For the complete report, get in touch with us at : info@netscribes.com Mobile Commerce is the activity of commencing commercial transactions between both B2C and B2B entities via mobile devices. Indian retail market has experienced high growth over the last decade with a gradual shift towards modern retailing formats. With growing numbers of mobile devices and mammoth wireless subscriber base, the focus is slowly shifting to mobile platforms. Leveraging on enhanced reach like MVAS and diverse features like of e-commerce, m-commerce is poised for greater adoption acrossIndia, in the coming years. Although mobile commerce market inIndiais in nascent stage, m-payment and m-banking segments have shown significant growth over the last few years. Initiative taken by the government and financial organizations to reachIndia’s un-banked population can ensure tremendous growth in the latter segments. There are around 600,000 territories that require banking facilities but only around 89,000 bank branches are there in the country.

1. Mobile Commerce Market in India
March 2012

2. Executive Summary
M-commerce market in India will generate around INR x1 bn revenue per annum by 20--
M-payment services in India are served largely via IVR, SMS-based solutions and mobile apps
Market
Volume of Mobile banking or m-banking transactions has increased by roughly x2% over 20--,
to reach x3 mn in 20--
Drivers: Challenges:
Rising Mobile Device Adoption and Low Penetration of Advanced Mobile
Drivers & Colossal Wireless Subscriber Base Devices in Rural Areas
Challenges Increase in Disposable Income and Low Awareness and Lack of Interest
Economic Advancement Security and Privacy Concern
Introduction and Availability of Next
Generation Cellular Networks
Increasing Availability of Credit
Mobile Wallet
Market Trends Utility Services
Financial Services for Rural Consumers
Major Players
M-Commerce CanvasM Technologies Ltd. Geodesic Ltd. JiGrahak Mobility Solutions
Player Profile
One97 Communications Ltd. OnMobile Global Ltd. Oxigen Services Pvt. Ltd.
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 2

3. •Introduction
•Mobile Commerce Overview
•Drivers & Challenges
•Market Opportunity
Vendor Opportunities
•Market Trends
•M-Commerce Player Profiles
•Strategic Recommendations
•Appendix
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 3

4. Introduction
Mobile Commerce (M-Commerce) Overview
•Mobile Commerce is the activity of commencing commercial transactions between both B2C and B2B
entities via mobile devices
It is a part of the broader, e-commerce market which accommodates any commercial transaction via internet
•Increasing tendency to save time and energy, especially amongst the working population will further
intensify the e-Commerce market by a large extent
Mobile Commerce (m-Commerce) is a segment of Mobile Value Added Services (MVAS)
•MVAS are the services provided by telecom operators directly or indirectly, beyond standard voice calls
Essential Features of M-Commerce System
Mobile Commerce
Feature1 Feature2 Feature3
• Ideal_charecteristic1 • Ideal_charecteristic1 • Ideal_charecteristic1
• Ideal_charecteristic2 • Ideal_charecteristic2 • Ideal_charecteristic2
• Ideal_charecteristic3 • Ideal_charecteristic3 • Ideal_charecteristic3
• Ideal_charecteristic4 • Ideal_charecteristic4 • Ideal_charecteristic4
• Ideal_charecteristic5 • Ideal_charecteristic5 • Ideal_charecteristic5
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 4

5. Retail Ecosystem with M-Commerce
Traditional Retail Supply Chain Modern Retail Supply Chain Mobile Retail Supply Chain
Company/ Company/
Company/
Manufacturer Manufacturer
Manufacturer
Back End
Front End
Consumers
Consumers Consumers
•Traditional retail supply chain comprised of various intermediaries due to which costs increased at every level
•Modern retail supply chain eliminates intermediaries, increases profitability for producers and reduces costs for consumers
•Mobile retail supply chain uses m-commerce company as intermediary with optional role of intermediary1; the product and
services are served to the consumers via platform1, platform2 or platform3
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 5

