TANLANSE8 June 2023

Tanla Platforms Limited has informed the Exchange about Investor Presentation

Tanla Platforms Limited

Tanla Platforms Limited (Formerly known as Tanla Solutions Limited) Tanla Technology Center Hi-tech city Road, Madhapur, Hyderabad, India - 500081 CIN: L72200TG1995PLC021262

T: +91-40-40099999 info@tanla.com www.tanla.com

National Stock Exchange of India Ltd. “Exchange Plaza” Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051 Symbol: TANLA

June 8, 2023

To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 Scrip Code: 532790

Dear Madam/Sir,

Sub: Investor Update on the Acquisitions.

With reference to the above-cited subject, we are enclosing herewith the Investor Update.

Request you to take the same on record and oblige.

Thanking you

Yours faithfully, For Tanla Platforms Limited

Seshanuradha Chava General Counsel and Company Secretary ACS-15519

Update on Strategic Acquisitions

ValueFirst India from Twilio &

ValueFirst Middle East FZC from existing shareholders

8th June 2023

Safe Harbor and Other Information

The CPaaS business is evolving at a fast pace in India with very little information available in the public domain on the overall market. The financial community has always sought a response on the total market size, key drivers of the industry and the competitive landscape in this space. In order to provide more transparency and to help understand our business better, we are providing indicative data around the market size and our relative share (assuming the indicative data). This indicative data has been arrived at basis our detailed internal analysis. This is being done with an intent to provide an indicative picture of the industry and address queries about the CPaaS space. This must not be seen as a positioning statement of the company, and one should not rely on the company’s disclosure for their assessment of the market size or the relevant share of any participants in the market.

This presentation contains statements that include information concerning our possible or assumed strategy, future operations, financing plans, operating model, financial position, future revenues, projected costs, competitive position, industry environment, potential growth opportunities, potential market opportunities, plans and objectives of management, as well as assumptions relating to the foregoing that involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking in nature. Such statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, although not all forward‐looking statements contain these identifying words, you can identify forward-looking statements by terminology such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “PROPOSED,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar or derivate expressions. The forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements, expressed or implied by the forward- looking statements. It is advisable not to place excessive reliance on any of the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Additionally, these forward-looking statements, involve risk, uncertainties and assumptions based on information available to us as of 05/06/23, including those related to the continued impacts of COVID-19 on our business, future financial performance and global economic conditions. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, the timeframes for and severity of social distancing and other mitigation requirements, the timing of headwinds from COVID-19, the availability of vaccinations, the continued impact of COVID-19 on new or existing customers, business decisions and the length of our sales cycles, renewal timing or billings terms, particularly for customers in certain industries highly affected by COVID-19.

If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. We assume no obligation and do not intend to update these forward-looking statements or to conform these statements to actual results or to changes in our expectations, except as required by law.

This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information wherever possible, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to place excessive weightage to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information, wherever referred. Certain statements that might or might not be forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation.

By receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business. Any logos or trademarks other than Tanla, Karix, Gamooga, Trubloq & Wisely included herein are the property of the owners thereof and are used for reference purposes only.

Deal construct

3-part construct

ValueFirst India

ValueFirst Middle East FZC (incl. subsidiaries in Indonesia, KSA & Dubai)

Management Agreement

Closure date : July 2023

Stake buyout : 100% of the paid-up capital (1.67L equity shares of Rs 10 each) from Twilio

Deal size : USD 42 Mn+1

Deal type : All-cash deal

Closure date : September 2023

Stake buyout : 100% of ValueFirst Middle East FZC (100 shares of AED 1000 each) by Tanla and its subsidiaries

Deal size : INR 20 Cr2

Deal type : Infusion / acquisition of capital by Tanla & its subsidiaries

RSU grant in ValueFirst India : P&L implication of INR 50 Cr over 24 months (exercise price at face value)

Grant details : Would be spread over 24 months, with time-based and performance-based vesting

Management : Current management will continue to manage both the entities and we are incentivizing the team for value creation

Note: For the purpose of this presentation, we are combining the financials of two transactions to give an integrated view for easy understanding

