4. Mobile Solution
$370 M investment
e-commerce
SELL, BUY, RENT, GIVE AWAY
Webshop
For SMEs
And A Global Solution
Product &
services
Vehicle
Real estrate
Jobe
6. Perfect precondition for
online classified
Large population
and technically
mature
Uncharted territory
for online services
After sanctions
boom
Largest economy
in the World in
2014
18th
Mobile
penetration
142%
Cities with over
1M population
8
Iran’s monthly
minimum
wage
$250
Out of 140
countries for
Global
competitiveness
74th
7. e
BEST TIMING
Low domestic &
International
competition
Weak domestic
Competitors –
International
obstacle
First-mover
advantage
ONLINE
CLASSIFIED
RIGHT BUSINESS SEGMENT
Proven concept
Available
investment
capital
9. De-facto standard in all emerging markets
Revenue model and Industrial capital attraction
Free and Upsell
See slide Finance
Webshop
much easier than second-hand
for monetization
#1
INVESTOR IN
EMERGING
MARKET
#2
INVESTOR IN
EMERGING
MARKET
10. ATTRACTION
PHASE
4
Company value
51% of shares: € 10 M
$ 5 M investment for 3 years
invest by shareholders
And finally even attract
investor such as Naspers
$50M
11. years
Vostok C2C valuation in Iran
$1B+ after 6 years
and still not a success
Comparable to current
valuation of
Avito
$2,7B
6
THE
WINNER
TAKES IT ALL IN
14. 01
Assets, organization and
execution in control.
Organization, clear targets and execution
02
Superior technology approach
Deep system development
know-how
03Deep domain, market knowledge
and network
04
05
06
Create network effect
Reach customers belonging to existing seller
networks
Create value for thousands of network owners (SMEs)
Use network owners as early adopter
Free web shops for retailersэ
Offer free web shop to thousands of
small businesses.
Mass import permanent & higher quality
content
Right local partners mean political protection.
Established local partner/Investors with both resources
and right connections.
Public listing in Iran through Iranian investment bank
STRATEGY
CATCHING THE MARKET
15. Same goal as competitors,
but different strategies
Iran has 850,000 small
independent outlets,
boutiques and stores, about
one for every 90 people. There
is a huge desire to go online
WHOLESALE
RETAILERS
BUYERS
WEBSHOP
IN MIN5
FREE MICRO WEBSHOPS BRING
1. MASS VOLUME
2. QUALITY CONTENT
NEW GENERATION MOBILE APP
WOULD TAKE OVER
SECOND HAND MARKET
1POINT
16. FREE MICRO WEBSHOPS GIVES FREE
ACCESS TO RETAILER’S NETWORKS
& WEB TRAFFIC
RETAILERS
WOULD PAY
TO GO ONLINE
QUALITY CONTENT
ATTRACT
CUSTOMER
Iran largest grocery
retailer has a market
share of just 1.4%
of population have shown
interest in competitor’s
services2POINT
1.4% 2.0%
Same goal as competitors,
but different strategies
Iran has 850,000 small
independent outlets,
boutiques and stores, about
one for every 90 people. There
is a huge desire to go online
17. 3POINT
Same goal as competitors,
but different strategies
Iran has 850,000 small
independent outlets,
boutiques and stores, about
one for every 90 people. There
is a huge desire to go online
SECOND-HAND
GOODS
SECOND-HAND
SELLERS
SECOND-HAND
BUYERS
COMPETITORS’ WAY
With 1/10 of Block’s design, functionality,
security and everything else
18. B2C revenue model as affiliate network
Publisher with own traffic signs up in the
advertiser’s affiliate program
e
ADVERTISERS
(retailers)
In addition to upsell, resellers can
buy different type of affiliate
advertisement
PPS/PPA/CPC/CPM
QUALIXA
as affiliate marketing
provider
Provides subscribable and
traceable advertiser’s feeds to
WEBLOGS, WEBSITES ETC.
