Sasken spin-off aims to break even next fiscal

May grow to 2,000 people in 4 years.

ConnectM, an independent machine to machine (M2M) solutions provider, aims to break even by the middle of the next fiscal, and grow into a 2,000-people organisation in the next 4-5 years with a mix of organic and inorganic strategy.

The Bangalore-based company which was floated in June this year with a joint investment of $6 million by its promoters Sasken Communication Technologies and IDG Ventures India, has already won three customers, and is aiming to close the year with at least 6-7 customers.

M2M is a technology which enables data communication between machines, devices, systems and people, using the wired or wireless technologies (Internet, GSM/GPRS).

Any M2M application will have a device attached to a machine. The device transfers information through cellular link to the server located back-end. After collecting the data, the server will do the analysis, and come out with a suggestion. Suppose the door of a metro rail which is not opening smoothly, if fitted with an M2M device, can send the information to the central server, and the server can help predict when a door is likely to break down and when to go in for preventive maintenance.

"We acquired a major client in the first quarter of our operations, and have already started reporting revenues in the very first quarter of our operation. Within the six months of our operations, we have won three customers, and our aim is to end the fiscal with at least 6-7 customers. In this way, we should achieve our quarterly break-even by the middle of the next financial year," said Kumar Prabhas, CEO, ConnectM.

ConnectM, which has announced to address verticals like automotive, utilities, aerospace, industrial, railroad and enterprise, is providing remote monitoring and predictive maintenance solution to Jyoti CNC Automation, a Rajkot-based company, which is also its first customer. The company has also signed in a customer in the automotive space in India, to help them build solutions for safety and security of vehicles using remote monitoring technology.

In the enterprise space, ConnectM has identified medical equipment and construction as the two focus areas. An Indian healthcare equipment manufacturer has recently announced availing of ConnectM's solutions for remote monitoring of medical equipment.

Prabhas said the company's aim would be to acquire customers in each of the verticals it had announced to address. "Our focus right now is getting our solutions validated in the market and then focussing on multiplying these," he said.

ConnectM, which has a headcount about 40 people now, is planning to increase its headcount to 75 by the end of the present fiscal. The company has also announced to go for acquisitions to gain expertise in certain new areas like analytics. "We are looking at M&A at the appropriate time and would be very integral in our strategy, which would be either for acquiring customers or competencies," said Prabhas.

ConnectM is looking at acquiring companies offering solutions for the automotive space, which is a key vertical for the company. The company is eyeing at acquiring consulting firms in automotive space, especially those with a customer base in the Europe and the US.

Prabhas said of the acquisition that it would not be much of a problem for the company which is having a strong backing by Sasken and IDG Ventures. "If there is an acquisition opportunity which is really strategic and makes a lot of sense for our business, I really don't think that size will be a major issue. Even if it is much bigger than what we are right now, I am sure our investors are going to be very interested and they can find the money," he added.

The M2M market size globally is said to be in the range of $13-14 billion and growing at 30 per cent year-on-year.