Private Announcement: Tenacity Ventures Participates in Exotel's Capital Growth Via a Secondary Investment Deal
In the dynamic world of enterprise technology, Exotel, a leading AI-powered customer engagement platform, has recently seen a shift in its cap table. Tenacity Ventures, a renowned venture capital firm, has joined forces with Exotel, marking a strategic move for both parties.
The acquisition of shares by Tenacity Ventures took place in a secondary transaction, with the shares purchased at INR 45,000 apiece. This represents a valuation approximately 40% lower than the previous round, highlighting a significant markdown in the share price. Given this discount, it can be inferred that the earlier share price was approximately INR 75,000 per share.
Exotel, headquartered in Bengaluru, was established in 2011 and has since raised more than $87 Mn in funding. The company's growth trajectory has been marked by strategic acquisitions, including the omnichannel cloud communication platform Cogno AI and Ameyo, both of which occurred in 2021.
The shares were primarily purchased from vested ESOP holders, with PE firm Sistema Asia Capital also selling a part of its stake. The exact number of shares purchased and the percentage of ownership gained by Tenacity Ventures are not disclosed.
Exotel's financial performance for the year under review saw a narrowing of its net loss by 60% to INR 43.3 Cr, while revenue grew only 6% to INR 444.5 Cr. These figures underscore the company's ongoing efforts to optimise its financials while maintaining growth.
The acquisition by Tenacity Ventures is a testament to Exotel's potential and its position within the enterprise tech industry. As the company continues to innovate and grow, this investment is expected to fuel its expansion and help it further establish itself as a leader in the customer engagement sector.
[1] Source: TechCrunch [5] Source: Entrackr
- The strategic investment by Tenacity Ventures, a well-known venture capital firm, in Exotel's technology sector shows a confidence in the company's ability to innovate and grow, particularly in the realm of finance-oriented AI-powered customer engagement platforms.
- In the rapidly evolving world of enterprise technology, the acquisition of shares from vested ESOP holders by Tenacity Ventures signifies a faith in Exotel's financial optimization strategies, as well as its potential future growth in the customer engagement market.
