Tanla Platforms expects significant revenue boost from new acquisition
In an interview with CNBC-TV18, Uday Reddy, Chairman and CEO of Tanla Platforms, said that the largest acquisition to date is expected to propel the company’s market share and revenue growth to new heights.
Tanla Platforms to acquire a company called ValueFirst India for Rs 346 crore. ValueFirst is India’s third-largest CPaaS player. CPaaS stands for Communication Platform As A Service. Tanla is also set to acquire ValueFirst’s West Asia business.
In an interview with CNBC-TV18, Uday Reddy, Chairman and CEO of Tanla Platforms, said that the largest acquisition to date is expected to propel the company’s market share and revenue growth to new heights.
He said, “It's an attractive acquisition from a valuation point of view. We are acquiring at a 7x multiples of EBITDA, where I see so much potential for revenues and profitability improvement.”
The acquisition of ValueFirst marks a significant milestone for Tanla Platforms. As one of the leading players in the communication and customer experience management space, ValueFirst has established a strong foothold in the market. The company boasts an impressive revenue of Rs 950 crore, with the incremental revenue to Tanla expected to reach Rs 650 crore. This substantial increase in revenue will undoubtedly bolster Tanla's financial performance.
Talking about market share, Reddy said that with the integration of ValueFirst's operations, Tanla anticipates a considerable expansion of its market share. Currently, Tanla Platforms holds a significant position in the industry, and this acquisition will further strengthen its position, pushing its market share to an impressive 35 percent. This move will position Tanla as a formidable player in the market, capable of delivering comprehensive communication and customer experience solutions.
The acquisition of ValueFirst is not only expected to impact the domestic market but also extend its influence on an international scale. Post-acquisition, Tanla is projected to secure a market share of around 10 percent in the United Arab Emirates (UAE).
For more details, watch the accompanying video.
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