Why This INR 1.40 Lakh Bootstrapped Startup is Looking to Raise INR 600 crore Via an IPO
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After spending a couple of years as an individual consultant in the telecom, during the early 2000s, Rajdeep Gupta realised even though mobile's penetration was increasing day by day, people still preferred communicating via email and data was not available on phone.
He wrapped work in the UK, moved back to India to design a cloud communication platform and a year later, in 2004, he started his entrepreneurial journey with Route SMS Solution and later went to rebrand it Route Mobile Limited (RML).
Since then, the company has grown from an INR 1.40 lakhs bootstrapped venture to over INR 500crore business.
As the company now looks to hit the capital markets to raise INR 600 crores, Rajdip Gupta in an exclusive conversation with Entrepreneur India discusses the company's journey and the road ahead.
Talking about the opportunity in the cloud communication segment, the first generation entrepreneur shares, the industry is USD 50 billion market globally and India itself is INR 3000 crore market.
“From last 2017-2018, with the greater focus on digital penetration - India in one biggest market for a lot of companies, including the likes of Facebook,” he points out while adding that, “With digital aspect along with cheaper data and smartphones, people are going to tech-savvy and the entire user experience is growing day by day. Based on what we can see, the growth, both for the industry is multifold in the coming time.”
The Growth Factors
Even though Gupta started his company in India, initially the venture focused on the Middle East and African market.
Elaborating on those lines, Gupta shares, "The Middle East market is adopting the mobile engagement programme through SMSes. With the penetration, we have been profitable from our first year with a revenue of INR 1 crore and then there is no looking back."
Since then the company has a presence all the major international market and have been serving more than 23000 customers.
However, what also worked in RML favour – is also hiring the right people for the right jobs. “For me, if I say I have achieved something myself - it would wrong. I could only do this because I have the right people in the company. We believe in our people. Some of the people, who started their journey in the company along with me are still part of the company,” he asserted.
The company’s growth factors can also be attributed to its last three acquisitions helped to provide ancillary solutions such as firewalls and BPO services.
“You as an entrepreneur - always have a fear of failure. The moment you let the fear get to you- one will always try to redesign and redevelop new things. We try and create solutions for two years ahead. So for example, if the customer says this will end now and I need this new technology. RML should be read with it. Hence, we are not going to lose the customer,” he noted.
The Growth Factors
Furthermore, RML is presently looking to raise INR 600 crores from the IPO market.
Discussing why Gupta preferred the IPO route instead of private funds, the techpreneurs added, “. I don’t want to raise PE funds as I feel IPO is the right thing which helps with the peace of mind to expand the length and breadth of my company at our easy.”
With the issue, the RML is planning to not just consolidate its business but is also keen to test new waters and acquire new technology such as blockchain-based early stage startups.