sixth sense ventures

Sixth Sense Ventures

Investing in the consumer of tomorrow… TODAY!

India’s First Domestic Consumer Venture Fund

Sixth Sense Ventures

SSIO-I (Fund I)

SSIO-II (Fund-II)

SSIO-II Investments

FAQs

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Contents

3SIXTH SENSE INDIA OPPORTUNITIES-II

Our Unique Proposition

70+ years of combined experience in Investing and

Research

Skin in the game –

Partners contributed Rs30crs to Fund-I and ~Rs40crs in Fund-II

Centre of Excellence Board:Best in class industry stalwarts as

Mentors

Exemplary performance in

SSIO-I, Fully Invested.

10 investments –2 years – 2.3X returns!

We don’t think as Investors…we

want to be a good sounding board

Ability to consistently identify

emerging trends and

invest EARLY

Demonstrated ability to

Create Value through strategic inputs

FIRST ever Fund to offer: A) Cash Capital;

b) Backend Infrastructure;

c) Unique Distribution Platform

d) Front End Brand Capabilities.

Founder & CEO:Nikhil Vora


Our Investment Ethos

Identify businesses which have created a niche in thelarge space

Identify spaces with a large potential; sectors dominant with duopoly

We seek to invest Early and thereby create the Largest value

We like 1st generation sponsors – “Mavericks”

Ability to take calculatedrisks

Sponsors

Product

Risk Appetite

Value Creator

Spaces

Backing ‘Kick-ass’ sponsors, in a ‘Big-ass’ market with a ‘Smart-ass’ product!


Invest in the “ICONs” of Tomorrow

ICONs

Indian Consumers

Next generation entrepreneurs

Challenger brands

Opportunity across life cycle


Our Investment Philosophy

Disruptors inConsumer Domain

Option to play lifecycle – Early to Listed

Calculated RiskTaking abilities

Large spaces orsignificant Niche

Impact Investing

Ideally FirstGeneration Entrepreneurs

SSIO - II


Our Core Team

Nikhil Vora

Founder & CEO

Nikhil Vora is the Founder and CEO of Sixth Sense Ventures

� Regarded as one of the strongest analy:cal minds in the country

� 25 years experience in Consumer Domain

� Ex - Managing Director and Head of Research at IDFC Securi:es

� Voted as India’s No.1 analyst in the Asia Money polls

� Asia’s Best Analyst by the Wall Street Journal

� Thought Leadership Award from IDFC Ltd

� Member parMcipant at the Future Leaders Program at the Saïd Business School, University of Oxford, London.

� Invited by the ‘Nestle Global Consumer Board’ and ‘Hindustan Unilever’ to evolve a criMcal and strategic roadmap.

Other than enjoying meeting dynamic, young entrepreneurs, Nikhil loves conversations with his 13 year old girl, which

brings true perspective. For more thrills, Nikhil chooses to skydive, bungee jump as also indulge a bit at Salsa!


Our Core Team

Swati MehraPartner, Investments

Nimisha NagarsekarCFO, COO

Swati has 11 years of investment and research experience inconsumer facing sectors, from early stage start-ups to listedcompanies. Her expertise spans across a diverse range ofsectors including FMCG, Education, Media, Technology, Agri andExchanges.

Prior to being the founding team member at Sixth Sense, Swatiworked with IDFC Securities doing investment analysis ofconsumer centric companies. Was awarded Thomson Reuters,StarMine Award for the No.1 Stock Picker in Media, and theCertificate of Appreciation at IDFC for differentiated and pathbreaking research work.

Swati is an MBA (Dean’s list) from INSEAD Business School, CFAUSA Charter holder and a Computer Engineer (Gold Medalist)from Thadomal Shahani Engineering College.

Nimisha Nagarsekar is a CA with 18 years of consumer goodsoperaOonal experience. Was Head - Commercial and InvestorRelaOons with Colgate Palmolive India. Strong experNse inareas of Brand management, Supply chain, Treasury, Designingplanning. Instrumental in elucidaOng Colgate's growth strategyand story behind the numbers to investors

Strong experience in business valuaOons, brand sell off, marketentry and due-diligence. Lead Colgate’s strategy for Sri LankaOral Care market entry through acquisiNon, due diligence for abrand acquisiNon in Myanmar and sale of Charmis brand fromColgate’s porRolio.


