Alta Global Group (NYSE American:MMA) has introduced the Hype platform nationwide, targeting combat sports gym partners to enhance member engagement and monetize social media followings. This innovative platform combines a mini-website builder, customer relationship management (CRM) system, and payment processor into a single smartphone-accessible solution. It addresses the challenges of limited bio links and algorithm-dependent communication on social media, offering gym owners a direct channel to their potential customer base.
The Hype platform is a strategic fit for Alta Global Group's mission to convert 640 million combat sports fans into active participants. Its community-oriented design is particularly beneficial for combat sports gyms, where relationships and referrals are key. This could significantly boost Hype's adoption among gym owners, coaches, and athlete influencers, leveraging the network effect within each gym community.
With a Software as a Service (SaaS) model, Hype presents a considerable revenue opportunity for Alta. Subscription prices range from $39 to $299 per month, plus transaction fees up to 5%, currently generating about $200,000 annually in recurring revenue. The platform's expansion could see this figure grow exponentially, especially within the U.S. martial arts industry, which boasts approximately 45,000 gyms and is expected to grow to 67,000 by 2026.
Nick Langton, founder and CEO of Alta Global Group, highlighted the mutual benefits of Hype, stating it helps gym partners, coaches, and athletes monetize their infrastructure and content while Alta benefits from the subscription-based revenue stream. From an investor's perspective, capturing just 10% of the U.S. martial arts gym market could generate between $5 million to $15 million in additional revenue for Alta, depending on the subscription tier, excluding transaction fees.
Hype's potential isn't limited to combat sports gyms; its versatility makes it applicable to a wide range of businesses, including the 27.1 million sole proprietorship businesses in the U.S. By offering a comprehensive solution that combines functionalities from multiple services, Hype stands as a strong competitor in the SaaS market for website creation, CRM, and payment processing.
Alta Global Group's current market capitalization of around $30 million indicates significant growth potential as Hype's rollout progresses. The platform's focus on converting social media followers into sales funnels addresses a critical need in the digital marketplace, offering a streamlined approach for businesses to engage with their audience. While initially targeting combat sports gyms, Hype's applicability to other sectors like community sports and various athlete categories presents further opportunities for growth and shareholder value enhancement.
