“Nothing in life is more important than the ability to communicate effectively,” and this principle is central to how brands engage with their consumers. The CPaaS (Communication Platform as a Service) market is projected to reach $45.3 billion by 2027, with a robust CAGR of 29.4%, according to MarketsAndMarkets. Meanwhile, the global rich communication services market is expected to grow to $8.5 billion by 2032, reflecting a CAGR of 16%, as reported by Future Market Insights Inc. These platforms enable businesses to deliver personalised and seamless interactions across various channels—SMS, email, voice, and social media. By harnessing advanced technologies and data analytics, communication platforms empower brands to enhance customer engagement, streamline operations, and drive growth.
In conversation with BrandWagon Online, Laurinda Pang, CEO of Sinch, discusses how Sinch is reshaping the landscape of communication platforms. As businesses seek to enhance customer engagement and streamline their operations, Sinch stands out with its innovative solutions. Laurinda delves into the advantages of Rich Communication Services (RCS) over traditional SMS and MMS, highlighting how RCS’s ability to offer branded messaging, advanced analytics, and interactive features is transforming the communication experience. She also explores how Sinch is leveraging AI and machine learning to drive customer satisfaction and operational efficiency. Additionally, Laurinda spoke about Sinch’s strategic acquisitions, such as Pathwire, and their impact on the company’s market position and competitive advantage. With a focus on the Indian market, she elaborates on the challenges and opportunities in this high-growth region and how Sinch is navigating these to drive success. (Edited excerpts)
What advantages does RCS offer over traditional SMS and MMS? How is Sinch leveraging these benefits to enhance communication experiences?
RCS (Rich Communication Services) represents what I’d call the ‘renaissance of SMS.’ While SMS(Short Message Service) has always been a reliable and widely used messaging format with high open rates, it comes with limitations in terms of features and interactivity. RCS, which Sinch has championed and invested in for around a decade, is now truly coming into its own. Recent developments have been game-changing. Android adopted RCS as the default messaging app about a year ago, and Apple has announced that RCS will be supported on iOS. This cross-platform support means that RCS is becoming a universal messaging solution, enhancing communication across different devices and operating systems. One of the key advantages of RCS is its ability to provide branded messaging. Unlike SMS, which often lacks clear sender identification, RCS enables businesses to send messages with verified sender information and branding, significantly reducing the risk of fraud. Additionally, RCS offers advanced analytics, allowing businesses to track message engagement and opens more effectively. RCS also transforms the messaging experience by facilitating more interactive and conversational interactions, much like WhatsApp. This means businesses can engage customers through features like in-app purchases, queries, and personalised content, making communication more dynamic and tailored. In markets like India, where 94% of smartphone users are on Android, RCS is poised to make a significant impact. With Apple’s integration of RCS into iOS, I would say we are witnessing the renaissance of SMS.
AI is the talk of the town nowadays. How is Sinch integrating AI and machine learning into its solutions, and what impact does this integration have on customer engagement and satisfaction?
At Sinch, we’ve been integrating AI and machine learning into our solutions for several years now. We acquired a business with its own large language model about seven or eight years ago, which has been a cornerstone in our AI efforts. We’ve integrated AI across many of our global products, and we recently showcased an exciting new application in India, though we’re not ready to make a public announcement just yet. We view AI as a three-dimensional opportunity. First, it enhances our products and generates revenue by integrating advanced capabilities. Second, it significantly improves customer experience by personalising and optimising interactions. Third, it boosts overall productivity within our business operations. While AI is indeed a hot topic, we don’t position ourselves solely as an AI company. Instead, we leverage AI to enhance our offerings and drive value. We’ll continue to invest in AI to support our products and services, ensuring we remain at the forefront of innovation while focusing on practical applications that benefit our customers.
Sinch has acquired several organisations over the years, including the recent acquisition of Pathwire. How have these acquisitions impacted Sinch’s market position and competitive advantage, especially in the context of expanding digital communication? What role do these acquisitions play in enhancing Sinch’s overall strategy?
