Hello Abraham. Loved your Write up and I do agree with you on the mention about how Tanla looks to be an interesting Business with Large Growth Area and Triggers. However I couldn't understand Why CPaaS Companies around the World have not made Money. While Most of them have actually not grown beyond a point of time, A Company like Sinch was able to Grow its Revenues and Profits Equally by almost 20x in 8 years. And Still Negative Returns for a While now. That is one Question I havent been able to Answer yet. It would be great to have your views on the same. Thank you and Looking forward for your future Write Ups.
Abraham George: “Thank you Vinayak for your comment. The concept of CPaaS promises a better communication experience with enhanced productivity. The biggest company in CPaaS which is Twilio is still not even making operational profit - but that doesn’t mean it doesn’t have value. They are all in the quest of adding more revenue streams. It should become profitable in a while, probably in an Amazon-like manner.
Tanla differs from its peers, having no debt and have multiple sources of income. Since you can see exponential growth opportunities in CPaaS, Tanla with its low cost advantage and innovative technology should be able to compete internationally.
I have not looked at Sinch per se but the CPaaS industry has a growth potential of nearly 35% for the next five years. Few industries can grow at that rate. SaaS companies like Salesforce are turning in huge profits so don’t see why CPaaS won’t follow suit.”
Thank you so much for the Response. I Agree with you on that. I actually had a Follow up to that. Now that the World is staring at a shift to 5G (Where most of the Conversations would be routed through Internet (Like is the Case with Reliance Jio even with 4G some Part of its communication is through the Internet)) and Given 95% of Tanla's Revenues come from SMS (They Claim SMS to be a relatively secure measure than Internet base communication through Whatsapp or any other platform). How do you think Adoption of 5G would have an impact on the Company. I know its a long shot but just trying to understand the potential. Because If they are to thrive even in a 5G Environment without losing any ground to other entrants then we have some Longevity with Market Size here. Thank you in Advance for your time.
Hello Abraham. Loved your Write up and I do agree with you on the mention about how Tanla looks to be an interesting Business with Large Growth Area and Triggers. However I couldn't understand Why CPaaS Companies around the World have not made Money. While Most of them have actually not grown beyond a point of time, A Company like Sinch was able to Grow its Revenues and Profits Equally by almost 20x in 8 years. And Still Negative Returns for a While now. That is one Question I havent been able to Answer yet. It would be great to have your views on the same. Thank you and Looking forward for your future Write Ups.
Abraham George: “Thank you Vinayak for your comment. The concept of CPaaS promises a better communication experience with enhanced productivity. The biggest company in CPaaS which is Twilio is still not even making operational profit - but that doesn’t mean it doesn’t have value. They are all in the quest of adding more revenue streams. It should become profitable in a while, probably in an Amazon-like manner.
Tanla differs from its peers, having no debt and have multiple sources of income. Since you can see exponential growth opportunities in CPaaS, Tanla with its low cost advantage and innovative technology should be able to compete internationally.
I have not looked at Sinch per se but the CPaaS industry has a growth potential of nearly 35% for the next five years. Few industries can grow at that rate. SaaS companies like Salesforce are turning in huge profits so don’t see why CPaaS won’t follow suit.”
Thank you so much for the Response. I Agree with you on that. I actually had a Follow up to that. Now that the World is staring at a shift to 5G (Where most of the Conversations would be routed through Internet (Like is the Case with Reliance Jio even with 4G some Part of its communication is through the Internet)) and Given 95% of Tanla's Revenues come from SMS (They Claim SMS to be a relatively secure measure than Internet base communication through Whatsapp or any other platform). How do you think Adoption of 5G would have an impact on the Company. I know its a long shot but just trying to understand the potential. Because If they are to thrive even in a 5G Environment without losing any ground to other entrants then we have some Longevity with Market Size here. Thank you in Advance for your time.
Hi Vinayak, Abraham George will be writing more on this as the mass adoption of these technologies become more pervasive.
Surely. Looking forward to it. Great Work.