Global leader in solutions for cloud communications and mobile customer experience, Sinch, has announced some exciting news. The company recently agreed to purchase ACL Mobile for a cash value of around 5,350 million (INR).
ACL Mobile first launched in 2000 and is a well-known provider of cloud communication services in Southeast Asia and India. The ACL platform helps businesses to interact more effectively with customers through channels like SMS, voice, IP messaging, WhatsApp, and even email. Today, ACL is responsible for over 500 enterprise customers and has gained a great deal of popularity in the financial services industry.
The proprietary Axiom platform from ACL offers granular access controls and intelligent routing solutions that cater to the stringent security requirements of financial groups. Some of the leading institutions relying on ACL technology include the HDFC bank, Kotak, and the ICICI bank. ACL serves customers in a variety of other segments too.
Expanding into a New Environment
According to the CEO of Sinch, Oscar Werner, purchasing ACL means that Sinch can gain a crucial scale in the second-largest mobile market in the world. This acquisition will bring new expertise, technology, and customers to Sinch as the company continues to expand. Over the years, Sinch has forget a powerful strategy to grow the company through organic and non-organic means.
Long-term focus on profitability and cash flow means that Sinch is well placed to continue executing on its strategy, also in times when overall macroeconomic conditions might not be ideal. Currently, India is the world’s largest mobile market with a population of over 1.3 billion. The fast-growing mobile-first economy benefits from a rising demand for smartphones.
Government initiatives and economic growth are also expanding the use of new financial services in India too. Beyond giving Sinch more access to a vast market, the acquisition of ACL will also allow the company to transform its Tier 1 global network even further. Sinch will be able to use ACL’s direct connections to operators in Malaysia, UAE, and India for end-to-end connectivity.
CEO and Founder of ACL Mobile, Sanjay K Goyal, says that with Sinch, the company is quickly scaling up to become one of the leading global players in the industry.
Exciting Opportunities for Both Brands
The purchase of ACL Mobile will massively increase the global scale of Sinch. In the 12 months ending in March 2020, ACL supported the delivery of 47 billion messages. In this period, the company also achieved massive revenues of 4,959 million INR.
Like-for-like gross profit growth in the 12 months that ended on March 2020 was also 13 percent. Although the long-term growth outlook is great now, unusual commercial activity in India means that it’s difficult to predict the future.