Centre of Excellence

Milind SarwateEx-CFOMarico

Anil JainPromoter/CEOJain Irrigation

S RaghunandanFormer CEOJyothy Labs

Tarun ChauhanEx-Managing Partner

JWT India

Lashit SanghviFounder

Alchemy Capital

Satish KhannaFormer Group President

Lupin Labs


Unique Ecosystem Offering

Cash Capital

Brand Capital

Distribution Platform

Centre of Excellence

Backend Process (Mfg. connect)

At Sixth Sense, an investment is not a mere passive capital commitment

We think as Sponsors and NOT asan Investors


Recognition Awards

Acquisition International's Private Equity 2016 Awarded Sixth Sense Ventures as Best Consumer Centric Venture

Capital Fund

Wealth & Finance InternaOonal Award declares Sixth Sense Ventures as Best Asia Consumer Centric Venture

Fund


WestBridge may infuse Rs 900 Cr in Vini Cosmetics

Some early investors in the Ahmedabad-based company, like Bay Capital and former IDFC Securities analyst Nikhil Vora, are likely to

exit the company through the deal. Sequoia Capital is another investor in Vini Cosmetics.

PE firm Fidelis World invests in sports management firm

Technology frontiers

Nikhil Vora sells his stake in Paytm parent One97

Communication to Alibaba for Rs.150 Cr

Nikhil Vora made more than 75 times in returns from the sale of the 0.35% stake of Paytm's parent company One97

Communications

Gaja Capital set to invest $ 20 mn in Kangaroo Kids

Education

Nikhil Vora – Personal Tracker - Exit Track Record

Media Clippings


Sixth Sense Ventures (SSIO-I investments)

Investing in the Consumer of Tomorrow…

…Today!

Nikhil Vora’s personal investments

India’s First Consumer Centric Domestic Venture Fund

Believers of creating MAXimumvalue for the Investor as well

as the Investee

Invested and Partnered with some of India’s biggest brands – at an

Extremely early stage.


SSIO–I Fund Investments

US$350m Luxury watchmarket - 15% CAGR

US$1.5 Bln Dips,Sauces & Condiments

US$2bn Indian Oral industry

India’s largestSportainment Player

US$3.5bn womenhygiene space

US$4bn Lastmile logistics space.

Dominant in US$300m Indian Road Side Assist.

US$40bn weddings industry

India’s fastest growing Contracting company Lead player in the consumer

supply chain

LARGE SPACES WITH HUGE POTENTIAL

1ST GENERATION YOUNG

ENTREPRENEURS

IDENTIFY “NICHES” WITHIN THE LARGE

UNIVERSE

CALCULATED RISK TAKING ABILITY


Sixth Sense – A Good Sounding Board!

Introducing financial partners

(SAIF / Alchemy); Value unlocking thru likely corporate action

Strong offline play thru venue

managed operations / Business & Financial Strategy

Consumer connects, HUL’s contract

mfg / Inorganic growth opportunities and consolidation

Consumer Network / Facilitated in

raising finance with leading global PEs

Reducing single customer

dependency; Drive own Oral care brands. Smooth exit and opportunity to re-engage


Exemplary Fund Performance in 2 years

10 investments –listed & private

Self Originated deals (9 out of 10)

FIRST FUND to RETURN CAPITAL to key Investor

(SIDBI) within 1.5 years of fund

close

Value of Investment > 1

year = 3.2x

Overall Portfolio value = 2.3x

8.0x 7.0x (SOLD) 3.0x 2.4x

Early discovery provides a unique value investing opportunity


SSIO – I Fact Sheet (at 100% investment)

Company Cap Invested(Rs crs)

Current Est Value (Rs crs) % Gain Comments

Hindustan Foods 8.0 64.0 700% Listed - presently at 8x!

