1. GLAB India Team Sergio Delgado Nathan Eagle Amir Hasson Prabhat Sinha

2. Agenda Can mobile devices help bridge the digital divide? Introduction Introduction Company Overview Company Overview Mobile Technology Mobile Technology Issues and Lessons Issues and Lessons

3. Two Camps “Do people have a clear idea of what it means to make $1 a day? There is no electricity. No power systems. These people are trying to stay alive. There is no need for a PC. There are things these people need other than technology” -- Bill Gates, Microsoft co-founder -- Bill Gates, Microsoft co-founder “Selling to the poor may be more profitable than selling to you and me. This is where the future is. Opportunities are everywhere. This digital divide is not about lack of opportunity, it is about lack of imagination” -- Prof C. K. Prahalad, Michigan University B School -- Prof C. K. Prahalad, Michigan University B School

4. Background Demonstrated significant demand Substitution of existing everyday costs Services: Healthcare, Agriculture, Loan Application, Education, Govt. Complaints, Market Rates, computer education etc. Key question: How do we penetrate this market? Poor Infrastructure Challenging demographics

5. Leading and profitable provider of eGovernance services via micro-finance model. Leading and profitable provider of eGovernance services via micro-finance model. Expansion Strategy: Offer portfolio of private and public services Expansion Strategy: Offer portfolio of private and public services Competition: Regional and Growing Competition: Regional and Growing Current Operations: 80+Kiosks in 3 states Current Operations: 80+Kiosks in 3 states

6. One-Time License Fee, Transaction Fee Drishtee Business Model Drishtee District hubs Village kiosks (55,000) Villagers $4800 % of transaction fee One-time license fee Services 100 % 13 % 80 % 7 % $200 $120 $80

7. 0 20 40 60 80 100 120 140 160 0-2.52.5-5.55.5-8.58.5- 11.5 11.5- 14.5 14.5- 17.5 17.5- 20.5 >20.5 Distance from kiosk (km) Conversion rate (Customers per 1000 people) Optimal distance: 7-12 km Distance from kiosk (km) Conversion rate (Customers per 1000 people) Optimal distance: 7-12 km With the help of Handheld Devices Village Penetration

8. How the Handheld Model affects the Service Scenario Good core offering Connectivity required Stable Internet Stable Intranet Intermittent Intranet None Rural e- marketplace School education “Government online” Employment (Remote sourcing) Employment exchange Government applications Agriculture services Computer education Entertainment/ Info Medical Services High Complexity Low Potential DemandHigh Matrimonial E-horoscopes Photo-related services Inter-village E-mail /Voice Mail Email/Voice- mail Handheld Enabled Services Info collection/ Marketing

9. Identified Problem and OpportunityIdentified Problem and Opportunity Provided Prototyped SolutionsProvided Prototyped Solutions Three field studiesThree field studies Monitoring and AssessmentMonitoring and Assessment Business DevelopmentBusiness Development Market Research (BCG)Market Research (BCG) Business PlanBusiness Plan VC ContactsVC Contacts How we helped

10. Issues Government dependence Government dependence Infrastructure (Connectivity/Power) Infrastructure (Connectivity/Power) Scalability and deployment Scalability and deployment Misaligned incentives Misaligned incentives Management stretched Management stretched Funding Funding

11. What We Learned So Far Sufficient demand Sufficient demand Mobile services do add value: Mobile services do add value:  Rapid adoption rate (fast-learners).  Greater awareness and penetration  If they can reach 7-8 additional households per week Field study is important Field study is important Indian Villagers are very hospitable Indian Villagers are very hospitable

12. Questions?