IPO - Mad Paws Holdings Limited - 26 March 2021 #, page-8

Have read the prospectus, not much I like about this business. It is very niche and the metrics don't inspire any interest. It is sub scale and and certainly does not deserve a 7x revenue multiple as they are proposing.

GMV grew
FY18 - FY19 by $3,099,466 then;
FY19 - FY20 by $1,546,780
That is not good at all, that should be accelerating not decreasing for a *growth* business.

Revenue follows the same
FY18 - FY19 by $690,000 then
FY19 - FY20 by $420,963

If you divide their marketing spend by the increase in new paying customers, works out at a CAC of ~$70-83. Ouch!

If you divide their number of paying customers by the yearly revenue it is $28 revenue per paying customer, so a ~2.5-3 year return on the CAC alone (before CoGs like payment costs, customer service etc)

If you look at that GMV growth in FY20 of $1,546,780 they had to spend almost the same in marketing $1,423,386 to get that and that is GMV not revenue !

Niche business, no forecasts, low quality brokers, negative absolute growth and high valuation. Good luck to all but a pass for me.