Consumer Internet | Audiobooks
The client, an experienced technology executive, had built a podcast and audiobooks app called Snovel. Unlike common audiobooks, Snovel collaborated with local artists. The artists, typically theatre actors, local music composers came together to convert pieces of Marathi literature into engaging audio episodes that emulated movie-like background score and narration. Snovel witnessed a steady growth in app installs and had sticky listeners.
While the vernacular content is a rapidly growing opportunity, the founder wanted to examine the market segments in depth. He and his team wanted to offer a more competitive and scalable offering. AlphaValley Advisors prepared a framework that helped the team assess the scalability, feasibility, and cost of each alternative. The peer analysis expanded into a more comprehensive examination of various business models in the realm of media and entertainment.
Snovel team decided to offer more than just an audiobooks platform. Subsequently, the revenue streams were more than one and demanded a careful analysis. AlphaValley prepared comprehensive financial models that offered the Snovel team flexibility to chose between various business models such as subscription, pay-per-download, and freemium. AlphaValley team also developed a dashboard that presented vital metrics such as cohort, MRR, CAC and more.
The app had attracted interest from investors and venture capital arms of select corporate. The Snovel team wanted to gauge the valuation range that they can expect. While they were aware of DCF and other valuation metrics, they needed an unbiased valuation analysis. AlphaValley Advisors team formed a valuation framework that triangulated the valuation range using
– Venture capital method
– Berkus method
– Trading company comparables
– Comparable metrics (values calculated – per subscriber, per app install, per minute watched)
– Recent transactions
The detailed business model analysis helped Snovel team form an informed decision. Venture capital investors appreciated Snovel’s understanding of the vertical and business model analysis. See below some scrubbed pages from the investor presentation.
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