Kaleyra announces NYSE listing, begins trading2 min read . Updated: 27 Nov 2019, 04:32 PM IST
- Kaleyra has gone public through a tie-up with Palo Alto-based Gig Capital
- The company plans to invest a significant amount in the US market
BENGALURU: Milan-based cloud communication software provider Kaleyra, which has its roots in Bengaluru’s Koramangala, completed its first day of public trading on the New York Stock Exchange (NYSE) under the ticker symbol ‘KLR’.
As per Kaleyra’s latest filing with US market regulator Securities and Exchange Commission (SEC), at $0.10 per share the total offering is worth $2.35 million, although the cloud software provider intends to raise more.
The company has gone public through a tie-up with Palo Alto-based Gig Capital, a special purpose acquisition corporation (SPAC) that publicly trades on the NYSE and allows other firms to raise capital via its unit.
The company plans to invest a significant amount in the US market, although it operates in geographies including Singapore, India, UAE, UK and others, Aniketh Jain, general manager, APAC and MEA of Kaleyra, told Mint. He added that post the IPO, Kaleyra might also look at acquisitions in its space.
In a statement, Dario Calogero, Chief Executive Officer, Kaleyra, said, “The listing opens up new possibilities to drive product innovation and fuel our expansion into new markets. We are excited and ready to utilise all the opportunities ahead....This is a significant milestone for us as we begin our next phase of growth as a publicly-traded company."
“The Kaleyra group, for this fiscal year, will end up at about $126 million. India, Middle East and Asia business contribute $40 million. After tomorrow, our market cap will be upwards of $200 million," added Jain.
Kaleyra S.p.A is a combined entity of Bengaluru-based Solutions Infini and the Italy-based mobile marketing platform Ubiquity. Jain and his business partner Ashish Agarwal initially launched Solutions Infini in 2009 and invested ₹8 lakh of their own money to open their first office in Bengaluru’s startup hub of Koramangala. Later, in June 2018, Solutions Infini merged with Italy-based cloud messaging platform Ubiquity in a $40 million merger deal.
Solutions Infini braced a tough market in early 2000s in India at a time when several business-to-business (B2B) startups closely competed with it. In Bengaluru alone, three B2B startups -- Unicel, Variform and Exotel -- began selling bulk SMS and voice ads to small businesses and enterprises looking to push out retail ads via SMS and automated calls to customers. However, at that time, most venture capitalists and institutional investors shied away from funding the B2B segment, and largely unloaded most of their money into consumer-focused startups.
In an earlier interview with Mint, Jain and Agarwal said Solutions Infini remained a bootstrapped company until its merger with Ubiquity in June 2018. Also, in the Indian startup segment IPOs are rare, but it is now being considered as an essential exit mode for several tech startups operating in both the B2B and business to consumer (B2C) segment. Indian startups including Ola, Oyo, Freshworks, and Urban Ladder are expected to come out with definitive plans for an IPO in the next 2-3 years.
“In 2017 when we met Ubiquity, one of the talking points was that we both wanted to go public but we didn't know where, which market…Listing in India or Italy was always a challenge. The US (market) is quite open to new-age technologies and new-age companies. This was much more a feasible option than listing in India," said Jain.
Kaleyra currently offers a full-stack cloud communication solution to enterprises including voice support, SMS marketing, chatbots for after-sales service, OTP (one-time password) authentication, among others. It counts unicorns like ride hailing firm Uber Technologies Inc., food delivery startup Swiggy, and e-commerce firms Flipkart Pvt. Ltd and Myntra, among others, as clients.