Admirch Media Labs SELECTION APPLICATION

1. COMPANY a. Current status: If available, please provide details such as type of legal entity, city of registration, registered address, equity capital (authorized / paid-up), investors/ shareholders/ directors, MoA / AoA etc. The process for the registration of Admirch Media Labs has already started and is expected to complete by the first week of March. Following are the details: Registration Name: Admirch Media Labs Pvt. Ltd. Type of Legal Entity: Pvt. Ltd. City of Registration: Bangalore Address of Registration: eLagaan Biztech Labs, 1st Floor, 19 KN Govinda Reddy Layout, Arekere Mico Layout, Bannerghatta Road, Bangalore 560 076, Karnataka, INDIA Authorized Capital: 150,000/Paid-up Capital: 100,000/Directors: Himanshu Joshi and Puneet Poddar (50000 shares each) b. Any additional information: financial statements, organization structure, staffing, patents/IP details, any legal issues etc NA 2. BUSINESS a. Where are you in your business life cycle (product, customer validation, revenues etc) We are currently at a pre-launch stage - Has built a prototype and proved some of the concepts by running a small scale POC with an Ad network. The same Ad network is ready to support us at the time of launch when the scale is not too high. The product needs 6-8 weeks of further development for launch. b. What milestones have you achieved so far, what is your plan for next 36-9-12 months? Milestones achieved so far:

i. ii.

iii.

Developed a prototype. Needs around 6 weeks of development for the launch. Talked with couple of Ad networks and media agencies for understanding the media side of the business and refining the business model. An Ad network is ready to support us with Ad inventory at the time of launch when the scale of the impression will not be too high. Conducted a small scale POC: Partnered with an Ad network on one side for the supply of online display Ads and engaged about 25 users for the conducting the POC. The POC was able to verify the assumptions that it was meant to.

Admirch Roadmap in the coming months

c. What are your strategies to ensure competitiveness and differentiation? i. Analytics: Strong use of analytics among potential competitors is missing. We have defined clear roadmap to leverage analytics (for campaign analytics, recommendation engine, influence marketing, behavioral targeting) to engage and retain the users as well as advertisers. ii. MLM Structure: Revenue sharing with 2-level hierarchy of users. This will ensure viral growth of the user base and development of switching cost of the user iii. Envelopment strategy: Giving users a higher value proposition as compared to any of the competitors by using multiple channels of communication for advertisement such as SMS, Email and Online Display Ads

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User base Ramp-up: Though the platform would be open internationally, but in the starting the focus would be Indian market. Since the target segment is youth (12-35 years), all the marketing focus would be on Indian youth. Fast growth in user base will pre-empt any competition that may arise in future. Multiple Payment Options: Multiple other options for payment other than PayPal which has a very low penetration in India, such as cheque, mobile recharge, flip-kart vouchers, etc.

d. What are your target market segments? How do you plan to acquire customers / generate revenues? Admirch is a two sided platform with user base on one side and Advertisers on the other side i. User Base: Target user base would be 12-34 years of age who would like to earn cool pocket money. Marketing strategy would focus on young Indian. Scaling up fast is important, on one hand it would pre-empt any competition that may arise in future, on the other hand, it would increase the Ad reach leading to better bargaining power with the Advertisers and therefore higher revenues per Ad impression. Following strategies would be adopted for the fast ramp-up of the user base: 1. Customer Acquisition Marathon: Two member teams from various college would be formed in colleges of various metro cities (Bangalore, Pune, Mumbai, and NCR) and they will compete for 15 days to create as many members as possible in their tree. Winners would win cool cash prizes. Referral link mechanism would play a strong role as a convenient ways to get new users and track them. 2. Competition for Admirch members: Once the customer acquisition marathon is over, competitions would be open to current members to win cool prizes for getting as many members in their multi-level-marketing tree. Also, there would be prizes to win on money earned through link share. 3. Emails: The founders of Admirch have a strong network of friends and acquaintances. Emails would sent to personal network of friends and a snow ball effect would tried to create. 4. Goodies: Various other goodies such as T-shirts, Flash drives, and mp3 players for competitions from time to time.

