The Initial Public Offering (IPO) of Route Mobile will open on 9 September 2020. The price band for each share in this IPO is Rs 345-350. How much is the company planning to raise through this issue and what will this mean to it? What are the growth prospects for the company from here? In a chat with Zee Business, Promoter and Managing Director (MD) of the company Rajdip Gupta has all the answers!

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Gupta said that the company will raise Rs 600 cr from the IPO out of which Rs 360 cr is secondary while Rs 240 cr is primary. In this Rs 240 cr, the company wants to buy an office for itself and also would like to repay some of its debts, he added.

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The company is also looking at some inorganic growth by acquiring a product-based company through whatever money remains, he further said. 

The company offers a cloud communication platform which is a unique solution provided to all enterprise customer. Whether the customer requires an email service, voice service, SMS or WhatsApp, he can use Route Mobile’s API services to directly communicate with its clients. 

Giving an example he said that if an individual swipes his card to pay say Rs 10,000, he get an SMS alert on his mobile phone which flows through Route Mobile’s platforms. 

On his business model, he said that it is mark to margin model where if the company is charging Re 1 for its services from customers and its cost for operators is Rs 0.80, then 0.20 is the margin of the company. 

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The prising is not fixed for any customer as it depends upon the services given to a customer. The service is customised as per the needs of the customer, Gupta said. Requirements of one customer may vary from another, he further said.