Route Mobile is an Indian cloud communications platform-as-a-service company. Founded in 2004, it now has 15 locations in Asia-Pacific, the Middle East, Africa, Europe, and North America. Shares of Route Mobile are trading at about $1.20 per share, making it a compelling buy for investors. The company has a strong position in the niche CPaaS market. However, despite its strong growth, investors should be cautious before buying this stock.
Route Mobile is a cloud communications platform as a service company
Route Mobile is a cloud communications platform as service company that serves enterprises, OTT players, and mobile network operators. In June 2018, the company acquired Sendclean, a business email technology platform, as well as the team that builds and supports it. The acquisition also included customer contracts and the core IP from Sarv. Both companies are based in Jaipur, India, and deliver unified enterprise communications solutions to customers in the U.S., Europe, and Asia.
The company’s data centres span five continents, and its global presence extends to Africa, the Middle East, and Asia Pacific. The company has offices across North America, Asia Pacific, Europe, and Middle East. Route Mobile’s service portfolio enables businesses to connect with their customers and engage with them in ways they have never been able before.
It provides enterprise, mobile operator, and business process outsourcing services
With a diverse list of clients, Route Mobile is a leading provider of enterprise, mobile operator, and business process outsourcing solutions. Their client portfolio includes social media companies, financial institutions, e-commerce entities, travel aggregators, and more. Most clients pay in advance, reducing their working capital cycle and overall costs. In addition, Route Mobile’s operating revenue is largely recurring, with a 29% CAGR over the last three years.
Route Mobile offers cloud-based communications platform (CPaaS) to mobile operators and OTT players. Their enterprise communication services include enterprise electronic mail, two-way messaging, URL shortening, short message service analytics, and firewall and filtering. Their business process outsourcing services are a valuable part of their overall service portfolio. Customers include Fortune Global 500 companies, global corporations, and organizations in sectors including healthcare, e-commerce, hospitality, and pharmaceuticals.
The company partners with leading mobile operators around the globe to provide tech-driven multi-level solutions. Additionally, the company also provides Business Process Outsourcing solutions. Route Mobile’s impressive list of clients is indicative of its strong control over the market. However, its competitors are limited. While Tata Communications and Tanla Solutions have some overlap with Route Mobile’s services, they both only have a small presence in the Indian market.
It has a strong presence in the niche CPaaS market
Route Mobile Limited is a cloud communication platform provider that caters to enterprises, over-the-top players, and mobile network operators. Its portfolio includes messaging, email, and SMS filtering services. The company has a diverse customer base of enterprises, and has an established global presence in the Asia Pacific, Middle East, Africa, and Europe. Analysts at Motilal Oswal Securities and Angel Broking said Route Mobile’s strong position in the CPaaS market is a positive for its shareholders.
Route Mobile has a strong position in the niche CPaaS market, and is recognized by Gartner as a Representative Vendor. The company’s CPaaS service helps enterprises manage all aspects of customer communications, from messaging to voice calls. Its A2P SMS offering is the largest segment of the market, and is projected to grow at a 4.4% CAGR over the next five years. It processes more than 331cr in billable transactions annually. In Q1 FY21, Route Mobile processed over 695cr.
Route Mobile’s IPO received good interest from retail investors. The company received bids for more than 4.21 times its issue size on day two. The proceeds from the IPO will go towards repayment of certain borrowings, acquisitions, and strategic initiatives.
Route Mobile is poised to raise more than Rs 600 crore in a recent IPO. The company plans to use the funds raised from the IPO to pay off debt, make strategic acquisitions, buy an office in Mumbai, and other general corporate purposes.
The company is on track to list on the BSE and NSE on September 21st, 2020. Analysts are optimistic about the IPO, but a large number of potential investors should be watching it closely. The IPO will also help the company grow its global presence and reach. The IPO price is currently at a premium of 29 times its FY20 earnings. And, the company is also poised to IPO for a third time this year.
After announcing its IPO, Route Mobile is making a stellar debut on the bourses. The stock has surged over 100 percent on its first day of trading. The company has also a strong history of growth, which is not surprising given the company’s exemplary track record and potential for explosive growth. This IPO reflects Route Mobile’s strong growth potential and past performance.