PUBLISHERS
(affiliates)
Anyone clicking on the ad will be
redirected to retailer’s
WEBSHOP
CONSUMERS
(buyer)
Publisher gets
commission when
the consumer
purchase from the
advertiser
SITES &
APPS
19. Competitors review
# Name
E-commerce
type
Type of
ad
# ads per
Per day
#
Staff
Pomegranate
Investment
Opportunity for future
investments
1 Digikala
4 years old
Private webshop
(e.g NetOnNet)
Home
Electronic
-
1000
$17 M
(For 5%) Reason:
Lack of C2C option
Yes
Reason:
Lack of other option
2
Divar
5 years old
Online classified
(e.g. Blocket)
Used
Items
13000
Due toTemporary
Monopoly of Iran
Android Market
50
$0.5 M
(For 2%) Reason:
Unintentional
Investment
No
Reason:
Culture Clash
3
Shaypoor
4 years old
Online classified
(e.g. Blocket)
Used
items
4000
Spends a
lot of money
40 $2 M
(For 30%)
No
Reason: Very Poor
performance
4
Bazaargahan
(Qalixa)
1.5 years old
Public Retailers
webshops
(e.g Alibaba)
+
Online classified
(e.g. Blocket)
Retailers
goods
+
Used
items
2000
Lack of resources
to handle it
5
0
Was already stuck in
two earlier C2C
investment
Yes
Reason: Could
Bypass Competitors
23. Average monthly salary in Iran 750 $ Operational costs are included, i.e. office and equipment
Average monthly salary in Sweden 8 000 $ Operational costs are included, i.e. office and equipment
COA in Iranian currency 1 000 IRR Cost of CPC in Iran
Cost Of Accusation (COA) per visitor 0,028 $ Cost of CPC in Iran
COA yearly reduction rate COA/year # Will be reduced per year (Blocket Marketing cost = Operational cost * 2)
Ad fee 0,0 $
Is calculated as an average, based on the average income level in the country (Sweden is
40.) Fee will be introduced for selected vertices in major cities (eg property in Tehran) over
time, the site becomes attractive.
Webshop fee 0,0 $ Limited number of articles (ex. 200), First year completely free.
Average upsell cost 1,5 $
Upsell means when the ads in different ways is become more visible (VAS in Avito). Is
calculated as an avr, based on the average income level in the country (Sweden is 40 kr)
Premium webshop yearly fee 250 $ In Sweden 9000 kr
C2C ads in % of total visitors 5% Tested in the field
Company per day/person 3
Most of the job is automated. The target is 4 companies with limited number of items (eg
200) per person per day.
Average # of ads per company 250 Tested in the field
Dedicated B2C resources 50% Ratio
Input parameters - costs
31. Funding
1
YEAR
2
YEAR
3
YEAR
Go live with xxxx within 6 month,
demonstrate influx of B2C ads and traffic
Develop mobile app, launch improved e-
commerce web and mobile solution.
Increase influx of ads and traffic
Marketing and growth
Continued development of the e-commerce Business
Intelligence Engine.
The core that learn about customer behaviour to provide relevant
and attractive offers that add value. This value will attract upsale
Growth
Growth
Growth
_______
____
Founders
Angel capital
Venture capital
Public capital
0,8
2,0
-
-
0,8
2,0
-
-
0,4
1,0
-
-
M$
valuation In
6 years$500M
34. E-commerce platform cornerstones - overview
Product characteristics that enable a competitive strategy
Easier to attract small businesses.
Batch-publishing
possibilities for business ads, e.g.
Apparel, Home appliances.
More business ads lead to more
private ads.
An app with Wallapop characteristics
would attract private mobile users.
More focus on verticals.
Real estate, Autos and
eventually Jobs.
Would attract private persons
more easily.
Requires a more vertical
specialized platform.
COMPETITIVE
STRATEGY
37. 4 MUST HAVE CHARACTERISTICS
OF #1 CLASSIFIED APP
Must have characteristics in
order to challenge US
Craigslist and other major
European players such as
Blocket
There is no mobile
solution that fulfills
all characteristics
Wallapop is just a small but
important step in the right direction
The App that places right in the middle
could get #1 position
39. Timing - Market & Businesses
A True Mobile, Vertical & Business Centric Classified Platform Could Compete in Many Countries
Real estate, Auto, Job, General
First Iran
Then selected countries MENA region
Then selected western countries
40. Source: SimilarWeb, 25 March 2016
Online Classifieds in IRAN
Still only used
by 5% of
population
25% from
small
businesses
80% from
larger cities,
40% Tehran
Instead of the second-hand
culture-building strategy, focus
should be on high volume of ads
from small businesses & verticals
like Auto & Real estate
41. Online Classifieds in IRAN
Source: SimilarWeb, 25 March 2016
Remarkable note
Almost no traffic changes
during past 6 months
Visits per day Ads per day
160 K 16 K
40 K 4 K
43. The Team, Leadership & Execution
A centralized head in Sweden,
developing and maintaining
different type of e-commerce
products based on few
common components for
different markets
Better and cheaper product,
made by experts in each
particular domain
Based on Mixed Schibsted
(Product Clones), Rocket
Internet (Multi Segment) and
Kinnevik (Saltside org.)
