In a significant turnaround story from Tamil Nadu’s technology corridor, Exotel, the cloud telephony and contact-centre technology provider, has demonstrated strong financial discipline by reducing its net losses to Rs 39 crore in FY24, down from previous year levels. The company’s strategic pivot towards operational efficiency, while maintaining steady growth, signals a maturing phase for one of South India’s prominent SaaS players.
The Bengaluru-based company, which maintains significant operations in Tamil Nadu, reported an operating revenue of Rs 444 crore for the fiscal year ended March 31, marking a 6% increase from the previous year. While this growth rate represents a moderation from FY23’s 32% expansion, it reflects the company’s deliberate shift in focus from rapid scaling to sustainable operations.
“For a technology-led company, most of the capital allocation should focus on product development, particularly on new products and initiatives,” explained Adarsh Dikshith, Chief Financial Officer at Exotel. “We needed to ensure that our limited capital was allocated more towards building future products, such as our AI offerings, while also strengthening our existing products.”
The company’s performance carries particular significance for Tamil Nadu’s SaaS ecosystem, which has been closely watching how established players navigate the transition from growth-at-all-costs to profitability. Exotel’s achievement of EBITDA positivity in the last two quarters of FY24 sets a precedent for other scaling startups in the region, demonstrating that sustainable growth is possible while maintaining innovation.
Exotel’s journey reflects the evolving dynamics of the Indian SaaS landscape. Founded in 2011, the company has raised approximately $100 million to date, with prominent investors including Steadview Capital and A91 Partners. Its customer base now exceeds 7,000 clients across sectors such as banking, healthcare, consumer tech, and ecommerce, with two-thirds of its revenue stemming from its customer platform-as-a-service and software offerings.
The company’s strategic acquisitions of Ameyo and Cogno AI in 2021 have played a crucial role in enhancing its product portfolio, particularly in conversational AI and co-browsing capabilities. However, Dikshith acknowledged that market conditions shifted post-COVID: “The digital engagement that was expected to be the way forward did not fully materialise, leading to a tapering of demand. Economic conditions also shifted, and the availability of capital changed.”
For Tamil Nadu’s technology ecosystem, Exotel’s experience offers valuable lessons in adaptability and strategic planning. The company’s successful navigation of post-acquisition integration challenges and market dynamics provides a blueprint for other startups in the region considering inorganic growth strategies.
Looking Ahead:
Exotel projects 100% year-on-year EBITDA growth for FY25, with expansion plans focused on markets including the Middle East, Indonesia, and Africa. The company’s international growth strategy, particularly in Saudi Arabia and the UAE, could pave the way for other Tamil Nadu-based SaaS companies looking to expand globally.
“Our operations are more efficient now, and growth in revenue is expected to contribute to profitability in FY25,” Dikshith noted, highlighting improvements in sales organization and go-to-market execution.
