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NEW DELHI: Sinch , a communications platform-as-a-service (CPaaS) vendor is looking to further invest in India, and diversifying to tap new enterprise verticals and small-and-medium businesses (SMBs), and eying relevant merger and acquisition (M&A) opportunities. “We need to articulate our long-term growth ambitions in the market over the next three to five years. So we want to allocate capital and we want to invest.
There's no reason why the business should slow down. I am excited about it accelerating and getting to a point where our India business is not just growing in double-digits but also doubling in a short time,” Laurinda Y Pang told ETTelecom. Advt Stockholm Stock Exchange-listed company is the second-largest CPaaS vendor worldwide.
Its net sales in the Asia Pacific region increased by 7% to 971 million Swedish kronor in Q2 2024, compared to 906 million Swedish kronor in the corresponding quarter last year. In its latest quarterly earnings report, it said that within the region, India “performed well and contributed significantly”. Sinch commenced operations in India in 2008.
It acquired ACL Mobile for Rs 535 crore in 2020, and competes with homegrown cloud communication platform companies Tanla Platforms, Route Mobile, and Infobip, among others. “Since acquiring the ACL business, the business has continued to grow at the same rate which is very impressive. The India business is growing much faster than the rest of the business,” Pang said.
Sinch provides its solutions to customers in the BFSI, retail, and other verticals. “We are very successful in the large enterprise and now the diversification in customer segmentation is aimed to take advantage. There are 60 million small businesses in India.
It is a new opportunity for us.” While the business continues to grow organically, she said inorganic growth is an important part of the company's strategy at the group level, adding that it has been focussing on integrating past acquisitions. Advt “India continues to be kind of a standalone business because it's growing at a really good clip.
I have got a lot of challenges in other parts, but exciting opportunities at the same time. So inorganic continues to be something that we will consider,” she added. The chief executive added that Sinch’s hiring plans in India will be in accordance with the business’s organic growth, and described the current rate of growth as “robust”.
“We have been hiring in India, we have been growing. We will need people, and we will hire in proportion. But I can't say we are going to hire thousands of people in India.
We are not ready for that (mass hiring),” Pang said. Sinch's India headcount spread across large cities such as Delhi, Mumbai, Kochi, Chennai, and Bengaluru, according to her. “So this is not a small business for us.
I would expect that with the growth rates, we will continue to invest in the market.” She, however, declined to comment on the current employee count in India. It has more than 4,000 employees in over 60 countries.
Although SMS continues to drive major volumes of messages over CPaaS platforms across the industry due to its ubiquity and availability on all handset types, Sinch is bullish on the growth of the rich communication services (RCS) channel due to its adoption on Android and iOS operating systems (OS). “The ubiquity around RCS is now a reality. And that’s another trend that we see as important.
We are making some big bets around that on a global basis. We think that RCS a nice evolution of messaging,” she said. Pang said that the company is spending energy and resources on educating enterprises about the benefits of RCS, asserting that more use cases will evolve.
“So you see us in the public domain talking about it quite a bit because of the education piece.” Recently, the cloud communication provider partnered with Singtel to offer Rich Communication Services (RCS) for businesses in Singapore. By Ashutosh Kumar & Muntazir Abbas , ETTelecom Published On Sep 19, 2024 at 01:37 PM IST Telegram Facebook Copy Link Be the first one to comment.
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