Tanla Platforms to acquire CPaaS provider ValueFirst from Twilio for Rs 366cr
Tanla Platforms, an Indian Communication-Platform-as-a-Service (CPaaS) company, has announced the acquisition of ValueFirst Digital Media and ValueFirst Middle East from Twilio, a US-based customer engagement platform.
The acquisitions are set to solidify Tanla Platforms’s position as a market leader in the Indian CPaaS space and expand its global footprint.
The all-cash consideration for ValueFirst Digital Media is $42 million (INR 346 crores), while the acquisition of ValueFirst Middle East is valued at INE 20 crores. The transactions are expected to be completed by July and September 2023, respectively, pending closing conditions.
Khozema Shipchandler — Twilio Communications President said: “Tanla is a leading CPaaS provider in the Indian market as well as a longtime customer and partner of ours, making them a natural fit and ideal home for ValueFirst’s customers and employees. Twilio remains committed to India as well as our strategic partnerships and large employee base in the region.”
ValueFirst, a pioneer in the CPaaS sector in India, has been a key player for over 20 years, offering enterprises the ability to connect with customers worldwide through various communication channels. With more than 1,000 enterprise clients, ValueFirst has built a strong reputation for delivering real-time, personalized customer experiences.
The acquisition of ValueFirst will enhance Tanla Platforms’ market leadership in the Indian CPaaS landscape, with a projected market share of over 35%. Tanla Platforms will also strengthen its revenue market share in the SMS segment to approximately 45% and secure a significant share of around 15% in channels like WhatsApp.
The strategic fit between Tanla Platforms and ValueFirst is evident in their complementary customer footprints. Around 40% of ValueFirst’s revenue comes from customers that are new to Tanla Platforms, expanding its customer base significantly.
Tanla Platforms currently holds a 50% share in the large enterprise segment, which will be further bolstered by an additional 20% share in the mid-market enterprise segment through this acquisition.
Additionally, the acquisition of ValueFirst Middle East FZC will provide Tanla Platforms with a strong presence in the UAE, Saudi Arabia, and Indonesia markets. It will give Tanla a critical mass of 10% market share in the UAE and a significant foothold in Saudi Arabia and Indonesia, which are large markets with a combined total addressable market of approximately INR 20,000 crores.
By leveraging leading solutions from ValueFirst, such as Surbo (an NLP-driven chatbot platform for messaging channels), Tanla Platforms aims to drive substantial impact in these geographies through cross-selling initiatives in sectors like e-commerce, BFSI, and telecom.
The synergies resulting from these acquisitions are expected to unlock significant value for Tanla Platforms. Revenue synergies will be achieved by accelerating growth in international markets, such as Saudi Arabia, UAE, and Indonesia, as well as through cross-selling complementary products. Tanla Platforms is confident that the acquisitions will enhance its CPaaS platform and create a more comprehensive offering for customers. Additionally, sourcing benefits will lead to improved cost structures for ValueFirst.
By undertaking these strategic moves, Tanla Platforms reaffirms its commitment to delivering innovative communication services that empower customers and enable companies to thrive in the evolving digital landscape.
Uday Reddy — Tanla Platforms Founder Chairman and CEO said: “Acquisition of ValueFirst will further strengthen our undisputed market leadership in India.
“We only believe in purposeful acquisitions and have had an incredible track record with Karix acquisition, which has seen 20x EBITDA growth over the last 5 years. I am confident we will embark on a similar journey with ValueFirst to unlock massive value.”