Trade o’ Sports B-Plan
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Transcript of 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
Think India…think cricket crazy fans
…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
.. 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
That’s where Trade O’ Sports comes in…
… Stock market for sports fans!
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
… 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
… 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
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)
Competitive advantage: community interaction and platform flexibility
Low
Med
ium
Hig
h
Platform flexibility
Low Medium High
Fan
com
mun
ity in
tera
ctio
n
…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%
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
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)
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
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.
Appendix
Consumer Survey
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
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%
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.
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!
Product Timeline