1. Alice Besomi Yash Sankrityayan
1
The most attractive and untapped opportunity in Asia
for Founders and VCs
South East Asia
August 2016

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Prologue
§ In this note, we look at the key ingredients which make for good venture ecosystems, and find that South East
Asia scores impressively on all fundamental factors, higher than India in almost all categories and even better
than China in a few.
§ We take a deeper look at various data points including addressable population, spending power, infrastructure,
technology adoption and usage, business and startup ecosystem quality. Our inference as a result of all these data
points is that SE Asian markets present a tremendous opportunity for startups led value creation.
§ The attractiveness of the opportunity as we see it contrasts sharply with the current investment trends: Investors
deployed nearly ~$6.4bn into Indian startups in the 12 months ended June’16, versus only $1.6bn in SE Asia i.e
<25% of the investment in India.
§ We conclude that there is an extra ordinary opportunity for VCs to back the leading Founders in SE Asia. Given
the strong fundamentals, better consumer demographics, the funding gap and the presence of only few local and
active VCs, SE Asia presents very attractive dynamics for Venture Capitalists (lower competition for companies
and VCs, rational entry valuations, favorable deal timelines, founders’ focus on limited cash burn).
2

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SE Asia is the most attractive and untapped opportunity in Asia for
Founders and VCs
3
1. Comparable addressable population with much >2x consumer spending capacity vs India
Most consumer internet startups are based around mega-cities and not countries. India’s 8 metro cities represent 90m inhabitants vs
75m for the top 9 cities in SEA. However, SEA’s cities have >2x higher GDP/capita than India, and so the addressable market in the top
9 cities of SEAis >2x of India’s metros in $ terms
2. Better infrastructure, internet access, mobile/social media usage, credit/debit card availability
~90% social media penetration in SEA vs 39 % in India, with an average of 8h/day spent online and ~3h on social media.
The (i) average internet speed, (ii) % of connections which are 3G/4G, and (iii) card penetration, are all >2x of India
3. All SEA countries rank higher than India on Ease of Doing Business, some better than China
All key SEA countries ranked better than India (which is ranked 130 out of 189), and some are even ranked better than China on
aspects relevant for new businesses
4. Strong innovation environment which scores better on nearly all parameters across countries
S.E.Asian countries score better than India across most factors of the Global Innovation Index especially on Human capital & research,
University/industry research collaboration, patent filing growth and business sophistication.
5. Better access to angels, accelerators, seed investment, Corporate and Government support
One of the best ecosystems globally with the Corporate houses and Government also actively involved in addition to numerous early
stage investors
6. Strong history of Tech M&As, and growing rapidly from <10 in 2010 to 45 in 2015
Global marquee tech acquirers already active in the region, and new ones from China, Japan etc. getting active

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Comparable metro city population with >2x spending power
Note: GDP per capita numbers are specifically for the city areas. Source: World Bank, Brookings Institution Moody’s Analytics, U.S. Census, Statistics Office Of
Vietnam
Metro area
Population
million
(2011 Est.)
GDP/capita 2014
(PPP)
Delhi 22 $12,747
Mumbai 22 $7,005
Kolkata 16 $4,036
Chennai 10 $6,469
Bengaluru 12 $5,051
Hyderabad 6 $5,063
Ahmedabad 5 $7,000
India Total 93 million $6,767 ave
Manila 22 $14,222
Jakarta 22 $9,984
Surabaya 16 $7,843
Bandung 10 $4,597
Bangkok 12 $19,705
Kuala Lumpur 6 $28,076
HCMC 5 $8,660
Hanoi 7 $2,885
SEA Total 70 million $11,997 ave
Singapore 5 $66,864
SEA with SG 75 million $18,093 ave
Most consumer tech businesses are
metro-city focused rather than
serving whole country populations
(atleast in the first 3-5 years of their
evolution)
GDP/capita is 2.7x higher across the
top SEAsian cities and as a result
immediately addressable market in $
terms in SEA which is >2x of India
$1,362B Total
$626B Total
Top Indian cities
Top SEA cities
4

