Business Overview

Available for acquisition is a social networking mobile app that enables users to socialize in the Metaverse. Users can “make new friends� through features such as audio group chats (similar to Clubhouse) and swipe (similar to Tinder). Current users are primarily 13-25 years old as this is a huge trend for younger people making friends online. Main market is in the US although there is also a strong presence in other countries such as the Philippines, UK, Canada, etc.

The app was officially started in May 2019, but the app as it is known today was launched in Jan 2021. There are over 5,000,000 total installs, revenue of $100K+ per month, and is profitable (total revenue > all costs). This would be a great acquisition for a company who understands the ‘social networking’ space and wants to build a multi-billion dollar business.

NOTE – Financials shown are for Jan 2021 to Oct 2021.

Highlights & Key Assets:
o Hot market (Metaverse). Another product (Soul) in China is already a multi-billion dollar company. This platform’s numbers are actually better in terms of CPI and ARPPU.
o Huge potential market (10B+) for companies who understand the ‘social app’ space and can keep developing on top of the existing product.
o Strong organic growth (if a new owner spent $0 on marketing would still get 1k+ new users per day).
o Strong user engagement with approximately 49K DAU and 264K MAU.
o High revenue per user.
o Already profitable and has approximately $1.5mm ARR.
o Subscription revenue (55%) and IAP revenue (45%).
o High quality app and platform built by a world class team.
o Product has strong engagement and a validated business model. A new owner can scale with more marketing efforts and make this a much larger platform.

Financial

  • Asking Price: $3,000,000
  • Cash Flow: $600,000
  • Gross Revenue: $1,369,885
  • EBITDA: $600,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
About The Facility:

Home Based

Is Support & Training Included:

The team is open to discussing a training and transition period depending on the new owner's needs. Founders are open to staying on in an advisory or consulting role for the right incentive (equity or cash).

Purpose For Selling:

The owners are looking for new opportunities.

Home Based:

This Business Is Home Based

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell businesses. Nonetheless, the genuine factor vs the one they tell you might be 2 completely different things. For instance, they might state "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competitors, current reduction in profits, or an array of other factors. This is why it is extremely crucial that you not count totally on a seller's word, but instead, use the vendor's solution combined with your total due diligence. This will paint a more reasonable picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover items like supplies, payroll, accounts payable, and so on. Remember that in some cases this can imply that earnings margins are too thin. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be fulfilled or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in brand-new consumers? Often times, businesses have repeat consumers, which form the core of their day-to-day profits. Certain aspects such as brand-new competitors growing up around the location, road building, and staff turnover can impact repeat customers and also adversely impact future earnings. One crucial point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business regularly, the higher the chance to develop a returning consumer base. A last idea is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? How might the local typical family income effect future earnings prospects?