Truecaller founders step down, passing leadership to Indian business head
Truecaller's co-founders Alan Mamedi and Nami Zarringhalam have announced their decision to step back from daily operations. The major leadership change comes as the Swedish caller identification app, founded in 2009, aims to hit a user base of one billion. The duo will hand over their responsibilities to Rishit Jhunjhunwala, the company's product chief and head of its Indian business, in January 2025. However, they'll continue serving as strategic advisors and board members.
Take a look at Mamedi's post
Financial recovery and future goals
The leadership transition occurs as Truecaller rebounds financially following a challenging post-IPO period since its public listing in October 2021. The company posted a 15% rise in third-quarter revenues at SEK 457.3 million ($42.3 million). Most importantly, advertising revenue, which had been a worry with constant decline, also grew 8% this quarter. Mamedi is confident about the company's growth saying they are "approaching half a billion users" and will reach one billion in a few years.
Focus shifts to iOS and emerging markets
Jhunjhunwala, who joined Truecaller in 2015 and holds Swedish citizenship despite Indian roots, will guide the company through its next phase. The firm dominates caller identification in emerging markets but struggles in developed economies and mainly on Apple's iPhone platform. To tackle this, Truecaller plans to launch its "largest product improvement ever" for iOS this quarter. Despite iPhone users being only 7% of Truecaller's base, they generate 40% of subscription revenue—a fact that highlights both challenges and opportunities ahead.
Stock and market performance
Notably, the leadership change at Truecaller comes as the company's shares have rebounded over 70% from their March lows. JPMorgan analysts believe new market entries and emerging revenue streams could drive further growth. However, challenges remain with regulatory scrutiny in India, where over 70% of its revenues are generated. Despite potential competition from Airtel's new spam-blocking tool, early reviews favor Truecaller's offering.
Growth in strategic markets
Along with the announcement of the founders' departure, Truecaller also reported accelerated third-quarter results. The results showcased promising growth in strategic markets such as Nigeria and Colombia, where user numbers jumped 40% year-on-year (YoY). US subscription revenues also witnessed a major growth of over 60% as the company worked toward converting users into paying customers. In a joint statement, Mamedi and Zarringhalam expressed their confidence in the management team and the company's future success.