Comparative studies have shown that such marketing strategies can fetch upto 400,000 members in the first 1.5 months of product launch. Conservatively we expect the user base to be around 200,000 to 300,000 in the first two months. ii. Advertisers: To begin with we will partner with Ad Networks who would supply interstitial ads. One of the Ad Network has already agreed to supply Interstitial Ads. Once the scale is achieved, both Ad N/Ws and Ad Supply Side Platforms will be engaged for serving the Ads. In order to retain the Ad suppliers strong analytics engine will be required for transparency ROI through Admirch platform. Revenue streams i. Display Ads shown for 5-8 seconds on the intermediate page of the converted links. ii. Complete Advertising Solution covering Internet, SMS, Email Ads. Also behavioral re-targeting through SMS and Emails in future. iii. Local advertizing for smaller players through demographically targeted SMS, Emails, and Postal Mails. 3. TEAM a. What is the current status of founders (working full time vs. part time, org chart / roles & responsibilities)? How and when will all the founders engage full time with the startup? Puneet Poddar: Working fulltime on Admirch. Puneet brings together technology and business acumen. He believes in taking things from drawing board to implementation. With strong interest in the internet advertising space, In the role of Product Manager he has guided the product roadmap and business strategy for Admirch, and as a BD executive, interacts with Media agencies and investors. During the Kyron program Puneet will be in the role of partly program manager (to ensure timely availability of the resources), coder (7.5 years of coding experience), and business developer (manage investors, Ad networks and consultants) Himanshu Joshi: Has already resigned from the job and currently serving the notice period. He is trying hard to get an early release and join the program by 2nd week. Atmost, he would be able to join Admirch Media Labs full time by 23rd March, 2013 i.e. he will be full time 13 out of 16 weeks of the program. Till the time he joins the program he will be operational out of his

residence in Bangalore and would be working out of Kyron office over the weekends. Himanshu loves internet technology. He is the originator of the Admirch concept and acting both as the engineer and product manager, has so far done the in-house development of the product. For the next 4-5 months, Himanshu will play the role of CTO of Admirch and manage complete development of the platform, along with developers, vendors and consultants. b. How are the founders currently sustaining financially? How long can you go without receiving funding?

Founders do not need funds for sustaining themselves, but they do need funds for the business. The progress made by Admirch Media Labs has been attributed personal expenses/effort. Co-founders can sustain themselves without funds but Admirch cannot. Puneet Poddar: Has savings to sustain the family for 6 month period. His wife would start working in 4-5 months and she would support the family thereafter. Himanshu Joshi: Has a working wife and she will support the family. Out of all the funds received in the first round, not a single penny would be used for personal expenditure and everything would be invested in growing the business.
c. Please provide details about employees / interns Himanshu is currently the full-time back-end coder for Admirch. Puneet will also be a part-time coder. One Web Designer and user-experience vendor has been taken on board He has started the required development. d. What are the gaps in your current team (founders, interns, employees). How / when you propose to fill these gaps? Following is the Gantt chart of the team requirements. Although we have given a picture for the next 6 months in the chart, kindly consider first 4 months from Kyron's perspective

1 Himanshu (CTO) Puneet (Coder + Business) Consultant for Analytics Vendor - Web UI Devpt Consultant - Network Engg. Analytics (FT) Web Development (FT) Network Engineering (FT) Customer Representative (FT)

Gap1: Analytics Expert Talks with One Analytics expert (with 7 years experience with companies like Yahoo, Nokia, etc) is going on. High chances of taking him on-board as analytics consultant. Gap2: Web Development (FT) Requirements have been floated with the recruiters who take care of recruitment for start-ups. Gap3: Network Engineer (Consultant) Requirements will so be floated with the recruiting agency and other vendors who will get Network engineer for Admirch. Should be onboard by the end of 2 months. 4. GENERAL a. If you are selected by Kyron, who will attend the 16 week accelerator program from the founding team at Bangalore? Puneet Poddar, will join the Kyron program from the very first day. Himanshu Joshi, is currently serving the notice period. He is trying hard to get an early release and join Kyron full time from the 2nd week. Atmost he will be fulltime on the program from 23rd March (i.e. for 13 out of 16 weeks if the program starts from 4th March). Though for the first three weeks (March 4th to March 22nd) of the program he will be operational out of his residence in Bangalore, and will be in Kyron's office over the weekends.

b. How do you plan to utilize Kyrons initial investment of $10,000? Admirch is planning to raise another $6,000 from friends and family, which will create a total corpus of $16,000 (approximately 8.0 lakhs in INR) For the next 4 months, funds will be used in the following manner:

Use of Funds - 4.0 month period Development + Testing Customer Acquisition + Marketing Server Costs Legal Formalities Misc. Expenses Total Expenses

260,000 350,000 100,000 40,000 50,000 8,00,000

c. We have received large no of applications for our first cohort and are considering admitting a couple of additional startups for the program. Would you be interested in joining the program without investment from Kyron (of course, we will not take any equity in your company and you will get all the program benefits including help in downstream funding? Admirch applied to Kyron for the following three reasons i. Mentorship: Need expert guidance to market test, launch, and scale the business. This will help us to put our best foot forward at every stage of our venture. ii. Credibility: Association with Kyron will provides credibility in the eyes of the customers, VCs, employees, and other stake holders. iii. Funds: To create a solid MVP for launch and customer acquisition. We strongly want assistance in all the three areas. But if at all it boils down to joining the program without investment, then we are ready to do that as it would serve at-least 2 out of 3 conditions. But we would re-iterate that, we strongly want assistance in all three to make this really successful.