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TogoFogo
Information Memorandum
Information Memorandum
May 2016
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Disclaimer

This memorandum is being delivered to a limited number of parties who have expressed an interest in investing in TogoFogo (“XXX” or the
“Company”). The sole purpose of this document is to assist recipients in deciding whether they wish to proceed with a further investigation of the
Company. This document is not intended to form the basis of a decision to purchase the Company or any other investment decision and does not
constitute an offer, invitation or recommendation for the sale or purchase of securities. Neither the information contained in this document nor any
further information made available in connection with the Company will form the basis of any contract.

This memorandum has been prepared by Langham Capital India Private Limited (“Langham Capital”) as financial adviser to the Company on the
basis of information supplied by the Company. The contents of this memorandum have not been independently verified by Langham Capital. This
memorandum does not purport to be comprehensive or to contain all the information that a prospective purchaser may need. Each recipient of this
memorandum must make its own investigation and assessment of the Company. No representation, warranty or undertaking, express or implied, is
or will be made or given and no responsibility or liability is or will be accepted by the Company or Langham Capital or by any of their respective
directors, officers, employees, agents or advisers, in relation to the accuracy or completeness of this memorandum or any other written or oral
information made available in connection with the Company. Any responsibility or liability for any such information is expressly disclaimed. In
particular, but without limitation, the projections with respect to the Company's performance contained in this memorandum have been prepared
on the basis of management figures arrived at as part of the Company's normal budgetary process and reflect various assumptions which may or
may not prove to be accurate or realistic. These projections have not been independently verified.

This memorandum is private and confidential and is being made available only to persons who have signed and returned a confidentiality
agreement with respect to, amongst other things, the information in this memorandum. On no account may this memorandum (or any part of it) be
copied, disclosed or made available to any person other than the recipient to whom it is addressed. Recipients of this memorandum must ensure that
the terms of the confidentiality agreement are strictly observed. Under the confidentiality agreement each recipient has agreed, amongst other
things, to keep confidential all information made available in connection with the Company, including the information in this memorandum, and
not to copy, reproduce, distribute or pass to others this memorandum in whole or in part at any time, except as permitted by the confidentiality
agreement. Each recipient has also agreed that it will, on request, promptly return or destroy this memorandum and all other information supplied
in connection with the Company, without retaining any copies.

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 Contents Slide

Summary of investment opportunity XX

Market Overview XX

Company Overview XX

XXX XX

XXX ss XX
rogre
In P
rk
XXX Wo XX

XXX XX

XXX XX

XXX XX

XXX XX

Growth Strategy XX

Consolidated financial projections XX

Contact details XX

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Summary of Investment Opportunity
Market Overview
Global Refurbished & Unboxed Goods Market

$ 17 billion 2 and 25 times

$ 650 billion 120 million To be generated globally
The size of global
Estimated size of global Used smartphones to be through sale or trade-in of
wearables and virtual
used goods market sold or traded globally used phones in 2016, a
reality hardware markets
(2015) (2016) 50% y-o-y growth from
respectively (2016)
2015

12% 2/3rd At least 10% 1/2

Of this 12% sold outright, Of premium smartphones1 Of all smartphones to be
Of all customers sold their
rest traded-in with an purchased in 2016 will end sold online, to retail shops
smartphones globally
operator or device up having 3+ owners and or to second-hand device
(2016)
manufacturer will still be in use in 2020 specialists (2020)

1
Smartphones priced $ 550 or higher Source: Indian Retailer, Deloitte 6
Indian Refurbished & Unboxed Goods Market
Market Size Category-Wise Break Up
(INR billion, 2011-2020) 3,240
(2015)
3%

GR
CA %
23

CAGR
18% 1,150 51% 49%

800
600

97%
2011 2013 2015 2020E
Urban Rural Organised Unorganised

• Indian refurbished & unboxed goods market projected to grow at CAGR of 23% to reach INR 3.24 trillion in 2020
• Includes second hand products, factory seconds, dead on arrivals, ecommerce and retail returns, and open box products
• Market is dominated by unorganised sector and regional players, who account for nearly 80% of the market
• Moving from a highly fragmented business till 8-10 years back to a more organised avatar

Automobile Textbooks 45% Startups

People feel buying second- Buying refurbished goods
Largest segment in the Second largest segment in
hand goods from reliable to save on costs, in addition
market the market
platforms is worthwhile to individual buyers

Source: ASSOCHAM, Economic Times, OLX CRUST Survey 7

Indian Refurbished & Unboxed Electronics Market
Category-Wise Break Up Market Size – Mobiles
(2015) ($ billion, 2013-2020)
8.4

10% Mobile is currently

the biggest segment in GR
the electronics CA 0%
3
15% market...