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190M+ people already discovering & consuming content or
products on their mobiles regularly spending >3hr/day on social
media
5
Internet
users
Internet
penetration
Mobile internet
users
Social media
users
Social media
penetration
Mobile social
media users
350m 18% 300m 136m 39% 116m
250m 49% 200m 222m 89% 190m
0.7x 0.7x 1.6x 1.6x
Source: We Are Social – Digital in 2016
SEA/
India:
India:
SEA:

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2x better connectivity: internet speed and % of 3G/4G connections
6
Source: Akamai State of the Internet Q4 2015

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SEA Card Penetration 2x of India
7
Source: World Bank
2x Debit and credit card penetration enables more online payments
% Penetration Credit Card Debit Card
SEA 11% 43%
India 4.2% 22%
Credit and Debit Card Penetration

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Source: World Bank – June 2015
SE Asian countries ranked better than India and China on Ease of
Doing Business for startups

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SE Asia countries scoring better on each parameter of the Global
Innovation Index (GII)
Singapore Malaysia
Thailand Indonesia
Source: Global Innovation Index 2015

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Robust early stage ecosystem: 100+ early stage institutional
partners, corporates & highly supportive governments
10
*Of ~85 corporate accelerator programs globally 18 are in Asia, out of which 11 in South East Asia
Seed Stage
Institutional
Investors
Incubators/
Accelerators
Govt. Agencies
Corporate
Innov. Hubs*

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2013 2014 2015
acquires
acquires
acquires
acquires
acquires
acquires acquires$30M
$200M
$84M
Invests
in
$450M
acquires
$48M
acquires
acquires
acquires
$30M
2012
acquires
acquires
$66M
acquires
acquires
2016
acquires
acquires
$534M
acquires
$1.5B
Pre-­‐2011
SE Asia Tech M&A’s by Global Majors
Source: TechInAsia, Pitchbook, Jungle Research
Transactions in dark blue highlights are the 3 exits Jungle Ventures has seen in the last 3 years to Twitter, Rakuten and HomeAway
Rapidly increasing trend of tech M&A, up from <10 in 2010 to 45
in 2015
Most M&A in SEA is from developed market buyers unlocking value for earlier investors vs largely stock
acquisitions in India. China is also becoming an active acquirer in the region.

12. @JungleVenturesPlease refer to end of slides for Disclaimer12
SEA has lesser competitive intensity: capital and startups
VC Capital Invested in 2015 perInternet User # of Funded Startupsin areasof ConsumerTech
We look at VC funding per internet user(which is a broad
proxy of how much startups are spending to acquire and
service customers)
VC funding per internet user in SE Asia was <30% of that in
India…
…Despite the fact that the spending power of the average
metro city citizen is >2.5x of India
Sub-­‐sector India
# SEA
# SEA/India
Fashion
Tech 104 34 33%
Online
Travel 87 41 47%
Transport
Tech 61 16 26%
Local
Services 90 32 36%
Logistics
Tech 86 24 28%
B2B
eCommerce 27 13 48%
Mobile
commerce 33 14 42%
Online
Grocery 20 9 45%
Second
Hand
Goods 24 11 46%
Online
Rental 22 5 23%
Even across 5 countries in SE Asia, the # of funded startups
are only ~30-40% of India. On a $ basis, it is even lower
Source: TechInAsia, Tracxn, Jungle Research
SE Asia still has few verticals where market leaders are already
crowned, unlike India where most spaces have atleast 3-5
companies which are funded to a similar and significant level
India SE
Asia SEA/
India
2015
VC
Funding
in
US$
million
7,700
1,600
Internet
Population
in
millions
350
250
VC
funding
per
internet
user
in
2015
in
$
22
6
29%
Average
Per
Capita
GDP
for
metro
cities
in
$
6,767
18,093
267%