1. Purchase price of USD $42Mn (subject to upward closing adjustments in the range of USD 2.5Mn to 3.5 Mn, as agreed in transaction documents) 2. By way of a combination of a primary investment and secondary acquisition of shares

ValueFirst has huge potential to grow

Figures in INR Cr for FY'23 for ValueFirst and Karix; CY'22 for Sinch & Lynk

ValueFirst is one of the Top 5 CPaaS providers in India…

…peer benchmarking of CPaaS industry showcases immense potential for ValueFirst to grow

Founded in 2003 by Vish. Bajaj;

80% revenue from >3 year old customers

Key metrics

ValueFirst India + Value First Middle East FZC1

Revenue (INR Cr)1

22,306

4,360

~9505

~2600

Revenue growth2 (5 yr. CAGR)

62%

27%

19%

31%

Including inorganic growth

EBITDA

1,876

430

527

474

9+ Channels

3+ International countries served

EBITDA %

8.4%

9.9%

5.6%

18.3%

PAT %

(17.6%)

(2.9%)

3.6%

14.3%

Source: Capital IQ, Historical FX rate taken as of Capital IQ 1. 2. 3.

Two independent acquisitions, financial numbers combined for easy understanding Basis FY19-FY23 revenue growth Taken per current purchase price of USD $42Mn (subject to upward closing adjustments in the range of USD 2.5Mn to 3.5 Mn, as agreed in transaction documents) and INR 20 Cr for ValueFirst Middle East FZC (By way of a combination of a primary investment and secondary acquisition of shares) EV/EBITDA for ValueFirst as a consolidated entity calculated basis current deal valuation All financial numbers are provisional, subject to audit

EV/EBITDA

4. 5. 6. Recurring EBITDA

ValueFirst has significant headroom to grow

Market Cap (INR CR)

15,225

2,739

3703 Purchase price consideration

11.3

12.2

~74

Our track record | ~20x EBITDA growth in Karix in 5 yrs.

Figures in INR Cr

Karix1

FY'19

FY'23

Tanla (Consolidated) FY’193 FY'23

Acquisition impact

Revenue

EBITDA

PAT

GM %

881

118

~3x

5.3x

~20x

~70x

11pp

~2600

1,444

3,354

2.3x

631

474

374

261

121

3.2x

~5x

12.7x

7pp

836

588

448

13.4%

24.3%

18.1%

24.9%

EBITDA %

15.5pp

9pp

2.7%

18.3%

8.4%

17.5%

PAT %

14pp

11pp

0.6%

14.4%

2.4%

13.3%

No cash investments: Only payment was for initial purchase consideration

Talent Retention: Retained key talent and grown

Customer base: 50% of revenues contributed by 50 of Top 100 customers, retained for more than 5 years

Karix acquired at INR 340 Cr

Technology acquisition: Marketing automation platform for personalization at scale

Engine of innovation for several greenfield opportunities: Fueled AI/ML based launches such as Wisely ATP, Wisely Communicate, etc.

…We are taking ValueFirst on a similar journey

1. Numbers for Karix as a standalone business unit (Includes platform component generated from enterprises) 2. pp = percentage point

3. Deemed consolidation if Karix was part of Tanla for likewise comparison to FY’23

ValueFirst will be a strategic acquisition to bolster enterprise business

Historical acquisitions

Largest in India and one of the largest publicly listed CPaaS players globally

Enterprise business

Platform business

India’s largest CPaaS player

Detailed ahead

Value- First acquisition

Top 5 CPaaS player

Single platform of platforms for digital interactions across the customer communication value chain addressing the needs of multiple buying centers

➢ Trubloq: World’s first blockchain enabled

compliance platform trusted by 50K+ enterprises

➢ Wisely ATP: A first of it’s kind AI-ML led anti- phishing platform for proactive identification, prevention and elimination

➢ Wisely communicate: a unique e2e encrypted blockchain based platform for enhanced user experience

Tanla + ValueFirst India + ValueFirst Middle East FZC; bigger, better and stronger !

