Mobile Appsfor

Low Data Penetration Markets

August 2010

HUGE AUDIENCE (>600M connections, 400M unique users)

DIMINISHING ARPU(consistent fall, Postpaid <Rs 200, Prepaid <Rs 100)

LOW DATA PENETRATION (single digits or at best low teens)

MANY PLAYERS (14 operators, innumerous VAS players)

THUS VERY HIGHLY COMPETITIVE

ALL PICKING LOW HANGING FRUIT

(ringtones, wallpapers, etc)

SEARCHING FOR THE NEXT CRBT

(struggling …. )

WHAT DOES THE CONSUMER WANT?

(Should expensive research be carried out?)

COMPLEX CONSUMER(geographically distributed, multilingual, multicultural, illiterate, etc)

YET HIGHLY PRICE SENSITIVE

(quick to reject)

WHY NOT EMPOWER THE CONSUMER?

(let her build what she/her near and dear ones want!! )

VALUE ADDED SERVICES(providers searching for VALUE ?

Consumer knows what is VALUE for her!)

OPEN APP PLATFORM?(successful world over)

DEMOCRATIZE(however don’t forget the eco-system and its challenges)

LEVERAGE “LARGE AUDIENCE”(utility for the masses …)

REACH THE MASSES(SMS or VOICE)

MONETIZE THE MASSES(reach the masses)

MULTIPLE BUSINESS MODELS EMERGING

CONSUMER PAYS(per transaction, subscription, all you can eat time bound packages)

CORPORATE MARKETING SPONSORSHIPS

(reach target audience – traffic alerts)

CSR SPONSORED(social messaging – environment, health etc)

GOVT. SPONSORED(social messaging – health, safety, education, RTI, etc)

GupShup App Platform makes SMS apps easier

Network

App Platform

Open web-based APIs

MO / MT integrationhttp or smpp interface

Apps

Everything required to rapidly develop and deploy new SMS-based applications:

- Open APIs- High level abstraction of carrier/network- Simple, script-based programming- Rich documentation and sample

programs- Instant activation and launch- Analytics and reporting tools to track

adoption- Revenue share mechanism built-in

GupShup App Platform offers Carriers significant benefitsFor Consumers:• More apps – “Long Tail” of apps• More choice – can evaluate multiple

developers• More value – competition reduces prices

For Developers:• Reduced cost of development• Quick and easy deployment

For Carriers:• Outsourced innovation• Don’t have to invest promotional resources

until after apps prove themselves• Increased engagement and retention of

mobile subscriber• New, incremental messaging volume• Very limited effort required

Higher ARPU

Reduced Churn

Drive innovation

FACILITATES 2-WAY COMMUNICATION

EASY TO BUILD (open APIs)

RAPID DEPLOYMENT(plug n play)

EARN MONEY (revenue share from SMS GupShup)

ENHANCES ARPU FOR CARRIERS

1. App Platform makes developing SMS apps quick and easy

2. Drives innovation and discovery of new apps

3. Improves ARPU and Churn

Proven Success in India (35M Users / 1.50B SMS per mo)Robust, scalable, high-performance technology

Silicon Valley entrepreneurs, experienced management, strong finances

Dozens of apps launched already on GupShup

SMS GupShup is well led, with strong backing

• Founding Team:– Silicon-valley based serial entrepreneurs Rakesh Mathur (previously founded

Junglee, Stratify, Armedia) and Beerud Sheth (previously founded Elance)

• Management Team:– Experienced managers in technology, product, sales, marketing and business

development each with 15-25 years experience

• Organization:– Incubated at IIT Bombay, India’s top engineering school– More than half the team consists of IIT graduates

• Investors:– Raised $25M from Charles River Ventures, Helion Ventures, Private Equity

funds, and friends & family.