Mofotech Computer Systems Llp Gears for Gamers Executive Summary

MOFOTECH COMPUTER SYSTEMS LLP GEARS FOR GAMERS EXECUTIVE SUMMARY

THE COMPANY

Moving Forward Technologies (MOFOTECH) was founded in the year 2016 by Mahesh Kashyap and Zunzar Ghate. It’s a startup company that expects to catch the interest of PC Gamers with its broad variety of extreme designs. The company strives to make an influential stand within the country’s market with it’s strong visualization and creative thoughts. We aim to make our products peerless in design & price while meeting the specifications of our gamers.

The thought behind the company is to make products affordable to all gamers to help them build their own high- end system. We are determined to improve, enhance and introduce robust products with the latest technologies to achieve all the gaming needs while maintaining the quality and integrity.

Trust, Creativity and Quality are the pillars of Mofotech. We are with a mission to provide our gamers with gaming products that are unique in design, great in performance and easily affordable. We ensure you will get the best experience with us.

Vision : “We are determined to improve, enhance and introduce robust products with the latest technologies.”

Mission: “We are with a mission to provide our gamers with gaming products which are unique in design, great in performance and easily affordable.” JOURNEY SO FAR

We’ve launched our first gaming case in the month of October 2016. Later that month, we collaborated with GameMax to become their only seller in Indian market. So far, we have launched three products of high-end cases of Gamemax in India. We started our journey on October 10th by selling our first line of business – Reactor Z1- 500 on Amazon, and within a few weeks, we were on the Top 5 best sellers list of gaming cases. Currently, we are selling an average of 18 cases with no promotions. However, we have conducted trade show at Comic Con held in Pune on March 4-5, 2017 from where we have received an overwhelming response, and they soon wish to see us on retail shops. As of now, we have prepared a range of twenty products in design that ranges from gaming cases to accessories and cooling accessories. Out of which, we have 7 working prototypes that includes a MOD gaming case, RGB Fans and its controller, headphones, keyboard panels, and mouse. They’re all specifically design for gamers. The USP of our products are the awesome design, strong build-quality and its amazingly affordable price.

MOFOTECH REACTOR Z1-500 GAMEMAX M901 GAMEMAX M902 GAMEMAX M905 UPCOMING PRODUCTS At present Mofotech is only providing computer cases with upgradable features to suit gaming requirement. Soon will be coming up with more accessories to improve the gaming experience across the country. Mofotech will introduce new products to take the gaming experience one notch up. We have more than 20 more different kind of gaming computer accessories in line for final production.

We have seven finished prototypes ready to launch. The accessories are as follows: • Gaming Keyboard - 3 designs • CPU Liquid Coolers 120mm/240mm/360mm • CPU Air coolers - 2 designs • RGB mouse pad - 2 designs • DIY Case liquid cooler • SMPS 80+ 600w/800w/1050w • LED/RGB/Ring Cooling fans • RGB Fan Kit • Gaming computer case - Alluminum/DIY • Gaming Chairs - 3 designs • Fan Speed Controller/temprature Screen

In regards of expanding our company on a Multinational level, we have set some plans for: • Video Game Development • eSports Event Nationwide • First Manufacturing unit in India • Paintball equipments and sport RESEARCH & DEVELOPMENT: Two of our cabinets are in R&D stage with a futuristic design in mind. We are also interested in Modding cabinets as per theme & as per customer request. For this we require investment for proper machinery and tools.

At present in Indian market, DIY CPU/GC liquid cooling kit is only available with “Thermaltake” which is way overpriced. We have come up with our own cooling kit with same quality and half of market price.

PROMOTIONS: We want to start with a “BOOM” and to make our brand name known with a nationwide promotion. For this we require investments for: 1. TV Commercials 2. Tech Magazine ads and our product reviews 3. Online website ads and reviews - Digital Marketing 4. Local promotions: standees, posters, banners in Gaming Cafes, Colleges, Malls and Computer Shops 5. Sponsor e-sport teams, gaming events and IT fairs 6. Mofotech gaming events in all major cities 7. Mofotech Merchandise

COMMERCIAL SPACE AND MANAGEMENT TEAM: We need to establish a complete corporate culture with proper commercial space which includes working space, R&D area, MOD workshop and storage for products. To run business smoothly we need a management team which handles day today task of business. THE PROBLEM

The biggest problem for the Indian consumers are the high price tag of the products. The availability of the brands are very limited and most of the time Brands don’t launch their latest products in India. Due to the lack of the products, design and affordability for the gamers, it’s an opportunity for us to grab the market and fill the gaps which was created by the international brands.

