Did some digging up on E2E networks. Here are the key takeaways:
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Cloud computing market in india is Rs16000crs. AWS caters to Rs8000crs. E2E is focussed on the price sensitive Rs4000crs market which is a large TAM.
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E2E Networks has no local competition and faces competition from international players like Digital Ocean (DOCN), Vultr Linode (Now owned by Akamai ) in India in the price sensitive segment.
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Larger global players are AWS, Azure and Google Cloud
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E2E Networks has scaled up and is a strong agile player in the public cloud infra.
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Currently has 2200 active clients out of its 15000 customer base it has serviced till date.
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Some of the clients the company has serviced over the years
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Company is guiding for Rs200crs of revenues in 4 to 5 years v/s Rs52 crs in FY22
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Company is expecting to grow revenues in a band of 30-50% per year over forseeable future
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FY22 EBITDA margins at 44% in FY22 but will go up as revenues scale up. PAT margin in 1HFY23 were 16-17% which will also go up as revenues go up
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Depreciation very high as according to accounting norms. Computers and servers are depreciated in 3 years even though useful life is 5 years
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Key USP is it sells the cheapest cloud infrastructure in India
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Key large investors are VC fund Blume Ventures with 12% stake and Airavat Capital with 3-4% besides promoters Tarun Dua and family with 58% stake
Disclosure: Invested
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