6. … m-payment and m-banking have shown significant growth
over the last few years in the domestic market
Market Overview – India (-/-)
• Volume of Mobile banking or m-banking transactions has increased by roughly x1% over 20--, to reach x2 mn in 20--
• Penetration of mobile devices running on wireless network in rural areas of the country is still low, standing at around
x3-x4% as in the end of 20--
• M-commerce companies are optimistic regarding its growth in India following Reserve Bank of India revising restriction
on daily transaction via m-commerce
Daily mobile transactions limit were increased from INR x5 to INR x6 for money transfers, whereas the limit was raised from INR x7 to
INR x8 for goods and services
• Still around x9% of consumers are not aware of the mobile transactions facilities available while z1% consumers, who
are aware of m-commerce services, have serious concerns about the security offered by such solutions
• M-commerce is largely leveraging on e-commerce demand across the nation and hence revenue generated by the two
are often calculated collaboratively
Market size of e-Commerce is estimated to grow at a dynamic growth rate of z2% to reach INR z3 tr in 20-- from INR z4 tr in 20--
Transactions via M-Banking – Growth E-Commerce - Market Size and Growth
INR tr
2,000 3
+y1%
2 +y2%
1,000
1
0 0
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 6

7. Major MVAS Delivery Platforms for M-Commerce Services
Approximate
Delivery Platform Trends Applications
Cost
• X% of MVAS services are via Y
INR xx/unit • Caters to a wide audience as
XX • AAAAAAAAAAAAAAAAAAAAAAA
services are available even on low-
end handsets
• Strong growth expected due to
YY INR X/min mass appeal and ease of usage • BBBBBBBBBBBBBBBBBBBBBBBBBBBBB
• Available in various XX
• Directed towards consumers using
INR A/month for technologically advanced handsets
ZZ • CCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
usage • Growth in X mobile phones is
expected to boost demand
• Platform where interaction is in the
AA INR B/ month form of a continuous session as • DDDDDDDDDDDDDDDDDDDDDDD
opposed to an X
• XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 7

8. Mobile Commerce Value Chain
AAA BBB CCCC
WWW SDDD
IIII
GGG
FFFF EEE
HHHH
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 8

9. A comparison between the demand and supply side of
m-commerce system
M-Commerce Consumers M-Commerce Service Providers
(Demand Side) (Supply Side)
Objectives
• AAAAAAAAAAAAAAAAAAA
Objectives
M-Commerce
Platform
• AAAAAAAAAAAAAA
Requirements
• AAAAAA
Requirements
• BBBBBBBBBBBBB
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 9

10. SWOT Analysis of M-Commerce Market in India
Strengths Weaknesses
• Strength1 • Weakness1
• Strength2 • Weakness2
• Strength3 • Weakness3
• Strength4 • Weakness4
SWOT
Analysis
Opportunities Threats
• Opportunity1 • Threat1
• Opportunity2 • Threat2
• Opportunity3 • Threat3
• Opportunity4 • Threat4
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 10

11. Drivers & Challenges – Summary
Drivers
Rising Mobile Device Adoption and
Colossal Wireless Subscriber Base
Increase in Disposable Income and
Economic Advancement Challenges
Introduction and Availability of Next Low Penetration of Advanced Mobile
Generation Cellular Networks Devices in Rural Areas
Increasing Availability of Credit Low Awareness and Lack of Interest
Soaring Enterprise Mobility Security and Privacy Concern
Changing Demographics and
Consumer Behaviour
Growing Demand for Rich Digital
Contents
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 11

