Route Mobile buys Colombian venture for $50 million
The Mumbai-headquartered CPaaS firm closed the deal with Masivian at a purchase consideration of $47.5 million, along with an earn-out consideration of up to $2.5 million.
Route Mobile, a cloud-communication platform service (CPaas) provider, has acquired Masivian, a startup with operations in Colombia and Peru, for $50 million, the company said in a stock-exchange filing on Saturday.
Route Mobile will pay Masivian $30 million in the first tranche, and the remaining amount in three equal tranches over the next two years. The deal includes an earnout consideration of $2.5 million.
Masivian has a suite of communications, marketing, and AI-powered products for enterprises, and "offers multi-channel notification services through SMS, email, as well as voice, serving marquee clients across Colombia and Peru," Route Mobile said in the exchange-filing.
Masivian was formed in 2016 by merging Estratec (incorporated in May 2003) and Elibom (incorporated in December 2005). It generated revenue of $11.5 million in 2020, growing at a compounded annual rate of 13.3 percent in three years.
“A key target for us was to onboard a global partner to gain a bigger foothold in the Latin American region, and address the international traffic that we are yet to tap," said Rajdipkumar Gupta, Group CEO, Route Mobile, in the exchange filing.
Masivian presents a sizable opportunity that can be tapped from local enterprises as well as with global OTTs, leveraging its added geographical strengths like direct connectivity, cost efficiencies and local presence in the Andean region, Route Mobile said in a press statement.
“With Route Mobile’s deep domain expertise in CPaaS-enabled products, coupled with its global scalability, we will be able to offer unique communication experiences that are easy to deploy, convenient to manage, and quick to monetise," said Rainer Viertel, CEO of Masivian.
Masivian has a near-shore talent pool and operational hub for supporting customers in the Americas, though Route Mobile did not share the number of employees in Masivian.
"The acquisition is aligned to Route Mobile’s global growth strategy to be a recognised global CPaaS player and to solidify its presence in Latin America," the press statement added.
Route Mobile clocked revenue of Rs 1,422.2 crore in fiscal year (FY) 2021, growing 47 percent over the previous year. It more than doubled its net profit to Rs 133 crore in the same period, and reported a headcount of 628 employees, as of March 31, 2021.
In FY 2021, its cloud communications platform processed more than 32 billion transactions at a consolidated level. It has established direct relationships with 265 mobile network operators (MNOs) that provide Route Mobile's clients with global connectivity.
It has an enterprise customer base that includes social media companies, banks and financial institutions, e- commerce entities, and online travel aggregators. Its operations are in the Asia Pacific region, West Asia, Africa, Europe, and North America.