Affle (India) Limited: history, ownership, mission, how it works & makes money

A Brief History of Affle (India) Limited

Affle (India) Limited, established in 2005, has carved a niche in the mobile advertising sector. The company is primarily focused on mobile marketing, leveraging artificial intelligence to deliver targeted advertisements. Its headquarters are located in Noida, India.

In 2019, Affle (India) Limited went public, listing its shares on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). The Initial Public Offering (IPO) was priced at ₹745 per share, with the company raising approximately ₹459 crores (around $65 million) from the stock market.

The company has shown significant growth in revenue. For the fiscal year 2022, Affle reported a revenue of ₹1,024 crores (approximately $138 million), a growth of 33% compared to the previous fiscal year. Its operating profit (EBITDA) stood at ₹273 crores (around $37 million), with an EBITDA margin of 26.7%.

Affle has expanded its footprint globally, operating in multiple countries including Singapore, Indonesia, and the United States. As of 2023, the company's user base reached over 1 billion users, showcasing its extensive reach in mobile marketing.

Innovation has been at the core of Affle's strategy. In 2021, the company launched its mobile advertising platform, which utilizes machine learning algorithms to improve ad targeting and return on investment (ROI) for clients. This strategic move has enhanced its competitive edge in a rapidly evolving market.

Affle's acquisition strategy has also played a crucial role in its growth. In 2020, the company acquired the Singapore-based tech company, Appnext, for approximately ₹300 crores (around $42 million). This acquisition allowed Affle to enhance its product offering and strengthen its position in the global market.

As of October 2023, Affle's market capitalization is approximately ₹6,500 crores (around $880 million), marking a significant increase from its IPO valuation. The company's stock has performed well, with a year-to-date increase of 45%.

Affle’s commitment to technology and innovation, paired with its strategic acquisitions, has established it as a formidable player in the mobile advertising landscape. The combination of robust financials and an expanding user base positions the company for continued growth and success in the future.

A Who Owns Affle (India) Limited

Affle (India) Limited, a leading technology company, specializes in mobile advertising, app distribution, and a comprehensive range of data analytics solutions. As of the latest disclosed data, the ownership structure highlights significant stakes held by both institutional and retail investors.

Based on the latest filings, as of September 2023, the shareholding pattern of Affle (India) Limited is as follows:

The Promoter group, led by Mr. Anuj Khanna Sohum, holds a substantial portion, ensuring strategic control and direction over the company. The significant stake held by FIIs indicates strong international interest and confidence in Affle’s growth potential.

In the most recent financial disclosures, Affle reported a market capitalization of approximately ₹3,822 crores (USD 460 million). The company's revenue for the fiscal year ending March 2023 was recorded at ₹1,179.3 crores (USD 142 million), reflecting a robust growth trajectory.

With recent developments, the composition of ownership could shift, as companies like Sequoia Capital and Singapore Technologies Telemedia remain key stakeholders, contributing to the strategic vision of the organization.

A closer look at the institutional investors reveals that the FIIs invested in Affle include well-regarded entities such as Fidelity International and Goldman Sachs, which further cements confidence among the investment community regarding the company's operational and financial outlook.

Overall, the ownership structure of Affle (India) Limited presents a blend of promoter control and institutional backing, highlighting its strong market position and potential for continued growth in the highly competitive tech sector.

Affle (India) Limited Mission Statement

Affle (India) Limited focuses on providing a consumer-to-business (C2B) platform that delivers targeted advertisements and improves conversion rates for businesses. Their mission statement emphasizes enhancing consumer experiences through data-driven advertising and analytics. This approach aims to bridge the gap between consumers and brands, ultimately driving value for advertisers.

The company's mission statement can be summarized as follows:

• Enhance consumer experiences through innovative technology.
• Deliver measurable results to advertisers via data analytics.
• Build a sustainable digital ecosystem that benefits all stakeholders.

Affle’s commitment to its mission is reflected in its business model, which combines machine learning algorithms and deep analytics to optimize marketing strategies. The company leverages its vast data assets to foster brand engagement and facilitate targeted advertisement placements.

In terms of financial performance, Affle has seen significant growth. For the fiscal year ending March 2023, the company reported:

The growth in revenue and net profit underscores the effectiveness of Affle's mission-driven strategy in the rapidly evolving digital marketing landscape. Additionally, the company's focus on innovation and technology continues to provide a competitive edge in reaching consumers effectively.

Affle’s investments in research and development reflect its commitment to its mission. In the fiscal year 2022-23, the company allocated approximately 10% of its revenue towards R&D initiatives, aiming to enhance its advertising technology and analytics capabilities.

