Trade o’ Sports B-Plan

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Co-Founders Aatif Ahmed Misbah (HBS Class of 2011) Arindam Mukherjee (HBS Class of 2011) Founded: January, 2011 URL: www.tradeosports.com

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Transcript of Trade o’ Sports B-Plan

Page 1: Trade o’ Sports B-Plan

Co-FoundersAatif Ahmed Misbah (HBS Class of 2011)Arindam Mukherjee (HBS Class of 2011)

Founded: January, 2011URL: www.tradeosports.com

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Think India…think cricket crazy fans

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…a fast growing online sports community in India

Total Active Internet user base63 Million

Active Internet Users46 Million

18-35 years 28 Million

Sports Fans

• Internet penetration CAGR ~ 46%

• Our target segment (18-35yrs) is the core group

• Online Gaming market set to grow at CAGR ~ 36%

• Commercialization of sports-popularity of IPL22 Million

Data Source: I-Cube 2009-’10 Report

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.. And no fantasy game that gives voice to the fans

Fantasy Sports Platform

USERUSER

USER

ADs

The current fantasy games in the market do not have social interaction between the fans

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That’s where Trade O’ Sports comes in…

… Stock market for sports fans!

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Stock Trading + Fantasy Sports=Trade O’ Sports

Stock: S. TendulkarSymbol: STEIssue Qty: 60KIssue Price: T$ 56.50

IPO issue price based on historical performance

Popular stock: fully subscribed during IPO and enters the stock market to be traded on the floor

Users buy/sell stock by feeding in desired quantity and offer price. Track stocks in their Sportfolio

Tendulkar hits a century, thus increasing his match earnings and chances of higher dividends for the users holding his stock

Market prices increase: high demand stock

Net Worth : T$ 1486745.56Overall Rank : 12League Rank : 2Investments : T$ 946745.56Cash Remaining : T$ 540000.00Trader Level :

Snapshot of a user’s Sportfolio

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… A multi-sided platform, allowing sports fans to voice their opinions in an objective way …

Trade O’ Sports Platform

USERUSER

USER

Sports Franchisees

Commercial brands

Affiliate Partners

…to deliver a richer experience of a community’s engagement in a fantasy game

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… which gives us some barriers to entry

• Flexible platform: The concept can be extended to other sports and even Bollywood

• First Mover’s advantage:– Direct network effects– Indirect network effects

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And here’s how we make money…

• Ad Revenue:– Number of pages/visit: ~ 8.5 pages/visit– Avg. time spent on the site : ~9mins/user– Target audience (18-35 years) is the core target for brands

• Affiliates:– Users redeem their fantasy earnings for discounted products with our affiliate partners– Letters of intent from Flipkart (India’s amazon.com) and Chaupaati.in (a Future

Group company)

• Player analytics for targeted marketing solutions:– Data on a player’s popularity index amongst fans– Can be used by sports franchisees and commercial brands with these players as

ambassadorsData Source: Trade O’ Sports test phase results (Feb 19-Apr 2)

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Competitive advantage: community interaction and platform flexibility

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…and the numbers look encouraging

Key Assumptions:

• Active users: 20%• Avg. pages/visit: 6• User growth rate

Months Growth

1-4 30%

5-12 50%

13-24 10%

25-36 10%

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Although, what keeps us awake at night…

Risks• Year round activity: ~30 weeks of cricket in a year

• User retention for every season• User engagement: ~25% visited every day

Mitigation Plan: – Diversify into soccer and Bollywood– Develop a micro-community model– Include casual gaming on the platform

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But, the team’s passion is high…

Aatif Arindam Rayman Sayantan Anirudha

Mumbai Indians supporterWorked at P&G Gold medalist & finalist in Physics & Maths Olympiad

Kolkata Knight Riders supporterWorked at P&G Successful start-up experience!

Punjab KXI supporter

Coding GOD on campus at IIT

Kolkata Knight Riders supporter

Needs his regular dose of coding

Chennai Super Kings supporter

Gaming & coding rules his life at IIT

Advisors:- Prof. Janet Kraus (Entrepreneurship Unit, Harvard Business School)- Prof. Joshua Coval (Finance Unit, Harvard Business School)- Alok Kejriwal (Founder, Games2Win)

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And the early users loved us…

Current Status:• 547 users in test phase (World Cup season)• Feedback: 9/10 would recommend us to others• Avg. time spent on site: ~10 mins; Pages/visit: ~8• Social engagement features in development for the IPL season

Funding Requirement:• Seeking: $50,000 (12 month sustainability)• Funds to be used for:

– Hiring of 2 Application developers– Product development: FB and mobile apps– Marketing

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In summary, we’re here to…

• Pitch for Trade O’ Sports…• A fantasy sports stock market for India as the target

market.• The test phase was a success and now…• We seek funding to achieve our next milestone of

getting 10,000 active users..• And more importantly, your feedback to improve our

offering.

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Appendix

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Consumer Survey

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Our Performance

• Total Registered users: 550• Page Views: 57,577• Pages/visit: 8.21 • Avg. time spent on the website: 10:11 mins• Visits from India: 5,923 (84% of the total visits)• Traffic from 45 cities: 82% from top 5 cities• Highest Alexa Rank: 59,000 (in 3 weeks)• FB fans: 131

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P&LBreakeven Analysis

Time to breakeven 24 mo.

Maximum capital need $50,000

Users to breakeven 1,000,000

Key Assumptions:

• Active users: 20%• Avg. pages/visit: 6• User growth rate

Months Growth

1-4 30%

5-12 50%

13-24 10%

25-36 10%

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Profile of Co-foundersArindam Mukherjee: Currently an EC student at Harvard Business School. Worked at P&G prior to HBS, as the Operations Manager of the first Pampers production unit in India. Co-founded Green Hat Ventures, a start-up in the online education space which was voted among the top 35 Hottest Start-ups by TATA NEN in 2008. Bachelors and Masters degree in Industrial Engineering from Indian Institute of Technology Kharagpur, where he was the Vice-President of the Students’ Association.

Aatif Ahmed Misbah: Currently an EC student at Harvard Business School. Prior to HBS he worked in P&G Japan as a Scientist in the Global Hair Conditioning design team. Bachelors in Chemical Engineering from Indian Institute of Technology Bombay, where he was the Institute Technical Nominee for the Students Association and was awarded Technology Citation for exceptional contribution to students community.

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Product designSportfolio:

Tells you the net worth, and your

ranking

Casual games to keep ‘em busy

Your holding of stocks to trade

Trading Floor:

The top gainers/losers in a

week

List of all player stocks Traded/

IPOed

Ticker to keep ‘em informed

IPO Page:

Your profile for adding friends &

tracking performance

NEW!

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Product Timeline