Year 0 1 2 3

Top-down revenues
Price 30 32 34
Inflation effect 7% 7% 7%
Compitition effect
Agencies - early adopters 7 7 8
Units per early adopter 35,000 40,250 50,313
Total units from early adopters 245,000 297,850 392,438
Revenues from early adopters 7,350,000 9,560,985 13,479,051

Agencies - early majority 15

Units per early majority 25,000
Total units from early majority 375,000
Revenues from early majority 12,880,125

Agencies - late majority

Units per late majority
Total units from late majority
Revenues from late majority

Total units demanded 245,000 297,850 767,438

Total revenues 7,350,000 9,560,985 26,359,176

Bottom-up revenues
Capacity 300,000 300,000 750,000
Revenues if capacity sold 9,000,000 9,630,000 25,760,250

Reconciling top-down and bottom-up

Excess Capacity 55,000 2,150 -17,438
Units actually sold 245,000 297,850 750,000
Revenues from operations 7,350,000 9,560,985 25,760,250
Non-operating revenues 0 0 0
Fixed Cost/Investment 3,000,000 5,000,000
(Purchase of Machinery 1) (Purchase of Machinery 2)

COGS
Unit costs 10 10.7 11.449
Economies of scale effect 0% 0% 2%
COGS 2,450,000 3,186,995 8,586,750
Gross margin 67% 67% 67%
Expenses
Staff count 5 6 12
Average employment costs 720,000 763,200 808,992
Staff employment costs 3,600,000 4,579,200 9,707,904
Founders taking salary 4 4 4
Founders' salaries 2,880,000 3,052,800 3,235,968
Total employment cost 6,480,000 7,632,000 12,943,872
Employment as % of revenues 88% 80% 50%
R&D expenses 500,000.00 700,000 900,000 1,100,000
R&D as % of revenues 10% 9% 4%
SGA charges 441,000 573,659 1,030,410
Other non-operating expenses (including rent,electricity etc.) 441,000 573,659 1,030,410
Maintaince/depreciation/amortization 200,000 200,000 533,333
Total costs 10,712,000 13,066,313 25,224,775
Profit before tax (PBT) -3,362,000 -3,505,328 535,475
Accumulated PBT -3,362,000 -6,867,328 -6,331,854
Corporate Tax - - -
Net profits -3,362,000 -3,505,328 535,475
Net margin -46% -37% 2%
Pre money valuation (Sum of net present value 88,774,549 -3,362,000 -3,505,328 535,475
Cash flows from operations
Days to pay suppliers 30 30 30
Accounts payable 201,370 261,945 705,760
Days to get paid 60 60 60
Accounts receivable 1,208,219 1,571,669 4,234,562
Days in inventory 90 90 90
Inventory 604,110 785,834 2,117,281
Current assets 1,812,329 2,357,503 6,351,842
Current liabilities 201,370 261,945 705,760
Net working capital 1,610,959 2,095,558 5,646,082
Change in net working capital 1,610,959 484,599 5,161,483
Cash flows from operations -4,972,959 -3,989,928 -4,626,008
Cash Flows from Investing -3,000,000 0 0 -5,000,000
Cash balances from operating and investing
=financing required -3,000,000 -7,972,959 -11,962,887 -21,588,895
Cash flows from Financing including dividends 11,962,887 9,887,068
Cash Flow Position 8,962,887 3,989,928 9,887,068 261,060
Capital Expenditure

Year 0 1 2 3
Financing Rounds
Angel Round (for sustaining initial 2 years) 11,962,887
Venture Captilist Round- Series A (for
sustaining next 2 Years) 9887067.9714
Venture Captilist Round- Series B (for
sustaining next 3 Years)
Term deposit with bank

Women 1320000
Men 2640000
3960000
 4 5 6 7 8 9

37 39 42 45 47 48
7% 7% 7% 7% 7% 7%
3% 4% 5%
8 9 9 10 10 11
62,891 78,613 98,267 113,007 129,958 149,451
515,703 676,074 884,399 1,073,563 1,299,576 1,569,238
18,952,755 26,585,862 37,212,478 48,333,840 60,849,761 75,680,369

