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telecom | IST

Post-QIP cash on books at Rs 1,100 cr; Masivian acquisition gives access to Chile, Peru market: Route Mobile

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Route Mobile closed acquisition of Masivian S.A.S, which will help the company to access markets in Chile, Peru. The company plans to grow in the Latin American market, mentioned Rajdipkumar Gupta, MD, Group CEO of Route Mobile, in an interview to CNBC-TV18.

Route Mobile Ltd, a Communication Platform as a Service (CPaaS) provider, said it has raised Rs 867.49 crore via Qualified Institutional Placement (QIP). The QIP saw interest from a mix of international and domestic investors and several existing and new shareholders participated in it, a statement said. Some of the largest investors in the 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, it added.
The company has also closed the acquisition of Masivian S A S, Colombia, and it is now a step-down wholly-owned subsidiary of Route Mobile Limited. The first tranche of the total consideration of USD 49.04 million has been paid. Masivian S A S is expected to help the company grow in Latin America.
In an interview to CNBC-TV18, Rajdipkumar Gupta, Managing Director and Group CEO of the company, said, “We were looking to raise about 100 million only but we saw more demand from our investors. We are very happy with this raise because this is the amount we are looking at for our expansion plan.”
He added, “With this QIP, cash on books is more than Rs 1,100 crore right now.”
On acquisition of Masivian, Gupta added, “We always wanted to expand in the Latin American market, because it is a big market which is growing very fast. We believe that with this acquisition of Masivian, we now have access to Colombia, Peru, and Chile market, which is really big for the CPaaS industry.”
“With this fundraise, we are also looking to expand our product portfolio and I think these are the two strategies which we will follow, especially in product expansion as well as in geographical expansion. So these are the two areas where we are looking very aggressively and I think very soon, we will make sure we do more acquisitions,” he said.
On billable volumes, Gupta said, “We have added multiple customers in the last quarter. There are some large OTT players and e-commerce customers we have added last quarter. Those customers started selling full-fledged traffic on our platform. I think our billable transactions already increased last quarter and this quarter is definitely going to be more than the last one.”
On decline in average realisations, he said, “If you see, email realisation is much lower than SMS realisations and we processed over 3 billion email transactions last quarter and that has actually contributed to a lower realisation. So, if you talk about our CPaaS offerings like SMS, email, voice and other transactions, email is definitely lower in terms of realisations.”
On acquisitions, Gupta said that they have signed a definitive agreement with a company based in Kuwait – Interteleco and within this quarter, they are going to finish that acquisition as well.
He added, “In terms of other acquisitions, definitely, we will try to expand our portfolio in the voice business, and we are looking to acquire a company especially in voice, which may happen very soon. But right now, we have not identified any company in that space. We are looking forward to doing something about that very soon.”
On market share, Gupta said, “If you see, our overall market share in India is about 10 to 12 percent and we have a huge opportunity right now to grow ourselves in the Indian market. India is almost over a billion-dollar market right now and we believe that the way we are growing, the way we are using a platform, the way we are adding more products to our portfolio, we may have more market share in India very soon and that is exactly where we are focusing right now.”
(With text inputs from PTI)
For full management commentary, watch the video.