ticker- otcqx: clpi€¦ · 02/03/2016 · potential market size: us$ 7.9 billion 0 4 8 12 s ons...

The “Visa” of India

TICKER- OTCQX: CLPI

REQUIRED STATEMENT ABOUT FORECASTSCalpian’s models and projections are based on certain key assumptions, including but not limited to the following:

Availability of adequate and appropriately priced financing to continue in business

Availability of acquisitions which can be completed

Continued performance of key staff

Continued favorable business conditions and economic climate.

Money on Mobile Forecasts are the representation of MoM Management.

Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words “may,”“will,”“should,”“expects,”“plans,”“intends,”“anticipates,”“believes,”“estimates,”“predicts,”“potential,” or “continue” and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) our ability to acquire retail credit card processing residual streams (“residuals”), (ii) our ability to raise capital to fund our acquisitions, (iii) our ability to successfully integrate multiple residuals acquisitions, (iv) changing levels of competition, (v) changes in laws and regulations, including government regulation of the credit card processing industry and other related financial institutions, and (vi) general competitive factors. This business plan is for confidential information purposes only and is not a solicitation for investment.

THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. ANYOFFER OF SECURITIES OF THE COMPANY SHALL BE MADE ONLY TO QUALIFIED INVESTORS IN ACCORDANCE WITH APPLICABLESECURITIES LAWS. THE SECURITIES LAWS PROHIBIT ANY PERSON WHO HAS MATERIAL NON-PUBLIC INFORMATION ABOUT ACOMPANY FROM PURCHASING OR SELLING, DIRECTLY OR INDIRECTLY, SECURITIES OF SUCH COMPANY.

Monday, 8 February 2016 2

Investment Opportunity


Proven Business Model

Grew Processed Volume Over 320% TTM

45% Net Margin

Wide Range of Supported Transactions

298,000 Points of Presences Across India

Large Untapped Market

1.4 Billion People; Only 200 Million Banked

$8 Billion Potential Revenue Market

99.9% Cash-Based Economy

High Volume & Micro-Value Transactions

Leader in the Space

Rated #1 in India; #3 in the World

Over 7 Million People Served a Month

Touched 166 Million People

Favorable Regulatory Environment

Growth Opportunity

eCommerce at Inflection Point but

Consumers Lack Digital Payment Methods

Raising $10m to Fund Growth and Working

Capital Requirements

Believe We are Creating a $1.5 Billion

Company

The Next Global Growth Engine…

INDIA OVERVIEW


1.4 Billion People

Per Capita GDP :$300 income/month

Economy growing: 6+% per year

eCommerce Taking Off

CHALLENGES & OPPORTUNITIES IN INDIA

All Cash Economy

Lack of Bank Accounts (only 200M of 1.2B people)

No Payment Mechanisms(credit, debit or check)

Weak Transportation(daily errands take time)


ADDRESSABLE MARKET IS:

900+ Million Mobile Phones

1.1+ Billion SIM Cards

90.5 phones per 100 people

INDIA IS CASH INTENSIVE


…which explains way the Reserve Bank of India is trying to digitize payments.Source: McKinsey; BIS, Friedrich Schneider papers

47

53

95

98

100

0 25 50 75 100

United States

United Kingdom

Russia

China

India

Cash TransactionsTotal 2011 Transaction VolumePercentage

7

11

42

14

26

0 10 20 30 40 50

United States

United Kingdom

Russia

China

India

Estimated Shadow EconomyEstimated Percentage of GDPPercentage

EXTERNAL VALIDATION

#1 IN INDIA

#3 WORLDWIDE


POTENTIAL MARKET SIZE: US$ 7.9 BILLION

0

4

8

12

Nu

mb

er o

f M

on

thly

Co

nsu

mer

s

Mill

ion

s

Each Column is a Different OTC Deployment

Comparing Over-the-Counter DeploymentsJune 2014


Source: The trade association

of the Mobile Operators

Sources: World Bank India GDP 34x and Population 28x of Kenya’s

(2013), Safaricom Annual Report 2014 (US $ 264.5 m),

Based on M-Pesa’s annual

revenue, India has the

potential to be a $7.9 bn in

annual revenue market.

