Online Food ordering – Zomato Ups the Ante on Tiny Owl & FoodPanda

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Online Food Ordering IndiaZomato launched online ordering, a significant revenue opportunity. Zomato recently launched its food ordering service in India. The service is currently live across 9,000 restaurants in 7 cities. In addition to the main app, It has also launched ‘Zomato Order‘ exclusively for online ordering. Online payment option is not available yet; Zomato Wallet is shown as ‘Coming Soon’. As of now, it is not doing any delivery in-house and is relying only on delivery by restaurants. Restaurants pay commissions of 7.5% to 15% per order – the rate varies based on the delivery rating provided by the user. Online ordering could be a significant revenue opportunity for Zomato; assuming 20-30k orders per day, average order size of Rs400 and 10% commission, revenues could total Rs300-450mn vs. Rs450mn of advertising revenues earned in India in FY15.

Foodpanda and TinyOwl are two key online food ordering services in India Foodpanda currently handles

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How Reliance Jio Plans to Attack Airtel, Vodafone,Idea ?

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Reliance jio Attack Airtel Vodafone IdeaData clearly suggests that top 30% customers account for ~70% of revenues in the India Wireless Industry. In this backdrop we plan to analyze new entrant Reliance Jio Infocomm’s positioning and onslaught on Airtel, Vodafone and Idea to gain high end Wireless Customers as well as snatch away Data customers from Reliance Communications’ NetConnect and Tata DoCoMo Photon Mobile Broadband Consumers.

4G LTE Handset The SmartPhone handset changing cycle is less than 24 months for high end customers. Customer should shift handset (to LTE) is

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How Reliance Jio Built the 2nd Largest Telecom Network ?

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Reliance Jio NetworkReliance Jio Infocomm’s installation of ~70,000 LTE sites for the launch network is mostly completed. With the recently-acquired spectrum, the company has a decent mix of 1800/800 MHz spectrum for voice coverage (with 2300MHz for data capacity). In addition to 2300MHz and 1800MHz, RJio acquired 800MHz spectrum in nine circles in the Mar-15 auctions, most of which can be used for LTE (CA). Thus, including RJio’s last year’s bidding, RJio now has either 1800MHz or 800MHz spectrum in 20 circles, which account for 92% of industry revenues

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Airtel Unveils – “Win Customers for Life” Strategy

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Airtel Win Customers for life StrategyAt Analysts Conference, Bharti Airtel Management shared Color on its new Strategy – Win Customers for Life. This is developed on its underlying five-pronged strategy: 1) better go-to-market excellence; 2) voice pricing – no need to undercut; 3) data pricing in such a way that data ARPU grows; 4) focus on data and digital services (m-commerce); and 5) war on waste, i.e manage costs better. Subscriber growth has accelerated in the past one year, which is ahead of competition vs. previous years. However, ARPU increase will be led by subs taking 3G and 4G.

Airtel believes networks will be a key differentiator, especially on data. The

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What are Telecom Operators Strategies for “Mobile Data” ?

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Airtel Vodafone Data StrategyWe believe the incumbents lobby led by Airtel, Vodafone and Idea are banking on 3G to lead data growth in India over the next five years. They have 2100MHz (3G spectrum) spectrum in their market leadership service areas, enabling them to participate in data growth in their dominant service areas. Over the next 12-18 months, we believe Airtel, Vodafone and Idea are likely to have pan-Indian 3G spectrum, as they are likely to acquire additional 2100MHz spectrum when the government auctions it later in the year.

Also, we think market leaders are likely to deploy their recently renewed 900MHz (liberalised spectrum) for 3G services over the next 3-5 years

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Reliance Jio Delivered Unmatched LTE Backed Wi-Fi Experience at IPL Mumbai

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Reliance Jio 4G Speeds UnbeatableReliance Jio Infocomm launched Jio Chat App (messaging /file sharing, audio & video calling app) last month and has already crossed 500,000 downloads. During IPL matches in Mumbai, the company offered free Wi-Fi facility backed by 4G LTE network for over 30,000 spectators at the Wankhede Stadium.

A reader of our Blog has sent in this review along with a screenshot of the Speedtest Result using OOKLA App he performed at the Wankhede Stadium using Reliance Jio Mobile Broadband. The results were quite impressive, clocking speeds of 51Mbps download and 36Mbps upload. It took just half a minute to download a 60 MB video, which typically takes ~4 minutes on

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Microsoft Azure Cloud – Too Late & Shrinking Developer Eco-System

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Azure Cloud Late Entrant Microsoft is spending significant time talking about the transition from on-premises to cloud in its business. As part of this, the question is how much demand for the cloud products is transition of existing workloads vs. the building of new workloads. We believe the answer is relatively simple, with Office365 largely being existing workload migration while Azure is new workloads.

The debate in our view is how

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Online Property Classifieds – Penetration in Single Digit

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Real estate advertisement market in India (including print, hoardings and online media) was worth ~Rs40bn in FY14. The online penetration is very small, and all online media (real estate classifieds, Google) accounted for only ~Rs3bn (~8%) of the total market.

CommonFloor and Housing.com two new kids on the block – having a very media mind & voice share, are still lagging behind the early entrants in the supply side. We believe that although having access to capital helps, beefing up this part of the business is more about on the ground execution rather than platform, and

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Jabong & FabFurnish Sales / Profit Metrics

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Jabong Sales MetricsIn an industry where not much data is available given most companies are unlisted, we have got some details from Rocket Internet which has stake in Jabong (fashion) & FabFurnish (furniture).

Jabong’s Gross Merchandise Value (GMV) rose 136% yoy in CY14 leading to a 136% yoy increase in net revenue. Encouragingly, Jabong indicated that majority of the orders are being placed by repeat customers. FabFurnish’s GMV too rose 125%yoy during the same period. Jabong’s gross loss expanded to Rs1.6bn (+400%yoy), indicating high competition. Capex intensity has risen from 3.7% capex/sales in CY13 to 4.8% in CY14 on investment in IT and infrastructure. Net working capital too rose by ~250%yoy driven by

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Google Mobile Search Queries Exceed Desktop in 10 Countries

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Google Mobile SearchSearch Giant, Google indicated that mobile searches now exceed desktop in 10 countries, including the US, and that users have more ability to tune in and tune out of messages (micro-moments) so mobile ad formats have to match user needs.

Google is working hard to provide advertisers new tools to enable positive ROI ad spending and better visibility on ad spend effectiveness, which suggests the company is confident that its ads add value. Google introduced a new reporting dashboard that enables automated bidding across display and

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