Mad Paws Holdings Ltd (ASX:MPA) is an Australian-based and -focused pet services business operating an online marketplace that matches and connects pet owners with pet service providers. The marketplace comprises proprietary technology that has been custom-built for local pet services, is optimised for web, mobile and app, manages payments and provides reviews/ratings. The site was founded in 2015 and since then has facilitated ~117k bookings. Unlike most online marketplaces, MPA does not benefit from online migration during COVID-induced restrictions as the business currently relies on dog sitting, hosting and visits for ~89% of revenue generation, which in turn is driven by pet owner travel plans. While easing travel restrictions has and will see a booking rebound, there are a number of other compelling medium-term themes driving customer/revenue growth including increased pet ownership, the “humanisation” of pets and the addition of new verticals to capitalise on a growing customer base. Rover in the US provides a good roadmap for MPA’s potential growth and profitability and provides solid valuation support at current prices.
04 Nov 2021
Has the currency to be the top dog
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
Has the currency to be the top dog
Mad Paws Holdings Ltd (ASX:MPA) is an Australian-based and -focused pet services business operating an online marketplace that matches and connects pet owners with pet service providers. The marketplace comprises proprietary technology that has been custom-built for local pet services, is optimised for web, mobile and app, manages payments and provides reviews/ratings. The site was founded in 2015 and since then has facilitated ~117k bookings. Unlike most online marketplaces, MPA does not benefit from online migration during COVID-induced restrictions as the business currently relies on dog sitting, hosting and visits for ~89% of revenue generation, which in turn is driven by pet owner travel plans. While easing travel restrictions has and will see a booking rebound, there are a number of other compelling medium-term themes driving customer/revenue growth including increased pet ownership, the “humanisation” of pets and the addition of new verticals to capitalise on a growing customer base. Rover in the US provides a good roadmap for MPA’s potential growth and profitability and provides solid valuation support at current prices.