THE SOLUTION

Our products are specially for those who need a creative design in the budget with the good quality. Our products are high in quality and provide the ultimate satisfaction to the consumer. Our all of the products are low cost from the competitor and some of the products are very unique that we have it only not other company have this technology.

CURRENT SITUATION

Mofotech has been using online platforms to sell its products such as – Amazon.in, E-bay, etc. Mofotech also has its own e-commerce enabled website : www.mofotechplay.com

Mofotech looking at the current market potential wants to expand the business by introducing new product range and investing in developing the existing design and R&D center in to a full fledge local production facility. DEFINING TOTAL ADDRESSABLE MARKET (TAM)

TAM 4: $15.8 B PRODUCTS

ALL OPERATING All offerings / Mobile+Desktop+Phablet / INSTRUMENTS out of actual business scope of Mofotech Offer TAM 2: $200.2 M TAM 3: ALL ACCESSORIES & $2.8 B COMPONENTS Further demand and INCLUDING NON offerings MOFOTECH TAM 1: $140.2 M

MOFOTECH Actual demand / All computer OFFERINGS Mofotech offering components Products

*TOTAL ADDRESSABLE MARKET TAM MARKET SEGMENTS 2017 & OUTLOOK 2022

TAM in Market Quantity CAGR Market Segments MINR Share Q4 ’16 – Q1 (5 years) 2022 ‘17 2015 (2017) General (online purchase) 47 1388 33,513.04 58% 0 Newbie gamers 2 59 16,756.52 58% - Expert gamers 3 89 10,053.91 58% 0 Professional gamers 0 10 3,351.30 58% 0 DIY enthusiasts 5 148 13,405.22 58% 0

Impact on SWOT

Strengths Weakness • Balanced market share in all major market segments • Appropriate counter measures against new • Strong in faster growing markets, e.g. Dairy and Beverages suppliers missing

Opportunities Threats • Profit from brand recognition to improve our market share • Newer players coming on very strong with “Fit- to-purpose” products.

* ISIC 01 „General“ is overloaded and impacts this picture MARKET SPLIT AND DYNAMICS : 2017

TAM 2015 Growth indication Gross (In Million INR) compared to avg. margin market growth

Cabinet 9400 → 28% (High/Mid/Low)

Cooling unit 2608.5 32% (Liquid/Air) Headphone 3290 ↗ 28%

Keyboard 2350 →↗ 70% Gaming chair 0.23 35%

Components 5170 ↗ 40% ↗ Impact on SWOT Strengths Weakness • New Product lines • Market share Opportunities Threats • Portfolio exploitation • Growing number of full basket competitors • Growing number of focused specialists THE COMPETITION

Competitor How do they gain market share?

Corsair • A global MNC, a known brand in computer industry • Large product line • Trusted brand, among DIY enthusiasts • Higher market penetration in gaming enthusiast

Circle • A Local competitor with well defined product segment in the market for 11 years • Local service centers across the country to serve the customers • Major focus on West India • Price competitive products • Local tie-ups Antec • A Canadian company specialized in DIY computer components • Higher presence on online platforms • Premium product range Competitor • One stop solution for gaming CPUHow cabinet do solution they gain market share?

Cooler • Strong presence in online platform and more products to offer master • Market positioning and branding in place • A global player with higher OEM acceptability. • Modular system • A complete solution provider

BUDGET PREMIUM BUDGET PREMIUM BUDGET PREMIUM BUDGET PREMIUM

AVAILABILITY UN-AVAILABILITY AVAILABILITY UN-AVAILABILITY AVAILABILITY UN-AVAILABILITY AVAILABILITY UN-AVAILABILITY

STRENGTH: Great products STRENGTH: Best brand for STRENGTH: Cheapest CPU liquid STRENGTH: nnovative products with better built quality and easy computer cabinet, super built coolers. with good quality, slightly availability online only. quality and medium availability of affordable cabinets. products. WEAKNESS: Few products WEAKNESS: No better in Indian market with low WEAKNESS: Zero availability availability in Local Market. Highly WEAKNESS: Highly priced availability in local market, below average priced products. products, limited market in local area. quality of cabinets, over priced Delay in product launch in India. cooling accessories.

