Business Name: Confidential                                

Founded: June 1, 2016 

Country (Business is registered): Victoria, Australia + Clifton, NJ 

Business Valuation: $515,000 USD

Sales (TTM): $460,738 USD

Net Profit (TTM): $13,479 USD

Ownership Structure: 100% equity being sold

Downloads (Lifetime): 1,074,000

Registered Users (Lifetime): 739,000

Paying Users (Current): 8,750

Business Multiple (ARR or EBITDA): Approx. 1x Sales    

Executive Summary

[Confidential] is a global provider of international calling services, catering primarily to migrant communities across multiple regions. The company operates through two brands and has been in operation for several years, providing low-cost, high-quality communication services.

Originally launched as a desktop-based service, the business successfully transitioned to mobile applications to meet growing demand and currently generates an annual revenue of $400,000. With over 1 million lifetime downloads and stable financials post-pandemic, this business offers a strong growth opportunity, particularly in key untapped markets.

Business History

The company was initially launched to fill a gap in the international calling market where options were either expensive or unreliable. It started as a desktop application with access-number-based calling and evolved to meet user demands by launching a mobile app. This shift allowed it to reach a wider audience, specifically targeting migrant communities, including those from South Asia and Africa.

The business rapidly grew in the early years, reaching annual revenues of $900,000. However, the pandemic temporarily reduced demand, as many customers returned to their home countries. The business has since stabilized and continues to generate annual revenue of $400,000, with further growth potential.

Business Opportunity

This sale represents a compelling opportunity for buyers looking to expand in the international calling and telecommunications sector. The business has positioned itself as a leader in key regions, serving the growing expatriate market. While demand decreased during the pandemic, the business has adapted and is now poised for further expansion.

Key opportunities include tapping into underserved markets, such as regions where internet penetration is low and alternatives like messaging apps are not viable. Additionally, an influx of migrant workers in key regions due to ongoing infrastructure projects provides a unique customer acquisition opportunity.

Future Prospects

With appropriate marketing strategies and partnerships, the business can capitalize on emerging opportunities. By partnering directly with telecom operators in key regions, the company can improve call quality, reduce costs, and acquire more users. A marketing budget increase could also drive user acquisition in these new markets, increasing revenue significantly.

Business Structure

The company operates as a turnkey business with all key staff, infrastructure, and technology already in place. The mobile applications serve as the main interface for customers, providing seamless international calling services.

The business also relies on proprietary technology to ensure efficient call verification, fraud prevention, and customer support operations. This makes the business highly scalable without significant additional overhead.

Industry & Market

The company operates in the international VoIP and telecommunications industry, serving a niche market of expatriates and migrant workers. It focuses on providing affordable calling services to several expatriate communities across regions with significant migrant populations.

Competitive Positioning

The business competes with several players in the global telecommunications space but has managed to carve out a strong position through competitive pricing, superior call quality, and reliability. The niche market is expanding, driven by increased global migration and the need for reliable international communication solutions.

Recent trends, including a surge in traffic from certain regions due to large-scale infrastructure projects, highlight opportunities for further growth.

Customer Base

The customer base consists of expatriates from South Asia and Africa, particularly those living in regions with a large migrant worker population. The company has garnered over 1,074,000 downloads across its mobile platforms, with a cost-per-acquisition of $2.50 per user and an average revenue per user of $3.50 per month.

Customer acquisition is driven by a mix of organic growth, word-of-mouth, and targeted advertising campaigns. The business has shown consistent user acquisition growth, averaging 7% month-on-month increases in the first half of 2024.

Key Metrics

• Downloads (Lifetime):

  • Android: 781,000

  • iOS: 77,000

  • Additional App: 201,000 (Android), 15,000 (iOS)

• Average Revenue Per User (ARPU): $9.50

• Customer Acquisition Cost (CAC): $2.50

Traffic Insights

From August 2022 to July 2024, the business acquired 345,086 new users, with the majority of traffic coming from organic search results (58%). Direct traffic accounts for 17%, and cross-network referrals contribute 15%.

Traffic Breakdown (Jan - Jun 2024):

• Organic Search: 58%

• Direct Traffic: 17%

• Cross-network Referrals: 15%

User Demographics

The company’s user base is predominantly male (77.7%), with 31% of users falling in the 18-24 age group. A significant portion of traffic originates from regions with large expatriate populations, providing ample opportunities for growth through targeted marketing efforts.