17 19 21 23 25 28
31,250 39,063 48,828 61,035 76,294 95,367
531,250 742,188 1,025,391 1,403,809 1,907,349 2,670,288
19,524,123 29,185,692 43,144,902 63,202,145 89,307,379 128,781,240

15 16 17
25000 28750 33062
375,000 460,000 562,062
16,883,216 21,538,482 27,106,853

1,046,953 1,418,262 1,909,790 2,852,371 3,666,924 4,801,588

38,476,878 55,771,554 80,357,380 128,419,202 171,695,622 231,568,462

1,125,000 1,687,500 2,531,250 3,796,875 5,695,313 8,542,969

41,345,201 66,359,048 106,506,272 170,942,567 266,670,404 412,005,774

78,047 269,238 621,460 944,504 2,028,388 3,741,380

1,046,953 1,418,262 1,909,790 2,852,371 3,666,924 4,801,588
38,476,878 55,771,554 80,357,380 128,419,202 171,695,622 231,568,462
0 0 0 0 0 0
10,000,000
chase of Machinery 2) (Purchase of Machinery 3)

12.02145 12.502308 12.87737724 13.1349247848 13.26627403265 13.266274033

3% 4% 5% 6% 7% 8%
12,585,895 17,731,545 24,593,087 37,465,681 48,646,424 63,699,187
67% 68% 69% 71% 72% 72%
 17 23 31 46 59 77
857,532 908,983 963,522 1,021,334 1,082,614 1,147,571
14,578,036 20,906,618 29,869,195 46,981,353 63,874,213 88,362,937
4 4 4 4 4 4
3,430,126 3,635,934 3,854,090 4,085,335 4,330,455 4,590,282
18,008,162 24,542,552 33,723,285 51,066,688 68,204,669 92,953,220
47% 44% 42% 40% 40% 40%
1,300,000 1,500,000 1,700,000 1,900,000 2,100,000 2,300,000
3% 3% 2% 1% 1% 1%
1,539,075 2,230,862 3,214,295 2,568,384 3,433,912 4,631,369
1,539,075 2,230,862 3,214,295 2,568,384 3,433,912 4,631,369
533,333 533,333 533,333 1,200,000 1,200,000 1,200,000
35,505,540 48,769,155 66,978,295 96,769,137 127,018,918 169,415,145
2,971,338 7,002,399 13,379,085 31,650,064 44,676,704 62,153,317
-3,360,516 3,641,884 17,020,968 48,671,033 93,347,737 155,501,053
- 546,283 2,006,863 4,747,510 6,701,506 9,322,997
2,971,338 6,456,117 11,372,222 26,902,555 37,975,198 52,830,319
8% 12% 14% 21% 22% 23%
2,971,338 4,008,741 6,419,323 13,805,264 17,715,710 22,405,213

30 30 30 30 30 30
1,034,457 1,457,387 2,021,350 3,079,371 3,998,336 5,235,550
60 60 60 60 60 60
6,324,966 9,167,927 13,209,432 21,110,006 28,223,938 38,066,049
90 90 90 90 90 90
3,103,371 4,372,162 6,064,049 9,238,113 11,995,009 15,706,649
9,428,338 13,540,088 19,273,481 30,348,119 40,218,947 53,772,697
1,034,457 1,457,387 2,021,350 3,079,371 3,998,336 5,235,550
8,393,880 12,082,701 17,252,131 27,268,748 36,220,610 48,537,148
3,232,398 8,850,304 8,401,828 18,866,920 17,353,690 31,183,457
-261,060 -2,394,187 2,970,394 8,035,635 20,621,508 21,646,862
0 0 0 -10,000,000 0 0

-21,849,955 -24,244,141 -21,273,747 -23,238,112 -2,616,604 19,030,257

1,388,158
1,388,158 -1,006,029 1,964,365 - 20,621,508 42,268,370

4 5 6 7 8 9

1,388,158
 No of
agencies to
10 start with
Introduction Early Adopters 7
Growth Early majority 15
49 Mature Late majority 15
7% Decline Terminal value
6%
11 Initial Sale price 30
171,869 Price increase due to Inflation 7%
1,890,558 Cost price 10
93,000,362

