Adcounty Media India

• Adcounty Media India is coming out with an initial public offering (IPO) of 59,63,200 equity shares in a price band Rs 80-85 per equity share.
• The issue will open on June 27, 2025 and will close on July 01, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 8.00 times of its face value on the lower side and 8.50 times on the higher side.
• Book running lead manager to the issue is Narnolia Financial Services.
• Compliance Officer for the issue is Ashita Agrawal.

Profile of the company

Adcounty Media India is a BrandTech company focused on providing end-to-end solutions to brands, that cover everything from branding to performance optimisation. It leverages the latest technologies to serve a diverse range of clients spanning across various industries. The firm empowers its client-base with customized advertising solutions that are designed and developed through the lenses of customers. The company also operates multiple websites across various verticals, offers mobile apps, and provides a Programmatic tool called BidCounty, designed to enhance performance and branding campaigns of its clients. Further, to help brands with the right user acquisition, it conducts thorough market research and delivers robust ad solutions.

The primary objective of the company is to provide the best set of media solutions and leverage technological advancements to help brands, companies and businesses identify, target, acquire and retain the right audience for their products/services. Its adaptive and performance-driven solutions bridge the gap between demand and supply creating a judicious balance for both advertisers and publishers.

Its range of services include Programmatic Advertising that ensures that best conversion ratios and ad spend, Search Engine Optimisation (SEO) that amplifies online visibility and boosts organic traffic, social media marketing that enhance brand awareness; Pay Per Click (PPC), Cost Per Acquisition (CPA), Cost Per Sale (CPS), Cost Per Lead (CPL), and Cost Per Install (CPI) campaigns that aid sales, lead generation, user acquisition and re-targeting. In essence, it provides mobile & web agency services from its offices based in India. It works with multiple brands across various verticals on a performance basis to help them acquire a premium user base and achieve their marketing objectives.

Proceed is being used for:

• Meeting capital expenditure requirements of the company
• Meeting working capital requirements of the company
• Meeting expenses for Unidentified Acquisition of the company and general corporate purposes

Industry Overview

India is undergoing a transformation with digital marketing emerging as a key player in the economy. Using strategies across social media, search engines and emails, companies can effectively engage with vast audiences. India is poised to become the world’s second-biggest online market with over 900 million active internet users by 2025. This growth not only impacts commercial development but also drives economic development and societal changes. Forecasts predict that India’s e-commerce market will reach $200 billion by 2027 due to this shift towards digitisation. The digital media now represents around 44% of total advertising spending.

India’s digital advertising industry has demonstrated resilience and flexibility despite a slowdown in growth rates. The digital advertising expenditure increased by 15% in 2023 totalling Rs 39,714 crore ($4.76 billion). Looking ahead to 2024, this growth rate is tipped to level out at 17%. A change of pace, influenced by increased scrutiny around data privacy and a knock-on effect from Google's plans for a cookie-less future. Despite these challenges, the portion of digital advertising in total advertising is predicted to increase from 40% in 2023 to 42% in 2024. Already, this uptrend exemplifies the gauge for social media platforms in reaching and engaging consumers.

The India AdTech market size reached $27.30 Million in 2024. Looking forward, the market is likely to reach $238.40 million by 2033, exhibiting a growth rate (CAGR) of 24.20% during 2025-2033. Rapid digital adoption, the rise of AI-driven personalized advertising, and the surge in e-commerce, programmatic advertising, and mobile marketing are fueling the market expansion. Additionally, regulator advancements and investments in data analytics enhancing targeted ad strategies are propelling the market forward. The rise of CTV and OTT platforms has revolutionized advertising, combining traditional television’s broad reach with digital advertising’s precision targeting. With the number of CTV households in India expected to reach 100 million by 2027, advertisers have a growing audience to engage with tailored content. This surge in viewership is driving increased ad spending, projected to reach $400 million by 2027 at a CAGR of 45%, as advertisers prioritize platforms that offer measurable results and targeted reach. 

Pros and strengths

Strong customer sourcing: The company sources its clients through two methods, i.e. direct sourcing and advertising/media agencies. It sources a significant portion of its clients directly through the efforts of its sales team and the rest through referrals from external media agencies. Direct sourcing by its sales team involves proactive outreach, relationship building, and personalized communication with potential clients that involves cold calling, emailing, reaching out to clients through known contacts. The other method involves referrals from media agencies with whom it has established partnerships or collaborations.

