Tanla Platforms Limited, India’s leading CPaaS player, announced on June 8, 2023, that it has acquired ValueFirst Digital Media, a leading provider of digital media solutions in India, for an all-cash consideration of $42 million (₹346 crores). The acquisition will help Tanla to expand its reach into new markets and grow its customer base.
Tanla Acquires ValueFirst Digital Media in a Strategic Move
ValueFirst is a leading provider of digital media solutions in India, with a strong presence in the BFSI, retail, and e-commerce sectors. The company has a customer base of over 1,000 clients and a team of over 1,000 employees. ValueFirst offers a wide range of digital media solutions, including email marketing, SMS marketing, social media marketing, and mobile app development.
The acquisition of ValueFirst will give Tanla access to a new customer base and its expertise in digital media marketing. Tanla can use ValueFirst’s customer base to sell its CPaaS solutions, and it can use ValueFirst’s expertise in digital media marketing to improve its own digital media marketing capabilities.
Tanla has a history of successfully integrating acquired companies into its business. In the past, it has acquired Karix & Gamooga, and turned them into highly profitable businesses. The company has a strong track record of innovation and growth, and it is well-positioned to continue its success in the future.
The acquisition of ValueFirst is a positive development for Tanla. It will help the company to expand its reach, grow its customer base, and continue its success in the future.
Here are some of the key benefits of the acquisition for Tanla:
- Access to a new customer base: ValueFirst has a strong presence in the BFSI, retail, and e-commerce sectors, which are all growing markets. This will give Tanla access to a new customer base and help it to grow its revenue.
- Expertise in digital media marketing: ValueFirst is a leading provider of digital media solutions. This will give Tanla access to ValueFirst’s expertise in this area and help it to improve its own digital media marketing capabilities.
- Synergies between the two businesses: Tanla and ValueFirst have complementary businesses. This will create opportunities for synergies between the two businesses, which could lead to cost savings and revenue growth.
In addition to the above, the acquisition was made at a price-to-sales ratio of ~0.05, which is a very low price. This suggests that Tanla got a good deal on the acquisition.
Overall, the acquisition of ValueFirst Digital Media is a positive development for Tanla. It is a move that is likely to help the company to grow its business and achieve its long-term goals.
