As it looks at scripting a turnaround story, telecom software company Subex on Wednesday launched a new unit 'CrunchMetrics'. The new unit will provide artificial intelligence-enabled anomaly detection solutions to clients across sectors such as telecom, retail and fintech.
The company has launched this new unit as a division of Subex Digital LLP, a wholly-owned subsidiary of Subex Ltd, in its bid to increase its revenue from new technology solutions apart from entering into new verticals beyond telecom. The Bengaluru-based company by far was mostly focused on the telecom sector.
"Addressable problem and market size (for the new solution) is huge, and with our focused efforts and investments, we are confident of creating an impact by delivering value to our customers," said Vinod Kumar, CEO & MD at Subex.
"From a business perspective, CrunchMetrics marks our entry into areas beyond the telecom domain, such as the booming fintech and retail segments that are significant consumers of data."
Once considered the poster boy of the Indian software product story, Subex lost the plot bogged down by its overarching ambition to grow faster through inorganic route. The trouble for the company started in early 2007 when it had to raise $180 million by issuing FCCBs to acquire Canadian operations support software (OSS) solutions Syndesis. Amid growing pressure from the bond holders, the company decided the restructure outstanding FCCBs by issuing new FCCBs worth $131 million, at 5.7 per cent with a maturity period of five years. This also led to the losing of grip over the company by the founder and then CEO Subash Menon who eventually resigned from the company in 2012.
The company, since then, has embarked on a turnaround strategy by diversifying its operations into newer verticals. In 2016, Subex became a debt-free company by converting the FCCBs.
One and half year back, the company has created two subsidiaries with sharper focus on digital technology areas. Launching of 'CrunchMetrics' is part of this initiative under which the Bengaluru-headquartered firm is tap the emerging segments.
With the launch of this new solution, Subex eyes a huge market size that is likely to touch $4.5 billion by 2022 with catering to a variety of verticals.
Subex had reported a net profit of Rs 20.68 crore in the last financial year as compared to a loss of Rs 43.23 crore reported in FY17. Its total revenue stood at Rs 325 crore during this period, down by 11.7 per cent over the previous fiscal.