Ankur Warikoo’s Brand Valuation | Startup | Sarthak Ahuja

I would put a Value of Rs 240 Crores on Ankur Warikoo’s Personal Brand...

👉🏼 Follower count, engagement rates, percentage of paying customers are metrics evaluated while putting a value to a paid social media post by an influencer.

👉🏼 Anyway, in the case of Mr. Ankur Warikoo, we have access to publicly available data on his revenues and estimates on his profits. So we’ll value him using the popular business valuation methods i.e. Discounted Cash Flows, Revenue Multiple and Transaction Comparables.

👉🏼 His Revenue for calendar year 2022 has been approx Rs 27 crores, and a Gross Margin of ~Rs 20 crores. This would primarily account for ad spend for his courses. I’ve taken the Gross Margin as the Adjusted Revenue for Valuation for the sake of simplicity.

👉🏼 I’ve split the revenue streams and put in what I think should be the expected growth rates for the next 4 years. The expected gross margin for the next 4 years has been discounted at 18% p.a.

👉🏼 The Valuation as per Discounted Cash Flows is Rs 183 crores

👉🏼 Further, SaaS companies use a Revenue Multiple of 8X to 20X of current Annual Recurring Revenue. In some cases, there are outliers for monopoly businesses such as 40X, but we’ve used a conservative 11.5X multiple to arrive at Rs 231 crores of value

👉🏼 Recently, a content and influencer marketing company called WLDD has been invested in by a few investors. I’ve pulled out their estimated numbers with some assumptions to find that they are valued at approx 17.7X their EBITDA

👉🏼 If I were to assume that Ankur has additional expenses of Rs. 5 crores in addition to ads, his EBITDA would be at Rs 15 crores... thus a comparable valuation would place him at Rs 266 crores.

👉🏼 All in all, a figure of Rs. 240 crores seems to be a reasonable bet as per the above assumptions.

👉🏼 Valuation is more an art than science, and can change drastically with change in assumptions - none of which may be wrong but based on your perspective and view of the world
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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.

Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.

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