Adcounty Media India, based in Gurugram, is poised to enter the capital markets with its IPO debut on the BSE SME platform. This is a 100% fresh issue IPO, comprising 59.63 lakh equity shares priced between INR 80 to INR 85 each, aiming to raise INR 47.71 – 50.69 crore. The minimum application size stands at 1,600 shares, translating to a minimum investment of INR 1.36 lakh for retail investors. The issue will be open for subscription from 27 June 2025 to 1 July 2025. Let’s shed light on this by exploring deep into the Adcounty Media IPO review:
Adcount Media IPO Review: Industry Landscape
India’s digital marketing industry is going through a sea change with digital adoption across socio-economic strata. With 969 million internet users as of 2024, 42% of whom are from rural areas, India is now one of the largest consumer internet markets globally. Monthly data consumption per user has gone up to 17.36 GB from 61.66 MB in 2014, a fundamental change in media consumption behaviour. This is a great foundation for digital ad-tech companies.
The industry is further boosted by the adoption of programmatic advertising, real-time bidding and artificial intelligence. 5G rollout across all 28 states and 8 union territories will enhance digital consumption and ad delivery speed and quality. GSMA forecasts 920 million mobile users by 2025, 88 million of which will be 5G users, a strong digital base for marketing solutions. Policy support through Production Linked Incentive (PLI) schemes, telecom infrastructure enhancements and digital inclusion campaigns has further accelerated the digitisation journey.
All this is good news for performance marketing and digital advertising platforms like Adcounty Media to innovate, expand and create value.
Business Overview
Adcounty Media is a technology-driven, multi-channel performance marketing company offering end-to-end digital advertising services for ROI driven client needs. The company’s portfolio includes:
- Programmatic advertising through our proprietary ad-tech platform, BidCounty
- Organic and paid visibility services through SEO and SEM
- Social media marketing across Facebook, Instagram and LinkedIn
- Outcome-based billing formats like CPA (Cost Per Acquisition), CPL (Cost Per Lead), CPS (Cost Per Sale), CPI (Cost Per Install)
- Strategic lead generation and user retargeting campaigns using data analytics
The company caters to multiple sectors like fintech, banking, automotive, e-commerce, FMCG, quick service restaurants (QSR), gaming and travel.
Its clientele includes well-known digital brands like Zepto, ShareChat, Paisa Bazaar, Bank Sathi and Fi Money. This sectoral diversification helps to mitigate cyclic risk and support top-line growth. Adcounty has a presence beyond India. This helps in hedging currency risk, getting premium contracts and building a global brand.
Financial Performance
Adcounty has reported remarkable growth and financial resilience over the past fiscal years:
- FY25 revenue climbed to INR 68.90 crore from INR 42.66 crore in FY24, a 61.5% YoY increase
- FY25 net profit surged to INR 13.75 crore, up 66% from the previous year
- EBITDA margin improved significantly to 26.49%, underlining efficient cost control
- Return ratios are impressive, with ROE at 47.28% and ROCE at 47.27%
- A negligible debt-equity ratio highlights the firm’s strong financial discipline
Use of IPO Proceeds
Funds raised via the IPO will be utilised for:
- INR 6 crore toward the creation of a proprietary Mobile Intelligence Tool
- INR 1.76 crore for workforce expansion and infrastructure upgrades
- Additional working capital for scaling operations
- General corporate purposes, including marketing, brand-building, and administrative enhancements
Adcounty Media IPO Review: Business Model Analysis
Adcounty operates with a core focus on performance marketing economics. Rather than charging clients for ad placements or impressions, it emphasises conversion-driven billing formats such as CPA, CPL, and CPS, aligning directly with business outcomes.
