Affle India Limited IPO
Overview of the Company
(i) Affle International, Singapore is the parent company of 13-year old Adtech company Affle (India) Limited which is coming up with an IPO.
They are a global technology company with a proprietary consumer intelligence platform that delivers consumer acquisitions, engagements and transactions through relevant Mobile advertising (the “Consumer Platform”).
The “Consumer Platform” aims to enhance returns on marketing spend through delivering contextual mobile ads and reducing digital ad fraud, while proactively addressing consumer privacy expectations.
(ii) As of March 31, 2019, Affle Consumer Platform had approximately 2.02 billion consumer profiles, of which approximately 571 million were in India, 582 million were in Other Emerging Markets (which comprises Southeast Asia, the Middle East, Africa, and others) and 867 million were in Developed Markets (which comprises North America, Europe, Japan, Korea, and Australia).
During Fiscal 2019, the Affle Consumer Platform accumulated over 300 billion data points, which power their prediction and recommendation algorithm.
How They Earn Revenue?
a) They Primarily earn revenue from their Consumer Platform on a cost per converted user (“CPCU”) basis, which comprises user conversions based on consumer acquisition and transaction models.
The transaction model is usually in the form of a targeted user submitting a lead acquisition form or purchasing a product or service after seeing an advertisement delivered by the Affle.
b) They also earn revenue from their Consumer Platform through awareness and engagement type advertising, which comprises cost per thousand impressions (“CPM”), cost per view (“CPV”) and cost per click (“CPC”) models.
Industry they serve
Their products are used in e-commerce, fin-tech, telecom, media, retail and FMCG companies, both directly and indirectly through their advertising agencies
Asset Light Model
Their Consumer Platform business is asset-light and scalable as shown by the fact that company’s employee benefit expenses, depreciation and amortization expenses, and other expenses have remained relatively unchanged despite significant changes in our revenue in the last three fiscal years.
Objects of the Affle India Limited IPO:
Affle India Limited IPO Details:
|Open Date:||Jul 29 2019|
|Close Date:||Jul 31 2019|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||book building|
|Issue Size:||458 Cr.|
|Lot Size:||20 Shares|
|Issue Price:||₹ 740-745 Per Equity Share|
|Listing Date:||Aug 08 2019|