Identity Verification (KYC) SaaS
B2B SaaSIts API checks ID documents from over 190 countries for fintech, crypto and telecom firms, sold on recurring cloud plans and on-premise licences.
Ask $2.62M · Profit $628K · 4.2x · Empire Flippers
Oct 29
- Ask
- $2.62M
- Revenue
- $858K
- Profit
- $628K
- Margin
- 73%
- Multiple
- 4.2x
- Age
- 5 yrs (Jan 2021)
- Label
- Solid Business, Fair Price
- Reason
- Over 5 years of fully recurring revenue, a 73% margin, low churn and a 10-hour owner week; 4.2x is fair for software of that quality.
Why it's interesting
- All revenue is recurring: cloud plans of $89-$880 a month and on-premise licences from $30,000 a year, across 200+ paying subscribers with lifetime value above ~$4,000 and low churn (seller-provided).
- A developer and 2 sales/support staff run day to day, leaving the owner about 10 hours a week; the platform was recently refactored and is ISO 27001:2022 certified.
- Acquisition is spread across Google Ads, organic search, referrals and outreach to registered users.
What to watch
- About half of yearly revenue is collected through TapPay, a payment provider that may not be available to an owner outside Taiwan and Japan; those subscribers may need moving to a provider such as Stripe, and some may drop off in the switch.
- Customer concentration isn't stated; with licences starting at $30,000 a year, a handful of on-premise clients could carry a large share of revenue.
- Growth is described as strong but given no figures, and the churn and lifetime-value numbers come from the seller.
- All three staff are in Taiwan; a buyer elsewhere would need a way to keep employing them.
Who it fits
A buyer with seven-figure capital or financing and a B2B software background who can manage a small Taiwan team through a payment migration.
Ask the seller
- What share of revenue comes from the top five customers and from on-premise licences?
- Can the TapPay account pass to a buyer based outside Taiwan and Japan, and if not, has moving those subscribers to Stripe been tested?
- What were revenue and paying-subscriber counts at the end of each year since 2021?
Growth plays
- Start a reseller program for system integrators, already a customer group, to bundle the on-premise licence into their client projects.
- Publish a Shopify app for age and identity checks on age-restricted goods, putting the existing API in front of ecommerce merchants.
Oct 29Added to Acumen Wire