The recent investment by the Belgian telecoms group Proximus, holding a majority stake in India’s Route Mobile, is a landmark event in the telecommunications world. Proximus is looking to strengthen its foothold in the CPaaS space. By acquiring a dominant 57.56% stake through its Proximus Opal arm, the group’s Communication Platform-as-a-Service division, with an investment of about US$722 million, it’s crystal clear the company has big plans for Route Mobile.
The fact that this deal could catapult Proximus to near-total ownership if it takes up a further 26% of Route Mobile’s outstanding shares, it’s undoubted that the company is keen on expansive control. Such strides indicate an unswerving commitment to becoming a global leader within the industry.
As the deal unfolds, Route Mobile’s founding shareholders also plan a reciprocal investment into Proximus Opal up to €299.6 million. This not only places a high value on Telesign but clearly emphasizes the anticipated collaboration will be beneficial for both sides. The partnership entails not just ownership but also an investment in mutual enterprise. It’s a two-way manoeuvre that actually broadens the scope of this partnership.
This strategic move is most likely to assist Proximus in enhancing its presence in digital identity and Communication Platform as a Service domain. Proximus Opal, together with Route Mobile, hopes to generate annual revenues close to €900 million, a hearty indication of the value that Route Mobile is anticipated to add to Proximus Opal.
With this alliance, Proximus Group is being listed as the third-largest player in the global CPaaS field. Route Mobile brings in omnichannel capabilities that will enhance the portfolio of Proximus CPaaS. Additionally, Route Mobile’s TruSense toolkit will strengthen Telesign’s digital intelligence repertoire.
Rajdip Gupta, Route Mobile’s CEO, said, “The partnership with Telesign paves the way for Route Mobile to become one of the global CPaaS leaders and achieve a billion-dollar annual revenue run-rate much sooner than the anticipated 3-4 years’ timeframe.”
Together Route Mobile and Telesign will cover an impressive expanse of more than 200 countries and territories. Each with respective dominant footprints, Route Mobile in emerging markets like Indian Subcontinent, Asia-Pacific, Africa, and Latin America and Telesign in developed markets including Europe and North America.
The group CEO of Proximus, Guillaume Boutin, anticipates this acquisition to be closely aligned with the company’s strategic plan, bold2025, with a vision of expanding its market reach both in Belgium and overseas. “This will allow us to reap the benefits of scale, considerably reinforce the product suite of both brands and realize synergies generating substantial value for our shareholders,” Boutin said.
While optimistic about the deal, it is pending regulatory and anti-trust approvals. However, Proximus remains confident about navigating these procedures successfully in the next six to nine months.