12. Market Opportunity - Potential Verticals (-/-)
• Mobile commerce can cater to various services of different verticals
• M-commerce not only ensures enhanced exposure for variety of products but also maximum reach
due to the presence of mammoth wireless subscriber base in the country
• Sector1 consists of segmentx1, segmentx2, segmentx3, segmentx4 and segmentx5
• Market size of the sector can be presented in the combined form of INR x1 tr and x2 mn unit consumption per
Sector1
annum as of 20--
• MVAS can be implemented by processx1, benefitx1, usagex1 and applicationx1
• Sector1 consists of segmenty1, segmenty2, segmenty3, segmenty4 and segmenty5
• Market size of the sector can be presented in the combined form of INR y1 tr and y2 mn unit consumption per
Sector2
annum as of 20--
• MVAS can be implemented by processy1, benefity1, usagey1 and applicationy1
• Sector1 consists of segmentz1, segmentz2, segmentz3, segmentz4 and segmentz5
• Market size of the sector can be presented in the combined form of INR z1 tr and z mn unit consumption per
Sector3 annum as of 20--
• MVAS can be implemented by processz1, benefitz1, usagez1 and applicationz1
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 12

13. Vendor Opportunities – Prospective Areas (-/-)
Area1
• Area1 hold the third largest share in 20-- as it was worth INR x1 bn and accounted for x2% of the overall e-Commerce
market in India but is predicted to have higher share when it comes to m-commerce
• Advancement in the BFSI sector has resulted in rapid computerization and immense involvement of IT infrastructure
Modernization and technological development in the sector has led to the emergence of net banking and other online transaction
concepts tremendously
Currently, all financial organizations and institutions in India support and encourages the use of internet for their day to day operations
Majority of the nationalized banks in India currently supports online banking which in turn further fuels growth in the market
• The segment is expected to attain a CAGR of x3% to reach INR x4 bn in 20-- from INR x5 bn in 20--
Area1 -Growth Area1 -Segments
INR bn
Area1
30
+y1%
20
10
0
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 13

14. Market Trends
Introduction of • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
Biometrics in
Trend1 • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb
Education • ccccccccccccccccccccccccccccccccccccccccccccccccccccc
Biometric ID Cards • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
for Public
Trend2 • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb
Transportation • ccccccccccccccccccccccccccccccccccccccccccccccccccccc
Biometrics • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
Application in
Trend3 • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb
Customs • ccccccccccccccccccccccccccccccccccccccccccccccccccccc
• aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
Trend4 • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb
• ccccccccccccccccccccccccccccccccccccccccccccccccccccc
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 14

15. Public: Domestic Company – Company1 (-/-)
Company Information Offices and Centres – India
Adress line1
Corporate Address Adress line2
City. Country
Tel No. +91- --- - -----
City Name
Fax No. ++91- --- - -----
Website www.------.com
Year of Incorporation 19--
Ticker Symbol ------
Stock Exchange Exchange1 Head Office
Products and Services
Category Products/Services
Key People
• Utility VAS Solution
Name Designation
• M-Commerce Solution
MVAS Products
• Mobile App development Mr. X Chief Executive Officer
• Digital Asset Management Mr. Y Chief Financial Officer
Mr. Z Chief Operating Officer
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 15