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Numerous sectors fundamentally more attractive in SEA…
Travel is much bigger in SEA, seen as % of GDP as well as # of
outbound trips per capita. Singapore, Thailand and Indonesia are in fact
top outbounddestinations of Indians.
B2B commerce and trade is an important part of the economy for
SEA countries.
Retail spend is >2x higher than India.Trend also seen in e-
commerce with Average Order Values which are 1.5-2.5x of India
average.
Source: World Bank Data 2014-15, World Travel Tourism Council 2015, UBS ASEAN Ecommerce Report 2014
Though electronics payments are more used than in India the penetration
remains low (vs 65% in the US) and thus a source of
Travel B2B Commerce
Retail Financial Services
Country
Name
Manufacturing
as
%
of
GDP
Exports
as
%
of
GDP
India 17.1 23.2
Indonesia 21.0 23.7
Malaysia 22.9 73.8
Philippines 20.6 28.7
Singapore 18.4 187.6
Thailand 27.7 69.2
Vietnam 17.5 86.4
Country
Name Per
Capita
Annual
Retail
Spend
(US$)
India 787
Singapore 5,585
Malaysia 3,329
Thailand 2,059
Indonesia 1,339
Vietnam 1,227
Philippines 358
Total
contribution
of
travel
and
tourism
As
%
of
GDP
India 7%
Thailand 19%
Malaysia 15%
Philippines 11%
Singapore 10%
Indonesia 9%
Vietnam 9%
Country %
of
Bank
accounts
used
to
receive
remittance
%
people
above
15
years
who
made
electronic
payments
India 1.9% 2.0%
Indonesia 6.1% 3.1%
Malaysia 9.6% 12.6%
Singapore 9.7% 41.5%
Thailand 17.2% 8.6%
Vietnam 2.2% 2.5%

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…Shaping Jungle’s investment thesis in the region..
Travel B2B Commerce/ SAAS
Retail Financial Services
Exited Exited
Note: Sample Jungle portfolio companies in the relevant areas
Exited

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Google-Temasek report projects $40-50bn investment required over
10 years, to capitalize a $200bn opportunity
15
VC funding in SEAwas only $1.6bn
versus $6.4bn in India in 2015 – less
than 25%
This is despite the attractive
fundamentals and market dynamics as
we have highlighted in the earlier
slides
Source: Tech In Asia Research, Jungle Research, Google-Temasek e-conomy SE Asia Report May 2016 (projection is assuming achieving similar VC
funding as % of GDP as India, see report for more details)
-­‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2010 2011 2012 2013 2014 2015
VC
Funding
in
India
and
SEA,
$m
(2010-­‐15)
India SEA
We therefore see a significant early stage funding gap in a fundamentally strong market

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Jungle Ventures: Highlights
Key Recent Developments
§ AUM of >S$160M across multiple funds ; backed by investors such as IFC, Temasek &
Accel Partners
‒ Plus highly strategic family offices, prolific angels and industry veterans
§ 4 exits in 4 years to Twitter, Rakuten, HomeAway and ShopClues
‒ 52% of invested capital from Fund I is now returned with a realized IRR of 368%
§ David Gowdey, ex TPG, joined as Managing Partner
‒ Wealth of experience in consumer technology, former Head of International M&A at
Yahoo! and internet sector lead in Asia at TPG
‒ Launched SeedPlus, a dedicated seed stage platform for highly distruptive startups from
Asia
‒ Partnered with Accel Partners, IIPL Singapore and other leading investors
§ Ratan Tata appointed as a special advisorto the firm
‒ Already co-invested in several companies and been a tremendous strategic connector for
the firm and investee companies alike
§ Strong and increasing support from Singapore Inc with access to several government
programs for co-investments
‒ Enabling Jungle Ventures to uniquely deliver outsized returns on several portfolio
companies with no additional risks
Jungle is a Venture Firm That InvestsAnd Helps Build Tech Category Leaders in Asia since 2012

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