Presented by: Pari Natarajan

Co-Founder & CEO, Zinnov

Automating SMBs

Business pyramid in India

Small Business (1-99 EEs)

Medium Business (100-999 EEs)

~50M

~120,000

Mid-Market(1000-10,000 EEs)

Large Enterprises(10,000+ EEs)

~5,000

~100

Sizing ‘Down’ the SMB market

Total Number of SMBs in India (2012)

Addressable opportunity of SMBs in India

• Rural businesses• Mom and pop stores in

retail vertical• Businesses without

fixed premises /hired employees (excludes professional services)

Excluded after filter

22 %

45M

10M

Source: Zinnov Analysis

Numbers broken down

Vertical # Firms

Retail 1.96

Manufacturing 1.17

Professional Services

1.87

Food & Entertainment

0.96

Travel & Hotels 0.81

Logistics 0.59

Education 0.89

Real Estate 0.83

Automotive 0.36

Less than 10

employees

9.5 M

(94%)

11 to 100 Employees 0.5 M (4%)

101-1000 Employees 0.2M (2%)

21%

20%

13%10%

10%

8%

8%

6%4%

10M

0.5Mwith websites

2M on Internet

5M with PC

10M Addressable SMBs

Technology Penetration

Payments/Collections

Business services

Customer acquisition

Automation Opportunities

Regulation and compliance

Supply chain cadence

Employee Attrition

SMB Technology Adoption Challenges

Lack of role models

High cost for support

Unclear Return on Investments

Lack of relevant technology solutions

Lack of focus from technology vendors

Data Security Fears

Supplier Challenges

Lack of solution selling capability

Lack of market awareness

High cost of feet on street

High cost of support

Too much hard work!

Lack of relevant products

SMBs

Prof. Services

Large firms

Suppliers

Infrastructure

StatutoryIncome

Tax

Associations

Employees

Financial InstitutesCustomers

VendorsGovernment

SMB

Connected Enterprises = Enterprise+

Enterprise+ Example

Loan Request Directly into Bank’s Loan Processing System

AP, AR, GL Applications in the Cloud

Bank’s Credit Risk Model in

the Cloud

Connected Cloud

Track Invoice Status in Real Time

Social Sentiments AnalyticsEnterprise

Adjusted Interest Rate

Thank you

Thank you

Know your SMB Customer

• Lack of defined business processes

• Business run for subsistence

• 1st generation owners

Unorganized 55%• Well defined business processes

• Most information is captured on paper

• 1st and 2nd generation owners

Traditional 28%• Well defined business processes

• Passionate to grow using technology

• 2nd generation owners

Savvy 12%• Industry benchmarks / best practices

• Keen to evolve as an enterprise

• 2nd generation owners

Sophisticated 5%