Comviva to dial up enterprise solutions
2 min read . Updated: 21 Feb 2023, 11:33 PM IST
PremiumComviva is undertaking a transition towards generating 80-90% of its business from fintech, digital billing, third-party monetization and customer experience including enterprise mobile wallets, by 2025, CEO Manoranjan Mohapatra said in an interview
NEW DELHI : Mobility solutions company Comviva, a subsidiary of Tech Mahindra Ltd, is shifting its focus away from solutions for telecom companies to serve enterprise companies, even as it seeks to form partnerships with IBM, Oracle, Google and Amazon, along with its parent company, for upselling its solutions.
Comviva is undertaking a transition towards generating 80-90% of its business from fintech, digital billing, third-party monetization and customer experience including enterprise mobile wallets, by 2025, Chief executive officer Manoranjan Mohapatra said in an interview. The telecom solutions business will reduce from being the largest contributor to about 10% or less in the same time frame.
“The transition will take till 2025... We’re targeting $300 million in revenue, from about $180 million in FY23 and profitable growth of 20% on a compounded annual basis, during this period. We’re looking at taking the larger share of incremental revenue that we will generate for customers," he said.
“We’re keen on partnerships; we’re talking to Oracle, Google, Amazon and IBM," Mohapatra said. Comviva signed an agreement with Microsoft Azure recently where its services will be bundled with Azure available for enterprises.
With a larger focus on Middle East, US and European markets, the company is investing $7-8 million in FY 24 to create a team focusing on the US market. Comviva’s white label payments solution including wallet, which works in 70 telecom companies globally and in over 20 fintech service providers, is set to be implemented in a smart city project in Saudi Arabia, where it is also one of the niche players for fibre aggregation required at the backend by enterprises.
He said that the fibre opportunity had been escalated with the advent of 5G which will require far higher number of small cells and backhaul fibre solutions than previous generation technologies.
Comviva, which was once a contemporary of Paytm in the mobile value-added services space, did not pivot at the same time as Paytm, but Mohapatra said that changing course to become a B2C would not have been approved by the parent’s board. “Paytm is B2C... In acquiring 700-800 million customers, they’ve burnt $5 billion, (which is) $6 per customer acquisition cost. We’re not in that business," he said.
“Our compatriots have either perished or are languishing. We’re good at staying relevant and recognising where the risk and moving away from it," he added.
Along with its plans to expand its reach, it will increase headcount by 700 over next two-three years, from present 2500.