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Toss The Coin

• Toss The Coin is coming out with an initial public offering (IPO) of 5,04,000 equity shares in a price band Rs 172-182 per equity share.
• The issue will open on December 10, 2024 and will close on December 12, 2024.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 17.20 times of its face value on the lower side and 18.20 times on the higher side.
• Book running lead manager to the issue is Beeline Capital Advisors.
• Compliance Officer for the issue is Pooja Jain.

Profile of the company

Toss The Coin is a marketing consulting company, which provides custom made marketing services to clients. The company is growth accelerators who help businesses grow by implementing marketing operations that is creative, responsible and sustainable. It works with companies to bring a new-age modern perspective to their brand. The company has a team and a set of enviable offerings for its clients spanning the entire length & breadth of marketing.

It is dedicated team well-versed in all technology, enabling businesses to thrive with strategy-led and creatively backed market plans. With years of experience in exploring tech and marketing, toss the coin has led businesses to get creative with out-of-the-box GTM (Go-To-Market) strategies. The company brings the best of marketing and innovation to lead business to success. Its service offerings are structured in a way to be able to handle all types of clients’ needs across Marketing, Pre-sales, Lead-gen, Branding and Communications etc.

The company is marketers who thrive in creatively adding meaning to brands with its services. With a proven method, it creates the right visual language and voice for organizations to help brands de-clutter from competition. The company’s Managing Director, Narayanan Jayan and Whole Time Director, Reshma Budhia started this business in partnership under the name and style of Toss the Coin with partnership deed dated June 14, 2013. The said partnership business was dissolved with Deed of Dissolution dated June 17, 2024 as business was ceased since April 2021 under this partnership after shifting of business in the company.

Proceed is being used for:

• Funding capital expenditure for development of micro-services application
• Funding capital expenditure for opening new offices
• Funding working capital requirement of the company
• General corporate purpose

Industry Overview

Content marketing is a marketing strategy used to attract, engage, and retain an audience by creating, publishing and distributing relevant articles, videos, blogs, newsletters, magazines, social media posts, and other media. This approach establishes expertise, promotes brand awareness, and keeps business goals top of mind. Content marketing is a type of inbound marketing that attracts customers and builds loyalty, making it effective for customer retention. The content marketing market size is estimated at $263.09 billion in the current year. It is expected to reach $523.45 billion in the next five years, registering a CAGR of 14.75% during the forecast period. One key trend that is propelling the growth in content marketing demand is digital transformation. Content marketing has become a vital tool to efficiently connect with and engage internet users as enterprises shift their business focus from traditional channels into digital platforms, such as marketing strategies and client involvement efforts.

Meanwhile, digital marketing in India is the integration of digital technologies and internet marketing strategies. A combination of the best of both traditional and online marketing methods enables businesses to reach out to potential customers worldwide. Online advertising involves placing ads at various locations across the web. These ads appear alongside search results and advertisements generated by other advertisers. Advertisements become even more effective if they have a link to the companies’ websites or landing pages. Companies have introduced visibility through digital platforms to close the gap between customers and brands. India is the second-largest country in terms of population and active internet users, with a population of almost 2 billion. This makes it one of the biggest markets, and the market's soaring demand reflects the vast growth potential of the nation. Therefore, if one has the necessary expertise and understanding in this area, they can succeed in this dynamic sector. 

In addition, the use of digital platforms in India has been rising steadily ever since the Ministry of Electronics & IT announced the creation of Digital India. this plan might increase the GDP by up to $1 trillion by 2025. It can also aid in a variety of other areas, including the creation of jobs, increased labour productivity, expansion of the private sector, and governmental income generation. According to a Goldman Sachs research, digital marketing will have a future value of $160 billion by 2025, which is three times its current value. This figure only applies to the Indian internet business. Additionally, future generations will be immersed in the digital environment and used to conducting all of their business online. Companies who have not yet entered the world of digital marketing must do so right now to avoid falling behind. The trends in digital marketing differs every year as more businesses enter the market and new technology is created.  

