Shrem Group Buys 10% in Route Mo­bile

The hos­pi­tal­ity and in­vest­ment group to pay .₹ 154 cr to Route pro­mot­ers for stake

The Economic Times - - Companies: Pursuit Of Profit - Deepali.Gupta @times­group.com

Mum­bai: Founders of Route Mo­bile, a mes­sag­ing and voice in­ter­face com­pany, have sold 10% stake in the com­pany to real es­tate and hos­pi­tal­ity in­vest­ment group Shrem Group for $23 mil­lion ( ₹ 154 crore).

“We are look­ing for­ward to col­lab­o­rate closely with the in­vestor to cre­ate a global mes­sag­ing gi­ant based out of In­dia,” Ra­jdip Gupta, group CEO of Route Mo­bile, told ET.

Un­til last year, the com­pany had planned a pub­lic list­ing as an exit route for staff, with em­ployee stock op­tion and some cash out for the founders who had boot­strapped it. In con­tin­u­a­tion, the en­tire pro­ceeds from the stake sale to Shrem Group will go to the pro­moter group, even as a mega con­sol­i­da­tion takes place in the rest of the tele­com sec­tor among op­er­a­tors and in­fra­struc­ture com­pa­nies alike. The com­pany’s planned IPO was be­ing han­dled by YES Bank along with Ko­tak Mahin­dra Bank. How­ever, the lat­est stake sale, which puts the com­pany in the ₹ 1,000-crore club, has not had any banker par­tic­i­pa­tion, the com­pany said. Route Mo­bile has ac­quired two com­pa­nies in the same space since July. It has also set its sight on a dig­i­tal wal­let com­pany.

“Con­sid­er­ing the weak global en­vi­ron­ment in se­lect ge­ogra­phies, we be­lieve it is an op­por­tune time for Route Mo­bile to fur­ther ex­pand our ge­o­graph­i­cal reach through our in­or­ganic strat­egy,” a com­pany spokesman said. Route Mo­bile counts10 ma­jor banks among its clients as it pushes one-time pass­words and alert mes­sag­ing for them. The Shrem group has never been in the com­mu­ni­ca­tions space, but is most known for auto com­po­nent maker Per­fect En­gine Com­po­nent and Nana­vati Hospi­tals. It is a fam­ily-run group of Ni­tan and Hitesh Ch­hat­wal.

ET AR­CHIVE

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