Affle has helped the brands like CoinDCX, Swiggy, Fossil, Discovery+, McDonald's, and many more to acquire and engage with 48.7 million users (in Q2'22) at an acquisition cost per user of INR 51.
Demystifying #Affle
Demystifying #Affle
Affle India ltd. is a pure-play advertisement technology company that helps enterprises drive user acquisitions and improve consumer engagement through mobile advertising.
Keywords- Technology, Mobile, Acquisition, engagement
Keywords- Technology, Mobile, Acquisition, engagement
Affle has around 2.2 billion connected devices and its converted users have grown at 38% CAGR over FY19-21. Affle has a long-term vision to reach 10 billion+ next sets of mobile-first connected devices
"Mobile + Connected Device " & "10 billion"
"Mobile + Connected Device " & "10 billion"
Karti kya hai company ?
an example
Affle helped Coin DCX for 75K user conversion between Apr-Sep'21, ie 40% growth in registration. Affle helps CoinDCX to find & engage with new users via proprietary AI-based tech & predictive analytics, recommends Coin DCX App to mobile users.
an example
Affle helped Coin DCX for 75K user conversion between Apr-Sep'21, ie 40% growth in registration. Affle helps CoinDCX to find & engage with new users via proprietary AI-based tech & predictive analytics, recommends Coin DCX App to mobile users.
Ek Aur Real case study
Affle consumer platform has boosted online to in-store sales of fossil with 87 % of leads conversion.
23X ROI for fossil.
Double-Digit Growth in offline sales from the online channels.
Affle consumer platform has boosted online to in-store sales of fossil with 87 % of leads conversion.
23X ROI for fossil.
Double-Digit Growth in offline sales from the online channels.
Two Business Segment -
Consumer Platform ( Contributes 99%) & Enterprise Platform ( 1%)
Consumer platform - Delivers acquisitions, engagements & transactions for leading brands and B2C companies. Also, includes retargeting & push notification for e-commerce
Consumer Platform ( Contributes 99%) & Enterprise Platform ( 1%)
Consumer platform - Delivers acquisitions, engagements & transactions for leading brands and B2C companies. Also, includes retargeting & push notification for e-commerce
Interesting Macro/Micro/Consumer trends-
- Indians consume 14.6GB of data per smartphone per month,2nd Highest globally, expected to triple over the next five years
-Affordable Smartphone- nearly 73% of internet users will access the web solely via their smartphones by 2025
- Indians consume 14.6GB of data per smartphone per month,2nd Highest globally, expected to triple over the next five years
-Affordable Smartphone- nearly 73% of internet users will access the web solely via their smartphones by 2025
Some more trends
- E-commerce shoppers estimated to grow at 13.8% CAGR over FY21-25
- 55% of all companies are likely to increase their advertising budgets on retail websites/apps in 2021.
-Digital ad spending by e-commerce businesses is expected to grow at 33.7% CAGR
- E-commerce shoppers estimated to grow at 13.8% CAGR over FY21-25
- 55% of all companies are likely to increase their advertising budgets on retail websites/apps in 2021.
-Digital ad spending by e-commerce businesses is expected to grow at 33.7% CAGR
Affle will be a beneficiary of a long-term trend of higher digital spending. Every organization wants to have a stronger footing digitally. Rising E-commerce + rising D2C will create a demand for an active User acquisition & engagement strategy.
Affle has many in the pocket.
Affle has many in the pocket.
CPCU - ‘Cost per Converted User’
This Metric is a Differentiator
Affle Operates on outcomes-based pricing model "CPCU', wherein conversions are linked to post-click and post-install events (purchase, add to cart, etc.) done by the consumers on their smart devices.
This Metric is a Differentiator
Affle Operates on outcomes-based pricing model "CPCU', wherein conversions are linked to post-click and post-install events (purchase, add to cart, etc.) done by the consumers on their smart devices.
This means Affle receives revenue only when a user performs these events.
CPCU model provides superior ROI (Return on Investment) for clients, lowers the ad-fraud rate, improves ad quality and user experience.
CPCU model provides superior ROI (Return on Investment) for clients, lowers the ad-fraud rate, improves ad quality and user experience.
The acquisition led to growth across geography
To grow across markets, Affle is very active in acquiring companies across the globe which helps them to build ground across the various aspects.
5 Acquisition in the last 3 years all via Internally accrued cash.
To grow across markets, Affle is very active in acquiring companies across the globe which helps them to build ground across the various aspects.
5 Acquisition in the last 3 years all via Internally accrued cash.
The latest acquisition of Jampp has a strong understanding of the LATAM market and also strengthens the overall proposition in the iOS market.
Jampp platform will provide the headstart in iOS 14 policies
(forward-looking acquisition)
Jampp platform will provide the headstart in iOS 14 policies
(forward-looking acquisition)
Future Aligned
Affle’s focus on developing innovative technologies – 1) multiple vernacular language detection, 2) household sync technology, 3) gesture-based, voice-intelligence driven interactions within the live streams such as podcasts, 4) block-chain based technology IP
Affle’s focus on developing innovative technologies – 1) multiple vernacular language detection, 2) household sync technology, 3) gesture-based, voice-intelligence driven interactions within the live streams such as podcasts, 4) block-chain based technology IP
Valuation
Conventional fundamental and valuation metrics – RoE, RoCE, Profit growth, P/E, PEG, etc – cannot be applied.
Though DCF can work, I would prefer the PSG ratio.
PSG is Price to sales by the future sales Growth rate
Conventional fundamental and valuation metrics – RoE, RoCE, Profit growth, P/E, PEG, etc – cannot be applied.
Though DCF can work, I would prefer the PSG ratio.
PSG is Price to sales by the future sales Growth rate
With Future sales growth expected to be above 40 % and expected Sales for FY 22 at 1028 crore. PSG is .43 (less is better)
PSG for
India Mart -1.9, Zomato -. 9
Face book - .4 , Google - .6 Amazon -.2
Not Cheap. Reasonably valued.
PSG for
India Mart -1.9, Zomato -. 9
Face book - .4 , Google - .6 Amazon -.2
Not Cheap. Reasonably valued.
Risk
There is no business without risk. And the risk is real when you compete with deep-pocket giants like Google, FB, Amazon.
But Affle got the backing of Microsoft. Which owns 6.5 % of Affle Holding company. And Affle holding company owns 59 % of Affle India.
There is no business without risk. And the risk is real when you compete with deep-pocket giants like Google, FB, Amazon.
But Affle got the backing of Microsoft. Which owns 6.5 % of Affle Holding company. And Affle holding company owns 59 % of Affle India.
I have been tracking Affle for a very long, but started closely tracking and reading in the last 3 months.
Thank you @connectgurmeet for sharing this name on CNBC. Would love to have your view and more inputs
Thank you @connectgurmeet for sharing this name on CNBC. Would love to have your view and more inputs
Some more already published thread by @SmartSyncServ
https://twitter.com/SmartSyncServ/status/1304015384908050432?s=20
To add more info, a thread by @FinterestC on #affleindia
https://twitter.com/FinterestC/status/1478427508450095104?t=5-MG9cEyhBPAHEIGJEnSEA&s=19
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