Cost Efficiency & Profitability

Moderate scenario · Lean platform model with economies of scale

Cost Ratio Decline

36% → 20.9%

Economies of scale

ROI Multiple

17.52x

On ₦155.0M investment

5-Year Net Profit

₦2.7B

51.8% avg margin

Payback Period

Year 2

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₦0.6B₦0.9B₦1.2B

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₦265.0M₦95.3M₦169.6M₦118.7M44.8%
2027₦508.4M₦140.1M₦368.3M₦257.8M50.7%
2028₦872.8M₦202.8M₦670.1M₦469.0M53.7%
2029₦1.4B₦307.9M₦1.1B₦746.7M54.3%
2030₦2.0B₦423.5M₦1.6B₦1.1B55.4%
iAriya Financial Projections · Confidential