JHS Svendgaard 3.3 23.0 600% EXITED at 7x - SIDBI capital paid

Ethos Ltd 7.3 22.2 204% Likely Corporate Action

LEAP India 25.0 59.0 135% Huge Investor Appettite; excellent execution

Soothe Healthcare 6.4 16.4 156% Strategic / Financial Option Soon

L-Fast Brands 6.0 9.7 62% EXITED – OYO does Strategic Acquisition

Grab-a-Grub 6.7 9.9 48% Strategic / Financial Option soon

Veeba Foods 16.6 22.0 33% Robust Operational Growth

CrossRoads India 7.0 7.0 0% Strategic / Financial Option Soon

Smaaash Entertainment 23.0 23.0 0% Likely IPO within 12 months

Overall Gain (%) 135% 2.3X


SSIO –II Progress (till date )

Launched in Jan 2018 (Target

Rs.350Cr. including green

shoe of Rs100Cr.)

Over 80% investors from SSIO-I invested.

First fund to launch a ZERO management

fee option.

Final Close in Dec 2018 at Rs.515Cr.

Target revisedfrom Rs.350Cr. onthe back of stronginvestor interest.

7 Investments 1. Eupheus Learning 2. AVG Logistics3. Fullife Health4. LEAP India5. JHS Brands6. Saffron Stays7. Soothe Healthcare


Ministry of Commerce – Invested in SSIO-II to the extent of Rs.50Cr.!


SSIO II Investments (till date)

US$ 28 Bln Edutech space; Only player to seamlessly

integrate curriculum + digital content + B2C

US$2bn Indian Oral industry, JHS Brands –subs of India’s largest

Oral care CM

Global Healthcare player; $ 400 Mln fast

growing Sports Nutrition category

Market leader in pallet pooling; Supply chain

solutions provider

US$140 Bln Logistics Strong player in

consumer centric domain

LARGE SPACES WITH HUGE POTENTIAL

1ST GENERATION ENTREPRENEURS

IDENTIFY “NICHES” WITHIN THE LARGE

UNIVERSE

CALCULATED RISK TAKING ABILITY

$ 40 Bln Travel industry, Lead player in the

curated premium homestays market


PROFICIENCY LEARNING SOLUTIONS

Large SPACES with huge POTENTIAL?

• $ 28 Bln Education market, with economic relevance & huge potential for stickiness, +15% CAGR growth

• Space with “perpetual demand” and higher “perceived value”

1st generation entrepreneurs?

• Very unique team – 4 founders & 40 employees, ex-Encylopedia Britannia, joined as stakeholders with “skin in the game!”

• Led by strong experienced promoters with 70+ years of collective industry experience

Identify “niches” within the large

universe?

• INSIDE-OUT approach - the only player to seamlessly integrate book curriculum to digital content and at home studies – offering “In Class” to “At Home” learning

Calculated RISK taking ability?

• Extremely Credible & strong connect with schools • Yr 1 reach 1800 schools, Yr 2 target 4500 schools & 4-5 MM

children, PAN India presence by 2020• 11 Global tie-ups to add experiential value to base

curriculum, incl 8 years exclusive contract with World Book

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AVG LOGISTICS LTD


• $ 140 Bln industry, growing at 13% CAGR • Highly fragmented, scarcity of quality warehousing space and

client serviceability opens up scalable opportuniQes for a structured player like AVG


• Founded by Mr Sanjay Gupta – ex Indo Arya and veteran with +30 years experience in multi-model logistics

• Started in 2010 with Nestle onboard, currently has scaled up to service 35% of Nestle’s total logistics spends


universe?

• Preferred integrated logistics provider – with presence in road transportation as well as warehousing

• National player with strong infrastructure - +1000 trucks, +520 workforce, 354000 sq ft space, all quality certifications in place


• GST is a big game changer leading to reduction in lead time, and making it difficult for unorganised fragmented players to survive

• Consistent growth clients like Nestle, DS Group, Amara Raja and new clients like Ferrero Rocher

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FULLIFE HEALTHCARE PVT LTD


• Global Healthcare player in nutraceuticals across 22 countries in innovative delivery formats

• New fast growing entrant in Sports Nutrition - $ 45 BLN mkt globally, India very nascent at $ 400 MM

1st generaUon entrepreneurs?

