In the words of Jerry Maguire, “You complete me.” That’s the power of communication – it has the potential to bridge, divide, foster connections, and ultimately, drive results. In today’s digital age, this mantra seems to apply to the business world, where communication between companies and consumers is considered not a nicety, but a necessity. Infobip, an omnichannel marketing platform, provides communication APIs (application programming interface) to streamline customer journeys, which allows a platform to reach any channel through API integration. The company goes beyond simplification, offering scalability with a Communications Platform as a Service Extended (CPaaS X), which aims to replace a one-size-fits-all approach with a flexible, adaptable system. This modular API stack allows businesses to build custom communication solutions.
The company’s revenue from operations declined six percent to Rs 369.6 crore in FY23 from Rs 393.18 crore in FY22, as per the regulatory filings accessed by the business intelligence platform, Tofler. It posted an eight percent increase in net profit to Rs 5.34 crore in FY23 from Rs 4.95 in FY22.
In a conversation with BrandWagon Online, Ben Lewis, VP – marketing and growth, Infobip, talks about the company’s strategic shifts, market differentiation, and future growth plans, among others. (Edited Excerpts)
What are the key focus areas and strategies driving your business growth, especially in the Indian market?
We made a significant shift last year, focusing heavily on specific verticals that are driving our business growth. The results are looking positive, especially in the Indian market. From a marketing standpoint, India is a crucial focus area for us, and we’ve already seen revenue growth in 2024 from marketing campaigns in India. It’s a market with potential and growth opportunities, making it a key region for us with profit opportunities.
For this financial year, our main focus will be on specific verticals. We began transitioning organisationally last year, and this year, we’re concentrating on healthcare, BFSI (banking and financial services), automotive, retail, and e-commerce, both globally and within India. Additionally, we’re placing emphasis on our Software as a Service (SaaS) platform, which includes a WhatsApp pitch among other channels in India. This platform is a core driver of our growth. We’re also continuing our focus on conversational experiences, which has been a priority since last year. We’re enhancing these experiences to provide end-to-end interactions within messaging apps or similar platforms. This means ensuring customers understand the journey and facilitating two-way interactions, once they’re engaged with us. These priorities are central to our strategy in India and globally.
What differentiates your offerings from those of competitors in the market who provide similar services?
Starting from zero turnover in 2006, Infobip’s co-founders grew the company to one billion dollars in revenue within 14 years, without external investment. In 2020, we became Croatia’s first unicorn after securing $200 million from One Equity Partners, propelling our valuation past a billion dollars. We offer an array of communication channels, including WhatsApp, SMS, RCS, Google’s Business Messages, Apple Business Messages, Instagram, Messenger, Telegram, Viber, Line, MMS, Voice, Video, and Live Chat, among others.
Our platform facilitated 473 billion digital communication interactions in 2023, between businesses and consumers. We observed a 137% increase in mobile app messages, globally, compared to 2022, along with a 73% rise in social media messages and a 63% increase in chat app messages. In India, WhatsApp interactions surged by 43.51%, and other chat apps, mobile app messaging, and social media messages also saw substantial growth.
Apart from your WhatsApp business messaging offerings, what alternative engagement or conversation platforms you plan to offer to customers, considering recent developments such as Chrome phasing out third-party cookies and potential policy changes due to platform acquisitions such as X’s (formerly Twitter)?
In addition to our WhatsApp business messaging offerings, we are exploring alternative engagement and conversation platforms. WhatsApp remains a major channel for us, especially in India, where interactions through the app have grown by over 40%.
We operate over 30 different channels, and while we rely on them to operate, we also aim to stay informed about changes and compliance requirements. Infobip offers fallback solutions such as SMS. For instance, if WhatsApp encounters issues, SMS becomes the backup. We’ve also explored rich communication services (RCS) as a channel, transitioning to SMS as needed.
Our platform intends to ensure timely communication, even with fallbacks, with our CX team working with customers and partners to devise effective strategies. This approach helps ensure that communication always goes through, even if adjustments are needed along the way.
Despite, WhatsApp being considered a significant channel in India, RCS has potential due to its ability to connect through the SMS landscape. We have product focuses in each region. When RCS becomes more active, I believe it will be a major player in the market.
What future growth plans and marketing strategies does your company have in mind for the expanding market segment, particularly in India?
As a team, we have both global and local strategies. Globally, we’re focusing on verticals such as SaaS, retail e-commerce, and on-demand channels. We also prioritise the telco industry, which contributes to our revenue. Integrating artificial intelligence (AI) into chatbots for customers and partners is another key focus. Our goal is to convey personal stories about how Infobip’s conversational experiences can benefit people in their daily lives. We sometimes get too focused on prospects rather than end-users, so we’re working on transitioning our approach.
In the coming year, we intend to focus on brand evolution, creating a narrative that can emotionally connect with our audience. Markets vary in their focus; for instance, in India, WhatsApp is crucial, while in America, SMS and MMS are prioritised. Our SaaS portfolio is considered a strong catalyst, especially in India. Overall, we’re adapting our strategies to different markets, along with emphasising personal connections and user impact.
Can you provide examples of how Infobip’s solutions have improved click-through rates (CTR) and customer engagement for brands?
We’ve helped Indian brands, including Bajaj Auto, Bank Bazaar, and EaseMyTrip.com enhance their communications through RCS, resulting in an increase in CTR. For instance, Bajaj Auto saw a surge in CTR from one per cent with text messages to eight per cent with RCS. Bank Bazaar experienced a 130% increase in CTR for their marketing campaigns, while EaseMyTrip achieved a seven per cent increase in open rates and a four times jump in CTR.
Additionally, with Infobip’s SaaS products such as Answers, Moments, Conversations, and People, we’ve enabled companies such as Uber, Brihanmumbai Municipal Corporation (BMC), and the Karnataka Government to implement chatbots on platforms such as WhatsApp, improving customer engagement and support. Uber’s Delhi NCR customers were able to order rides using WhatsApp through a chatbot built on Infobip’s ‘Answers’. BMC and the Karnataka Government leveraged WhatsApp Business to enhance citizen engagement, while a digital insurance company in Croatia, LAQO, improved customer experience through an AI-chatbot solution enabled by Microsoft GPT’s Technology, resulting in enhanced customer experiences.
Moreover, we collaborated with Podravka Group and digital agency 01 Content & Technology – C3 to launch ‘SuperfoodChef – AI by Coolinarika’, a culinary platform in Croatia, with the AI assistant designed to help users make healthier food choices. This Gen-AI solution, custom-built with Infobip’s chatbot building platform, Answers, helps showcase the power of responsible AI in addressing rising obesity rates in Croatia.