Affle India Ltd. IPO Note


Offer Details

Price band

Rs 740-745 Per Equity Share

Offer Open Date

Jul 29, 2019

Offer Close Date

Jul 31, 2019

Lot Size


Shares for Fresh Issue


Shares for OFS (mn)


Face value

Rs 10 Per Equity Share

Issue Type

Fresh issue of equity shares + offer for

sale of equity shares

Fresh Issue Size (Rs. mn)


OFS Issue Size (Rs. mn)


Total Issue Size (Rs. mn)


Book Building


At least 75% of the offer


Not more than 15% of the offer


Not more than 10% of the offer

Lead Managers

ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Pvt. Ltd.



Capital Structure

Pre Issue Equity (Rs. mn)


Post Issue Equity (Rs. mn)




Promoter group holds 92.17% stake in the company and post-IPO their shareholding will come down to 68.38%. Public holding will increase from 7.83% to 31.62%.

Company Profile:

Affle (India) is a global technology company with two business segments: consumer platform and enterprise platform.

Consumer platform: The consumer platform primarily provides the following services: new consumer conversions (acquisitions, engagements, transactions) through relevant mobile advertising, retargeting existing consumers to complete transactions for e-commerce companies through relevant mobile advertising and, an online to offline (O2O) platform that converts online consumer engagement into in-store walk-ins. The platform aims to enhance returns on marketing spend through delivering contextual mobile ads and reducing digital ad fraud. As on March 31, 2019, Affle’s consumer platform had ~2.02 billion consumer profiles, of which approximately 571 million were in India. It has also accumulated over 300 billion data points over the preceding 12 months (as on March 31, 2019), which powers its predictions and recommendations algorithm for the platform.

The company primarily earns revenue from consumer platform on a cost per converted user (CPCU) basis and also earns revenues through awareness and engagement type advertising.

Enterprise platform: The enterprise platform primarily provides 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 and providing enterprise grade data analytics for online and offline companies (collectively, the ‘Enterprise Platform’).

Corporate Restructuring: In connection with the offer, the company undertook a corporate restructuring in which Affle incorporated the Singapore subsidiary. It acquired all of Affle Global's business, intangible assets and all of the equity interests in the Indonesian subsidiary (PT Affle Indonesia), effective July 1, 2018.

Affle India also made a series of acquisitions. It bought Vizury Interactive Pvt Ltd’s commerce business in 2018-19, which included its retargeting platform for e-commerce and push notification platform (commerce business) for $1.5 million. In May 2019, Affle International bought Shoffr Pte Ltd’s business for $0.55 million and the US-based RevX Inc’s business for $4.5 million in June.

Industry Outlook:

The ad tech market in India is fast growing, with a market size of US$304.9 million in 2017 and will likely grow at a CAGR of 39% to US$808 million by 2022. (Source: Frost & Sullivan Report). Digital advertising spend in India has ramped up in growth over the past three years. It gained US$1.1 billion in revenue in 2017 and will likely grow at a CAGR of 28.6% to US$ 4 billion. A segment that is fuelling growth for digital segment is mobile advertising, which is expected to grow at a CAGR of 32.7% to US$1.93 billion in 2022.

Financial Overview:





Revenue from operations








EBITDA Margin (%)




Reported PAT




RoE (%)




RoCE (%)





(*Rs. In mn)

FY17, FY18: Unconsolidated Ind AS; FY19: Consolidated Ind AS

For Fiscals 2017 and 2018, the company earned 80.7% and 91.9% of its revenue from operations from consumer platform. For FY19, on a proforma basis, revenues from consumer platform contributed 97.2% of revenue, while that from enterprise platform represented 2.8% of revenue from contracts with customers.

Objects of the Issue:

Issue is a combination of fresh and OFS (offer for sale). The company will not receive any proceeds from the OFS part. The company intends to use the Net Proceeds for funding the working capital requirements of the Company; and general corporate purposes.


  1. Profitable, low-cost business model built on an asset light, automated and scalable platform.
  2. Deep data driven understanding of consumer intent, behavior.
  3. One of the very few companies that has products spanning the entire value chain.


  1. Selectively pursue acquisitions by acquiring businesses, assets, and technologies that complement its existing capabilities, revenue streams and marketing presence.
  2. Cross-selling: Get new customers for Consumer Platform business through Enterprise Business solutions.

Key Risks

  1. Developments regarding data protection could impact business: Various governments have enacted, considered or are considering legislation or regulations that could significantly restrict the company's ability to collect, process, use, transfer and pool data collected from and about consumers and devices. Such losses could adversely impact the company's financial performance in future.
  2. Revenue concentration around key customers: Revenue from top 10 customers constituted Rs 1608 mn, which represented 64.5% of revenue in FY19. Inability to keep these customers or failure to attract a broader range of customers, would adversely impact business.
  3. Intensely competitive market  

Peer Comparison:

There are no listed peers in India.

Update on IPO:

The company raised about Rs 2065.5mn from 15 anchor investors amongst which, Abeerden Asian Smaller Companies Investment and Franklin Templeton Investment Funds subscribed over 3.05 lakh shares each. Other anchor investors include Goldman Sachs India, Malabar India Fund, among others.


Leading position in ad tech market in India, substantial barriers to entry, proven international track record, debt-free status, asset-light business model with automated and scalable business platform, Affle seems to be well placed to tap opportunities present in the sector. However, the business caters to a very niche segment. At the upper end of the price band, the issue is priced at 39x P/E on FY19 consolidated earnings and is expensive.  Only investors with high risk appetite may subscribe for listing gains.

Source: DRHP filings of Affle India

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