50% …set to continue its

fast growth at a CAGR CAGR
39 % 2.3
of 30% till 2020 1.8
25% 1.2

2013 2014 2015 2020P

Mobile Home Appliances
IT Products Others

Xiaomi 27
5% 6-10k 4
One Plus 17 9%
30% 31%
Micromax 16
10-20k 34%
Samsung 15 27%
70% Apple 9
20k+ 8%
Asus 7 28%
Lenovo 6 Others 10%
Metros Tier II, III Cities Others Asus HP
Others 3 Lenovo Dell

Dell, HP and Lenovo most

Tier II and III cities like Hisar Xiaomi and One Plus most INR 6,000-10,000 the highest
preferred brands among
and Nashik dominate demand sought-after mobile brands selling mobile category
laptops
Source: Business Today, Economic Times, 8
Growth Drivers (1/2)

Mobiles Laptops • Average price of refurbished

Significant Price
• Refurbished: 70% • Refurbished: 40% smartphones in India is $ 90,
Discounts/
• Unboxed: 40% • Unboxed: 30% significantly lower than global
Markdowns average of $ 140 (2016)

Smartphone Users – India Mobile Internet Users – India

(million, 2012-2019) (million, 2012-2016)
Rapid increase in 651 In 2015, mobiles accounted for:
R 371
smartphone CAG
56% • 60 percent share of all shopping-
mobile phones CA
GR 239 related queries
adoption and 36%
137 • 50 percent share of all travel-
mobile internet 140 91
67 48 related queries through mobiles
29
penetration • 60 percent of YouTube views
2012 2013 2014 2019E 2012 2013 2014 2015 2016E

• Given the high return rates,

Retail Ecommerce
refurbished market has huge
• 2-5% average • Higher return rates due growth potential
High return rates return rate in to options like Cash On
• Majority of players currently in
across industries Indian retail Delivery
• Average return rate of CDIT (consumer durable
(2016) information technology) space,
12-15% (2016)
which forms 40% of e-commerce

Market Size – Ecommerce Market Size – Online Retail • Aggressive growth of e-

($ billion, 2009-2016) ($ billion, 2011-2015)
commerce: set to grow at an
16.0
CAG
R 38
CAGR 13.6
unprecedented rate of 65% from
Strong growth of 65% 28% 2015 to 2016
e-commerce and 23
7.9 8.9
• Rising importance of m-
online retail in CAGR 17 5.9
35% commerce: 60-65% of the total e-
India 3.8 commerce sales are being
generated by mobile devices and
2009 2014 2015 2016 2011 2012 2013 2014 2015
tablets in India (2015)

Source: Economic Times, Deloitte, Mint, Hindustan Times, Daily News & Analysis, ASSOCHAM 9
Growth Drivers (2/2)

Greater margins than Rising aspirations of

new devices the young population

• Sellers of returned goods make 2-3x times margin as • Increasing aspirations for high-end products among
compared with retailers of new goods young adults (age 19-23), but cannot afford new ones
• New smartphone gives dealers 3-5% margin, as • 51% of young adults sold goods to upgrade to better
compared with 7-8% on unboxed and 9-10% on products and lifestyle in 2015
refurbished phones • 23% of young adults bought 3-5 used goods in 2015

Large amount of unused goods Need for more efficient handling of

among Indian households returns and used goods

• INR 56,200 crore goods which are no longer being • With the increase in returns and used goods,
used lying locked in urban Indian homes (2015) companies are facing a huge problem of inventory
• 87% households stocked used goods in India, while management and reverse logistics
only 45% indulged in selling them (2015) • Original Equipment Manufacturers (OEMs) have no
• 31% stock for later use; 18% due to sentimental value viable options to safely dispose old electronic goods

Why is the market becoming organized?

Repair Warranty Return Policy Service

Unlike unorganised retailers,
Seller provides 6-12 months 15-30 day return policy Readily available after-sales
refurbished goods are
of warranty, in addition to the offered by most companies services provided by most
repaired and quality
manufacturer’s warranty along with free shipping companies in the segment
inspected before reselling

Source: Daily News & Analysis, Economic Times, OLX CRUST Survey 10
Business Overview
Growth Strategy
Financial Projections
Contact Details

Langham Capital is the exclusive financial advisor to PM Relocations in connection with the transaction. All enquiries should be
directed to the following contacts at Langham Capital:

Shiv Dayal Naman Mawandia Anuj Poddar

CEO & Managing Director Vice President d Associate
ate
+91 124 4688 300 +91 124 4688 300 e U pd +91 124 4688 300
To B
+91 98107 13232 +91 99996 83784 +91 98992 61196
shiv.dayal@langhamcap.com naman.mawandia@langhamcap.com anuj.poddar@langhamcap.com

Langham Capital PRIVATE AND CONFIDENTIAL 14