We believe that Bemobi hold a strong position in the market that allows the expansion of our digital services in emerging countries. Over the past few years, we developed a growth model (“playbook”) that has been implemented at a steady pace, striving to generate network effects whenever possible and to utilize gains of scale that justify higher expenses on R&D (research and development) to maintain a competitive edge.
In its most basic form, the playbook model is based on two main drivers:
- Subscription Services: Our market grows as we launch new digital micro-subscription services tailored to mobile users in the emerging countries through our B2B2C model with mobile carriers.
- Digital Channels: In parallel to the launch of our services, by integrating our Bemobi Loop proprietary digital channels platform allows to the telecommunications carrier systems we allow them to manage personalized digital channels turning expandable and predictable the distribution and improving the conversion of users into subscribers.
The combination of these two dimensions is the bedrock of sustainable growth of Bemobi over the past few years and is the basis for the future.
The scale in these two pillars determines the size of our investment in R&D in order to constantly improve the quality of our services and the effectiveness of our channels.
We observe promising additional growth opportunities that includes:
- New services: launch of new services that leverage cross-selling and/or up-selling opportunities for our current customer base (i.e., more than 32 million subscribers, who have signed up for our current digital channels).
- New channels: development of new digital touch points with mobile users that could open up new sales opportunities for services.
- New geographical areas/carriers: expansion into new countries and new partnerships with carriers.
We believe that this growth strategy holds great potential, based on comparisons made between the penetration of our subscriptions in Brazil (9.2%), the penetration of our international operations (0.5%) and our market (2.3 billion users).
The opportunities for expansion on those dimensions can be organically and inorganically. The last one occurs through acquisitions that provides leverage for points of strength and competitive advantages on our current model (100% digital services, solid B2B2C partnerships, focus on emerging countries and using our proprietary digital channel).
The Company concluded its initial public offering in February on the Brazilian Stock Exchange (B3) with the objective of further accelerating our organic growth in existing channels, products and services, especially outside Brazil, and enabling our inorganic growth strategy (via acquisitions), capturing the numerous existing opportunities and increasing the return to our shareholders.
As examples of possible acquisitions, we highlight (without limitation) companies with the following profiles: (i) companies that bring us new distribution channels or the expansion of those distribution channels already alive; (ii) complementary services to those already offered by us (payments, microfinance, games, among others); and (iii) companies located in regions that are still not explored by Bemobi.