WHAT MoneyOnMobile DOES

298,203 RetailStores

166 Million Indian

Consumers

Make Money via

Commission

Saves Time and

Money

Travel Tickets

Domestic Remittance(P2P)

Mobile Airtime

Television

eCommerce

Metro Card Recharge

Utility Payments

9

Size of the Market Today

Payment Type Annual Volume(US $)

Domestic Remittance (official) $ 13 bn

Domestic Remittance (unofficial) $ 17 bn

Bill Payment $ 115 bn

Mobile Market $ 38 bn

eCommerce $ 15 bn

DTH $ 2 bn

Total Volume $ 200 bn

Today’s Market Size is $2 Billion in

Revenue per Year


Sources: RBI, CGAP, GSMA, PWC, Media Partners

Asia, Gates Foundation

Nokia 1200


Long queues at a Delhi bill payment centerLong queues at a Chandigarh bill payment center

Addressing a Real Consumer Pain Point

Converting this experience… …into this experience

A typical MoM store

Agent Performing Transaction TV Top Up

Videos about the Service


SMS Based Transaction Smartphone Based Transaction

https://www.youtube.com/v/gArGt9C7FEE

https://www.youtube.com/v/gArGt9C7FEE

https://www.youtube.com/watch?v=PJno3I4xj14

https://www.youtube.com/watch?v=PJno3I4xj14

Step 2 - Cash

k

Step 1 – Cash Deposit

46

Step 3 - Purchase of Minutes @ 4% Discount

Step 5 - Purchase of Minutes @ 3.5% Discount

HOW DOES MoneyOnMobile MAKE MONEY?

15 Cell Providers

Transaction

Margin = 0.5%

Range is .5%-3%

298,203 Retailers

(Commission Sales People)

166 Million Consumers


247,471

298,203

240,000

250,000

260,000

270,000

280,000

290,000

300,000

Size of Retail Network

₹ 1.4

₹ 5.9

₹0.0

₹1.0

₹2.0

₹3.0

₹4.0

₹5.0

₹6.0

Bill

ion

s

Total Processed Volume

Growing Volume and Retail Network


298,203 Agents and5,150 Distributors

RETAILER NETWORK


Maharashtra

West

Bengal

AssamUttar Pradesh

Bihar

Rajasthan

Haryana

Andhra

Pradesh

Jharkhand

Gujarat

Punjab

Tamil Nadu

Madhya Pradesh

Orissa

Meghalaya

Uttarkhand

Chandigarh

Jammu & Kashmir

Himanchal

Goa

Sikkim

VOLUME PROCESSED


₹0.0

₹1.0

₹2.0

₹3.0

₹4.0

₹5.0

₹6.0

Bill

ion

s

Total Processed VolumeJanuary 2016₹ 5.9 billion

6.4 6.6 6.8 7.0 7.2 7.4 7.6 7.8 8.0 8.2

0 100 200 300 400 500 600 700 800

Mill

ion

s

Monthly Unique Consumers

30 Day Active Users

Avg PV per User

30 DAY ACTIVE USERS


January 2016Users: 8.0 millionPV per User: ₹731

EFFECTS OF CAPITAL CONSTRAINTS

3/9/2016 19

-

50

100

150

200

250

300

350

12:05AM

1:05AM

2:05AM

3:05AM

4:05AM

5:05AM

6:05AM

7:05AM

8:35AM

10:00AM

11:15AM

12:30PM

1:40PM

2:45PM

3:45PM

4:55PM

5:55PM

6:55PM

7:55PM

8:55PM

10:15PM

Monday September 14, 2015

Actual Transactions Missed Transactions

…$580,000 in Additional Revenue in Calendar 2015.

Illustration of Return on Domestic Remittance


Hourly transaction numbers for illustrative purposes

₹ 2.5m in

Transactions

₹ 1.0m₹ 0.5m

Daily

Volume

₹ 5.2m

Bank divides

the day into

four periods

Bank Requires a Deposit of 2x

peak period volume. In this

example, that is the 10am to 2pm

period.

₹5 million

Deposit

This deposit allows us to process

throughout the entire year.

₹1.9 billion of

Processed Volume

Annually

MoM generates fees of 0.5% of

processed volume off of this

transaction.

₹9.5 million of

Revenue Annually

Noon

6 am

Midnight

6 pm

₹ 1.2m

REVENUE IMPACT

$0.9 $0.9$1.5 $1.6 $1.6

$1.3 $1.5 $1.7

$0.9 $0.9

$1.5 $1.6$1.9 $1.8

$2.1

$2.4

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15 31-Dec-15

Mill

ion

s

Actual Revenue Missed TopUp Revenue Missed P2P Revenue


VOLUME GROWTH

ProductApproximate

Average TicketMonthly

FrequencyEstimated Average Monthly

Spend

Cell Top Up $1.00 2x $2.00

TV Top Up $4.00 1x $4.00

Utility Payment $40.00 1x $40.00

Travel Ticketing $0.30 – $15.00 1x – 20x $15.00

P2P Transfer $60.00 1x $60.00

E commerce $40.00 1X $40.00

Total Spend per Month $161.00

What will 35 million consumers do with MoneyOnMobile?

