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Affle India Ltd.

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ABOUT

  • Affle India ltd. is a leading mobile advertising company providing its services since 2005. The global technology company has a proprietary consumer intelligence platform that delivers consumer engagements, acquisitions, and transactions.
  • Particularly being the online & app company’s favorites for mobile advertising & monetization Affle deals with reducing digital ad fraud and focuses more on providing genuine outcomes.
  • The major role of the company also remains to help Offline Company go online through platform-based app development, enablement of O2O commerce and customer data platform.

 

BUSINESS STRATEGY

  • Increasing Companies reach beyond Tier 1 cities and improving the customer’s platform revenue from new and existing customers – With the revenue rates already proving the fast growth of ad market in India, Affle wants to make full use of this opportunity and want to expand its customer base in Tier 2 and Tier 3 cities. The company has marked its name by conducting successful mobile ad campaigns for a number of recognized companies in India like Amazon, Flipkart, Dunzo, Zee, Dailyhunt, Jabong, BookMyShow, and PhonePe. The company has strong plans for increasing it reach to the ruler customer and to increase its consumer intelligence the company has already partnered with Micromax to work towards it.
  • Expanding the business globally through local business development efforts and referrals- Affle total consumer profile involves a huge number of 2.02 billion in which 571 million are from India and 1,449 million from countries outside India. The company intends to increase the Monetization factor for their consumer profile outside India. Currently the business development teams based outside India includes countries like Singapore,Jakarta(Indonesia) and Dubai (UAE) .The target of the company is to build a business development team in North America during Fiscal 2020.The company believes that its ground presence to deliver better support to its consumer would help it achieve its global expansion target.
  • More focus on top customers and engaging more converted user for e- commerce companies - The revenue per cent generated from top 10 consumers the company in the year 2018 constituted to be 81.9 percent of the total revenue. The Company paying more focus to them wants to deliver more converted users for large e-commerce companies by being part of their expansion plans.
  • Enhancing company’s technological capabilities – Affle wants complete elimination of fraudulent activity and that’s why it wants to come with real time solution so that the problem is solved at the earliest possible. The company will continue to invest more in technology to keep finding better solutions.
  • To have selective acquisitions and cross-sell solutions – The Company is looking for opportunities of consolidation and that’s the very reason it targets companies which mainly operates internationally. The solution in Affle Enterprise platform enables offline to online commerce for currently offline businesses. Our Enterprise Platform solutions create a new segment of potential customers for our Consumer Platform.

 

INITIAL PUBLIC OFFER (IPO)

Bid/Offer Opens On July 29,2019
Issue Type Book Building Issue IPO
Bid/Offer Closes On July 31,2019
Issue Price Rs 740-Rs 745 per Equity Share
Issue Size

[.]Eq shares of Rs 10

(aggregating up to Rs 459.00 Cr)

Face Value Rs 10 per Equity Share
Market Lot 20
Listing At NSE,BSE
Fresh Issue

1,216,200 Eq Shares of Rs 10

(aggregating up to Rs 90.00 Cr)
Offer for Sale

49,53,020 Equity Shares of Rs 10

(aggregating up to Rs. 369.00 Cr)

 

PROMOTERS

  • ANUJ KHANNA SOHUM
  • AFFLE HOLDINGS

 

SHAREHOLDING PATTERN

Name of Shareholders

Number of Equity Shares
Percentage of Share Capital (%)
Affle Holdings 18,368,939 75.63
Affle Global 4,017,911 16.54
Malabar India Fund Limited 1,616,214 6.65
Malabar Value Fund 285,214 1.17
Anuj Khanna Sohum 32 Negligible
Anuj Kumar 1 Negligible
Kapil Mohan Bhutani 3 Negligible
Total 24,288,314 100

 

INDUSTRIAL ANALYSIS

MOBILE INTERNET USERS WORLDWIDE

THE GROWING IMPACT OF E-COMMERCE

  • E-commerce Market Size and Forecast for India2017-2022 USD

         

  • Projected AD Spend Growth Worldwide, by Media Type/Format, 2017-2020

         

  • Projected Mobile AD Spend Worldwide

         

  • The Global AD Tech Market to Grow at CAGR 10%

         

  • Indian AD Industry as of 2020

         

  • Shift from Traditional To Digital Media in India

         

 

COMPANY ANALYSIS

FINANCIAL OVERVIEW

(Figures in Million)

Year

Total Revenue

Net Profit Total Assets Long Term Borrowing Total Expenses
2016 888.51 23.94 539.05 40.40 849.92
2017 668.00 3.30 486.89 5.26 660.00
2018 848.78 88.31 580.31 - 712.82
2019 2497.91 488.21 1582.66 67.17 1899.91
  • Total Revenue

         

  • Net Profit

         

  • Long Term Borrowing

         

  • Total Expenses

         

 

STATISTICAL OVERVIEW

Year RONW(%) EPS(Rs)
2016 1.6 0.14
2017 29.3 3.64
2018 36 6.87

 

 

REFERENCES       

  • Affle India Ltd RED HERRING PROSPECTUS (Sebi.gov.in)
  • DigitalAdvertisingReport2018 (http://events.exchange4media.com)
  • 2019 Global Ad Trends report (https://pubmatic.com)

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