Business Name: [Confidential]

Business Start Date: April 2023

Business Location: London, UK

Business Valuation: $2.66M

Business Model: Monetization Revenue Sharing Software Platform

Industry: ‘Location’ Data Sales for Mobile Apps

Percentage Being Sold: 100%

Sales (TTM): 891,700 GBP (About $1,182,660)

Net Profit (SDE): 296,320 GBP (About $393,010 USD)

Business Multiple (EBITDA): 6.77x

Publishers: 50

Monetization User Base: 32,000,000 active users/month (10M revenue generating)

Data Buyers: 4 

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Executive Summary

[Confidential] is a UK-based software platform that specializes in monetization through the collection and sale of location and cellular network data for mobile applications. Officially launched in April 2023, the company had been in beta testing for three years prior. During its first year of operations, the business generated nearly £900,000 in revenue and achieved a net profit of £296,320.

The company operates as an intermediary between app publishers and partners who are interested in collecting user data, such as telecom operators. Through its partnerships with key industry players, the platform provides a scalable solution for app publishers looking to monetize their user base while offering partners a steady stream of valuable data.

With a valuation of $2.6M to $3M, this business presents an excellent acquisition opportunity for a larger company looking to leverage its contracts and technical infrastructure for rapid growth.

Business Overview

[Confidential] is a software platform that enables mobile app publishers to generate revenue through user data monetization. The company provides app publishers with a Software Development Kit (SDK) that, once integrated, allows the collection of valuable location and network data from their user base. This data is then sold to partners—primarily telecom operators and analytics firms—who use it to improve services, such as network performance and coverage.

The platform has seen rapid growth, with more than 50 publishers on board and over 200 apps integrated. It processes data from 2.5 million Daily Active Users (DAU) and 10 million Monthly Active Users (MAU) across a wide range of countries. The platform’s revenue model is based on a revenue-sharing agreement, where 70-80% of revenue is shared with the publishers depending on the app.

The company has secured contracts with industry leaders such as [Confidential] and [Confidential], and additional partnerships are in the pipeline. These relationships are notoriously difficult to establish, positioning the business as a leader in a growing niche.

Growth Potential

There is significant potential for expansion, both in terms of adding new app publishers and expanding into the iOS market, which the company has not yet explored. By integrating with iOS apps, the company could increase its user base and data volumes, leading to further revenue growth.

Additionally, increasing the number of partners who buy data from the platform presents another clear growth avenue. The company is currently focused on Android apps and could scale rapidly with new partnerships and the development of its iOS SDK.

Industry & Market

The business operates within the mobile app monetization space, focusing on an alternative model to traditional ad-based monetization or in-app purchases. This niche has few direct competitors, making it a relatively untapped market with significant growth potential. As more app developers look for ways to diversify their revenue streams, data monetization has emerged as a viable and increasingly attractive option.

Market Trends

Recent trends in the mobile app industry show a growing interest in data monetization, especially among smaller and medium-sized publishers who may not have the user base to generate substantial income from ads alone. The increasing demand for location data, particularly among telecom companies, positions the business well within the rapidly growing data monetization ecosystem.

Moreover, telecom companies and other partners rely heavily on this data for network optimization and performance analytics, ensuring a stable and consistent demand for the company's services.

Customer Base

The company serves two key customer groups:

1. Partners: These are companies that buy data from the platform. Currently, there are four signed partners, with two additional partnerships expected soon. Partners pay the business based on the amount and quality of data collected, with prices determined by a pre-agreed CPM (Cost Per Mille) pricing structure.

2. Publishers: App developers who integrate the company’s SDK into their apps. Publishers generate revenue by providing user data, and the platform facilitates this process by ensuring SDK integration, user consent management, and payments. As of now, there are over 50 publishers on board, with data being collected from around 200 apps.

Key Metrics

• Daily Active Users (DAU): 2.5M

• Monthly Active Users (MAU): 10M

• Revenue: $1M USD in the first year

• Revenue per User (Estimated): $0.15 per DAU

• Average Publisher Revenue: Varies from $500 to $30,000 per month depending on user volume and data quality.

Customer Acquisition

Publishers are acquired through direct email outreach and LinkedIn connections, with the company having a dedicated staff member responsible for these efforts. Partner acquisition, on the other hand, is more challenging and requires attending industry events like Mobile World Congress (MWC) or leveraging personal contacts to secure contracts.

Churn Rate

The business does not experience churn in the traditional sense as once publishers integrate the SDK, they tend to stay on the platform. There are no subscriptions or one-time purchases, and the revenue-sharing model incentivizes publishers to continue generating data.