Sinch has significantly enhanced its market position through strategic acquisitions, including Pathwire, Intelliquit, and Message Media, made around two and a half years ago. These acquisitions have broadened Sinch’s capabilities beyond its initial focus on messaging, allowing it to offer a comprehensive suite of digital communication solutions. Pathwire brought advanced email capabilities, Intelliquit added voice solutions in the US, and Message Media expanded our reach into the SMB market in Australia. This diversification has enabled Sinch to provide a more holistic range of services, from email and voice to applications. The impact on Sinch’s competitive advantage and market position has been substantial. By moving into higher-margin areas like email and voice, Sinch has improved its financial performance and reduced its dependency on low-margin messaging services. This strategic shift has not only strengthened Sinch’s product portfolio but also enhanced its ability to meet diverse customer needs, positioning the company more favourably in the expanding digital communication market.
Sinch entered the Indian market through the acquisition of ACL Mobile. Can you elaborate on the strategic rationale behind this acquisition and how it has influenced Sinch’s growth and operations in India? What specific benefits has the acquisition brought to Sinch’s business in the region?
Sinch entered the Indian market through the acquisition of ACL Mobile around four years ago. The strategic rationale behind this move was clear: India was identified as a high-growth market, and we needed a strong entry point. Both Sinch and ACL Mobile had established, credible brands, making the acquisition a strategic fit. The integration of ACL Mobile allowed Sinch to leverage its reputation for security, ethical business practices, and robust technical solutions. In a market where fraud is a concern, Sinch’s commitment to reliability and trustworthiness has been a significant advantage for our clients. Since the acquisition, Sinch India has developed technology, platforms, and products that are now benefiting our global operations. Conversely, we’re also able to introduce advanced capabilities from other parts of Sinch into the Indian market. Previously, the business was fragmented across various units, but with the new operating model that I helped implement, we now have a unified global product strategy. This approach ensures that both Sinch India and the global team can efficiently share resources and innovations, maximising growth opportunities in both directions.
When it comes to the Indian market, what specific challenges do you see, and how does Sinch plan to navigate these obstacles to drive growth and success in this region?
India is an incredible market for us, with rapid growth and vast opportunities. With a population of 1.4 billion and around 60 million small businesses, the potential here is immense. Consumers in India are already heavily engaged on platforms like WhatsApp, and telcos are making significant investments in RCS, creating a dynamic and evolving landscape. The Sinch India business has been performing exceptionally well, outpacing many of our competitors, and we expect this trend to continue. However, with such a dynamic market come specific challenges. One of the key challenges we face is ensuring that investments in emerging technologies like RCS translate into real opportunities. While messaging remains an important channel, its growth rate isn’t what it once was, which presents a business challenge. Another ongoing challenge is the need to continually innovate. We’re focused on developing the services and solutions that our customers may not even realise they need yet, but which will be crucial in solving their business challenges. We believe that by staying ahead of these trends and continuing to invest in innovation, we can effectively navigate these challenges and drive continued success in the Indian market.
As Sinch continues to expand its global presence, what key challenges and opportunities do you foresee in this journey? How is Sinch planning to address these challenges and leverage the opportunities to drive successful growth?
Sinch has a rich history, celebrating 15 years of growth and innovation last year. We began as a messaging aggregator, building a robust global network with over 600 carrier relationships. As we evolved, our focus shifted towards enhancing customer experience and expanding our capabilities, which led us to acquire new technologies and explore new markets beyond Europe and the US. India, in particular, has been a significant growth opportunity for us. One of our primary challenges now is to optimise and integrate the assets we’ve acquired. This involves harmonising back-office systems, aligning our product strategies globally, and ensuring that our resources are allocated efficiently to meet our customers’ demands. Our focus is on maximising the value of these assets while staying responsive to the needs of our clients. Regarding geographic expansion, India continues to show immense potential. Our strategy involves both organic and inorganic growth, allowing us to adapt and seize opportunities as they arise. We are committed to understanding the growth trajectory in India over the next three to five years and will continue to balance our expansion efforts accordingly.