• Founded by one of the most credible stalwart in the Pharma Industry – Mr Satish Khanna (ex Lupin President)

• Mix of experienced leaders and young players driving new spaces and experimentation


universe?

• New kid on the block! – Sports Nutrition is virtually untapped in India with great potential due to rising health and wellness awareness - Be an “Active Healthy Lifestyle Product Company”


• Clientele includes leading International Pharma Cos• Focus on customer diversification globally to increase

growth of revenue from own brands• Sports Nutrition tie up with marquee clients like IPL

franchise

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LEAP INDIA

Large SPACES with

huge POTENTIAL?

• LEAP is a supply chain solutions company, with key focus on pallets and containers

1st generation

entrepreneurs?

• First GeneraHon Promoter with 20+ years experience• Sixth Sense has invested from Fund 1 and conHnues belief in

the growth opportunity of this space, with strong capital

backing and exemplary execuHon skills of the promoter

Identify “niches”

within the large

universe?

• With only 2 structured players in the pallet industry –

LEAP & CHEP, in 4 years LEAP has overtaken its MNC counterpart – to be the market leader

Calculated RISK

taking ability?

• 2x growth in revenue in FY18, with a pool stock of 1.3 MM

pallets, expected Rev CAGR 75% over 3 years • Strong pipeline deals in progress with key customers like

Mahindra & Mahindra, Panasonic, Adani Wilmar, DTDC, Amul, Britannia etc.

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JHS SVENDGAARD BRANDS LTD

Large SPACES with

huge POTENTIAL?

• Oral Care is a $ 2 bln market with duopoly players, extremely

low per capita consumption, coupled with rising rural

incomes and absence of smaller players

1st generation

entrepreneurs?

• JHS is India’s largest oral care contract manufacturer with

great operational expertise

• Sixth Sense has a very long association with JHS through

investment in the first fund SSIO I – exited in Dec 2017 at 7x!

IdenUfy “niches”

within the large

universe?

• Relatively untapped KIDS oral care category with 20% CAGR

• Exclusive contracts signed for 20 popular kids characters –

Chota Bheem, Sponge bob Square pants, Peppa Pig

Calculated RISK

taking ability?

• With operational backend expertise, JHS is well positioned

to create value with its private brand – Aquawhite

• Unique product positioning to inculcate brushing habits

amongst kids with its “2 min” brushing music and light

variants!

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SAFFRON STUDIOS


• Travel is a $ 40 Bln market, with largely commoditized offerings…the un-quintessential global traveler is constantly seeks for distinctive offerings and local experiences

• Homestays are fast emerging to give that unique experience


• First Generation promoter couple who want to create “unforgettable vacation homes”!

• Saffron Stays offers that “unique” experience of authentic hospitality and taste of local cultures – that feels like home!


universe?

• Premium and curated homestays within 3-4 hrs distance from key metro ci[es – capture the market for short holidays!

• Crea[ng an opportunity for homeowners to sweat their most valuable and expensive asset, while Saffron maintains and manages their property and distribu[on


• 70 homes curated till date, plans to extend to 450 homes in 3 years; Repeat run rate is 60%

• Plans to introduce membership model to create stickiness for a longer period and to optimize weekday utilization.

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FAQs

What is Sixth Sense India Opportunities - II (the Fund)

The Fund is the second scheme of Sixth Sense Ventures Advisors LLP– a trust set up under the Indian Trust Act, 1882. Vistra ITCL (India) Limited (formerly IL&FS Trustee) is the trustee of the Trust.

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Is the Fund regulated by any regulator

The Trust is registered as a Category II Alternative Investment Fund (AIF) with Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012 [SEBI (AIF) Regulations] and falls under the regulatory oversight of SEBI and has to meet all the regulatory requirements prescribed by SEBI under the SEBI (AIF) Regulations, 2012 from time to time.

