Consumers are increasingly using mobile apps for work, education, and entertainment. Mobile app subscriptions are now a key revenue stream in the maturing digital industry. In fact, in-app subscriptions contribute to 95% of mobile spending, which is expected to continue in the years ahead. But as subscription-based app businesses grow, more companies are needing help managing and understanding their user subscriptions.
Joining our virtual accelerator is Adapty, which helps provide the necessary tools for developers to track and manage their mobile app subscriptions and understand how customers are spending.
The Nuts & Bolts
Problem: 96% of mobile apps are monetized with in-app subscriptions. However, only a small percentage of users are paying subscribers, and the churn rate tends to be high shortly after. Implementing mobile subscriptions is technically challenging, and syncing them between platforms is even more difficult. On top of that, without a proper unit economics calculator, it’s nearly impossible to do traffic attribution and A/B testing. Currently, companies spend several months to implement subscriptions and proxy events to analytics services.
Solution: Adapty is a subscription management platform for mobile apps. The company aims to help businesses increase revenue from in-app purchases and reduce churn by providing a CRM for tracking subscribers, analytics around the sales funnel and subscriptions, A/B testing tools, and more.
When 500 Met Adapty
The founders of Adapty worked for EasyTen, a company that participated in 500’s Batch 16, and got a referral from its CEO. The team has been working in the mobile subscription space since 2015 and built a top ten mobile app in education in the App Store with 10 million users, so they understand that mobile subscriptions are hard. Founders Vitaly Davydov and Kirill Potehin also formed Poteha Labs, which generated $1.5 million in revenue in less than two years from inception.
All three Adapty founders have deep tech backgrounds in software development. CEO Vitaly Davydov, has a Master’s Degree in Data Science, was an Analytical Scientist at EasyTen, and an ML learning researcher at UCL and Alan Turing Institute in London.
Kirill Potehin, Adapty’s CTO, served as the backend team lead at EasyTen, a senior backend developer at Sapato.ru, and worked as a Technical Sales Specialist at Qsoft.
COO Dmitry Podoprosvetov worked in sales at Kvazar-Micro, as the backend team lead at Welps, the Head of Marketing and Sales at Voxcom, and Head of Business Development at STC Group. He has a Master’s degree in Computer Engineering from the Moscow Engineering Physics Institute.
With so many years of experience working together on multiple ventures in the mobile industry, we believe they are a strong and well-balanced team that knows how to solve problems in this space.
Why Now?
Mobile apps have completely transformed the way we shop online, order food, travel, watch television, play games, and more. Apps have become a vital channel for brands to interact with consumers, and companies that implement mobile apps successfully can reap the rewards. In 2019, US subscription ad revenue reached over $4.6 billion, and consumer spend on mobile subscriptions reached $120 billion globally.
As consumers spend more time on apps, companies need a way to stand out and keep users engaged. For many, subscription-based models are the solution. Although driving revenue growth through subscriptions is not a new concept, it has evolved. Over the past seven years, revenue for subscription companies grew by 321% on average.
As subscription-based businesses could continue to grow, more companies will need help managing their subscriptions. Adapty aims to provide the necessary tools for app developers to track and increase revenue and understand how customers are spending, allow businesses to eliminate time spent dealing with bugs and updates on the subscription side and more time focusing on what matters most: revenue growth.
Future of Adapty
As Adapty continues to add more features, it plans to grow its team and expand into more markets. We’re excited about the Adapty team and their ability to solve the most challenging aspects of mobile app monetization.
If you would like to learn more about companies, sectors, and trends that we are excited about as well as receive invitations to exclusive previews, and expert roundtables, please sign up here.
You can learn more about Adapty at: https://adapty.io/.
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