India | ME | SEA Access My Account  

Sep, 2021     

Understanding CPaaS: Softbank’s First Saudi Investment

CPaaS could represent a USD 5 Bn+ opportunity in MENA by 2030


1. Communication services have moved from telecom to software/APIs driven

The communications services industry has gone through multiple phases of evolution over the last decade and now stands at a point where we see hybrid models coming up to provide customizable plug and play solutions for every organizations communication needs.

CPaaS is simply a communication platform hosted on the cloud that lets you add voice, video and messaging features to your existing business software using APIs.

Communication Industry Evolution

Note(s): 1. UCaaS refers to a Unified Communications app that includes various business software and is hosted and delivered by a cloud communication tools vendor 2. CCaaS refers to contact center as a service is a virtual call center offer cloud-based customer support by giving feature-rich set of capabilities mainly involves telephony services 3. Communications Platform as a Service (CPaaS) is a cloud-based delivery model that lets you add voice, video, and messaging features to your existing business software using APIs 4. Companies outlined in this slide are for reference. This doesn’t imply an exclusive mapping of these companies to a service. There is considerable overlap in the offerings of the players across service lines

2. CPaaS players have evolved to become a critical enabler across multiple use cases…

The most prominent channels in CPaaS currently are Message and Voice based services which have maximum use cases and high adoption.

Video-based and WebPush models are also coming up, but they are for more specific use cases and are slowly starting to gain traction.

Customer engagement and experience is the most prominent area of application of CPaaS currently where chatbots, chat integration, alerts etc. are offerings that are widely used.

CPaaS Business Models

Note(s): How do you expect your behaviour for following product/service categories once the country recovers from COVID-19 when compared with your behaviour in January/February in 2020

3. …and the segment is seeing tailwinds with favorable trends

Many recent trends have served as tailwinds for the CPaaS segment the first of which is the massive increase in digital time spent among consumers, making it a key channel for product/service discovery, engagement and purchase.

Traditional players across sectors like retail, banking among others, have embraced the need for digital transformation and more nimble communication.

The rise in prominence of the social commerce channel within eCommerce and other new age digital models have further accentuated the need for CPaaS providers.

Note(s): 1. How are you currently spending time on your phone/laptop for the following activities? 2. Pre-Pandemic: Before March 2020; During Pandemic: April – May 2020

4. While the market is proliferated with global players, local players such as Unifonic and Cequens are also establishing their foothold

Global players have entered the MENA region realizing the immense potential that lies untapped. However multiple local players are also coming up and seeing good traction.

While the Global names, benefit from large marketing budgets, strong expertise coupled with rich offerings, the local firms are better suited to serve more pressing needs for the large SME segment in the region. Further, the need for local language support, data localization etc. are other aspects that are favorable to the local players.

Business Models operating in the CPaaS space, Selective Players

Note(s): 1. List of players mentioned above is not exhaustive

5. CPaaS could represent a USD 5 Bn+ opportunity in MENA by 2030

We see strong growth drivers in place for the CPaaS segment and this opportunity could be worth USD 5 Bn by 2030 if the right levers are pulled.

There is significant opportunity for local players here with the government also looking to promote local entrepreneurs.

MENA CPaaS market 2020-30, USD Bn