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Who is going to manage the Fund

The Trustee has entered into an Investment Management Agreement with Sixth Sense Ventures Advisors LLP (SSVA) for investment management services and other allied services to the Fund. The Fund has also appointed IL&FS Securities Services Ltd to provide custody and fund accounting services.

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Who can invest in the Fund

Domestic (Indian) high net worth individuals, Non-Resident Indian, foreign nationals, family offices, institutional investors, foreign funds or other foreign legal entities, and corporate investors

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What is the process of signing up for investment in the Fund

The investor has to satisfy the mandatory KYC requirements as prescribed under laws by providing the documents like PAN card,address proof etc, sign the Contribution Agreement (which will detail the amount you are committing to invest, fees, and performance linked fees amongst other things) and risk disclosure. The details of KYC documents required by each category of contributors’ i.eIndividual, HUF’s, Corporate etc. are mentioned in the Contribution Agreement.

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FAQs

How much money can an contributor invest

The minimum commitment amount is Rs. 1 crore which can be drawn down by the Fund Manager over the Commitment Period by giving a 15 calendar days’ notice to the Contributors. There is no upper limit to the amount one can invest, subject to the Fund having a minimum of 2 contributors.

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What will be my investment period?

The term of the Fund is 7 years from the date of Initial Closing of the Fund. Initial closing refers to the date on which the Fund Manager decides to accept the capital commitment / contribution paid by the contributors, issues units in lieu of it and the investment manager will start making investments. The term of the Fund can be extended by 2 additional one year periods by the Trustee subject to the approval of contributors representing 66.67% of the total capital commitment of the Fund.

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What is a commitment period? When will I have to pay the entire money committed?

Commitment period is the time period in which the Fund Manager can call for draw down of the money committed by you in the Fund. The commitment period will be up to 36 months from the initial closing date. On signing the contribution agreement, thecontributor will have to pay up to 20% of its commitment amount. Subsequent drawdowns will be called for by the Fund Manager asand when they are ready to make investments during the commitment period. The Fund Managers will provide 15 calendar days’ notice for such subsequent drawdowns.

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What are the fees to be paid by the contributors ?

The investors will pay a Fund management fee of 0-3% per annum based on class of units chosen (plus service tax or equivalent levy) payable quarterly based on average Assets Under Management (AUM) as prescribed under the Contribution Agreement as against the general industry practise of charging management fees on the commitment amount till the commitment period. The Fund Manager is entitled to receive a success based fee based on the investor’s choice of plan.Management Fees and Profit sharing of success based fee is given in detail in the contribution agreement.

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A1 A3 A4Management Fees 0% 2% 3%Hurdle Rate Na 8% naProfit Sharing (Manager) 20% 20% 0%


FAQs

What are other costs involved for the Fund?

The Fund may end up paying custodian / depository charges, Fund accounting charges, audit fees and other administrative charges

which are directly attributable to the Fund. In addition to the above fee, the Fund would also pay initial Fund set up cost upto 3%.

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When will I get my money back?

As and when the Fund Manager exits the investments of the Fund, the monies from such exits will be returned back to the contributor

over the life of the Fund. If there are exits made by the Fund Manager during the commitment period, the Fund Manager reserves the

right to reinvest that amount in other investment opportunities.

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How much money will I get back / what returns will the Fund generate?

There is no assurance provided by the Fund Manager to the protection of capital or guarantee of returns. The Fund presentation and

other Fund documents provide details of the past experience of the Fund management team, investment thesis etc. The investments

will be made primarily in unlisted companies including early stage investments. Typically these investments are characterized as “high

risk” by the financial advisors. In general high risk investments are also associated with higher returns. You are advised to evaluate the

strength of the investment team, product idea, risk disclosure under PPM and seek investment advice from your financial advisor

before making your investment decision in this Fund.

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What happens if I am unable to honour my commitment / What happens if I default?