THE OPPORTUNITY: Our products are THE OPPORTUNITY: The best THE OPPORTUNITY: No match THE OPPORTUNITY: We can easily low cost than all of the competitors. We opportunity for us is that we are Indian with our product range and compete with their high-end can provide 100% availability in the local brand which allows us easy access to quality. We have low cost CPU creative cabinets with the same market and online. local market with our products on time. liquid coolers than Antec. quality and with low cost price Our products are way low cost than tag. Our cooling accessories are Cooler Master brand. low cost than any brand. BRANDS AVAILABLE IN USA BRANDS AVAILABLE IN INDIA

AeroCool Phanteks Antec airgoo PowerUp Circle Anidees Raidmax Cooler Master Antec Realan Corsair Apevia RIOTORO DEEPCOOL Apex Rosewill Nzxt Armaggeddon Sentey Thermaltake Azza SilverStone Technology Mofotech be quiet! Streak Products Cooler Master Supermicro Corsair Thermaltake Cougar Ultra Cougar (Compucase Brand) VIVO Diablotek Xion DIY Zalman DIYPC Dynapower USA Fractal Design Gaming Concepts PC Generic GMC Hbt HIGH POWER ID-COOLING IN-WIN Development Inc LEPA Linkworld Electronic LLC. Logisys MA Labs Nanoxia Nzxt NZXT Technologies OEM COMPETITIVE ADVANTAGES

The gaming market in India is vast and the opportunity is limitless. The gaming market is growing very fast and gamers are getting awareness about the new tech and what should they look for their machine for better performance, but unfortunately there is no Indian gaming company which can provide the hardware in budget except us. Our target customers are all kind of gamers from budget to high-end gamers because we provide high quality in low price. We have competitors like Corsair, Cooler Master, Antec and Thermaltake but not to worry about that because they have products in very high price tag. We have competitive advantages like high-end quality with very low cost to consumer and 100% availability in local market. The best thing is with the creative hardware in terms of design and features. We are working on computer security models which are not yet produced by any brand. We will manufacture the prototype within a month and will take patent for the design soon.

UNIQUE FEATURE FIRST TO MARKET PROPRIETARY TECHNOLOGY Only creative designs with card We have few products which has no PC security systems with App and reader feature and aluminium match in the market like RGB fant Kit, DIY thumb impression protection case with tempered glass. liquid cooling kit, Aluminium case, security (patent design) still in Research system, fan speed controller. None of the and development. other brands has these kind of products.

ADOPTION RATE UNIQUE PRICING MODEL EXCLUSIVE PARTNERSHIP Due to the other brands they kept the Our pricing are very affordable for any We do have a collaboration with a technology and design very simple to play market from budget gamers to high-end company which will design our ideas withe market by launching the versions of gamers. We have kept the 50% profit of the computer security systems. They the products to increase their sales. But we margin for company, 20% for distributor work in the electrical and mechanical have an edge to launch the new tech and and 30% for retailers. part and we work with the design and design in the market with a BOOM. idea. PROJECTION - MARKET VALIDATION & TRACTION

22991 $1887618 50% FIRST YEAR SALE FIRST YEAR REVENUE PROFIT MARGIN

YEARLY GROWTH

15.76% FIRST YEAR 29.90% Accessories Accessories SECOND YEAR CasesCases Cooling Accessories Cooling Accessories THIRD YEAR

54.34% FOURTH YEAR THE TEAM

MAHESH KASHYAP ZUNJAR GHATE AVINASH SINGH NIKHIL KANOJIA DIRECTOR, CO-FOUNDER DIRECTOR, CO-FOUNDER BUSINESS ADVISOR, GLOBAL ACCOUNTANT MARKETING MANAGER