Shape the Industry more

Pioneer Industry ideation through multiple innovations across the digital interactions landscape

Accelerate international expansion

Augment strong momentum in KSA, UAE and Indonesia e.g., Unilever Indonesia

− Critical mass

achieved in UAE with 10% share

Best in Class talent pool

Ensure retention of top management talent

Consolidate India market leadership

Grow CPaaS revenue market share in India from ~30% to ~35%1

− SMS market share (NLD):

40% to 45%+

Complementary customer segments

− Karix: Leader in large

enterprises

− ValueFirst: Leader in

mid market

Tuck-in and scale ValueFirst solutions e.g., Surbo

1. Interco. Overlap excluded

Note: For the purpose of this presentation, we are combining the financials of the two transactions for easy understanding This indicative data on market size has been arrived at basis our internal analysis. This is our assessment and merely indicative in nature and should not be relied upon

A1. Consolidation of India market leadership in CPaaS space

FY23 figures for Tanla CPaaS business excluding all International Business; Figures in INR Cr

Market share consolidation by value

30% to 35%+

Market share consolidation by SMS by value

8%+

45%+3

Market share2

30%

~35%3

SMS1 (NLD)

40%+

Tanla CPaaS business5

ValueFirst

Overall

Tanla CPaaS business5

ValueFirst

Overall

Includes enterprise + aggregation revenue Includes SMS NLD (including DLT) and ILD, email and WhatsApp Interco. Overlap excluded Tanla CPaaS business numbers = Karix as a standalone business unit + aggregation business All financial numbers are provisional, subject to audit

1. 2. 3. 4. 5. 6. Only ValueFirst combined entities' India business; For the purpose of this presentation, we are combining the financials of the two transactions for easy understanding This indicative data on market size has been arrived at basis our internal analysis. This is our assessment and merely indicative in nature and should not be relied upon

A2. Complementary customer footprint – ValueFirst leader in mid market; Karix in large enterprise (1/2)

ValueFirst’s clients

Common clients

Illustrative logos; Non-exhaustive

Large enterprises

Mid-sized enterprises

BFSI

Digital natives and commerce

Consumer products & services

~40% of ValueFirst revenue are from customers net new to Tanla

A2. Complementary customer footprint – ValueFirst leader in mid market; Karix in large enterprise (2/2)

Centre of gravity

# of customers % of revenue

Revenue cohort from India customers for FY’23

ValueFirst

Karix1

No. of customers > INR 50Cr revenue

INR 10Cr to 50Cr

INR 1cr to 10cr

Total

114

Customer Cohort - Centre of Gravity  Karix: Large enterprises  ValueFirst: Mid – Market

171

223

- 22%

- 29%

- 31%

- 82%

57%

22%

17%

96%

1. Numbers for full Tanla consolidated business Note: For the purpose of the presentation, we are combining the financials of the two transactions for easy understanding

A3. Tanla can leverage ValueFirst solutions and generate at scale impact

Illustrative for Surbo

Surbo offers a platform for enterprises to build, host and manage NLP-driven chatbots for messaging channels via managed services

Customer journey

Increase potential due to cross sell of Surbo to 1300+ Tanla customers

Onboard on the platform through a seamless journey

Build intuitive chatbots through easy-to-use conversation builder, subsequently train them using extensive database

Enable seamless engagement via numerous response types and third party integrations

Deploy on multiple communication channels

BFSI

Ecommerce

Telecom

Sectors with highest potential to cross-sell Surbo

Launched in 2017, it already has 150+ active customers; 100M+ conversations per month

Illustrative use case over WhatsApp

Top-class monitoring and reporting enabled by NLP & sentiment analysis, and advanced analytics

C. ValueFirst will help accelerate international expansion; potential to increase by 2-2.5X in the next few months Will provide access points into priority markets like KSA and Indonesia

Total addressable market

Karix3

ValueFirst

UAE2

KSA

Indonesia

Value stream in INR Cr. per year (FY’23)

