Rate Gain Provided LTV / CAC in their last result presentation. Claimed it to be 11.34. They’d also provided CAC numbers in their DRHP.
However, One thing to be conscious about is there is no legal accounting formula that everyone must have to follow, some companies might exclude some costs in CAC which can show LTV to CAC optically higher than it is.
Personally, I focus on trend of granular metrics which makes LTV and CAC.
CAC is basically (Sales & Marketing Expense / No. of new customer added).
LTV is roughly (Average Recurring Revenue per Account * Gross Margins%) / Net Revenue Churn Rate
One of the unusual player in SaaS is Fino Payments who is charging for their Bank Accounts as a SaaS wherein the customer has to pay yearly fee of 450/- to keep his account active. Some portion of this fee goes to merchants. They have provided the subscription revenue in Q3FY22 presentation.
Rural areas which is Fino’s main operating place, is price sensitive. Charging INR 450 per year as account maintenance is outrageous IMHO. The addressable mkt is too big for Fino but the profit margin is limited. This is highly regulated business, only 6 out of 11 companies are active now (source: Groww video about Fino’s IPO). We can expect no new entrants since the big profit making is out of question.
