Guruji.

com

Inventure

MAHENDRA K PATIDAR
PGDMBIF
Institute of Public Enterprise, Hyderabad
 Table of Contents

Introduction to Guruji.com

Technology Aspects & Revenue Model

Rationale for investment in Guruji.com

Financial Aspects

Bottom-Line
 Guruji.com

Guruji.com

Anurag Dod Gaurav Mishra

IIT Delhi IIT Delhi
University of SUNY, Buffalo
Michigan Microsoft
Synopsis Nokia
EBay Pillar Data
Looksmart Systems
Technical Aspects
 Technology Aspects

Guruji Bot MusicG

C/C++, Linux Guruji.com GurujiMusic

Mobile Search Other Services

33 Cities and 8 Languages

 Revenue Model

Pay
Pay per
per Click
Click

Types / Drawbacks

Sponsor Content Click Spammed

Link Match Fraud Search

 Competition

Rediff (7%)

Google.com A C Yahoo.com
(64%) (20%)

Guruji.com

Sify.com (3%) E D Indiatimes.com

(3%)
 Sustainability & Future Outlook

Guruji.com

Factors
• Hopes to achieve
breakeven by 2009
Market • WIMAX
• Eyes on
• 1.6 Billion • 3G revenues of $ 5
• 3% Internet users
million
• Increase in
• 73% does search Literacy rate
• 25 Crores Mobile
Users • Availability of
• Indian search Internet facilities
engine market to
touch $ 200m in
next 4 years
Financial Aspects
 Calculation of Earnings of Guruji

 Case 1 – 2009 – Without our

investment

 Owned Capital = Rs. 35 Cr.

 Face Value = Rs. 10

 No. of Shares = Rs. 3.5 Cr

 Revenue = Rs. 20 Cr.

 Calc. of Earnings …. contd.

 Where Expenses = Rs. 10 Cr.

 Earnings = Rs. 10 Cr.

 EPS = Rs. 2.85

 Price of Shares = Rs. 2.85 * 5 = Rs. 14.25

 Calc. of Earnings …. contd.

 Case 1 – 2010
 Revenue = Rs. 26 Cr. (Assuming Revenue
grows 30% YOY)
 Expenses = Rs. 13 Cr.
 Earnings = Rs. 26 Cr. – Rs. 13 Cr. = Rs.
13 Cr.
 Dividend = 20% = 2 * 3.5 Cr Shares =
Rs. 7 Cr.
 Earnings for 2010 = Rs. 13 Cr. – Rs. 7 Cr.
= Rs. 6 Cr.
 Calc. of Earnings …. contd.

 Case 2 – 2009 – With our Investment

 Owned Capital = Rs. 35 Cr.

 Our Investment = Rs. 50 Cr.
 Shares purchased @ Rs. 20
 Number of Shares = 2.5 Cr.
 Revenue = Rs. 30 Cr.
 Expenses = Rs. 15 Cr.
 Earnings = Rs. 15 Cr.
 Calc. of Earnings …. contd.

 Case 2 – 2010 – With our Investment

 Revenue = Rs. 42 Cr.

 Expenses = Rs. 21 Cr.
 Earnings = Rs. 21 Cr.
 Dividend = 20% = Rs. 12 Cr.
 Earnings = Rs. 9 Cr.
 Calc. of Earnings …. contd.

 Case 2 – 2011 – With our Investment

 Revenue = Rs. 58.8 Cr.

 Expenses = Rs. 29 Cr.
 Earnings = Rs. 29.8 Cr.
 Dividend = 20% = Rs. 12 Cr.
 Earnings = Rs. 17.8 Cr.
 Net Worth of the Company

 Owned Capital = Rs. 35 Cr.

 Investment By us = Rs. 50 Cr.
 Total Capital = Rs. 85 Cr.
 Earnings = Rs. 15 Cr.
 Net worth of Guruji in 2009 = Rs. 100 Cr.
 Similarly we can calculate the net worth
for next 10 years i.e. 2019 the net worth
of Guruji will be Rs. 1442.28 Cr.
 Expected ROI

 Post money valuation

 Rs. 25 Cr Rs 250 Cr = 10 Years

 Time frame of investment = 10 years

 Exit Route

 Mergers and Acquisitions

 Initial Public Offering

Bottom Line
 References

1 2 3
Valuation of Valuation www.guruji.com
Startups, BAL Methodology
Consulting, Survey, www.alexa.com
Arthur C. Clarke, PriceWaterhouse
Grabel’s Law, Coopers, 2007/08 www.startups.in
1978 - 2009