strategies
Possible to begin
simultaneously in several e-
commerce segments / markets
CEO
CFO
CMO
CTO
COO
R&D
Platform
SOFTWARE
FACTORY
HEAD &
Platform Clone
Country Managers
Marketing
Operation
&OPERATIONS
BODY
45. Our Strategies
IRAN
CORE
Focus on growth and liquidity in all
winnable verticals and cities
Focus on success factors which are best in
class team, leadership & core values
Build products and services that in
comparison end up as No. 1
Make every step measurable, be agile and
change quickly
Pay only for results and be stingy otherwise
e
46. Our Strategies
IRAN
Mobile solution are the highest priority for
second-hand leads from private persons
Build a contemporary and superior mobile
app compared to competitors
Build on knowledge, investigation,
experience and not guessing
Copy existing solutions from other, find
weaknesses and improve upon them
Make mobile solution suited even for small
businesses with vertical support
MOBILE
SOLUTION
e
47. Our Strategies
IRAN
Small businesses are the largest winnable
group in emerging markets
Build a product with additional support for
SMEs, Real Estate and Auto agents. Let
SME be the premier marketer of the
product & services
Create partnership with the most
influential Real Estate and Auto agents
Focus on targeted marketing such as
telemarketing and face to face
marketing
SME &
VERTICALS
e
48. Our Strategies
IRAN
“Quality in all” is the best marketing
strategy
Focus on one city at a time
Use targeted marketing to attract sellers
and mass marketing to
attract buyers
Focus on mobile, social and online as the
primary mass marketing channels
Be frugal with domestic TV, Radio
and newspaper marketing
MARKETING
e
50. Product features (1/3)
Features Qalixa Wallapop Divar Sheypoor
Account registration
Email + Password ✓ ✓ ✓
Google ✓ ✗ ✗
Facebook ✓ ✗ ✗
Phone number + SMS ✗ ✗ ✗
Share account on multiple devices ✗ ✗ ✗ ✗
Messaging over IP
Text, Photo, Voice, Video & files ✓ ✗ ✗
P2P Voice call ✗ ✗ ✗ ✗
P2P Video call ✗ ✗ ✗ ✗
Outside app communication
Phone call ✓ ✗ ✓ ✓
SMS ✓ ✗ ✓ ✓
MMS ✓ ✗ ✓ ✓
Mail ✓ ✓ ✓ ✓
51. Product features (2/3)
Features Qalixa Wallapop Divar Sheypoor
Location awareness
Post ✓ ✓ ✗ ✗
Search ✓ ✓ ✗ ✗
Vertical support
4 separate verticals ✓ ✗ ✗ ✗
Sharing (Photo, Video, Ads)
Broadcasting Channel (Unlimited Audiences) ✗ ✗ ✗ ✗
Group ✗ ✗ ✗ ✗
Post
Post ad without account ✓ ✗ ✓ ✓
B2C
B2C Taxonomy ✓ ✗ ✗ ✗
Webshops ✓ ✗ ✗ ✗
Mass publishing ✓ ✗ ✗ ✗
Security (Caller ID, IP Track, Block) ✗ ✗ ✗ ✗
52. Product features (3/3)
Features Qalixa Wallapop Divar Sheypoor
For sale ✓ ✓ ✓ ✓
For rent ✓ ✓ ✓ ✓
Condition
Used ✓ ✓ ✓ ✓
New ✓ ✗ ✗ ✗
Internationalization
Language, currency & unit support ✓ ✓ ✗ ✗
Contact Integration
Phone, Google, Facebook ✓ ✗ ✗
Platforms
Web ✓ ✗ ✓ ✓
Android ✓ ✓ ✓ ✓
iOS ✓ ✓ ✓ ✓
Windows, Mac OS, Linux, Blackberry ✗ ✗ ✗ ✗
53. e-commerce Web & Appe
Features
Mobility B2A
Web design optimized for all type of devices Business & Private ads
Location aware search & post Comprehensive & standardized taxonomy and attributes
Search on map
Rich Product Data (~ 2 million product . Description, Attributes,
Images, reviews, in almost all languages)
Sort by distance Condition Support - Used & New
Horizontal & Vertical Automated online shop
Product & Services, Vehicle, Real Estate, Job Mass product publishing for businesses (5 million per hour)
Product & Services based on Google Merchant categorization
Mass-import of quality content – Companies from all main
Affiliate program could be connected
Ready for 10+ veticals (Services, Apparel, Consumer Electronics,
Food & Beverage, Entertainment etc)
Global
Private, Business, Sell, Buy, Rent, Used & New Full Internationalization & Localization Support
Support new EU job standard (ESCO) Language, Currency, formats and units Support
Qalixa as comparison engine Different Domain – Same platform
54. The Roadmap
Raise funding 5 MUSD
Go live with XXXX solution within 6 months – prove influx
of companies and B2C ads and build traffic
Develop mobile app v 2.0, 3 months, launch XXXX mobile
solution to further grow number of companies and traffic
2018 2019 2020 2021 2022
Marketing and growth of B2C and C2C
offering
Further develop the platform. Create an
engine that will understand visitor interest
and promote relevant offerings, to create
added value and more effective sale
Growth
Growth
Growth
Based on result from year
3. Raise funds to grow to
a $ 500 M valuation
company.
Growth, growth and
growth