Pros and strengths

Niche focus and customer-centric approach: Specializing in a particular industry (Tech B2B) allows the company to gain more experience in that area. This focus enables it to understand the specific needs, challenges, and trends within that market segment better. Moreover, prioritizing customer needs and providing excellent customer service can be a significant competitive advantage for it. Building strong relationships with clients based on trust, communication, and responsiveness can lead to long-term partnerships.

Personalized service and innovative approaches: The company is able to offer more personalized attention and tailored solutions to its clients. This personalized service can create stronger relationships and increase customer satisfaction, leading to repeat business and referrals. It is more innovative and creative in its marketing strategies due to fewer bureaucratic hurdles. It can experiment with new technologies, tactics, and campaigns to stand out from larger competitors.

Strategic partnerships and digital competence: Forming strategic partnerships with complementary businesses or industry influencers can help it to extend its reach and access new markets. These partnerships can also provide opportunities for collaboration and joint marketing efforts. It is constantly looking out for such partnership opportunities. In today’s digital age, having strong digital marketing capabilities is essential. It is proficient in leveraging digital channels such as social media, content marketing, search engine optimization (SEO), and email marketing to reach and engage with its target audience effectively.

Risks and concerns  

Maximum revenue comes from limited customers: The company’s top ten customers have contributed 76.32% 73.20%, 63.22% and 78.07% of its revenues for the period ended September 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 based on Restated Financial Statements. However, its top customers may vary from period to period depending on the demand and thus the composition and revenue generated from these customers might change as it continues to add new customers in normal course of business. It could experience a reduction in its results of operations, cash flows and liquidity if it loses one or more of these customers or the amount of business it obtains from them is reduced for any reason, including but not limited on account of any dispute or disqualification.

Geographical constrain: Currently, registered office of the company is situated in Chennai and it is carrying its business mainly from its Chennai Office. Hence its major revenues are generated from operations in this region only. Although it is planning for expanding for setting up offices in Gurugram, Bangalore and Coimbatore. In the event that demand for its services in general reduces or stops by any reason including political discord or instability or change in policies of State, then its financial condition and operating results may be materially and adversely affected. Geographical and functional expansion of its business domain requires establishment of adequate network. As it seeks to diversify its regional focus it may face the risk that its competitors may be better known in other markets, enjoy better relationships with customers. The company’s lack of exposure in geographical boundaries outside its operating region could impact its future revenues.

No long-term contracts with any of its clients: The company does not have any long-term contracts with its clients and any change in the business pattern of its existing clients could adversely affect the business of the company. Although it has satisfactory business relations with its clients and have received continued business from them in the past, there is no certainty that the same will continue in the years to come and may affect its profitability.

Outlook

Toss the Coin is a marketing consulting company that provides custom-made marketing services to clients. Specializing in tech B2B allows the company to understand industry trends and deliver tailored, effective solutions. Moreover, the smaller size enables rapid adaptability, letting it adjust strategies and respond quickly to feedback. On the concern side, the company’s top ten customers contribute majority of its revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability. Moreover, the company’s operations are significantly located in the Chennai region and failure to expand its operations may restrict its growth and adversely affect its business.

The company is coming out with a maiden IPO of 5,04,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 172-182 per equity share. The aggregate size of the offer is around Rs 8.67 crore to Rs 9.17 crore based on lower and upper price band respectively. On performance front, the revenue from operations had increased by 1.64% from Rs 478.35 lakh in Fiscal 2023 to Rs 486.19 lakh in Fiscal 2024 was due to increase in sales of services during the year. Due to unfavorable market conditions, there was only a marginal increase in sales revenue. Moreover, the company reported a net profit of Rs 109.85 lakh in Fiscal 2024 as compared to a net profit of Rs 178.29 lakh in Fiscal 2023.

The company continuously tracks and analyzes key performance metrics to evaluate the effectiveness of its marketing strategies and campaigns. Use data-driven insights to optimize its efforts, identify areas for improvement, and allocate resources more effectively. While it’s important to focus on capturing market share, building a sustainable business for long-term growth is also in the plan. Invest in building strong relationships with clients, developing its team's skills and expertise, and continuously innovating to stay relevant in the market.