Tally is investing heavily in AI to develop new product experience: Goenka

We have over 2.3 million licensed customers and over 7 million users in more than 100 countries across various business segments, said Goenka

Tally Solutions, India’s largest homegrown accounting software maker, is focusing on the micro, small and medium enterprises (MSME) sector as it sees huge untapped potential there. It has launched TallyEdge, its account aggregator subsidiary, with an aim to work closely with banks and non-banking financial companies (NBFCs) to provide easy financial services access to MSMEs. Tejas Goenka, managing director (MD), Tally Solutions, talks about the company’s growth strategy and expansion plans, among others, in a video interview with Ayushman Baruah. Edited excerpts: 

Are you investing in emerging technologies like artificial intelligence (AI) and machine learning (ML)?

We are investing heavily in research and development (R&D) of AI and ML, particularly in developing a new product experience. One such example is the ‘zero entry experience’ where a photo of a bill or expense voucher can be auto-fed into the system. We are exploring AI and ML capabilities like image capture and forecasting to expand user base and international presence. Forecasting, in particular, could be beneficial with users being able to get into next week or next month’s sale or projected demand for the coming months. This would greatly help in better management of raw materials and inventory. It would save potential costs as well. Another use case for AI/ML could be to set better internal benchmarks against the external community data to improve metrics like sales or services in an area. 

Which international markets are you focusing on?       

India remains the primary source of revenue. Our global operations have been steadily gaining substantial traction, and this can be attributed to the strategic investments we have made in recent years. We project a consistent upward trajectory in the contribution of our international business, with growth rates expected to exceed the 60 per cent benchmark every year. Beyond India, we are assisting customers across the Middle East, South Asian Association for Regional Cooperation (SAARC) nations, Asia-Pacific, Africa, and North America. We are aggressively expanding in the Middle East, Kenya, Indonesia, and Bangladesh. We have dedicated teams working towards simplifying the lives of small and medium enterprises (SMEs). 

What is your growth strategy for India?

With over 70 per cent market share in India, we can proudly say we are a brand ‘Made in India for the world’. We have regularly enabled our channel partner ecosystem to deliver higher quality experience to customers, while maximising profitability and overall growth in business. We focus on enhancing our customer experience with a strong product roadmap focused on a compelling need for adoption and upgradation. In the last 2.5 years, we had three very strong product releases. TallyPrime 3.0, our latest release, marked a notable step forward, with a revamped compliance engine and powerful reporting features. Our next product is ready for release in November. It will focus on seamless business communication and next level dashboard. Along with the product roadmap, there is focus on international markets, which are growing with a lot of promise.

What is your focus segment within the India market?

In India, there is a significant growth potential, given the presence of over 65 million MSMEs. Even with our extensive reach and market understanding, we have been able to penetrate just 10-12 per cent of this market. This clearly indicates a substantial opportunity for expansion.

What is your customer base now and what is the share of domestic versus international business?

We have over 2.3 million licensed customers and over 7 million users in more than 100 countries across various business segments. During the next 2-3 years, Tally is committed to achieving a 50 per cent surge in user base, reaching 3.5 million customers globally. At present, the Indian market accounts for around 90 per cent of market share and customer base in comparison to the global market. In 3-4 years, we expect the contribution of the international market to go up significantly.