In the event any contributor does not contribute to any draw down notice within the time period mentioned in the notice which shall

not be less than 15 calendar days, the Fund Manager will provide written notices to the contributor of this failure and interest will

accrue on such overdue amount from drawdown date until the date of payments at 1.5% per month for the actual number of days

elapsed. If the default continues for a period of 30 days from the delivery of such notices, the Trustee in its absolute discretion and in

consultation with the Fund Manager declare such contributor as an defaulting contributor . Such contributor will be subject to default

remedies including but not limited to forfeiture of all or portion of its interests in the Fund, or suspension of voting rights or freezing of

its commitment amount in the Fund etc.

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FAQs

What if I need the money back and I cannot wait for the en:re Fund life? / Is there an emergency withdrawal facility?

Since the product by its very nature is illiquid, we strongly advise you to commit only such monies to the Fund which are surplus to

you in the medium to long term. It will be difficult to liquidate units of an contributor in the interim. We can however facilitate sale /transfer of the units if such contributor finds a buyer for his/her units. Such transfer will be subject to the buyer being legally andfinancially capable (as determined by the Fund Manager) of honouring the transferor’s obligations, satisfying KYC requirements and

executing deed of adherence accepting the terms and conditions of the Fund agreements. The Fund Manager on a best effort basiswill allow contributors to withdraw upto 10% of their capital contribution, subject to terms, conditions and approvals detailed in the

contribution agreement

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How will I know the performance of my investments?

The Fund Manager will provide you with six monthly newsletters detailing the investment portfolio and progress of portfolio

companies. Fund NAV will be made available to you on a quarterly basis and Audited financial Statement of Fund on yearly basis. Avaluation exercise of the portfolio from an independent valuer of repute appointed by the Fund Manager will be conducted on an

periodic basis.

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What is the tax treatment for my investment

As per the s. 115UB (1) to the ITA, any income accruing or arising to, or received by, a unit-holder of an investment fund out of

investments made in the investment fund shall be chargeable to income-tax in the same manner as if it were the income accruing orarising to, or received by such person, had the investments made by the investment fund been made directly by the unit-holder. ->profits / gain from the fund investments will be treated as individual income and taxed accordingly

Further in terms of Section 194LBB of the ITA, in case of resident Investors / Unit holders, the Trust would be required to deduct tax at

the rate of 10% on any income, which is eligible for tax pass-through, at the time of credit of such income to the account of theInvestors / Unit holders or at the time of payment of such income to the Investors / Unit holders, whichever is earlier. –> distributionfrom the fund to the investor is subject to 10% TDS

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FAQs

Investments in shares (listed on a recognized stock exchange) shall be long term if held for 12 months or more and in case of unlisted

shares, the threshold is 24 months.

o Long term capital gains tax: Unlisted shares will attract a rate of 20% (with indexation) whereas listed shares will attract 10%

tax.

o Short term capital gains tax: Unlisted shares will attract a tax rate of 30% and Listed shares where STT is paid will attract taxrate of 15%.

The above is for information purpose only. Please take advice from your tax consultant before investment. Further, please refer Funddocuments for more details.

Thank You

This report contained herein is for information purposes only and should not be construed as providing any investment, legal or taxation advice. Any past performance inferred in this material is not a guarantee of future results. It is not intended as an offer or solicitation for the purchase and sale of any financial instrument. Any action that you may take on the basis of the information contained herein is your responsibility; and Sixth Sense Ventures Advisors LLP will not be liable in any manner for the consequences of any such action. We have exercised due diligence in checking the correctness and authenticity of the information contained herein some of which may be forecasts and/or forward looking statements, but do not represent that it is accurate or complete. Sixth Sense Ventures Advisors LLP shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this publication. Sixth Sense Ventures Advisors LLP may have interests or positions, financial or otherwise in the transactions mentioned in this report”. The Recipients of this report should rely on their own investigations.

Sixth Sense Ventures Advisors LLPA -909, The Capital, Bandra Kurla Complex, Bandra(East ), Mumbai -400051Tel: +91-22-4017 6000 / 6009 / 6017

Email: [email protected] | [email protected] | [email protected] I [email protected]: www.sixth-sense.in

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