Cost Efficiency & Profitability

Moderate scenario · Lean platform model with economies of scale

Cost Ratio Decline

36.8% → 23.2%

Economies of scale

ROI Multiple

3.95x

On ₦775.0M investment

5-Year Net Profit

₦3.1B

50.4% avg margin

Payback Period

Year 3

Full investment recovery

Revenue-Cost Gap Widens Over Time

The widening gap between revenue and costs is the clearest proof of scalability — fixed costs grow linearly while revenue grows exponentially

  • Commission Revenue
  • Net Profit
  • Operating Costs
20262027202820292030₦0.0B₦0.3B₦0.7B₦1.1B₦1.4B

Declining Cost Ratio

Operating costs as % of revenue decrease as platform scales

  • Cost Ratio %
  • Profit Margin %
202620272028202920300%25%50%75%100%

Lean Platform Cost Model

Like AirBnB/Booking.com — minimal overhead, viral growth

TechnologyY1: ₦15.0M → Y5: ₦31.1M

Cloud-based, auto-scaling infrastructure

StaffY1: ₦35.0M → Y5: ₦61.2M

Lean core team (~10 people)

MarketingY1: ₦4.2M → Y5: ₦99.4M

Social media + viral growth (5-8% of revenue)

OperationsY1: ₦3.4M → Y5: ₦49.7M

Self-registration model (4% of revenue)

Profitability Statement

YearRevenueCostsEBITDANet ProfitMargin
2026₦330.0M₦121.3M₦208.6M₦146.0M44.3%
2027₦612.4M₦181.7M₦430.7M₦301.5M49.2%
2028₦1.0B₦265.2M₦763.7M₦534.6M52%
2029₦1.6B₦395.2M₦1.2B₦838.5M52.6%
2030₦2.3B₦537.1M₦1.8B₦1.2B53.7%
iAriya Financial Projections · Confidential