Despite the significant overall market downturn over the past fortnight, parenting tech company Tinybeans Group (ASX: TNY) has secured a handsome bundle of brand partners keen to use Tinybeans’ platforms to penetrate the lucrative parent and children markets.
The brand partners include Tier 1 partners Amazon, Apple, Kraft and National Geographic Kids as well as six others, with the combined value of the brand agreements to deliver Tinybeans $775,000 and the company expecting the contracts to have “an immediate impact on revenues”.
“It’s really amazing to see the acquisition already showing such positive early results, as we knew it would,” said Tinybeans CEO, Eddie Geller.
“With these recent wins, Tinybeans has signed over $775,000 in contracts in the past 2 weeks across only 10 partners. I look forward to this momentum continuing into Q4 and in FY21.”
Core to the securing of these new contracts is Red Cycle, a complementary parenting platform and family business marketplace in the United States, which Tinybeans acquired earlier in the month for $9.35m cash and 825,000 TNY shares.
With the acquisition, Tinybeans increased its monthly users from 1.37 million to 3.37 million whilst also doubling its revenue and opening up opportunities to sign more commercial partners like those secured in the past two weeks.
Through these new contracts, brand partners gain access to Red Tricycle’s users – parents – to promote their own products. Kraft for example will introduce new beverage products to mums and families whilst Apple will promote Today at Apple to encourage parents to go further with their passions via the use of Apple products.
The Tinybeans app is free for parents to download and offers a cloud-based platform to store digital assets such as photos and videos, as well as access information valued by parents. Sharing and production functionalities within the platform then enable parents to create a visual journey of their children’s life stories where users can upgrade to premium functions via paid subscriptions.
For the half year ending 31 December 2019, prior to the Red Tricycle acquisition, Tinybeans reported revenues of $2.33m, a 38% rise on the previous corresponding period which was similar to its increase in monthly active users.