Route mobile IPO Review : To Subscribe or Not

Route Mobile IPO : Analysis

Incorporated in 2004, Route Mobile Limited is among the leading Communications Platform as a Service (CPaaS) provider and a tier-one application-to-peer (A2P) service provider. Its enterprise communication services include new age solutions in Messaging, Voice, Email, and SMS Filtering, Analytics & Monetization.

The company operates in 3 business verticals:

1. Enterprise: The Company provides a cloud-communication platform as a service to enterprises, over-the-top players, and mobile network operators around the world.
2. Mobile Operator: Services in this segment include SMS analytics, firewall, filtering, monetization, and hubbing solutions.
3. Business Process Outsourcing (BPO): The Company provides a range of BPO services including client support, technical support, booking, and collection services.
The company's clients include some of the world's largest organizations, including several Fortune Global 500 companies.

Key Facts (As of June 2020):

- 318 Employees
- 18 locations across Africa, Asia Pacific, Europe, the Middle East, and North America.
- Served 30150+ clients globally
- 2.5+ Billion Messages per month in fiscal 2020
- 31+ Billion Billable transactions in fiscal 2020
- 800+ Network Operators
- 240+ Direct Connections or "Super Networks"
- 6 Strategically Located Data Centers.
- 4 Short Message Service Centers

Competitive Strengths

1. Leading cloud communications service provider offering CPaaS.
2. Omnichannel Platform for easy campaign scheduling and reporting.
3. Easy to use the console to plan, deploy & monitor campaigns.
4. Global & Local customization expertise.
5. Consultative and Lean approach for better customer engagement.

Positives

Debt free company
Great subsidiary and business span accross multiple nations.
Very impressive Client base of Some fortune 500 company also.
Cloud service are future Opportunities.
Retail quota 35%.

Negatives

PE ratio around 26.
Margins are reducing with years.
Revenue depends on Clients and 3rd party operations.

Analysis

• Good ipo with 35% retail quota is good to apply 
• Listing gain possible 10-40% as per latest GMP 170-200
• No listed peers. 
• GMP subject to change according to market response and market strength.

Verdict
Apply for listing gains

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