About -
Affle (India) Limited is an India-based global technology company, which offers consumer intelligence platform that delivers consumer recommendations & conversions through relevant mobile advertising for brands & business-to-consumer companies globally.
Affle (India) Limited is an India-based global technology company, which offers consumer intelligence platform that delivers consumer recommendations & conversions through relevant mobile advertising for brands & business-to-consumer companies globally.
Revenue breakup -
Coustomer platform - 98.3%
Enterprise Platform - 1.8%
Coustomer platform - 98.3%
Enterprise Platform - 1.8%
▪️Consumer Platform: Delivers consumer
recommendations & conversions through relevant mobile advertising for leading brands & B2C companies globally.
recommendations & conversions through relevant mobile advertising for leading brands & B2C companies globally.
Affle primarily earns revenue from Consumer
Platform on a Cost Per Converted User basis (CPCU) which is 84.6%.
It also earns revenue through
brand awareness type advertising (Non-CPCU) which contributed 15.4%.
Platform on a Cost Per Converted User basis (CPCU) which is 84.6%.
It also earns revenue through
brand awareness type advertising (Non-CPCU) which contributed 15.4%.
Consumer Platform Case Studies -
Spotify: Affle’s Consumer platforms helped deliver a diversified targeting & channel strategy
to help acquire premium high value users by Algorithms powered by AI & ML.
Resulted 7.5X growth in monthly conversions from Jan,22 to Jun,22.
Spotify: Affle’s Consumer platforms helped deliver a diversified targeting & channel strategy
to help acquire premium high value users by Algorithms powered by AI & ML.
Resulted 7.5X growth in monthly conversions from Jan,22 to Jun,22.
Lotus Herbals: Implement a unique omnichannel marketing strategy by Driving effective Omnichannel Targeting by layering online attributes of consumer affinity & layering it with offline location intelligence.
Resulted 166% Growth in Online Sales, 370K+ new users onboarded.
Resulted 166% Growth in Online Sales, 370K+ new users onboarded.
▪️Enterprise Platform: Provide end-to-end solutions for enterprises to enhance their engagement with mobile users, such as developing Apps, enabling offline to online commerce for offline businesses with e-commerce aspirations & providing enterprise grade data analytics.
Global Presence -
Affle has presence in India, Southeast Asia, Middle East and
Africa, North America, Europe,
Japan, Korea & Australia
69.8% Revenue comes from USA & 30.2% from India.
Affle has presence in India, Southeast Asia, Middle East and
Africa, North America, Europe,
Japan, Korea & Australia
69.8% Revenue comes from USA & 30.2% from India.
Asset Light Model -
Their Consumer Platform business is asset-light & scalable as shown by the fact that their employee benefit exp, depreciation & amortization exp & other expenses remained relatively unchanged.
Their Consumer Platform business is asset-light & scalable as shown by the fact that their employee benefit exp, depreciation & amortization exp & other expenses remained relatively unchanged.
Management -
Anuj Khanna Sohum the founder & CEO of Affle India. His entrepreneurial leadership & strategic vision has set Affle on the growth path to be the global audience & data platform for both commerce and brand customers.
Anuj Khanna Sohum the founder & CEO of Affle India. His entrepreneurial leadership & strategic vision has set Affle on the growth path to be the global audience & data platform for both commerce and brand customers.
Technology & Innovation Powered
Growth -
Affle continued to progressively invest in enhancing its capabilities & consolidating its market position to become one of the most trusted technology brands in its domain.
Growth -
Affle continued to progressively invest in enhancing its capabilities & consolidating its market position to become one of the most trusted technology brands in its domain.
