Here's what drove Route Mobile to ink a deal with the Proximus Group
Route Mobile recently signed a deal with Proximus Opal, the holding company of Telesign and a subsidiary of the Proximus Group, under which the promoters of Route Mobile will divest their entire 57.56 percent shareholding.
Having a customer base in the US is necessary in order to make Route Mobile a bigger company, MD & Group CEO Rajdipkumar Gupta told CNBC-TV18 in a post earnings interaction. Therefore, the partnership with Proximus Opal makes sense for Route Mobile to get direct access to enterprise customers based in the US.
Proximus Opal owns 100 percent of Telesign. "Direct access to the enterprise customers in the US is one of the reasons we believe that the partnership is very important," Gupta said.
Route Mobile recently signed a deal with Proximus Opal, the holding company of Telesign and a subsidiary of the Proximus Group, under which the promoters of Route Mobile will divest their entire 57.56 percent shareholding. Additionally, Route Mobile founders will reinvest for a 14.5 percent stake in Proximus Opal.
“The US is the largest market in CPaaS consumption as well as customer base. We have tried to build our US footprint for the last six years and every time we failed because it is not easy for any company, going all the way from India to set up a company in the US and compete directly with a company which is based in the US,” Gupta said.
Proximus Opal currently possesses Telesign, a prominent US-based CPaaS firm. The consolidation resulting from this transaction will position the combined entity, comprising Telesign and Route Mobile, as a top 3/5 CPaaS player globally in terms of volume and value.
Route Mobile reported its first overseas sequential revenue drop in two years during quarter. Despite the drop, the company has maintained its financial year 2024 revenue growth guidance of 20 percent.
For more details, watch the accompanying video
First Published: Jul 31, 2023 2:16 PM IST
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