Unlocking Growth: Sinch’s Strategic Focus on India’s Telecom Industry

V&D: India has been identified as a pivotal market in Sinch's global expansion, how do you see the Indian telecom sector contributing to Sinch's broader global strategies?

Laurinda Pang: Sinch started 15 years ago as a messaging aggregator, building relationships with over 600 MNOs globally. Our journey began in Sweden, where we quickly recognized the value we could offer to wholesalers and large global senders of messaging. The idea was to simplify their messaging needs across various regions, which laid the foundation of our aggregation model.

From the start, organic growth was a crucial part of our strategy, alongside organic growth, we expanded globally by acquiring other players in different parts of the world. Along the way, we also embraced the concept of omnichannel communication. We realized that end users prefer to receive information through various channels depending on their preferences and the context—be it marketing, customer service, or otherwise. Consequently, we acquired capabilities across different communication channels, including voice services in the U.S., a global email business, and an applications business that enabled us to create a self-service model for SMEs. This diversification not only allowed us to better serve enterprises but also improved our margin portfolio, leading to margin expansion.

V&D: Sinch has a robust portfolio of international products, please provide an insight into how these products will be introduced to the Indian market and what localization strategies will be implemented to ensure these products meet the unique needs of Indian businesses and consumers.

Laurinda Pang: India has always been a significant market for us due to its immense growth potential. With 1.4 billion consumers and 60 million SMEs, India offers a scale that aligns with our goals. Our acquisition of the Sinch India business, formerly known as ACL, was a strategic move because of its alignment with our values. ACL was a trusted, well-regarded brand with impressive product capabilities and long-standing customer relationships. The acquisition has been successful, and the business continues to grow at the same pace.

Regarding our robust portfolio of international products, I believe there's a bi-directional opportunity. We can export Sinch products globally while also importing global Sinch products into the Indian market. We’ve already begun integrating our chat layer products, such as chatbots in call centers, into India, but there’s more to be done. Previously, it was challenging due to our four distinct business units outside of India, each with variations of the same products. However, since restructuring last year, we’ve created a global product organization that Nitin and his team can now engage with, making it easier to leverage our capabilities across regions.

V&D: What potential challenges or regulatory considerations do you view as major blockages that are required to be navigated?

Laurinda Pang: As for challenges, organic growth at the group level has been the primary concern, despite Sinch India's strong performance. Various factors, including technological shifts, market dynamics, and global macro-economic issues, have impacted our growth. Enterprises are spending less on marketing, and the introduction of OTT players has also altered the landscape. Telcos, particularly in developing countries, have adjusted their pricing, making it more cost-prohibitive for enterprises to rely on messaging, which has slowed its adoption.

As the new leader, I’ve focused on integrating our assets and capabilities to overcome these challenges. We’ve made significant progress in this area, and our goal remains to drive organic growth by transforming various aspects of our business.

V&D: With rapid evolution of telecom technologies, particularly the rise of Rich Communication Services (RCS), how is Sinch planning to leverage these technologies to drive innovation in communication?

Laurinda Pang:The rapid evolution of technologies like Rich Communication Services (RCS) also plays a significant role. Cinch has been a strong advocate for RCS, and recent developments, such as Android making RCS the default and Apple’s support for it, have accelerated its adoption. RCS provides enterprises with a trusted, verified communication channel that offers analytics and marketing capabilities, making it a valuable tool in an increasingly competitive landscape.

Looking ahead, the growth drivers for Sinch include conversational messaging, product-led growth, and cross-selling opportunities within our existing customer base. We continue to explore organic growth opportunities, provided they are financially accretive.

V&D: How does Sinch plan on striking a balance between its vision for significant growth and being at the forefront of privacy and innovation in the telecom space?

Laurinda Pang: The telecom industry is undergoing significant changes, with privacy being a critical concern. Telcos face challenges in monetizing their investments and competing with OTT players. However, they also have opportunities, particularly in the AI-driven future, where the demand for bandwidth will only increase. In CPaaS, collaboration between telcos and other players is crucial to ensuring a healthy market and delivering personalized, relevant experiences to consumers.

Finally, regulatory frameworks, especially concerning privacy and innovation, will play a significant role in shaping the future. It’s essential to strike a balance between protecting consumer privacy and fostering innovation.