• Ideas, Concepts and visualization • Ideas, Concepts and visualization • Process Automation • Market Research • Financial decisions • Product and Service Delivery • eXcel Tools Creation • Business Development • Day-to-day management decisions • Creative final touch-up • Managing Reporting System • Sales & Marketing • Overseeing production processes. • Advertisement and promotions • Real-Time Analyst • Client Relationship Management • Assessing project and resources • Production analysis and planning • Reporting Specialist • Project management requirements. • Determining quality control • Helping Team minimize their • Graphics and 3D models standards. efforts towards Report Generation. THE ASK We have currently 4 computer cases on sale. We would like to expand our product categories such as cooling accessories, cabinest, security systems and other accessories. We need minimum $2990000 investment to expand our business. Investment will cover the exppneses of Manufacturing, Research & Development, Operating Expenses, Marking & Promotions nationwide. The idea is basically to launch all of the products in local market which has the big share of consumers in India. FUNDING GOALS This is the best time to invest as we have such products which are not even with any brand and we 5 YEARS TIMELINE have an edge of technology, quality and low pricing. By this funding we can develop a complete team 10% which will automate the business. We will sponser the e-sports team, gaming events, Gaming Fairs and 30% Production other IT events. A decent chunk of the investment Production will be utilized for promotion PromotionPromotion $2250000 40% OperatingOperating TIMELINE Reserve We have been chased by the number one e-sport Reserve team of India for the sponser for big events which 20% is a great achievement itself. RageQuit e-sport organizers are interested to take dealership of our products. Most of our fans searched our products in local market, but unfortunately we are online only. • Are you looking for Debt or Equity? We are opting for Equity funding. Sorry for the incorrect terminology. As this is the best asset that we have to offer at the moment, which will be worth a lot better in coming months.

• What is the anticipated pre-money and post-money valuation of the business? We're starting with an offer of 15% (negotiable) of our shares for $2.9 M. So, post-money valuation is $9+ M, and anticipated pre-money valuation is $8 M. I will tell you why. As per various market research, one among them is by SuperData (refer page 5), PC gaming has generated over US $34 billion along in 2016. So, we've anticipated, at least 1% of this (totals at US $34Cr = INR 2278Cr considering INR 67/USD) can our market (for cabinets, cooler and accessories) from India, and every PC purchased is a package for us. A PC requires a cabinet, and Gamers fancy cool accessories. With that being said, we've considered 2.9% (66.7/2278) of this entire market to be our business worth.

• Since the usage of funds has been spread out over almost one year, would the funds be required in tranches? We're okay if the funds are sent over in tranches of 6.5Cr + 6.5Cr + 7Cr over 3 years.

• Have you raised funds for this business previously? When and how much? Do you have any soft commitments for this round? Well, we've put about 15L of our own money for this business to give it a kick start. Basically, a few funds of our own and some from our families. This was about in the month of September 2016. Yes, we do plan on returning the portion of the amount back to the family but that is after returning the benefits to you and making enough profits in the business that would not impact the operations at all.

• How is the Investor going to make money out of this Investment? We don't plan on going public soon. As we clearly foresee the future of the company and the profits that it will generate. But yes, being realistic and making sure you're get your returns on your investment, we've following exit strategies for you: • We'd like to buy back your portion of shares after we've built a successful business system. I'm saying within 3-5 years time, which is very likely to happen. • We would go IPO for you. • And well, this is just in case, if we've some unfortunate event due to which our business is not self sustainable even after 5 years (that we do not foresee), we're open to merge or sell portion of our company to larger business available in the market who would be interested in buying and we'll have your share merged with some of ours to offer them about 50% or more. You can reap your benefits from it. MOFOTECH COMPUTER SYSTEMS LLP GEARS FOR GAMERS

Flat No. 301, Indrani Park Building, SN0-67, PL-29, HISSA N0-1/B/26, Pune Pune MH 411015 IN www.mofotechplay.com • [email protected] • +91 9922 203659 • +91 7875 824371 www.mofotechplay.com www.facebook.com/mofotechplay https://goo.gl/9pgyxe https://twitter.com/mofotechglobal