Fabula is an e-books app that allows unlimited access to their e-books inventory through a Spotify type of subscription model. While being very attractive to consumers, their business model fits perfectly for publishers as well. While many players have tried to put together a successful e-books mix, Fabula has nailed to the spot on, giving them a great chance to succeed in billion dollar e-books market.
Prior to Butterfly’s investment Fabula has developed the first version of their mobile app, successfully launched the service and taken the leading position in the Latvian e-books subscription market. They have great business metrics, very loyal customer base with high customer lifetime value and their inventory consists of nearly all the publishers in the Latvia.
“Subscription services, like Spotify and Netflix, have taken the market in music and video. However in e-books this is yet to be happen. The fact that people like to read on their own language and lower cost of entry has kept the market more fragmented, furthermore the current business models do have a good fit from publishers’ point of view. We have solved the problem, Fabula is currently leading e-books subscription service in Latvia and our aim is to tap into billion dollar e-books industry and repeat that success in the rest of the world. From our point of view Butterfly is a perfect investor, they have a very constructive hands on approach, provide experience, market knowledge, connections and mentoring. Furthermore their agile approach into business development is a great plus while prioritizing and setting targets to reach the global market and scale up rapidly.” (Eldar Sharafutdinov, CEO of Fabula)
Butterfly invested into Fabula because their business model addresses the needs of different stake holders very well. This is also backed by their metrics. Furthermore they have an excellent hard working team with plenty of ambition. Butterfly’s investment will be used to scale the service and validate the business model in international markets outside of Latvia.