16. Public: Domestic Company – Company1 (-/-)
Financial Snapshot Key Ratios
Revenue Profit y-o-y change
Total Income Net Profit/Loss Particulars 2011 2010 2009 2008
INR mn INR mn (2011-10)
c4 Profitability Ratios
150 8
Operating Margin 2.23 0.74% -1.49% -9.59% -10.70%
c2 c3 6
100 Net Margin -34.74 -35.26% -0.51% 1.00% -37.12%
c1 4 Profit Before Tax Margin -53.05 -53.57% -0.51% -25.32% -12.44%
50 Return on Equity -10.93 -11.06% -0.14% 0.21% -5.79%
2
Return on Capital Employed 0.18 0.06% -0.12% -0.55% -0.48%
0 0
Return on Working Capital 78.72 77.98% -0.74% 0.18% -3.99%
20-- 20-- 20-- 20-- Return on Assets -2.26 -2.29% -0.04% 0.05% -1.56%
Return on Fixed Assets -2.88 -2.94% -0.06% 0.09% -2.98%
Financial Summary
Cost Ratios
• The company incurred a net profit of INR a1 mn in FY 20--, as Operating costs (% of Sales) -2.95 99.22% 102.16% 112.14% 113.76%
compared to net profit of INR a2 mn in FY 20-- Administration costs (% of
1.04 18.03% 17.00% 15.75% 18.00%
Sales)
• The company reported total income of INR a3 mn in FY 20--,
Interest costs (% of Sales) 20.57 63.33% 42.77% 45.59% 29.69%
registering an increase of a4 per cent over FY 20--
Liquidity Ratios
• The company earned an operating margin of a5 per cent in FY 20--, Current Ratio -54.82% 0.82 1.81 4.42 7.13
an decrease of a6 percentage points over FY 20-- Cash Ratio -96.41% 0.19 5.34 2.99 5.66
• The company reported debt to equity ratio of a7 in FY 20--, an Leverage Ratios
increase of a8 per cent over FY 20-- Debt to Equity Ratio 45.86% 3.82 2.62 2.92 2.72
Debt to Capital Ratio 6.85% 0.75 0.70 0.72 0.71
Key Financial Performance Indicators Interest Coverage Ratio 124.52% 0.01 -0.05 -0.27 -0.46
Indicators Value (--/--/20--) Efficiency Ratios
Market Capitalization (INR mn) 10,985 Fixed Asset Turnover -9.25% 0.08 0.09 0.07 0.06
Asset Turnover 18.69% 0.06 0.05 0.04 0.03
Total Enterprise Value (INR mn) 87,544
Current Asset Turnover 5.19% 0.47 0.45 0.11 0.07
EPS (INR) 48.39 Working Capital Turnover -308.15% -2.08 1.00 0.14 0.08
PE Ratio (Absolute) 66.9 Capital Employed Turnover 58.09% 0.29 0.19 0.16 0.12
Source: Improved Decline
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 16

17. Public: Domestic Company – Company1 (-/-)
Key Business Segments Key Geographic Segments
Product1 Product2 Product3 India Outside India
100% 100%
50% 50%
0% 0%
20-- 20-- 20-- 20-- 20-- 20-- 20-- 20--
Key Information
Description Details
• aaaaaaaaaa
Overview • bbbbbbbbb
• ccccccccccc
• It offers products in the areas of m-commerce, entertainment, media portals and interactive television
programming, mobile marketing, user-generated content and social networking, mobile utility, data and
Extended Product 3G, and information and network through mobile access channels, such as voice, SMS, WAP, USSD, voice,
Portfolio video, on-device portal, and Web
• Music products comprising Ring Back Tones (RBT), M-radio, reverse RBTs, devotional songs
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 17

18. Private: Domestic Company – Company2 (-/-)
Company Information Offices and Centres – India
Adress line1
Corporate Address Adress line2
City. Country
Tel No. +91- --- - -----
City Name
Fax No. ++91- --- - -----
Website www.------.com
Year of Incorporation 19--
Ticker Symbol ------
Stock Exchange Exchange1 Head Office
Products and Services
Category Products/Services
Key People
• Infotainment Services
Name Designation
• Mobile Media Contents
MVAS Products
• Mobile Voice Solutions Chief Executive Officer and Chief
Mr. X
• Call Management Solutions Operations Officer
Mr. Y President of Sales and Marketing
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 18