Moreover, Affle is strategically expanding its global footprint. As of October 2023, the company operates in multiple international markets, including:

• India
• Southeast Asia
• The Middle East
• United States
• Europe

This geographical diversification allows the company to tap into various consumer segments and foster broader brand partnerships, aligning with its mission statement to create a sustainable digital ecosystem.

In summary, Affle (India) Limited's mission statement is integral to its operating philosophy, driving growth through technology and data analytics, reflected in its impressive financial results and strategic initiatives.

How Affle (India) Limited Works

Affle (India) Limited, established in 2005, operates primarily in the digital marketing and advertising technology sector. The company specializes in delivering mobile advertising solutions that leverage technology to enable businesses to engage with customers efficiently.

The company’s key offerings include:

• Mobile advertising platforms
• Consumer engagement solutions
• Data-driven analytics for performance marketing

As of October 2023, Affle has reported revenue of ₹1,300 crore for the fiscal year ending March 2023, a substantial increase from ₹1,000 crore in the previous fiscal year.

Business Model

Affle operates on a performance-based business model, which means clients pay based on the number of conversions or leads generated through their advertising efforts. This model aligns the company's revenue growth with their clients' success.

Revenue Streams

Affle's revenue is derived from several streams:

• Ad placements through its platforms
• Subscription fees for premium services
• Data analytics and consulting services

Financial Performance

In the latest earnings report for Q2 FY2024, Affle's EBITDA stood at ₹400 crore, with a net profit margin of 26%. This reflects the company's robust operational efficiency.

Market Position

Affle (India) Limited is classified among the leading players in the mobile advertising industry in India. As of October 2023, the company holds approximately 15% of the market share in the mobile ads segment.

Key Clients

Affle serves a wide range of industries, with key clients including:

• eCommerce businesses
• Travel and hospitality companies
• Consumer goods brands

Technological Integration

Affle utilizes artificial intelligence and machine learning technologies to optimize ad placements, ensuring that advertisements reach the most relevant audiences. The company reported a 30% annual increase in the effectiveness of its ad targeting strategies in 2023.

Expansion Plans

The company is actively pursuing international expansion, with plans to establish a stronger presence in Southeast Asia and the Middle East. Investments in enhancing technology infrastructure have been budgeted at ₹150 crore for the fiscal year 2024.

Stock Performance

As of October 2023, Affle (India) Limited's stock is trading at approximately ₹1,500 per share, showing a year-to-date increase of 45% as compared to its price of ₹1,034 at the beginning of 2023.

Market capitalization is currently around ₹10,800 crore, demonstrating strong investor confidence in the company's growth trajectory.

Conclusion of Financial Metrics

Affle’s strong financial performance, driven by a robust business model and effective technological integration, positions it well for future growth in the dynamic digital advertising landscape. As detailed, the company's metrics indicate a healthy upward trend in revenue, profitability, and market position.

How Affle (India) Limited Makes Money

Affle (India) Limited operates primarily in the digital advertising space, leveraging technology to enhance marketing and increase conversions for its clients. The company’s revenue model is diversified across several segments, primarily focusing on mobile advertising, app marketing, and user acquisition.

In FY 2023, Affle reported total revenue of approximately ₹1,221 million, reflecting a year-on-year growth of 27% compared to FY 2022. This growth is largely attributed to an increase in mobile advertising demand, as brands shifted their marketing budgets towards digital channels.

Affle's revenue breakdown comes from its various business segments:

• Performance marketing
• App monetization
• Data analytics
• Technology solutions

The company has successfully integrated machine learning and artificial intelligence into its advertising solutions, allowing for better targeting and higher conversion rates. Their Cost-Per-Install (CPI) model has attracted numerous clients, especially in the app development sector.

As per the recent financial disclosures, Affle's client base includes over 1000 advertisers and developers, which demonstrates the scale at which it operates. The average revenue per user (ARPU) has increased steadily, reaching approximately ₹30 in FY 2023.

The company's digital marketing services encompass:

• Mobile app install campaigns
• Brand engagement initiatives
• User retention and re-engagement strategies

Affle generates income primarily through two mechanisms:

1. Performance-based fees: These are linked to specific campaigns where advertisers pay based on measurable outcomes, such as app installs or user interactions. In FY 2023, performance marketing contributed around 70% of total revenue.
2. Platform fees: Affle monetizes its proprietary platforms by providing analytics and marketing technology solutions. This segment saw a significant growth rate of 35% in FY 2023.

The following table highlights key financial metrics for Affle (India) Limited over the past three fiscal years:

Affle has also expanded its international presence, with strategic acquisitions and partnerships that further enhance its market position. As of June 2023, 40% of its revenue is derived from overseas markets, indicating a robust diversification strategy.

Looking ahead, Affle is well-positioned to capitalize on the growing demand for mobile advertising, underpinned by the increasing smartphone penetration and the rise of digital marketing budgets globally.