Post-Qip Cash on books at Rs 1,100 Cr; The acquisition of Masivian gives access to the Chilean and Peruvian market: Route Mobile


Route Mobile Ltd, a communications platform as a service (CPaaS) provider, said it had raised Rs 867.49 crore through Qualified Institutional Placement (QIP). The QIP has attracted interest from a mix of international and domestic investors and several existing and new shareholders participated, according to a statement. Some of the biggest investors in QIP include Steadview Capital Mauritius Ltd, RBC Asia Pacific Ex-Japan Equity Fund, Kuber India Fund, Verdipapirfondet DNB Global Emerging Markets and Pinebridge Global Funds – Pinebridge Asia Ex Japan Small Cap Equity Fund, he said. added.

The company also completed the acquisition of Masivian SAS, Colombia, and is now a wholly owned subsidiary of Route Mobile Limited. The first installment of the total consideration of USD 49.04 million has been paid. Masivian SAS is expected to help the company grow in Latin America.

In an interview with CNBC-TV18, Rajdipkumar Gupta, Managing Director and Group CEO of the company, said, “We were looking to raise only around $ 100 million, but we have seen more demand from our investors. We are very satisfied with this increase because it is the amount that we envisage for our expansion plan. “

He added: “With this QIP the money on the books is currently over Rs 1,100 crore.”

When acquiring Masivian, Gupta added: “We have always wanted to expand into the Latin American market, because it is a large market that is growing very quickly. We believe that with this acquisition of Masivian, we now have market access to Colombia, Peru and Chile, which is really important for the CPaaS industry.

“With this fundraising, we are also looking to expand our product portfolio and I think these are the two strategies we will follow, particularly in product expansion as well as geographic expansion. So those are the two areas that we are looking very aggressively and I think very soon we will make sure to do more acquisitions, ”he said.

Regarding billable volumes, Gupta said, “We added several customers during the last quarter. There are a few big OTT players and e-commerce clients that we added last quarter. These customers have started selling full-fledged traffic on our platform. I think our billable transactions have already increased in the last quarter and this quarter will definitely be more than the last. “

Regarding the decline in average accomplishments, he said, “If you see, email fulfillment is much lower than SMS fulfillment and we processed over 3 billion email transactions in the last quarter, which has in fact contributed to a lower achievement. So if you talk about our CPaaS offerings like SMS, Email, Voice and other transactions, Email is significantly lower in terms of achievements.

Regarding the acquisitions, Gupta said they have signed a definitive agreement with a Kuwait-based company – Interteleco and that during this quarter they will also finalize this acquisition.

He added: “In terms of other acquisitions, we will definitely try to expand our portfolio in the voice sector, and we are looking to acquire a particular company in voice, which could happen very soon. But for now, we haven’t identified any companies in this space. We look forward to doing something about this very soon.

Regarding market share, Gupta said, “If you see our overall market share in India is around 10-12% and we currently have a huge opportunity to expand into the Indian market. India is currently a nearly billion dollar market and we think the way we grow, the way we use a platform, the way we add more products to our portfolio, we could have more market share in India very soon and that is exactly where we are focusing right now.

(With text entries from PTI)

For a full management commentary, watch the video.

(Edited by : Dipikka Ghosh)

First publication: STI


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