Revenue Model

[Confidential] generates revenue by acting as an intermediary between app publishers and partners who are interested in purchasing user data. Partners provide SDKs that are integrated with the company’s platform, allowing them to collect the necessary data from users. The company handles all aspects of SDK integration, user consent management, and payments to the publishers.

Revenue is primarily generated through CPM rates set by partners, which range between $5 and $150 depending on the country and data quality. The company retains 20-30% of this revenue, with the rest distributed to app publishers.

Pricing Structure

Each partner sets CPM rates, with Tier 1 countries like the US, EU, and Japan commanding the highest rates. By integrating multiple partners, the company can achieve a total CPM of around $150 for high-demand markets. For example, if an app has 50,000 DAU, this would generate approximately $7,500 in monthly revenue, of which the company would retain $2,250.

Financial Overview

The financial health of the company is strong, with consistent revenue growth since its launch. Over the past year, the company has generated $1M in revenue and a net profit of £296,320.

• April 2023 to April 2024 Revenue: $1M

• April 2023 to April 2024 Profit (SDE): $330K

• April 2024 to Sept 2024 Revenue: $475K

• April 2024 to Sept 2024 Profit (SDE): $224K

Revenue is expected to increase significantly over the next year with the onboarding of new partners and the expansion into additional markets.

Operations

The company operates with a lean team of three core members:

• CEO: Oversees business strategy, partnerships, and high-level decision-making.

• CTO: Manages all technical aspects, including server management, API updates, and SDK documentation.

• Account Manager: Handles communication with publishers and partners, negotiates contracts, and assists with SDK integration.

Most of the business processes are automated, and operations are efficiently managed with minimal effort from the team. Customer service is handled through a centralized communication platform (Crisp), which consolidates emails and chat messages from publishers and partners.

External Operations

Publishers interact with the company through a web-based dashboard, where they can register their apps, integrate the SDK, and manage their payment information. The company’s backend system allows the CTO to manage partner preferences and data collection settings based on specific requirements.

There are no physical assets or office requirements, as the company operates entirely remotely.

Team & Organizational Structure

The business is run by a small team of three key individuals. The CEO and CTO are compensated through dividends, while the Account Manager is a contracted employee earning £20,000 per year. The organizational structure is simple and easy to manage, making this business an attractive option for an owner looking for a low-maintenance acquisition.

Ownership Structure

• CEO: Majority shareholder (55%)

• CTO: Minority shareholder (45%)

Both owners are prepared to sell 100% of the business and exit their operational roles. The Account Manager will also be dismissed prior to the sale, allowing the acquiring company to appoint their own staff as needed.

Sales & Marketing

The company’s marketing strategy relies primarily on direct outreach through email and LinkedIn to acquire new publishers and partners. No significant advertising spend is required, as this outreach has proven to be the most effective method for securing clients.

The business differentiates itself by offering an easy-to-use SDK that provides access to large partners and consolidated payments, making it an attractive option for small and medium-sized app developers who may otherwise struggle to monetize their apps.

Partners & Major Expenses

The company uses [Confidential] as its payment processing partner, handling international transfers and payments to publishers. The majority of the company’s expenses relate to commission paid to publishers (90% of total expenses). Other expenses include web hosting, software, legal and professional fees, and minimal advertising costs.

Expansion Opportunities

There are several opportunities to expand the business, including:

• Adding new partners: Increasing the number of data buyers would create additional revenue streams without significant investment.

• Expanding to iOS: The company currently operates only on Android apps. Developing an iOS SDK could unlock a new user base and revenue source.

• Negotiating higher CPM rates: Increasing CPM rates for Tier 1 countries would boost revenue from existing data.

• Onboarding new apps: Expanding the user base by acquiring apps from high-CPM markets.

Barriers to Entry

The business benefits from established relationships with key partners and publishers, creating a significant barrier to entry for new competitors. Additionally, the company’s custom SDK and streamlined integration process provide a competitive advantage that would be difficult for new entrants to replicate.

Valuation

The business is valued at approximately $2.6M to $3M based on its adjusted EBITDA of $300K and annual revenue of $1M. This valuation reflects the company’s established partnerships, low overhead, and significant growth potential.

Conclusion

This business represents a unique opportunity for a buyer to acquire a fully operational, scalable platform in the growing app data monetization space. With strong existing partnerships, a well-established user base, and multiple avenues for growth, the company is well-positioned for continued success 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.