach is to closely study the
problems from both buyers’ and sellers’
perspective and present a solution for both.
Acute understanding of the market situation
and implied opportunities is and will be our
core strength. Bidsvilla will be the name to
reckon when it comes to auctions and
alternative trading algorithms.”
“Through Bidsvilla, we want to unleash
auctions on to the world. The auctions are a
superb way for price discovery in this real-
time changing world, where supply and
demand are always at odds. It is the trading
mechanism of the future.”
BIDSVILLAFINANCIALS
Revenue Targets
Money Required
Cash Flow
Roadmap
REVENUE TARGETS30
Sales
Verticals: Art, NPA, Real Estate, Bookings, Premium lifestyleY0Y Target: year 1 (70 Cr)In the 1st year, there will be quarterly auctions starting month 2. The sales targets for individual auctions are 5 CR, 15 Cr, 20 Cr and 25Cr, with 5 Cr as shop sales.
RevenuesHigh Revenue Verticals: Art, bookings, premium lifestyle >15% Margin
Low Revenue Verticals: NPAs, Real Estate ~2% Margin1 2 3 4 5 6 7 8 9 10 110.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
Revenue and Sales
Cumilative Art Sales Cumilative Art Revenues
EXPENSE CHART
Tech Team, 18.0%
UI/UX and design, 3.6%
Business devel-
opment team, 35.5%
Legal, 0.7%Content,
3.1%
Digital marketing
team, 2.6%
Infrastruc-ture and Support
staff, 14.6%
Data Ana-lytics, 3.1%
Marketing/Events costs, 18.8%
CASH FLOW32
An auction every quarter is the main source of revenue. The minima of the cash flow is -1.5 Cr hence, just before the 2nd major auction. around 4 months
The expected break even point is month 8 at the 3rd auction after which we will have a recurring and increasingly positive revenue stream
1 2 3 4 5 6 7 8 9 10 11 12
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cash Flows
THE ROADMAP
Geographical Expansion• After acquiring 12-15% of domestic market
• Tremendous potential in western market
Premium Jewelry and Watches• Precedent: Auctionata (Europe); 24% sales by volume• Strategic partnerships for auctioning vintage products
Quarterly Major Art Auctions• Major revenue generator for self -sustenance
• Current sourcing capability of 10 Cr per auction • Year end target of 25 Cr sales per auction
Cloud Based Auction Suite• Already getting interests from market• Will launch after sufficient feedback/research• For premium brands
Collectible auctions• Focus Online, relatively low ticker• Diversification into various collectibles
like stamps, coins, publications etc.
Art & Collectibles: Already there• Already operating in this segment• Headed towards market expansion• Focus on new buyers
65
43
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1
SHOWCASE
Media & Publicity
Bidsvilla Events
MEDIA & PUBLICITY
Picture Place Holder - Drag Your Picture Here - Send it Back After Drag to Get the Blackish Creamy Effect
EventsAuction PreviewsTouch – PR Event
