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Proximus CEO forecasts 90% of companies’ dependency on its platform within 2-3 years
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Rajdip Gupta, Managing Director and Group CEO of Route Mobile, expressed confidence in their growth trajectory. Gupta stated that they are highly optimistic about achieving their combined target of $2 billion in revenue and a 15% EBITDA margin within the next two to three years.
Enterprise communications firm Proximus Group has completed the acquisition of a majority stake in Route Mobile. The deal was announced in July of last year but was consummated 2 days ago.
This is one of the largest deals seen in the communication vertical. Guillaume Boutin, CEO of Proximus believes 90% of companies will need its platform in the next 2-3 years.
Speaking to CNBC-TV18, Boutin said, “Vision is to serve on the market opportunity. The need for interactions between enterprises and end-users is going to explode in the coming years. 90% of the of the companies will need our platforms in the next two to three years. So in terms of market demand, just our ability to capture the existing market trend is going to be the key of the success of the Route Mobile and Proximus Group as a company.”
Route Mobile has 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% shareholding. Additionally, Route Mobile founders will reinvest for a 14.5% stake in Proximus Opal.
Rajdip Gupta, MD and Group CEO of Route Mobile, echoed Boutin’s optimism, stating, “We are very bullish about our growth and our overall combined target is $2 billion and 15% EBITDA target, which we have two to three years down the line.”
Gupta further added, the aspiration of achieving a $1 billion revenue mark by FY27 is not merely a dream but a reality. He said, “I have a very clear plan how to achieve that and 15% margin is definitely a target for the group and that is a target for me as well.”
In Q4FY24, this Mumbai-based enterprise communications firm on May 6, reported an 8.6% year-on-year (YoY) drop in net profit at ₹95.2 crore. The company’s revenue from operations increased 0.8% to ₹1,017 crore against ₹1,008.7 crore in the corresponding period of the preceding fiscal. The EBITDA margin stood at 12.3%.
Discussing the synergies resulting from this partnership, Gupta highlighted the strategic advantages. He pointed out that with numerous over-the-top (OTT) players primarily headquartered in the US, the consolidation of their companies enable direct engagement with customers in markets where previous barriers existed.
Leveraging Telesign’s capabilities, Gupta emphasised the ability to onboard customers in regions such as India or other firewall-protected markets. These strategic initiatives aim to merge teams and exploit synergies effectively, with Gupta expressing confidence in achieving realistic targets and a positive outlook towards future endeavours.
The company, which has a market capitalisation of ₹8,996.03 crore, has seen its shares gain 11% over the last year.
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