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From adversity to leadership: Tanla Platforms’ journey to becoming India’s SaaS titan
By Florin Vasvari
The outlook for Tanla Platforms was notably positive. It was January 2024 and the Hyderabad-based SaaS firm had reported a 20.3% year-on-year rise in net profit for the October-December quarter of 2023 over the same quarter of the previous fiscal year. Additionally, Tanla had recently announced its first commercial agreement with a bank in India for Wisely ATP, its innovative anti-phishing platform.
With its platforms processing over one billion messages a day, Tanla was the leading SaaS company in India, with a 35%+ revenue market share in CPaaS (Communication Platform as a Service) – but its founder, Uday Reddy, was not about to rest on his laurels any time soon.
Learning objectives
- Understanding of M&A Concepts and Terminology: Learn the foundational terms and concepts used in M&A transactions, such as due diligence, valuation methods, synergies, earn-outs, and types of mergers and acquisitions (horizontal, vertical, conglomerate).
- Analyzing Strategic Rationale: Examine the strategic motivations behind the acquisition, such as market expansion, diversification, acquiring new technology, enhancing product offerings, or achieving economies of scale.
- Valuation Analysis: Understand how the target is valued in an M&A context, including different valuation techniques like discounted cash flow (DCF), comparable company analysis, and precedent transactions.
- Deal Structuring: Explore how the deal is structured, including considerations for payment methods (cash, stock, or a combination), and the compensation of the management team.
- Post-Merger Integration: Learn about the challenges and strategies for effectively integrating the target.
Details
| Publication Date: | April 2024 |
| LBS Case Code: | CS-24-008 |
| Topic: | Accounting, Finance, Strategy |
| Subjects: | Cloud communication technologies, managerial compensation, post-acquisition integration, synergies, Valuation techniques |
| Industry: | Cloud Technology |
| Geography: | India |
| Pages: | 19 |
| Format: |
