Tanla Platforms Ltd · NSE:TANLA
Tanla Platforms — Merger or Acquisition (June 2023)
16 slides from Tanla Platforms's merger presentation, Jun 8, 2023
Slide 1: Cover letter to stock exchanges: Investor Update on the Acquisitions
Tanla Platforms Limited T: +91-40-40099999 (Formerly known as Tanla Solutions Limited) info@tanla.com Tanla Technology Center www.tanla.com Hi-tech city Road, Madhapur, Hyderabad, India - 500081 CIN: L72200TG1995PLC021262 June 8, 2023 To, BSE Limited National Stock Exchange of India Ltd. Phiroze Jee
Slide 2: Update on Strategic Acquisitions
Update on Strategic Acquisitions ValueFirst India from Twilio & ValueFirst Middle East FZC from existing shareholders 8th June 2023
Slide 3: Safe Harbor and Other Information
Safe Harbor and Other Information The CPaaS business is evolving at a fast pace in India with very little information available in the public domain on the overall market. The financial community has always sought a response on the total market size, key drivers of the industry and the competitive l
Slide 4: Deal construct
Deal construct ValueFirst India ValueFirst Middle Management Agreement East FZC (incl. subsidiaries in Indonesia, KSA & Dubai) Closure date : July 2023 Closure date : September RSU grant in ValueFirst India : P&L 3-part Stake buyout : 100% of the 2023 implication of INR 50 Cr over 24 months (exercis
Slide 5: ValueFirst has huge potential to grow
ValueFirst has huge potential to grow Figures in INR Cr for FY'23 for ValueFirst and Karix; CY'22 for Sinch & Lynk ValueFirst is one of the Top 5 CPaaS …peer benchmarking of CPaaS industry showcases providers in India… immense potential for ValueFirst to grow ValueFirst Key metrics India + Value Fir
Slide 6: Our track record | ~20x EBITDA growth in Karix in 5 yrs.
Our track record | ~20x EBITDA growth in Karix in 5 yrs. Figures in INR Cr Karix1 Tanla (Consolidated) Acquisition impact FY'19 FY'23 FY’193 FY'23 ~3x 2.3x Revenue 881 ~2600 1,444 3,354 No cash investments: Only payment was for initial purchase consideration 5.3x 3.2x GM 118 631 261 836 Talent Reten
Slide 7: ValueFirst will be a strategic acquisition to bolster enterprise business
ValueFirst will be a strategic acquisition to bolster enterprise business Historical acquisitions Largest in India and one of the largest publicly listed CPaaS players globally Enterprise business Platform business Single platform of platforms for digital India’s largest interactions across the cust
Slide 8: Tanla + ValueFirst India + ValueFirst Middle East FZC; bigger, better and stronger!
Tanla + ValueFirst India + ValueFirst Middle East FZC; bigger, better and stronger ! A B C D Consolidate Accelerate Best in Class Shape the India market international talent pool Industry more leadership expansion 1 Grow CPaaS revenue market Pioneer Industry Augment strong Ensure retention of share
Slide 9: A1. Consolidation of India market leadership in CPaaS space
A1. Consolidation of India market leadership in CPaaS space FY23 figures for Tanla CPaaS business excluding all International Business; Figures in INR Cr Market share consolidation by Market share consolidation by SMS value by value 30% to 35%+ 8%+ 45%+3 8% ~35%3 SMS1 40%+ Market share2 (NLD) 30% Ta
Slide 10: A2. Complementary customer footprint (1/2)
A2. Complementary customer footprint – ValueFirst leader in mid market; Karix in large enterprise (1/2) ValueFirst’s clients Common clients Illustrative logos; Non-exhaustive Large enterprises Mid-sized enterprises BFSI Digital natives and commerce Consumer products & services ~40% of ValueFirst rev
Slide 11: A2. Complementary customer footprint (2/2)
A2. Complementary customer footprint – ValueFirst leader in mid market; Karix in large enterprise (2/2) Centre of # of customers gravity % of revenue Revenue cohort from India customers for FY’23 ValueFirst Karix1 1 No. of customers 2 19 1 > INR 50Cr revenue - 22% 57% 1 16 33 2 INR 10Cr to 50Cr - 29
Slide 12: A3. Tanla can leverage ValueFirst solutions and generate at scale impact
A3. Tanla can leverage ValueFirst solutions and generate at scale impact Illustrative for Surbo 2x Increase potential due to cross sell of Surbo offers a platform for enterprises to build, host and manage NLP-driven chatbots for messaging channels via managed services Surbo to 1300+ Tanla customers
Slide 13: C. ValueFirst will help accelerate international expansion
C. ValueFirst will help accelerate international expansion; potential to increase by 2-2.5X in the next few months Will provide access points into priority markets like KSA and Indonesia Total addressable market Karix3 ValueFirst UAE2 KSA Indonesia Value stream in INR Cr. per year (FY’23) Key insigh
Slide 14: D. ValueFirst top talent will make our C-suite even stronger
D. ValueFirst top talent will make our C-suite even stronger Vishwadeep Bajaj Anubhav Batra Debmalya De Gurmukh Singh Chief Executive Officer Chief Financial Officer Chief Technology Officer Chief Operating Officer Vishwadeep has 33+ years of Anubhav is a tenured finance and An IT & Telecom pr
Slide 15: ValueFirst acquisition is a slam dunk!
ValueFirst acquisition is a slam Massive head-room: Potential to create significant value within 12 months dunk! Proven track record: Karix acquisition 20x “Acquisition of ValueFirst will further strengthen our EBITDA in 5 yrs. undisputed market leadership in India. We only believe in purposeful acq
Slide 16: Tanla & ValueFirst together: revenue of INR 4000 Cr and INR 481 Cr PAT
Currently, Tanla & ValueFirst together has revenue of INR 4000 Cr and INR 481 Cr PAT Figures in INR Cr, for FY’23 Tanla consolidated New Consolidated (Existing) entity1 Key insights Revenue 3,355 ~4,0002 •1 Gross Margin Uplift of 30 bps: INR 285 Cr revenue already part of Gross Margin 837 1,007 Tanl