MIT's endowment fund and Old Bridge Capital pick up stake in Tanla Platforms

MIT’s endowment fund and Old Bridge Capital has picked up stake in India’s leading cloud communications service provider, Tanla Platforms, for about Rs 87.5 crore. The company has lately seen a lot of interest from foreign institutional investors (FIIs), and this comes soon after the company’s stock crossed $ 1 billion in market capitalization on November 25, 2020.

The endowment fund of US’s premier research university, Massachusetts Institute of Technology (MIT), and Old Bridge Capital bought shares of Tanla from the hedge fund and credit investment arm of the Blackstone Group in a block deal, sources told ET Digital.

Endowment funds of universities are built on money received from donors or alumni. The earning’s from the funds’ investments are used to run the university and manage their research budget. American universities such as Harvard, Notre Dame etc. invest heavily in India’s small-cap stocks and primary market for high returns.

Tanla has attracted four FIIs – MIT, Old Bridge Capital, Capital Group and Amansa Capital within 13 days of the company’s inclusion in the MSCI India Domestic Small Cap Index. Investors are bullish on Tanla Platforms after it reported earnings growth in the September-ended quarter with a net profit of Rs 81.5 crores against a net loss of Rs 47 crores in the corresponding quarter of the previous year.

The CPaaS (Communications Platform as a Service) provider, which acquired Karix Mobile this year holds a 70% market share in the commercial SMS industry. The company reportedly processed close to 200 billion transactions on its platform during Financial Year 2019-20, and serviced over 1500 enterprise customers.

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Tanla also operates a blockchain-based solution, deployed by Indian telecom companies to check the flow of spam SMS on their network. The Distributed Ledger Technology (DLT) platform, Trubloq, which went live in September, handled 70% of the total DLT traffic, which is 35 billion, the company said.



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