- Fair comparison, but no disdain for low commodity work. It is around the valuation premium. Here the private company valuations backed by VCs are lower than public market valautions. Infosys value at 2001 got breached only 10 years later, though the company did well
- Amazon UA budgets mainly move to FB , Google, InMobi and then Affle. Plus there is IPG group. mFilterate is the anti fraud partner with Branch as attribution partner and their market inputs would help. Affle works with Amazon to re-distribute the campaigns to other players like Mobvista, China and Israel based ad networks down the line. Flipkart works with these partners directly while Amazon works with 2-3 partners directly and rest through IPG. Would need to be watchful on Amazon budgets move.
- Ad Network as a business is large client dependency. Small players would not bid on digital/mobile oer third party networks, will do self serve FB/Google Ads. Hence that is not a major concern. Even IT Services is large enterprise deals primarily.
- The promoters are smart and a good team, and relatively did better in valuation compared to SVG Group. SVG with similar revenues got sold for < 1000 Cr.
- Will be good to see how they move up the value chain using the cash flows from Ad Network business. IronSrc did a similar move 5 years into gaming ads and now studio business. Their revenues are upwards of $ 1 bn now.
- Tech disruption plays are very difficult to predict, smaller players can move faster to capture client budgets with off the shelf products and as Sumit said, need to keep a close watch.
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