8.25.

2011

Investor Pitch Deck

CONFIDENTIAL

The Team: East Meets West

Niraj Sheth, Co-Founder & CEO: Stanford graduate. Formerly a Wall Street Journal foreign correspondent in India and tech reporter in New York Naman Shah, Co-Founder: Harvard MBA, Stanford graduate. Founder of several enterprises in India including a mobile development company and a clean-water social enterprise Kunal Singla, VP Sales: Graduate of NIT Surathkal and IE Business School (Spain). Former Co-Founder/COO of Indian group-buying site Koovs.com (majority share bought by BenefitsPlus in June 2011) Puneet Agrawal, VP Product: MS Computer Engineering, Carnegie Mellon. ExMotorola (USA); Founder, Quantum Embedded Systems (India) Anand Shah, Director: Harvard graduate. Over 12 years of experience in India building start-ups, social enterprises, and NGOs Alap Shah, Director: Harvard graduate and former hedge fund and private equity investor. Expertise in global retail/consumer markets

The Challenge: Customer Loyalty

Emerging-market retailers want better tools: Highly profitable businesses but dont have tools to intelligently, quickly and effectively engage customers Existing loyalty programs dont work: Existing solutions are tedious, such as swipe cards or punch cards, not well accepted by customers and yield minimal ROI Merchants need new mediums of communication: Billboards, Newspaper flyers and other traditional marketing mediums are low ROI and ineffective. Merchants need to be able to reach out to their customers on new digital platforms to constantly engage and inspire loyalty

The Answer: In-Store Connected Tablets

Custom Android Tablet in the Store For Customers
Sign Up, Check In, Add Points: Customers log in on tablet, earn points when they spend (sticky customers!) Get Rewards: Redeem in-store rewards set up and managed by merchant (free stuff!)

Give Valuable Feedback: Customers fill out experience surveys that make them feel empowered

Real-Time Web Dashboard and Tools For Merchants

Detailed Metrics: See whom they serve, how often, average spend, more (intelligent analysis!) Live Tools: Watch customers, learn from them, communicate with them (smart marketing!) Customize On the Fly: Remotely control rewards, use tools and mange web-connected tablet

How inCrowd Works

Logs in on tablet With mobile number

Redeems Rewards

Customer

Stronger Customer Engagement

Retailer

Real-time data feed on Individual Customers

The inCrowd Value Make customers sticky Get real-time data and analytics Communicate with customers effectively Improve brand connection

Case Study: Subway

Details
Launch Date: July 6th Contract: 3yrs, Rs. 2750 per outlet Locations: 14 outlets (3 cities, 10 different franchisees) Customer Enrollment: 6800+ (~20% of overall traffic for given time period) Points Awarded: 4,00,000 (40,00,000 INR spent by customers in first month) Points Redeemed: 26% of total points have been redeemed Regular Usage: Over 15% visited 3 times or more in 15 days, 1600+ rewards used in less than a month Vendor Notes: Has stopped printing newspaper flyers and has replaced them with our SMS marketing solutions. Also has stopped printing survey feedback forms. Cost savings around Rs. 3000 per outlet/mo

End game: Find value in the end-users

Monthly fee is nice but Real value is monetizing the end-users.

Can you generate Rs. 5 per month per user? We believe we can through: Marketing to customer, selling of
demographic/usage data, customer service insights, social media marketing, and many other ways. QSR outlets stabilize @ 1500-2000 users per location after 3 months

Q3 2011 Insallations Users Installtion ASP (Rs./mo) Income per User (Rs./mo) Revenue from Monthly Fee Revenue from User Monetization Total Revenue (Rs.) 67.00 25,000.00 4,040.00 0 812,040.00 812,040.00

Q4 2011 394.00 394,000.00 4,162.00 1 4,919,484.00 1,182,000.00 6,101,484.00

Q1 2012 1,118.00 1,565,200.00 4,417.00 2 14,814,618.00 9,391,200.00 24,205,818.00

Q2 2012 2,182.00 3,273,000.00 4,780.00 3 31,289,880.00 29,457,000.00

Q3 2012 3,135.00 5,016,000.00 5,071.00 4 47,692,755.00

Q4 2012 5,268.00 8,955,600.00 5,819.00 5 91,963,476.00

60,192,000.00 134,334,000.00

60,746,880.00 107,884,755.00 226,297,476.00

How to scale? 4000 Locations in the next 12 months. 10 million users

Merchant Acquisition strategy - Top Down Approach
Initial wedge into industry via QSR/Branded F&B where we have seen success. Pilots running at numerous chains (Subway, Ruby Tuesdays, Mandarin Express, Bercos, Nirulas) . Quick expansion into branded periodic retail (Cinemas, Salons, Super-markets/Pharmacies, etc). Discussions with chains such as Lakme, PVR, DLF and others have already started. Leverage large user base and inCrowd brand to attract incoming leads from smaller retailers

User Acquisition strategy build large offering of user facing tools

Tablet is a great way to get users engaging with inCrowd technology on a regular basis. Highly effective at generating sign ups Communication of inCrowd offers, etc by SMS and weekly emails Interaction at inCrowd web portal allowing users to use existing programs and add new ones (going live this week) Mobile application for iPhone, Android, Blackberry and Java in the works The goal: Get 10 million users interacting with inCrowd and using us to determine their shopping behavior. Provide an electronic bridge between merchants and customers.

Attractive Market
Addressable Market in India: Large and Growing
Retail is >$450B in India. Organized retail is > $30B

>12.3 Million Retail Points, 600,000 Organized. Not including restaurants.

