Anuj Khanna Sohum says Affle India is one of the very strong contenders to be a market leader – CNBC TV18
The initial public offer (IPO) of mobile marketing company Affle India will open for bidding on July 29 with a price band of Rs 740–745 per equity share. Anuj Khanna Sohum, chairman, MD and CEO of Affle India, spoke about the company’s business plans and shared growth outlook.
“I think all of us understand the smartphone technology and its usage. In India alone, there are over 570 million smartphone devices that have been profiled in Affle system so far. I know that everybody understands when an ad shows up inside an app when they are using a smartphone. All the retail investors would relate to Affle and its business very clearly,” Sohum said on Monday.
“In the next five years, I don’t expect any of us to change this particular consumer trend of increasingly using the smartphones heavily. I don’t think we will start paying for these free app substantially. So advertising will continue to be a very important business model for the smartphones and the apps being used by the consumers,” he added.
“I think the unique selling proposition (USP) is that people should relate to the Affle business, should hopefully understand it. From a financial standpoint, we have had a very impressive track record of good financial fundamentally sound performance with great return on equity and capital employed over 60 percent in each of those cases. I think the investors would, hopefully, find this to be a good attractive investment option,” said Sohum.
Speaking about market share and key competitors, Sohum said, “In terms of market share, knowledge share, I think we are definitely one of the very strong contenders to be a market leader. There are hardly any significant global competitors who are present in emerging markets. Most of them are focused on developed geographies, they are not focused on the emerging market.”