Revenue Model & Financial Overview

The company generates revenue by purchasing wholesale telecom minutes and reselling them to end users at a markup. It operates with a cost-plus pricing model to ensure competitiveness and profitability.

Financial performance over the last three years has been consistent, despite a temporary dip during the pandemic:

• 2021: $660,199

• 2022: $665,453

• 2023: $587,179

Revenue has since stabilized at around $400,000 annually, and with the right investment, there is significant potential to increase profitability and scale the business.

Operations

The business is technology-driven, with mobile apps serving as the primary customer interface. Internally, the company employs a team of skilled professionals, including technical leads, customer support staff, and marketing experts. Operations are smooth and scalable, with the potential for further automation.

Organizational Structure

The current team consists of:

• CEO: Oversees financial and marketing strategy

• CTO: Manages technical operations

• Tech Lead: Focuses on app development

• Accountants: Manage financial aspects

• Customer Support Team: Handles user inquiries and provides technical support

• Digital Marketing Executive: Oversees marketing and advertising campaigns

Sales & Marketing

The company relies on a mix of marketing channels, including app store optimization, word-of-mouth referrals, and targeted online advertising. Marketing spend averages $1,000 per month, with most resources allocated toward customer acquisition through digital ads.

The business differentiates itself from competitors through a focus on low-cost, high-quality calling services. With additional investment in marketing, the company could rapidly increase its user base, particularly in untapped regions.

Financial Partners & Systems

The company uses multiple payment processors to facilitate transactions, including:

• [Confidential]

• [Confidential]

• [Confidential]

It also employs a series of proprietary fraud prevention and customer communication systems to ensure secure transactions and reliable service.

Main Expenses

Primary expenses include the cost of wholesale telecom minutes, staff salaries, and digital marketing. The company has a sustainable cost structure, though a new owner with telecom expertise could further reduce costs by negotiating better rates with telecom providers.

Transition Plan

The new owner can expect the following transition steps:

1. Handover of Responsibilities: Documentation, SOPs, and operational guidance will be provided.

2. Technical Support: Continued assistance with technical aspects of the business (if needed).

3. Marketing Strategy: Guidance on ongoing marketing efforts to ensure seamless continuity post-acquisition.

Barriers to Entry

The telecommunications market is competitive, but the business's established user base, proprietary technology, and customer loyalty provide a substantial barrier to entry for potential new competitors.

Valuation

The business is valued at approximately 1x its trailing twelve-month sales, reflecting its strong financials, user base, and potential for growth. The valuation has been structured around revenue rather than profits due to the company’s current growth trajectory and market opportunities.

Assets Included with Sale

The sale includes the following:

• Domains: Multiple regional domains

• Mobile Applications: Android and iOS apps for both brands

• Proprietary SaaS Software: Call verification, fraud prevention, and customer communication systems

• Payment Processing Systems: Integration with global payment processors

• Customer Databases: Full access to customer information, including contact details

• Bank Accounts: International accounts across multiple regions

• Social Media Accounts: Facebook, Instagram, LinkedIn, and YouTube

• Email Lists: Full access to registered users' emails

Expansion Opportunities

The business presents numerous opportunities for expansion:

1. Partnerships: Collaborate with remittance services or travel companies to increase brand exposure.

2. Cost Reduction: Reduce costs through better telecom provider agreements.

3. Marketing Campaigns: Increase advertising spend in key regions to drive customer acquisition and boost revenues.

Conclusion

This business presents a unique opportunity for a buyer to acquire a well-established and scalable international communications company. With strong customer loyalty, a large user base, and proprietary technology, the business is poised for significant growth under new ownership.                      

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About the Agent 

FIH.com is a Manhattan-based M&A advisory firm specializing in the sale of remotely-run successful digital companies (around the world) from $1M-100M in revenue, including apps, marketplaces, freemium + enterprise SaaS, ecommerce, affiliate/advertising groups, and more! We are proud to work with the very best entrepreneurs and investors, so if that’s you and you are in the market to acquire or sell a relevant business, then we encourage you to reach out for a complimentary consultation.