18,000

21,660

Market size (NLD only)1

Revenue

Market Share

2,700

900-950

332

~10%

153

Local Talent base

Karix – 10, ValueFirst - 13

ValueFirst - 12

ValueFirst - 24

1 office in each location

Key insights

• UAE

– Critical mass achieved with 10% market share

• KSA/Indonesia

– Significant

headroom to grow in INR 20k+ Cr market

1. Calculated as monthly traffic * 12 * price per msg. UAE= 800mn/month * 12 * INR 1; KSA= 3bn/month * 12 * INR 0.75; Indonesia= 6bn/month * 12 * INR 2.5 2. Numbers for Karix as a standalone business units (Includes some portion of platform revenue) Note: For the purpose of the presentation, we are combining the financials of the two transactions for easy understanding; This indicative data on market size has been arrived at basis our internal analysis. This is our assessment and merely indicative in nature and should not be relied upon

D. ValueFirst top talent will make our C-suite even stronger

Vishwadeep Bajaj

Anubhav Batra

Debmalya De

Gurmukh Singh

Chief Executive Officer

Chief Financial Officer

Chief Technology Officer

Chief Operating Officer

 Vishwadeep has 33+ years of CPaaS and telco experience  He has been with ValueFirst for

19+ years

 An alumnus of MIT Sloan School of Management, he has worked with CMC Limited and Siemens in the past

 Anubhav is a tenured finance and accounting professional with 15+ years of experience

 He has been with ValueFirst for 11

 An IT & Telecom professional with

 Gurmukh is a veteran in

25 years of experience, Debmalya joined ValueFirst ~5 years back

Operations and has ~24 years of experience

 He has been with ValueFirst for

years

 He has previously worked at Spice

19+ years

 A Chartered Accountant,

Anubhav has worked at EY and KPMG prior to joining ValueFirst

Digital, Wipro, ACL (Sinch), Unified Telecom and Lumata

 Debmalya has B.Sc from St.

Xavier’s College and is an IIM-L alumnus

 A graduate from Guru Nanak Dev Engineering College, Gurmukh has previously worked at Hitachi

We will ensure retention of top talent – Average tenure of 10+ years

ValueFirst acquisition is a slam dunk!

“Acquisition of ValueFirst will further strengthen our undisputed market leadership in India.

We only believe in purposeful acquisitions and have had an incredible track record with Karix acquisition, which has seen 20x EBITDA growth over the last 5 years.

I am confident we will embark on a similar journey with ValueFirst to unlock massive value”

D. Uday Kumar Reddy Founder Chairman & CEO, Tanla

Note: For the purpose of the presentation, we are combining the financials of the two transactions for easy understanding; This indicative data on market size has been arrived at basis our internal analysis. This is our assessment and merely indicative in nature and should not be relied upon

Massive head-room: Potential to create significant value within 12 months

Proven track record: Karix acquisition 20x EBITDA in 5 yrs.

Complementary customer footprint: Karix 50% share of large enterprise + ValueFirst ~20-25% share of midmarket

Complementary Geography: ~20% of ValueFirst Middle FZC revenues comes from KSA, UAE & Indonesia with INR 20,000 Cr TAM

Capital efficient: No further investment, immediately EPS accretive

We know ValueFirst ! It's been our customer for ~10 years and a great cultural fit

14 14

Currently, Tanla & ValueFirst together has revenue of INR 4000 Cr and INR 481 Cr PAT

Figures in INR Cr, for FY’23

Tanla consolidated (Existing)

New Consolidated entity1

Key insights

Revenue

3,355

Gross Margin

837

EBITDA

PAT

588

448

GM%

24.9%

EBITDA %

17.5%

PAT%

13.4%

~4,0002

1,007

640

481

25.2%

16.0%

12.0%

• Gross Margin Uplift of 30 bps: 1 INR 285 Cr revenue already part of Tanla revenue. However, associated Gross Margin will get accrued to consolidated figures with acquisition

• EBITDA and PAT: Opportunity to 2,3

improve 140-150 bps on consolidated basis within 12-18 months

Including 2 acquisitions of ValueFirst India and ValueFirst Middle East FZC. Numbers consolidated for easy understanding. All financial numbers of acquired entities are provisional, subject to audit Interco. Overlap excluded

← All Transcripts TANLA Stock Page →

Tanla Platforms Limited has informed the Exchange about Investor Presentation

Market Movers