Presented by-Group no. 9Viraj Bhatt – 06 (Slide covered 10-13)Ganesh Kumar – 15 (Slide covered 14-19)Vijay Pammi – 35 (Slide covered 1-5)Aliasgar Patanwala – 37 (Slide covered 6-9)

About redBus.in• Founded in: August 2006• Headquarters: Bangalore • Industry: Domestic Travel• India’s first bus tickets booking site• Has the largest network of bus operators in their list (350+

and growing) • Being mentored by the TiE-EAP (Entrepreneurship

Acceleration Program)• Sells two cloud based software, called BOSS and Seat

Seller to bus operators and travel agents.

Redbus Story• One of the founder couldn’t catch his bus on diwali, so what??

A lot of us have missed our buses…big deal..• They thought, if IRCTC can simplify railways, WHY CAN’T local

bus ticketing be streamlined?• They undertook extensive market surveys to understand the

market and aspirations of the customers.• They developed a plan for the business and submitted it to a

TiE (the Indus Entrepreneurs) mentorship competition. • The portal was created with the help of the initial seed

funding and mentoring that was provided by the competition.

More about redbus.inHow much does it worth How much does it make

•$ 8,459 / day•$ 253,770 / month•$ 3,045,240 / year

Website Traffic•564,000 visitors / day•16,920,000 visitors / month•203,040,000 visitors / year•2,819,778 page views/ day•84,593,340 page views / month•1,015,120,080 page views / year

• estimated worth, $ 25,015,000

Achievements • Forbes - Top 5 hottest start-ups• Business World - Top 3 enterprises in India• AllWorld Network - India's fastest growing company• Deloitte - Top 5 fastest growing companies in India• Star award achiever - Youth Marketing forum• IAMAI - Internet start-up of the year

Redbus core TeamPhanindra Sama• CURRENT : CEO & co-founder redBus.in• PAST : Senior Design Engineer at Texas Instruments

Design Engineer at ST Microelectronics• EDUCATION : Indian Institute of Science

Birla Institute of Technology and Science

Sudhakar Pasupunuri• CURRENT: Co-Founder – www.redbus.in• PAST : Staff Software Engineer - IBM Rational Software

Software Engineer - TCS • EDUCATION : B.E. in EEE - Birla Institute of Technology and Science

Charan Padmaraj• CURRENT : Head of Engineering at redBus.in • PAST : Co-Founder at Pilani Soft Labs (www.redBus.in)

Engineer at Honeywell• EDUCATION : Birla Institute of Technology and Science

Redbus – Business Model

Redbus – Business Model• BOSS

Operators who use computers but cannot afford costly upfront IT upgrades can use a redBus software offering called BOSS (Bus Operator Software Service) through which redBus gets real-time access to the operators’ inventory

• Seat SellerThe company also offers the SeatSeller, a global distribution system that redBus uses to power the bus ticketing applications of other travel companies and online travel agencies, including ViaWorld.in and MakeMyTrip.com. Currently, about 50% of redBus bookings are done over the Internet, 30% through call centers and 20% through SeatSeller. Mobile phone bookings account for less than 1% of the overall total

Redbus – Business application

Redbus – Channel design• Direct to customers – Their main distribution channel is direct

selling to customer through direct contact with their own website redBus.in this channel accounts for 60% sales.

• Agents – They have tied up with 3000 agents in south India who give more visibility to redBus. In the areas which do not have access to internet, these agents give redbus an opportunity to grow.

• Partners – In addition to agents, redBus also sells tickets to other online portels like travelyaari, MakeMytrip etc which adds to its revenue growth.

Business Concept• Uses Secure Socket Layers (SSL) data encryption. This ensures

that the information exchanged is never transmitted unencrypted

• For a convenient, hassle-free portal where customers could book their tickets from the comforts of their home.

• Could book your ticket for the return journey in advance without having to travel to the destination with the uncertainty of securing a ticket looming over your head.

• Their strategy is to “win one territory, establish your rule, then win the next”

Redbus - ANSOFF MATRIX

MARKET PENETRATION• Tie up with RTC’s• Tie up with OTA’s & Banks

PRODUCT DEVELOPMENT• VAS such seat selection, agent reviews, online/offline model• Mobile App

MARKET DEVELOPMENT• Extended focus on Tier II and III cities

DIVERSIFICATION•Diversifying to BUS operator• Hotel bookings

PRODUCTS

MAR

KETS

EXISTING NEW

EXIS

TIN

GN

EW

Redbus – Value ChainInbound logistics • Seat inventory through BOSS

Operations •Software management(IT)

Outbound Logistics •Online, offline & Seat seller

Marketing & Sales •OTA’s, Mobile app, offers through various banks payment gateway

Services •Customer sales support through call centres and feedback model

Industry Analysis

•The Bus operators are dependent on Red Bus for getting the customers•Red Bus needs to associate with larger number of operators

•Reach, Credibility, Visibility•Low Profit Margins•Require continuous innovation•Background in services

•Low product differentiation•Indian Middleclass: price conscious

•Threat of substitutes is high in smaller cities where the availability of internet is low

Threat Of New Entrants [LOW] Bargaining Power Of Buyers [HIGH]

Bargaining Power Of Suppliers [Medium]

Threat Of Substitutes [High]

Threat Of Competitors [Medium]

•redBus is the biggest player in the online bus booking segment, but faces continuous threat from bigger players, travel agents and OTAs

SWOT Analysis• Early Mover Advantage• Simple Business Model• Large network of Bus

Operators• High Levels of

Customer Satisfaction

• Entrepreneurial culture • Needs external funding

for Capital intensive projects

• Seasonal disturbances in demand

• Less reliability on Online Payments

• Vertical Integration with procurement of

Buses• Horizontal Integration

with venturing into airline Booking

• Global Expansion into Overseas markets

• Increasing no. of players in the Online Booking segment

• Un organized market in Non-Metro cities

Strengths Weaknesses

OpportunitiesThreats

15

Competition• Makemytrip.com • Travelyaari.com • Travelvala.com • Abhibus • Via.com • Ticketcounters.com

Redbus – Road to success• One of the most important strengths in this business for

redbus had been the relationship building with the bus operators

• The flexibility to adapt to the market and significantly change course was instrumental in ensuring Redbus success

• Deciding not to compete with competition on advertisement early on

• Having a great team• Government RTCs• Sama’s MANTRA: First survive, then get comfortable, then try

to get mega rich

Goals and Objectives• To Achieve Annual Revenue Of INR 5 Billion by 2015

I. Focusing on Core businessII. Vertical IntegrationIII. Increase in Service portfolioIV. Going global

RedBus Now

2012

Fastest growing

Indian orgGrowth, 07-

09- 5000%

Avg growth 250% per

yearRevenue 800

million

2014

Owned by ibibo

Sama & Charan sold

their stock to ibibo in june

2013Market share

– 65%

Faces stiff competition

from Travelyaari,

Abhibus, and Simply bus