Reduction in sale price due to competition Year 7 Year 8

31 3% 4%
119,209
3,695,488
181,788,518

18
38022
684,394
33,666,711

6,270,440
308,455,592

12,814,453
630,368,834

6,544,013
6,270,440
308,455,592
0

13.1336112923
9%
82,353,517
73%
 99 Average salary 12000
1,216,425 Annual Hike 6%
120,426,060
4
4,865,699
125,291,760
41%
2,500,000 Initial R & D 500,000.00
1% Annual incraese in R & D 200,000.00
6,169,112 SGA as a percent of sales revenue 3%
6,169,112 Other non-operating expenses as a % of sales 3%
1,200,000 Machines life (straight line depreciation) 10
223,683,500
84,772,092
240,273,145
12,715,814 Corporate tax rate 15%
72,056,278 Terminal vaCorporate tax rule for startup Carry forward of losses till 10 years from date of inc
23%
27,780,814

30 Days to pay suppliers 30

6,768,782
60 Days to get paid 60
50,705,029
90 Days in inventory 90
20,306,347
71,011,375
6,768,782
64,242,593
33,059,136
38,997,142
0

58,027,399
Bank deposit interest rate- annual 6%
81,265,512

10
 Other non-
operating
Growth expenses as a
Unit per Growth rate- rate- SGA as a percent % of sales
agency Sales Agencies of sales revenue revenue
35000 15% 5% 6% 6%
25000 25% 10% 4% 4%
25000 15% 7% 2% 2%

Year 9 Year 10
5% 6%
10 years from date of incorporation
 Year 1 Year 2 Year 3

Maintaince/depreciation/amortization ₹ 200,000.00 ₹ 200,000.00 ₹ 533,333.33

Profit before tax (PBT) = EBIT# ₹ -3,362,000.00 ₹ -3,505,328.20 ₹ 535,474.67
Corporate Tax ₹ - ₹ - ₹ -
Change in net working capital ₹ 1,610,958.90 ₹ 484,599.45 ₹ 5,161,482.74
Capital Expenditure ₹ 1,000,000.00 ₹ 1,000,000.00 ₹ 1,000,000.00
FCFF ₹ -5,772,958.90 ₹ -4,789,927.65 ₹ -5,092,674.74
Discount Factor 0.8696 0.7561 0.6575
Discounted FCF ₹ -5,019,964.26 ₹ -3,621,873.46 ₹ -3,348,516.31
NPV ₹ 85,497,658.53

#PBT = EBIT due to absence of interest

expenses and income
Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

₹ 533,333.33 ₹ 533,333.33 ₹ 533,333.33 ₹ 1,200,000.00 ₹ 1,200,000.00 ₹ 1,200,000.00

₹ 2,971,337.78 ₹ 7,002,399.47 ₹ 13,379,084.69 ₹ 31,650,064.26 ₹ 44,676,703.97 ₹ 62,153,316.64
₹ - ₹ 546,282.56 ₹ 2,006,862.70 ₹ 4,747,509.64 ₹ 6,701,505.59 ₹ 9,322,997.50
₹ 3,232,397.68 ₹ 8,850,303.51 ₹ 8,401,827.98 ₹ 18,866,919.94 ₹ 17,353,690.42 ₹ 31,183,457.38
₹ 1,250,000.00 ₹ 1,250,000.00 ₹ 1,250,000.00 ₹ 1,250,000.00 ₹ 3,333,333.33 ₹ 3,333,333.33
₹ -977,726.57 ₹ -3,110,853.26 ₹ 2,253,727.34 ₹ 7,985,634.69 ₹ 18,488,174.62 ₹ 19,513,528.43
0.5718 0.4972 0.4323 0.3759 0.3269 0.2843
₹ -559,018.34 ₹ -1,546,643.87 ₹ 974,348.52 ₹ 3,002,095.87 ₹ 6,043,817.08 ₹ 5,546,962.66
Year 10
Discount Factor 15%
₹ 1,200,000.00 Company Growth Rate 4%
₹ 84,772,091.66
₹ 12,715,813.75
₹ 33,059,135.78
₹ 3,333,333.33 Terminal Value
₹ 36,863,808.80 ₹ 348,530,555.90
0.2472 0.2149
₹ 9,112,169.74 ₹ 74,914,280.90