AKIKO GLOBAL SERVICES IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

About AKIKO GLOBAL SERVICES Limited

The Money Fair, powered by Akiko Global Services Limited (formerly known as Akiko global services private limited) is an algorithm-based technology that platform that gathers and analyses data of individuals from various sources and draws insights to judge their credit worthiness, their past and current performance that helps in ease of comparison of multiple offers available and unbiased advice. This differentiated approach helps to find prospects that are low on risk and high on promise thus opening up various opportunities and possibilities. The Money Fair is scaling – up strategy and service delivery efficiency with new-age tech-enabled agility, it takes the relevant applications to multiple lenders, increasing the chances to secure a loan or a card and creates choice for customers to pick the ones they wish to back. Their expertise is enhanced by using the Customer Relationship Management (CRM) in their day-to-day operations. All leads are injected & monitored through the customized CRM that is exclusively developed for AKIKO. They also have the capability to integrate with the external CRM or API's which makes them different from others.

The Company has commenced its operations in 2018 and is currently working as a Channel Partner (DSA) for major Banks / NBFCs. Their business model involves tele-calling, corporate activities, as well as a feeton-street and digital marketing model to acquire customers digitally. Their proficiency lies in the field of credit cards and loans, empowering them to offer extensive guidance and assistance to individuals and businesses as they navigate the expansive landscape of financial products. Whether it's finding the right credit card for maximizing rewards and benefits, or securing the most suitable loan for personal or business needs, their team is dedicated to delivering informed and tailored recommendations.

INDUSTRY OVERVIEW OF DIRECT SELLING

Direct Selling is a method of marketing and retailing goods or services directly to consumers, through personal contact, away from permanent retail premises. The products or services are sold through Active Direct Sellers, who act as individual representatives of the Direct Selling entities. These sellers carry out product demonstrations whilemaking such sales. The Direct Selling concept is considered to have been kick-started in India in the late 1990s. The industry witnessedmajor growth withmany global players entering the Indianmarket.The investors have seen how this platform created a positive impact on several other social and economic parameters.

The Indian Direct Selling industry stood at around INR 19,000 Crores in 2021-22. The industry has grown approximately 5.3% from INR 18,000 Crores in 2020-21. It has shown a Compounded Annual Growth Rate (CAGR) of approximately 13%, growing from INR 11,650 Crores in 2017-18 to INR 19,000 Crores in 2021-22. The share of IDSA members in the total sales of the Direct Selling industry stood at 55% in 2021-22. Wellness & Nutraceuticals products contributed ~59% of the Indian Direct Selling sales, followed by Cosmetics and Personal care which contributed ~22% of the sales by the Indian Direct Selling Industry 2021-22.

The number of Active Direct Sellers in the country stood at around 84 lakhs registering a growth of ~6% from 79 lakhs in 2020-21.The industry comprised of 56% Male and 44% Female Active Direct Sellers. North region contributed to around 30% of the Direct Selling sales in the country in 2021-22. This was followed by the East with approximately 25% of the Direct Selling sales. Maharashtra had the highest share of sales across the country with 12% of the gross sales in 2021-22, closely followed by West Bengal contributing ~10% of the Direct Selling salesin the country. As per the Survey conducted among Active Direct Sellers and Preferential Customers, the most preferred category was Wellness & Nutraceuticals [35%], followed by Clothing and Cosmetics & Personal care (22% and 11% respectively).

CREDIT CARD INDUSTRY IN INDIA

The credit card industry has grown tremendously in India. There are many developments happening in the space, with varied innovations and changes in technology. These new developments offer smooth onboarding journeys, differentiated card products, personalised offers and rewards, and better mobile apps, which have proved to be greatly beneficial to existing customers and attracted new customers as well. Credit card issuers are also making efforts to bring further innovation and awareness to this space. The same can be seen from the significant growth in India’s credit card market.

The credit card industry in India has witnessed a compound annual growth rate (CAGR) of 20%1 in the last five years. The number of credit cards crossed 78 million in July 2022. Moreover, in May 2022, the overall credit card spend reached its highest-ever number of INR 1.13 lakh crore.

With the emergence of e-commerce, adoption of contact-less payments and changes in the value proposition, the post-pandemic credit card space has undergone a considerable change and is evolving constantly. Credit card issuance increased by 15% during FY 2022. However, 80% of the credit card base is concentrated with the top-six issuers in the country. In the last three years, three banks have entered the credit card space as issuers. Further, owing to the ongoing and upcoming developments in the space, the credit card industry is expected to grow at almost thrice the speed in the next four years.

AKIKO GLOBAL SERVICES LIMITED STRENGTHS

1. Experienced and Qualified Management and Employee base.
2. Strong and Consistent Financial Performance.
3. Growing customer base.
4. Scalable and reliable business model.
5. Experienced Promoters and Senior Management with extensive domain knowledge.

AKIKO GLOBAL SERVICES LIMITED STRATEGIES

1. Enhancing Customer Acquisition
2. Strengthening Customer Retention
3. Increasing Collaboration with Banks
4. Embracing Technology

AKIKO GLOBAL SERVICES LIMITED RISK FACTORS & CONCERNS

1. Their top ten customers contribute approximately 93.26% of the revenues.
2. Their strategy to expand internationally involve risks that could increase their expenses.
3. There is an delay in paying wages.
4. They may not be successful in implementing our business strategies.