Its proprietary platform, BidCounty, integrates AI-based targeting, real-time campaign optimisation, automated bidding strategies, and analytics dashboards. Revenue streams include:
- Campaign management fees for overseeing client advertising budgets
- Platform-based margins are derived from optimisation differentials in performance metrics
- Affiliate and lead generation commissions
- Monetisation of owned websites and mobile apps via programmatic ad placements
The company follows a highly scalable, asset-light model. By minimising fixed infrastructure and physical presence, it achieves superior operating leverage. The scalability extends to global delivery capabilities without proportionate increases in cost.
However, this model is not without challenges. Heavy reliance on external ad ecosystems (Google, Meta, etc.) exposes the company to changes in policies, algorithms, or fee structures. Adcounty addresses this by investing in proprietary technology to build a competitive moat.
Client engagement tends to be short-term and project-based, rather than built on long-term contracts. However, high client satisfaction, ROI focus, and multi-sector reach contribute to strong client retention. This agile model also facilitates rapid onboarding and flexible service delivery.
Adcounty Media IPO Review: Strengths
- Aligned Incentives: Performance-based billing aligns client success with company revenue
- Client Diversity: Exposure to fintech, BFSI, QSR, travel, iGaming, FMCG, and e-commerce reduces concentration risk
- Exceptional Profitability: EBITDA margin of 26.49%, ROE and ROCE nearing 47%, indicating high capital productivity
- Financial Prudence: Minimal debt and strong cash flow management enable operational flexibility
- Rapid Scalability: Asset-light operations help expand services without proportional cost rise
- International Footprint: Presence in overseas markets allows access to high-margin revenue streams and reduces dependency on Indian demand
- Tech-Focused Growth: Investments in analytics tools and mobile intelligence signal forward-looking innovation
- Blue-Chip Clients: Working with top brands reinforces the firm’s execution credibility and market standing
Adcounty Media IPO Review: Risks
- Cash Flow Instability: Investing cash flows have been negative due to allocations in FDs and mutual funds, impacting liquidity tracking
- Macroeconomic Exposure: In downturns, client ad budgets could shrink, directly affecting Adcounty’s topline
- Legal Overhang: Ongoing cases involving the promoter group Innovana Thinklabs may influence stakeholder sentiment, despite no direct link to Adcounty
- Revenue Dependency: FY25 saw 76.94% of revenue come from the top 10 clients, posing concentration risk
- Litigation Exposure: Tax and civil cases involving liabilities worth ~INR 7.9 crore remain unresolved
- Geographic Reliance: Haryana, Karnataka, and Maharashtra alone contributed 86% of FY25 domestic revenue
- Pre-IPO Share Issuances: Issuances at INR 75 and large bonus allotments could raise concerns over price fairness
- Contingent Tax Liability: INR 51.24 lakh in pending GST-related matters may impact compliance
Valuation and Peer Comparison
At the upper price band of INR 85, Adcounty commands a PE ratio of 10.16X based on its FY25 EPS of INR 8.37. The implied market cap stands at ~INR 154 crore, with a P/S ratio of 2.2X and Price/NAV ratio of ~3.7x based on the NAV of INR 22.92.
In contrast:
- Affle trades at ~55x PE with a 25% EBITDA margin
- Vertoz trades at ~20x PE, but with comparatively lower ROCE
Adcounty delivers comparable or better financial metrics at a substantially lower valuation. Its earnings yield of nearly 10% is attractive for investors seeking growth with financial discipline.
Final Verdict
Adcounty Media stands out in the SME IPO space for its financials, tech execution and adaptability in a fast-changing digital marketing space. The company has sectoral tailwinds and a lean, scalable structure backed by proprietary tech and strong client relationships.
Despite concerns around revenue concentration, regulatory risks and promoter-linked legal issues, Adcounty’s profitability, innovation focus and capital efficiency make a strong case for investment. The moderate valuation makes it an attractive bet for those who want to participate in India’s digital advertising boom.
For those looking to invest in the growing digital economy through a performance-driven and innovation-oriented company, Adcounty Media’s IPO is worth a closer look.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.