Benchmark: 18,000 locations for Sodexo mealpass. Estimate they have captured only 40% of the addressable restaurants. We estimate same amount of non-food beverage retailers. 8000 installation and nearly 1mm customer records for Capillary Technologies (POS for select national retailers) 10% growth in restaurants, 4-7% growth in same-store sales

The large majority of restaurants have less than 5 locations

Estimated 70,000 targetable Indian locations. Huge opportunity in other markets. True global potential.

Risks & How we are planning for them

1. Merchants opt to develop their own loyalty solutions or choose POS based systems like Capillary Push and improve user facing component of our system givings us an advantage and stickiness not seen by our competitors Chance that the model does not scale to other retail verticals outside of F&B We will be piloting in various retail segments in the near future and fine tuning the system to work in these environments Communication and Data rights larger customers will demand more data and communication access which right now we are hesitant to give working with our initial large customers to establish a data sharing frameworks that can be pushed on new customers as we grow Merchants abuse the system and begin spamming users causing them to leave inCrowd We are working with merchants right now to make sure that they are not abusing the systems and contracts specify terms of use. Introduced a lag between communication initiation and delivery so that we can intercept any spammy messages and protect our customers Entrance of copycats before we can establish a large network Targeting the larger chains and name brands. If you capture these merchants it becomes very hard for any competitor to enter. Continue adding innovative features to our setup such as Facebook integration, surveys, etc that will keep competitors behind us.

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inCrowd Details
Contact Us:
inCrowd Marketing Pvt. Ltd. Naman.shah@incrowd.in www.incrowd.in +91 9811135245 Statement of Confidentiality
This document contains information proprietary and confidential to inCrowd Marketing Pvt. Ltd. Recepient shall not use or disclose any information contained here except in business dealings with inCrowd. inCrowd retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material and multimedia. By acceptance of this document, the recipient agrees to be bound by the aforementioned statement.

254 A/1, Hauz Rani Market Opp. Max Hospital, Press Enclave Road Saket, New Delhi 110017 412, Sukh Sagar Complex Usmanpura, Ahmedabad 380013 +91-79-4009-8152

Appendix

Basic Economics and Pilot Statistics

Unit Economics (Rs) Customer acquisition cost Capex (Tablet) cost Monthly operation cost Customer lifetime (mo) Base Monthly Revenue Current 4000 13000 350 24 4000 Q4 2011 Notes 3000 Based on current salary of sales people and close rate. Decrease due to sales efficiency and increased in-bound leads 9000 Steep decline in tablet pricing expected over the next year 350 Fees for data and basic field servicing 24 This number has yet to be determined but this is our estimate 6000 Increase in ASP with the release of additional loyalty features, we belive this will continue to rise as auxilary products such as advertisement are introduced 20400 144000 86% 500 450 400 350 300 250 200 150 100 50 0 5/1/2011 6/1/2011 Date Users Total Users 7/1/2011

Lifetime cost Liftetime revenue

Net Margin

25400 96000
74%

User Enrollment since May 1st

6000

Current Stats Total Merchants: 30 (20 in Gujarat, 10 in Delhi) Users: 10,000 Average Selling Price: Rs. 4000 /mo Expected growth: 60-70 total merchants in the next month
Daily enrollment

4000
3000 2000 1000 0

Total enrolled users

5000

Investment Merits
Monthly recurring revenue with very high switching costs
End customers grow accustomed to program with a vested interest in the points Complex, evolving tech infrastructure creates real value Customer data is jointly owned with some aspects proprietary to inCrowd

Strong network effects in a given city or neighborhood

Customers single unique inCrowd login works across merchants Many emerging-market consumers are especially wary of SMS and email, inCrowd is a trusted source Customers are also inCrowd members, opportunity for additional marketing

Highly attractive financial profile today with multiple upside drivers

80%+ gross margin on day 1 and 30%+ operating margins Large and growing market potential with minimal competition Substantial operating margin expansion potential via operating leverage and business line extensions

Roadmap: The Most Connected Device In the Store- Unlimited Potential

Social Media Integration
Robust Deals Platform (merchant specific and cross merchant) Digital Payments and POS Solution (Square)

Check-in system (Foursquare)

Customer Feedback Platform

Video and Interactive Advertising During Tablet Downtime

Roadmap: More Fun Being a Customer

Share points with your friends and show how much you like a place

Let your friends know: Check-ins based on your location

Get more rewards for friends that you refer

Provide feedback and share reviews of merchants

Share your buying patterns - Social Media Integration

Compete with others to be most loyal badges and other rewards

Roadmap: More Power to the Merchant

Analytical Tools
Who are my most loyal customers?
Name Frequenc y Av. Ticket value
430 450 420

Communication Tools
Run special deals and promotions for loyal customers w/o stamps or cards. Validate deals right on the device! Target communications to customers based on spending behavior Get more insight into each individual customer and spending patterns, make retailing social by encouraged referrals

Total money spent

2580 2250 2100

What do people say about my food?

12% 15% 13% 35% 25%

1 star 2 star 3 star 4 star 5 star

Kunal Singla Niraj Sheth Alap Shah

6 5 5

How many footfalls am I getting?

Traffic Rev (Rs. 1000)

How do I fare against my peers?

Peers traffic

Is my traffic consistent?
50 0

My Rest. Traffic

A Must-Have For Retailers

The inCrowd Value Proposition

Merchant Customer

Unprecedented data on customers Customers visit and spend more Happy customers refer new ones Can run targeted specials Analytics anywhere via Dashboard Cool technology in the store Merchant-branded, but part of network No up-front development cost

Get more for being loyal to merchants Special member-only savings No cards to lose or remember Complete control on alerts Regular deals at favorite places Same number works everywhere Access to all points in one place

inCrowd

Monthly subscription fee Rich data on customer buying patterns, including location and spend Feature-rich, networked devices in merchant locations Ability to run marketing programs across merchants and customers