Cost Efficiency & Profitability

Moderate scenario · Lean platform model with economies of scale

Cost Ratio Decline

33.8% → 21.4%

Economies of scale

ROI Multiple

4.06x

On ₦775.0M investment

5-Year Net Profit

₦3.2B

52% 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₦111.6M₦218.4M₦152.9M46.3%
2027₦612.4M₦166.1M₦446.3M₦312.4M51%
2028₦1.0B₦241.8M₦787.1M₦550.9M53.5%
2029₦1.6B₦362.5M₦1.2B₦861.4M54.1%
2030₦2.3B₦494.5M₦1.8B₦1.3B55%
iAriya Financial Projections · Confidential