Financial Summary -
Over the last 5 years Revenue has roughly grown at 49% CAGR, PAT by 69% CAGR & EBITDA by 42% CAGR
OPM in March 2022 is 20% vs 27% in 2018 (because of acquisitions OPM ⬇️)
CFO is up by 390% from March 2018 to March 2022
Over the last 5 years Revenue has roughly grown at 49% CAGR, PAT by 69% CAGR & EBITDA by 42% CAGR
OPM in March 2022 is 20% vs 27% in 2018 (because of acquisitions OPM ⬇️)
CFO is up by 390% from March 2018 to March 2022
Valuation -
Affle:
M Cap - 17,325 Cr, P/E - 74.5, P/S - 13.6, EV/EBIT - 61
(Indian listed peer)
Brightcom:
M Cap - 9,383 Cr, P/E - 8.66, P/S - 1.61, EV/EBIT - 5.76
(Global listed peer)
PubMatic:
M Cap - $1.05 Bil, P/E - 22.4, P/S - 4.55, EV/EBIT - 16.87
Affle:
M Cap - 17,325 Cr, P/E - 74.5, P/S - 13.6, EV/EBIT - 61
(Indian listed peer)
Brightcom:
M Cap - 9,383 Cr, P/E - 8.66, P/S - 1.61, EV/EBIT - 5.76
(Global listed peer)
PubMatic:
M Cap - $1.05 Bil, P/E - 22.4, P/S - 4.55, EV/EBIT - 16.87
Growth Strategy & Outlook -
They expanded the scope of products from just mobile to connected devices, going well beyond mobile & looking at connected devices as a strategic focus.
They expanded the scope of products from just mobile to connected devices, going well beyond mobile & looking at connected devices as a strategic focus.
Investment across platform & product is contributing
to the growth. Affle 2.0 will focus on
Vernacular & Verticalisation with increase of OEM & operation level
partnership for deeper verticalisation for increased advertisement rev across E, F, G & H verticals
to the growth. Affle 2.0 will focus on
Vernacular & Verticalisation with increase of OEM & operation level
partnership for deeper verticalisation for increased advertisement rev across E, F, G & H verticals
Industry Outlook -
Digital ad spend in India
is projected to grow at a CAGR
of 30.7% to reach $8.25
billion in FY2025 from 2.16 billion
in FY2020.
It is driven by
factors such as cost effective data
packs, social
media & rapid growth in smartphone penetration.
Digital ad spend in India
is projected to grow at a CAGR
of 30.7% to reach $8.25
billion in FY2025 from 2.16 billion
in FY2020.
It is driven by
factors such as cost effective data
packs, social
media & rapid growth in smartphone penetration.
Online retailing has become a new normal globally & is on a rapid growth trajectory in India. India led the
total number of app downloads from Google Play Store, followed by United States in 2020. India is expected
to have more than 900 million Internet Users by FY2025.
total number of app downloads from Google Play Store, followed by United States in 2020. India is expected
to have more than 900 million Internet Users by FY2025.
Backed by technology advancements &
increasing digital user base, the outlook for the
digital advertising industry is highly positive.
increasing digital user base, the outlook for the
digital advertising industry is highly positive.
R&D -
Affle has a long history of driving innovation with a key focus on R&D.
It has built for itself a robust patent portfolio with total 20 Patents with 6 granted in US & 14 other filed across jurisdictions.
Affle has a long history of driving innovation with a key focus on R&D.
It has built for itself a robust patent portfolio with total 20 Patents with 6 granted in US & 14 other filed across jurisdictions.
Recent Acquisitions -
Jampp a leading global programmatic mobile marketing company.
Jampp’s programmatic mobile advertising platform is used by leading app marketers to acquire new users and also to drive repeat usage.
It's Affle's biggest acquisition till date.
Jampp a leading global programmatic mobile marketing company.
Jampp’s programmatic mobile advertising platform is used by leading app marketers to acquire new users and also to drive repeat usage.
It's Affle's biggest acquisition till date.
Risks -
▪️Regulatory, legislative or self-regulatory developments regarding data protection could adversely affect the business.
▪️Regulatory, legislative or self-regulatory developments regarding data protection could adversely affect the business.
▪️The global market is intensely competitive, it is dominated by digital giants such as Google & Facebook, there are over a hundred companies around the world who offer components of this solution.
▪️If the ability to collect significant amounts of data from various sources is restricted by consumer choice, restrictions imposed by customers, publishers or other software developers or changes in technology may have a material adverse effect on the business.
Conclusion -
Affle has a unique business model and a strong strategy in place to penetrate the
targeted geographies and verticals. It's expected to show impressive growth in the Indian region
led by increasing online shopping & better market penetration in tier 2 &
3 cities.
Affle has a unique business model and a strong strategy in place to penetrate the
targeted geographies and verticals. It's expected to show impressive growth in the Indian region
led by increasing online shopping & better market penetration in tier 2 &
3 cities.
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