Business Model

With a pioneering and innovative business model, we understand that we were the first player in the Brazilian market, and one of the earliest companies in the world provide apps and games service (2013 onwards). This model was undertaken through the Apps Club, a subscription model offering unlimited access to hundreds of apps which operates on a subscription model that has already been implemented and verified for the music and video industry (e.g., Spotify and Netflix).

Our offer to users is simple: as long as the subscriber continues to pay the service subscription fee, they will have unlimited and uninterrupted access to a set of apps with no additional costs.

This approach offers a more inclusive model that doesn’t require credit card payments, which were required in the early days of the services we provided in other business lines. The payments for the services are handled through mobile carriers, entered directly on the accounts of pre-paid and post-paid customers. This allows every user to sign up for the service, requiring only an Android smartphone and a mobile plan with one of the partner carriers.

Furthermore, our subscription model contains the following characteristics:

• All content available on the platform surpasses US$10,000 in premium apps and in-app purchases;
• A model that supplements the current Google Play model of free and paid by download apps;
• Marketing with the brand of the carrier;
• Free trial period of at least seven days;
• Segmented offers in complete packages, one for games and the other for children.

The business model encompasses mobile carriers, app developers and Bemobi.

The Apps Club content consists of more than 1,200 carefully selected titles that are available through approximately 200 partners, including apps, developers and distributors.

The quality of the content is demonstrated through indicators bellow:

Note:

(i) titles tagged as Editor’s Choice by the traditional Apple and Google apps distribution channels;

(ii) titles ranking top in their respective categories, in at least one country where they are available; and

(iii) titles with more than 50 million downloads on Google Play.

We currently have approximately 200 content partners comprised of developers, editors, publishers and distributors handling the supply of more than 1,200 titles. Notable among them are brands such as Disney, Rovio, Viacom, Square Enix, Toca Boca and Zepto Lab, in addition to others including world-famous names such as JetpackJoyride, CrossyRoad and AngryBirds, among many others.

New digital services were developed to attend the needs of pre-paid users when their balance is zero (through no credit channels), in parallel we create new monetization opportunities for the carriers.

Microfinance solutions are directly linked on our proprietary distribution channels platform, presenting alternatives for the users to keep using their mobile phones at moments when they have no credit to make calls and access the internet. This solution is a strong tool for carriers, removing any conflict with “blocked” customers that have no credit to use their mobile plan.

The following services constitute this portfolio:

• Digital top-up – Convenience service for purchasing top-ups through credit or debit cards.
• Balance/Credit Advance – Service that provides a balance/credit advance to mobile phone users in order to keep using their phone. This advance will be paid at the next top-up by the customer. Additional fees are charged on the amounts that were loaned through this service.
• Data Package Advance – Service offering a data package advance to be paid at the next top-up by the customer.
• Call Advance – Service offering a minutes-package advance for customers to complete calls, to be paid at the next top-up by the customer.

The key characteristic of these services is that they are presented to customers at the right time, for example, when they are receiving a call or accessing the internet without credit.

Our microfinance solution is one of the major components for our growth strategy, which has already provided solid results. During the 3rd quarter of 2020, the monthly average indicates that we generated 2.4 million top-up transactions, representing R$44.0 million in digitally sold financial volumes.

KPI’s
6.5M # of Top-up transactions per month
R$124M In Top-up digitally sold per month
15.7M Of credit advances transactions per month
R$85M Of Credit Advances digitally landed per month
14.5M # of Call Advance transactions monthly

Note: Data for the average figures of the 2th quarter of 2021. The top-ups are in relation to the two main carriers selling the service, with credit and call advances for the carrier selling the service.

Communications services are rendered within the context of making and receiving voice calls. The Communication 2.0 concept delivers:

• Visual Voice Messages (voicemail);
• Artificial intelligence that transcribes audio messages into text;
• Integration with WhatsApp for the delivery of messages;
• Notifications for missed calls; and
• Anti-spam and caller ID (By TruecallerTM).

With this portfolio, it is possible to monitor customer’s activity online (caller ID and anti-spam) and offline (voice messages and notifications for missed calls). We have a new app under development for the integration of these functions.

KPI’s
7bi Intercepted calls per month
541M Voice message deposits per month
111M Access to voice message (Dial In and Dial Out) per month
+1,5bi SMS notifications per month
241M Of users with voicemail provisioned

Note: Data for the average figures of the 2th quarter of 2021, referring to four carriers in Brazil that are active within this service.