All numbers are estimatesMonday, 8 February 2016 22

COMPARE TO NASDAQ: QIWI

QIWI is a Russian mobile payments company

Source: QIWI form 20-F December 2014

QIWI

Population of Russia 143.5 million

Annual Processed Volume (USD)

$12 billion

2014 Gross Revenues $245 million

Net Income Annual Growth Rate %

59%

US Market Cap ~$1.4 billion


$13.4

$26.4

$55.9

$82.8

$-

$25

$50

$75

$100

Dec-11 Dec-12 Dec-13 Dec-14

Mill

ion

s

Net Income

COMPARE TO M-PESA IN KENYA

India is 30x Kenya in Size

M-PESA: Started April 2007

Small business payments majority of volume

Ubiquitous presence in Kenya

M-Pesa Metrics KENYA

30 Day Active Users 11.6 Million

Transaction Volume $13 Billion

Operating Revenue $287 million/year

Source: MPESA 2014 mid year reportMonday, 8 February 2016 24

60 Minute Report

http://www.cbsnews.com/videos/the-future-of-money/

http://www.cbsnews.com/videos/the-future-of-money/

India eCommerce Payment Market


60%

16%12% 12%

1% 0%

50%

12%15%

11%

5%7%

COD CreditCards

DebitCards

NetBanking

EMI 3rd PartyWallets

$1.2

$0.3 $0.2 $0.2$0.0 $0.0

$4.3

$1.0$1.3

$0.9

$0.4$0.6

COD CreditCards

DebitCards

NetBanking

EMI 3rd PartyWallets

Percentage of

eCommerce Transactions

eCommerce Transactions in US $ bn

Source: Accel Partners 2014

US $ 2 bn US $ 8.5 bn

eCommerce

Inflection Point

China, 1.1

India, 0.4

USA, 5.1

0

2.5

5

0%

20%

40%

60%

80%

100%

1990 1993 1996 1999 2002 2005 2008 2011 2014E 2017E 2020E

Card

s pe

r Person

Inte

rnet

Pen

trat

ion

(%

)

USA China India

India’s eCommerce at Inflection Point


Sources: KPCB, World Bank, Hillhouse Capital for forecast

for India beyond 2013, RBI, KPMG, PaymentSource

eCommerce

Inflection Point

eCommerce

Inflection Point

… but lacks the traditional payment infrastructure

Driven

Primarily by

Smartphone

s

Shashank Joshi

Founder and CEO, DPPL

Maharastra Institute of

Technology

10 years in payments

Harold Montgomery

CEO, Calpian

Stanford University MBA, 1985

Started in payments in 1987

Scott Arey

CFO, Calpian

Stanford University BA, 1984

10 years Bank of America Group CFO

Will Dawson

EVP Mobile Money, Calpian

COO, MasterCard Mobile Money JV

Launched Mobile Money in Egypt &

Turkey

Team


INVESTMENT HIGHLIGHTS

Experienced Leadership ~20 years in payments

Explosive Growth in India Growing 40% Q to Q

Huge Market Opportunity

Greenfield Opportunity Leader in the space


EXPLOSIVE INTERNATIONAL GROWTH

TICKER- OTCQX: CLPI

Store Count User Count Monthly Processed Volume Notes

MoneyOnMobile (April 2015)

282,267 155 million Rs 4.6 billion Growing

Beam Money(May 2013)

50,000 14 million Rs 91 million Searching for capital

AirTel Money (January 2013)

110,000 1.3 million Unknown Not Interoperable

Vodafone (June 2014)

66,000 1.5 million(330k active)

Unknown Not Interoperable

20x NEAREST COMPETITOR

Best Financed

Only One w/ Full Suite of Services

Greenfield Opportunity

No Major Regulatory Hurdles Remaining

MoneyOnMobile is:

First Mover Advantage to MoneyOnMobile


Goods or Services

MOM Model Works for All Parties in Value Chain

Merchant Consumer

Settlement Bank Retailer

Transaction Data

Authorization

Money

Fee

Trading Instruction

Leverages Consumer’s

Existing Mobile Phone(>1,000m consumers)

Leverages the Existing

Stores & Supply Chain(>269k agents)

New Deposit Source

for Banks(We have RBI License)

Reduces Cost of Getting

Cash from Consumers(low margin business)


Cash & Bill

Instructions

SMS Confirmation

Commission

SMS Confirmation

Consumer Experience: Bill Payment

Consumer Agent


Cash

Instructions

SMS Confirmation

Commission

SMS Message with Gift Card Number

Consumer Experience: eCommerce

Consumer Agent


Cash

Fee

SMS Confirmation

CashInstructions

SMS Confirmation

Fee

SMS Confirmation

Consumer Experiences: Domestic Remittance

Sender Agent


Fee

Receiver

Cash

Bank

ticker- otcqx: clpi€¦ · 02/03/2016 · potential market size: us$ 7.9 billion 0 4 8 12 s ons...

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