Thread by @ValueEducator

XELPMOC - Junior Info Edge in Making ? 📱📶
A Thread 🧵 CMP - 402

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Topics Covered
1. Company Overview
2. Industry Overview
3. Different From IT Companies ?
4. Business Model
5. Start-up Culture In India
6. H.E.A.L
7. Portfolio Companies

8. Value Of Portfolio
9. Products
10.Operational Highlights
11. Summary Of Financials
12. Key Highlights

COMPANY OVERVIEW

1. Xelpmoc is a provider of professional and technical consulting services, offering end-to-end technology solutions and support.

2. They provide a wide range of services like mobile and web application development, prototype development, thematic product development and data science and analytics assistance.

3.They work as the Technology Partner and Consultant to governments, businesses, individuals, and start-ups to help them optimise their data.

INDUSTRY OVERVIEW
1. Global IT Industry was one of the few sectors which were relatively less impacted by the pandemic.

2. IT spending is projected to total $4.3 trillion in 2022.
3. India’s IT industry plays important role in country’s GDP
4. The revenue of India’s IT & BPM industry is expected to reach $350 billion by 2025

IS IT DIFFERENT FROM OTHER IT COMPANIES
1. They are not a typical IT service provider company.They not only provide IT services but also do investments in the startups that they work with.
2. So technically they are acting as a technology co-founders for those startups

BUSINESS MODEL
Xelpmoc’s business model is differentiated into 2 parts.
1. IT Services: They provide IT services to corporates & governments and charge fees for it
2. Venture Capital: They work with startups to provide them with technical services and instead of taking fees

they take equity
About 85 to 90% of their revenue comes from start-ups.

STARTUP CULTURE INDIA
1. India continues to be the world’s 3rd largest startup ecosystem right behind China and the USA with over 66 startups being unicorns out of which 28 were added in 2021.

2. India’s start-ups have created over $300 billion of value in combined market capitalisation.
B2C start-ups continue to garner higher funding and valuations.
Fintech and health-tech are the largest and fastest growing segments among B2B start-ups.

H.E.A.L
1. H.E.A.L stands for Healthcare, Education(EdTech),Agriculture and Livelihood. These are the sectors which they mainly focus on when they invest in start-ups.
2. They invest in these start-ups with an aim to better the lives of the next 500 million people globally.

PORTFOLIO COMPANIES
They have 18-19 startups in their portfolio. Some of their key portfolio companies are 4tigo, Mihup, Woovly etc. Here’s the list of their portfolio companies.

4tigo
1. 4tigo Networks is a digital logistic platform, it is a freight exchange facilitator for the trucking ecosystem in India. It is a common technology platform that caters to every participant in the trucking ecosystem and enables them to manage the entire goods

transportation lifecycle on the platform.
2. 4tigo is one the oldest company in their portfolio.
Their cost of investment is only 11 thousand and the current value of this investment is around 21 Cr.

3. 4tigo was created as a joint venture between Xelpmoc and 4tigo but later Xelpmoc exited the JV and now holds a stake in this company.

Mihup
1. Mihup is an artificial intelligence powered mobile assistant for Human-to-Machine, Machine-to-Machine, Machine-to-Human interaction.
2. Mihup is a digital personal assistant, with local language voice recognition that functions offline.

3. Mihup’s product AVA-AUTO is deployed in Tata’s Nexon & Altroz models. Mihup can interact in local languages like Hindi, Tamil, Marathi, etc.
4. Their cost of investment is 60 lakhs and the current value of this investment is more than 11Cr.

Woovly India Private Limited
1.Woovly is a social commerce platform promoting and selling Direct 2 Consumer (D2C) brands in the space of Beauty and Personal Care. It helps users and potential customers shop via brand tagged user generated content, to cater to the growing shopping

demands of patrons.
2. Their cost of investment is 5.7 lakhs and the current value of this investment is more than 5Cr.
3. Woovly is on track to become India's most trusted social commerce platform.

4. It has more than 5 million+ users which generate more than 150 million views on content development by 18,000 homegrown influencers.