19. Private: Domestic Company – Company2 (-/-)
Financial Snapshot Key Ratios
y-o-y change
Particulars 2011 2010 2009 2008
Revenue (2010-09)
Revenue Profit / Loss Profit Profitability Ratios
INR mn INR mn Operating Margin -5.75 59.76% 65.51% 75.51% 84.64%
2,467,384.5
2,500,000 2,248,457.8 1,000,000 Net Margin -0.65 20.94% 21.58% 35.03% 43.42%
1,865,274.2 Profit Before Tax Margin 4.60 27.02% 22.41% 37.00% 46.07%
2,000,000 800,000
Return on Equity -0.44 16.63% 17.07% 44.01% 30.53%
1,500,000 600,000 Return on Capital Employed -3.04 57.06% 60.09% 121.39% 108.12%
1,000,000 770,874.4 400,000 Return on Working Capital -12.19 22.76% 34.95% 62.37% 51.28%
Return on Assets -0.41 16.59% 16.99% 43.60% 30.45%
500,000 200,000
Return on Fixed Assets 14.16 93.08% 78.92% 166.10% 98.92%
0 0 Cost Ratios
2008 2009 2010 2011 Operating costs (% of Sales) 5.58 36.86% 31.28% 22.96% 11.18%
Administration costs (% of
-3.68 14.87% 18.56% 18.79% 21.10%
Financial Summary Sales)
Interest costs (% of Sales) -0.01 0.04% 0.05% 0.00% 0.18%
• The company incurred a net profit of INR 470,723 mn in Liquidity Ratios
Current Ratio 19.05% 5.28 4.44 4.10 2.32
FY 2011, as compared to net profit of INR 402,544 mn in
Cash Ratio -19.59% 2.29 2.85 1.75 1.04
FY 2010 Leverage Ratios
• The company reported total income of INR 2,248,458 mn Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.
Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.
in FY 2011, registering an increase of 20.5 per cent over Interest Coverage Ratio 25.57% 1791.20 1426.42 #DIV/0! 488.03
FY 2010 Efficiency Ratios
• The company earned an operating margin of 59.8 per Fixed Asset Turnover 20.70% 4.21 3.49 4.65 2.17
Asset Turnover -0.12% 0.75 0.75 1.22 0.67
cent in FY 2011, a decrease of 5.8 percentage points over Current Asset Turnover -30.24% 0.83 1.20 1.32 0.64
FY 2010 Working Capital Turnover -33.35% 1.03 1.54 1.75 1.13
Capital Employed Turnover -0.31% 0.75 0.75 1.23 0.67
Source: Improved Decline
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 19

20. Private: Domestic Company – Company2 (-/-)
Key Information
Description Details
• Company2 is a mobile media company which offers solutions for discovery, branding and
revenue generation on the mobile platform
Overview
• It caters to content destination management, mobile content creation, aggregation and
mobile marketing
• It offers M-commerce solutions via SMS including contests, notifications, special offers,
alerts, WAP links, WAP portal development, mobile advertising, and content management
and distribution
Extended Product
• Its MVAS consultancy and support services include concept and ideation for brand
Portfolio
awareness, higher reach, lead generation, engagement, sales, interactivity, targeted
reach, and content delivery
• It also offers mobile online and offline games as direct consumer MVAS product
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 20

21. Strategic Recommendations (-/-)
• aaaaaaaaaaaaaaaaaaaaa
• bbbbbbbbbbbbbbbbbbbbb
Strategic Recommendation1
• aaaaaaaaaa
• bbbbbbbb
• ccccccccc
Strategic Recommendation2
• aaaaaaaaaa
• bbbbbbbb
• ccccccccc
Source:
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 21

22. Thank you for the attention
The Mobile Commerce Market in India report is a part of Netscribes’ Telecommunication
Series. For more detailed information or customized research requirements please contact:
Kalyan Banga
E-Mail: sales@netscribes.com
Netscribes (India) Pvt. Ltd. is dedicated to disseminating information and providing quick insights on “hot” industries in India and other
emerging markets. Track our new releases and major updates in these industries on
About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business &
corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base.
Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives.
Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Netscribes (India) Pvt. Ltd. or “Netscribes” is
not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required
for guidelines on reproduction.
MOBILE COMMERCE MARKET IN INDIA 2012.PPT 22