Thread by @Pratyus79525701

A thread on Tanla Platforms-

• What is CPaaS and its growth prospects.
• Tanla's business model
• It's competitive advantage
• Future Growth Prospects
• Operating Leverage
• Why it's one of the best stock to play the digitalisation theme

Let's start

1) Communication Platform as a Service (CPaaS) is a cloud based Platform which helps application and enterprise to communicate with their customers in a effecient way

While many people are going gaga over EV and Renewables but very few people are focusing on CPaaS industry which as per Gartner report is going to grow at 30%+ CAGR till 2025 and 95% of enterprise will use CpaaS by same time

Data shows the level of growth but this growth will be more exponential in countries like India which is sitting at a cusp of Digital Revolution & thus it will be more beneficial for Tanla which dominates in Indian market ( 42% market share )

Tanla's revenue come from 2 main sources-

a) PLATFORM BUSINESS- refers to revenue generated from PaaS offering where only cloud & hosting charges is a direct charge on revenue & thus has very high GPM (90-95%). Includes Trubloq, Wisely, SMSC & contribute 7.5% to total rev.

b) ENTERPRISE BUSINESS- refers to revenue generatedon total transactions at an agreed price per transaction through SMS, WA, Email etc. Cost of service include transaction fee paid to mobile carriers and other suppliers. Normal GPM (28-30%) . Contributes 92.5% to total rev.

What separates Tanla from Route & other Indian players is Tanla hv high margin which eventually is a byproduct of top class product they dvlpd in last 2 yrs which hv very high GPM unlike Route & others which doesn't have such high margin product

Let's tale a brief look at these products of Tanla

a) TRUBLOQ- World's 1st & largest Blockchain enabled CPaaS stack.

It was dvlpd to improve security by filtering out spam & fraud mssgs

63% market share in India

Usd by VI, Airtel, BSNL & will be used by DU & Etisalat soon

b) WISELY- Blockchain enabled CpaaS platforms that provides a digital marketplace for enterprises & suppliers

Built in & co sell partnership with Microsoft

3 patent awarded

E2E data encryption and provide multiple comm channel at a single place such as SMS, WA , Email ,Voice

Wisely after deploying with enterprise will minimize the need for vendors ( Karix, Route, Twilio) for communicating btw enterprise and customers. Thus it can literally disrupt the CPaaS ecosystem if used with proper strategy and planning

Already onboarded top banks such as HDFC and Kotak

Signed a multi-year partnership with VI where TAM in a yr is 3500 crore

One of the largest deal in CPaaS industry world-wide & will go live by Feb

2nd big deal on wisely will also be announced in Feb

3) Future plans & next Growth Triggers-

a) International Expansion- Tanla will launch Trubloq and Wisely globally with their one platform strategy. They are in final stages of rolling out GTM strategy for Wisely globally.

b) Volume growth with existing customers due to increasing level of digitalisation

c) onboarding new customer ( many new tech based startup are coming who are prime user of CPaaS).

How & When Operating Leverage will kick in?

With rolling out of Wisely globally and onboarding existing Karix customers on Wisely will lead to expansion in overall GPM of Tanla as Trubloq & Wisely hv 90-95% GPM

Apart from that when ppl & enterprise for communication will move to OTT apps such as WA, Messenger, Email from SMS , margins will expand bcz diff channels hv diff margins such as-

SMS (20-25%)
Voice (40-45%)
Email (50%+)
OTT apps (30-35%)

Data source - Route M. Concall

Thus these all factors will expand margin going forward

Even Uday in Q3 Concall said that they will take GPM 50%+ in next 2-3 yr but slowly and steadily to compete with international players

5) Best stock to play the digitalisation theme ( Acc to me )

Edutech, Fintech , E-commerce & online food delivery industry will grow multifold in next few years

Thus with growth in these industry the need for A2P mssg & comm. to interact with customer will also grow rapidly

More tech based startup & apps will led to dvlpmt of more chatbots & their usecases to solve customer query as quickly as possible

nd for all this they need CPaaS players such as Tanla & Route

I will keep Tanla abv Route due to high margin, Better valuation & op. leverage play

Thus according to me it's the best company to bet on Digitalisation Theme & you don't find such listed co. in India so whenever u find them , bet big on them & don't sell early for whatever reason such as market fall etc.

Disc - Highly biased & invested

Hope you'll liked it & got to knew some new things. The thread got bit long but worth a read if you are a Tanla shareholder

For more in-depth detail about Tanla you can visit timeline of @AmitMis93532571 & @TSG_Capital .