KidsStopPress Media Limited
1. It is India’s first children’s lifestyle website

2. It is India's foremost parenting website that shares the reviews of brands, services, and events across India, helping parents make an informed decision.

Slate
It essentially helps the MSME segment to organize the finances and also to modernize their outlook, get some financial inputs in terms of business decision taking which is corroborated by financial data.

Ledstart (Pencil)
1. Leadstart Publishing is a leading publishing house from India with a focus on both creative and progressive. The PENCIL platform from Leadstart features distinguished authors and writing from across the globe.

2. The platform allows uploading the book’s script, designing the cover page, editing, and publishing on all available digital platforms (like Kindle).

Snaphunt Pte Limited
It is an online platform for jobs,SnapHunt is a Singapore based venture that focuses

on the Southeast Asian talent market.

Femmevista Technologies Pvt Ltd (The Star In Me)
The star in me is a Networking, branding and guidance platform for Women of today.
FemmevistaTechnologies, a career advancement platform for aspiring women leaders which enables networking

and accessing coaching and learning resources.

Learning Hats Pte Limited (edtech)
It is a Singapore-based company providing state-of-the-art technologies in the education sector

Signal Analytics Private Limited
It is an Edutainment company engaged in data analytics

Madworks Ventures Private Limited
The company is involved in the business of developing, designing, maintaining and selling internet / web / mobile / tabloid based applications

Graphixstory Private Limited
1. It is an animation creation studio. They do animation, videos, photography, storytelling, and advertising videos for companies.
2. They have clients like Myntra, Nykaa etc.

Inqube Innoventures Private Limited
They work on technology,analytics,imaging, and Internet of Things solutions and harness the power of technology and data to positively impact the rural economy across nations in the developing world with agriculture as its prime economic driver

Taxitop Media Private Limited
Taxitop Media is an outdoor advertising company that uses cabs to make their medium of advertisement. Taxitop Media has collaborated with Uber India to monetise this opportunity via various modes of Advertising in the interior and exterior of the car

Digital Taxi Top Display is a flagship product of Taxitop Media

Catailyst Inc
"Catailyst Inc a healthcare technology platform with a unified dataset of drugs, using cutting-edge data science techniques such as Machine Learning, Natural Language Processing,

Predictive Analytics, and AI models."

VALUE OF THE PORTFOLIO
Their total cost of investment as of 31st march 2021 is 4.29cr and the fair value of this investment as of 31st march 2021 is 47.5cr more than 10x return.

PRODUCTS
1.
Apart from their services they also have their own products namely X-PAND which is kind of location intelligence tool which combines internal sales and customer data with relevant external data which help in identifying potential location for new outlet for

your store based on data analytics
2. X-TACT helps a political party understand public sentiments at the ground level. It provides booth-level insights which can be a great tool at the time of elections as well as for management and governance for a party in power

3. Claire. ai extracts 40 pre-defined entities which includes attributes such as names (non-region specific), location-related information, monetary values etc along with other custom-defined entities. Claire. ai does the work of extracting information, identifying key insights,

performing analysis of the text at scale, and integrates outputs to any communication platform (Whatsapp, Slack, Email etc.)

OPERATIONAL HIGHLIGHTS
1.They plan to expand their business internationally.
They have planned to set up an office in London

and operate overseas markets from there.
2. FY21 marks their first profitable year.
3. In FY21 55% of the revenue came from international markets.
4. No. of investments have increased from 15 to 19 in 2020-2021
5. Cumulative clients have increased from 41 to 47.

SUMMARY OF FINANCIALS
1. Revenue increased from Rs. 1.8 Cr in FY17 To Rs. 14.4 Cr In FY21.
2. EBITDA for FY21 Is 4.6cr excluding ESOPcharge of 1.04 Cr In FY21
3. EBITDA margin increased from -143% In FY17 to 32.74% in FY21.

KEY HIGHLIGHTS
1. This company should not be judged only by their PAT or margins but also by the value of their startup portfolio and their management competence of choosing the right startup.

2.The management works cautiously and deeply while deciding which startup to invest in and they think with their experience they can get a 25-30% success rate.