Route Mobile Ltd. is on track to achieve a billion-dollar revenue run rate in the next three to four years, as communications platform-as-a-service increasingly becomes the backbone of the enterprise communications ecosystem. The confidence is reflected in the guidance for fiscal 2024. The Mumbai-based CPaaS firm expects to grow at 20% in FY24, with operational profitability coming in at 12.5–13
The Mumbai-based CPaaS firm expects to grow at 20% in FY24, with operational profitability coming in at 12.5–13%, even as the wider technology industry is likely to dawdle in a slump brought on by the prospect of a recession in the U.S. and a prolonged war in Europe. “Some aspects of the business are definitely experiencing headwinds, largely around promotional spends, but having said that,
CPaaS is increasingly becoming the backbone of the enterprise ecosystem as that’s where all the critical communication—be it transactions, customer engagements—are housed,” he said. “The world is moving to CPaaS use cases in a big way—right from text messages to chatbots.” The company’s fourth-quarter performance underscores the bullishness. Net profit of the cloud communications platform rose
Route Mobile Q4 Results: Key Highlights (QoQ) Revenue rises 2.32% to Rs 1,008.66 crore. Earnings before interest and taxes up 7.94% at Rs 110.74 crore. EBIT margin at 10.97% versus 10.40% in the third quarter. Net profit up 21.85% to Rs 104.05 crore. For the full fiscal, Route Mobile’s revenue increased 78% year-on-year to Rs 3,608.63 crore, while the net profit nearly doubled to Rs 333.11 crore.
The industry is also witnessing consolidation—revenues are getting concentrated towards a few large players. Route Mobile is aware of the opportunity that the trend presents. “There are definitely some white spaces in terms of our product bouquet, so we will at least look at plugging them—either through organic or inorganic efforts,” Badalia said. “The U.S. happens to be a weak link in our portfo