Result-oriented approach: Constantly adhering to a result-oriented approach, the company ensures the growth of brands while helping the publishers to monetize their traffic, thus creating a mutually beneficial ecosystem for both advertisers and publishers. The company’s result-oriented approach implies it usually work with companies on an outcome basis method, wherein it derives its fees based on the traffic, leads, downloads, sales, clicks, conversions etc. generated for the particular company and not on a fixed fee method, commonly known as performance marketing. As a consequence, the company has established a reputation for itself as a reliable and effective marketing partner for leading Fintech, Auto, BFSI, Ecommerce, iGaming, Travel, QSR, and FMCG brands.

Utilises various platforms to reach potential customers: Within its Digital Marketing vertical, the company utilises various platforms such as websites, social media, search engines, messaging including WhatsApp and mobile apps to reach potential customers. It uses a host of different technologies and strategies such as market research, campaign optimization, and data analysis, which suits its clients, to promote their products, services and/or brands to a targeted audience. The company leverages its data analytics, consumer behaviour insights and market research data to optimize campaigns and deliver personalized and relevant content. This allows the company to reach a broader audience, and provide real-time performance tracking, and cost-effective ad campaigns compared to traditional advertising methods.

Risks and concerns

Present promoters of the company are first generation entrepreneurs: The company’s present Promoters are first generation entrepreneurs. Their experience in managing and being instrumental in the growth of the company is limited to the extent of their knowledge and experience and it cannot assure that this will not affect its business growth. Investors and stakeholders may be more cautious when the entrepreneurs belong to the first generation. This could affect the ability to secure funding or partnerships that are critical for growth. Established entrepreneurs often have extensive networks within their industries, which can be invaluable for partnerships, collaborations, and accessing resources. First-generation entrepreneurs may have limited connections, making it more challenging to tap into these opportunities.

Maximum revenue comes from limited customers: The company depends on a limited number of customers for a significant portion of its revenues. The company has garnered 76.94%, 77.98% and 70.30% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. As its business is currently concentrated among relatively few significant customers, it may experience reduction in cash flows and liquidity if it loses one or more of its major customers or if the amount of business from one or more of them is significantly reduced for any reason, including as a result of a dispute with or disqualification by a major customer.

Geographical constrain: The company’s business operations span various regions across India and extend beyond international borders. Despite its diversified presence, it has a significant dependency on Haryana, Karnataka and Maharashtra which contributed (86.09%, 93.25% and 92.23%) of its total revenue from India for the Financial Years ending on March 31, 2025, March 31, 2024 and March 31, 2023 respectively. Relying heavily on select geographic location exposes it to regional economic fluctuations, regulatory changes, and local market dynamics. Adverse conditions such as economic downturns, political instability, or natural disasters specific to that region could significantly impact its revenue stream and also any decline in the economic prosperity or changes in regulations within that particular region could negatively affect its financial performance.

Outlook

Adcounty Media India is a BrandTech company that offers complete digital marketing solutions, from brand promotion to performance-based campaigns. The company uses advanced technology to create customized advertising strategies for clients across different industries. The company is using a blend of technology, market research and data analytics to produce successful ad campaigns. On the concern side, the company depends on a limited number of customers for a significant portion of its revenues. The loss of a major customer or significant reduction in demand from any of its major customers may adversely affect its business, financial condition, results of operations and profitability. Moreover, majority of its state-wise revenues for the last 3 years is derived from Haryana, Karnataka and Maharashtra. Any adverse developments affecting its operations in these states could have an adverse impact on its revenue and results of operations.

The company is coming out with a maiden IPO of 59,63,200 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 80-85 per equity share. The aggregate size of the offer is around Rs 47.71 crore to Rs 50.69 crore based on lower and upper price band respectively. On performance front, the company’s net revenue from operations for the year ended March 31, 2025, stood at Rs 6,889.51 lakh whereas for the year ended March 31, 2024 it stood at Rs 4,265.95 lakh representing an increase of 61.50%. Moreover, the company has reported 66.02% rise in net profit at Rs 1,375.01 lakh in FY25 as compared to Rs 828.23 lakh in FY24.

The company’s marketing strategy seamlessly integrates both offline and online marketing channels. This comprehensive approach ensures that it effectively reaches its target audience through multiple touchpoints, enhancing its brand presence and engagement across various platforms. Further, the company leverages its data analytics, consumer behavioural insights and market research data to optimize campaigns and tailor content to deliver personalized experiences to its customers. This approach enables it to connect with wider demographic areas and provide real time tracking of the performance compared to traditional advertising methods. Leveraging digital channels allows it to execute cost effective advertising campaigns compared to traditional methods, thereby maximizing its budget and increasing its return on investment.