Valuation of an AI-based logistics tech platform
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Assignment
This fast-growing logistics tech startup in Dubai needed a valuation to facilitate investor discussions for their first ever external funding round. They have developed a full stack suite that caters to the digital procurement of freight.
Our Approach
Outcome
We worked closely with the founder to narrow down the most relevant performance metrics such as customer penetration rate, average revenue per customer (ARPU) and customer lifecycle value (CLV).
Having established these, we plotted its evolution from the initial hyper-growth phase to its moderate growth stage where the unit economics would stabilize.
Since the future state was defined with clarity, we were able to work backwards to arrive at its current value using the Venture Capital (VC) method of valuation. During the investor discussions, it enabled the client to confidently communicate a well-defined business plan and effectively draw operating metric comparisons with the existing players in the industry.