The co-founders of Truecaller, a popular caller identification app from Sweden, are stepping back from their everyday roles in the company. This change marks a significant moment for Truecaller, which has become one of the most successful tech companies in Sweden since its founding in 2009 by Alan Mamedi and Nami Zarringhalam.
Starting in January, control of the company will be handed over to Rishit Jhunjhunwala, who has been in charge of product development and oversees Truecaller’s important operations in India. Although Mamedi and Zarringhalam will no longer be involved in the day-to-day management of the app, they will still provide guidance and serve on the company’s board.
In Mamedi’s last statement as the company’s chief executive, he expressed confidence about the future, saying that they are close to reaching half a billion users and believe they can hit one billion users in just a few years. He highlighted that Truecaller has successfully attracted hundreds of millions of people to its service, which has helped raise Sweden’s reputation in the global tech landscape, something both he and Zarringhalam are incredibly proud of.
Truecaller has faced challenges in the last few years, especially after their stock price dropped significantly after going public in 2021. The situation worsened when the company reported a steep decline in advertising revenue due to a downturn in the advertising market. However, recent news indicates a turnaround, as their stock has started to recover, nearly doubling in value recently. Their third-quarter revenue for this year increased by 15% compared to last year, and advertising revenue also rose by 8% after several consecutive quarters of decline.
The company is seeing encouraging growth in important markets like Colombia and Nigeria, where their user base has grown by 40% over the past year. Additionally, subscription revenue in the U.S. skyrocketed by more than 60% as the company worked to convert free users into paying customers.
Investment analysts believe that exploring new markets and revenue sources could further boost Truecaller’s stock value in the future.
While Truecaller is very successful in emerging markets, it has struggled to make a significant impact in more developed countries. Interestingly, even though iPhone users make up only 7% of Truecaller’s user base, they account for a substantial 40% of the company’s subscription earnings, showing both the challenges and opportunities ahead.
To take advantage of this potential, the company has announced plans to roll out what they call their “largest product improvement ever” for iOS devices, aiming to enhance the app’s features to be more competitive with the Android version.
Jhunjhunwala acknowledges that taking over leadership from Mamedi and Zarringhalam will be a big challenge, as he has worked closely with them since 2015 and is aware of the high expectations.
He will need to navigate a complex and hopeful market landscape, particularly given regulatory issues in India, where most of Truecaller’s revenue comes from. There’s also competition brewing from a new spam-blocking tool being introduced by the telecom operator Airtel, which could potentially threaten Truecaller’s leading position, although early feedback suggests that Truecaller still remains the preferred option among users.
In a joint statement, Mamedi and Zarringhalam expressed their confidence in the current management team and believe that, with the organization’s structure in place, Truecaller is ready for continued success in the future.
