Proximus spends $721m on Indian cloud services firm

Details: Manny Pham; Category: Operators; 17 July 2023; 9570 views

Belgium-based operator group Proximus acquired a 58% stake in Indian cloud enterprise company Route Mobile for INR59.2 billion (US$721 million), a strategic move to enhance its digital communications.

In a statement, Proximus detailed it acquired the majority stake through its subsidiary Proximus Opal, which also has to offer to buy an additional 26% stake to gain regulatory approval.

After the closing of the deal, the CPaaS activities of the Group will be led by Route Mobile CEO Rajdip Gupta who will continue in his current role.

Route Mobile reported revenues of INR35.69 billion in its financial year ending March 31, and profit doubled to INR3.27 billion.

Guillaume Boutin CEO of Proximus Group said: “The acquisition of a majority stake in Route Mobile is a transformational step for our international CPaaS and digital identity activities

He added the acquisition is part of its wider strategy to reinforce leadership in its domestic market and growing international units by 2025.

Gupta said the tie-up will enable Route Mobile to become a global CPaaS leader and achieve a billion dollars in annual revenue run rate sooner than four years.