As global companies such as Apple, Samsung, HP look to step up manufacturing in India, Calcutta-born Kunal Mahipal expects his Accel and IFC-backed third-party device care company Onsitego to maintain a 40-45 per cent growth momentum over the next three-four years.
With a cash-positive business, the company plans to expand into allied areas of financing and into making its brand of accessories.
“In FY24 we will close somewhere in the range of Rs 530-odd crore of revenue. Normally we grow in the range of 40-45 per cent every year and we are looking to continue that growth for the next three-four years."
"The growth drivers largely would be expanding the distribution both on the retail and enterprise side. In the US for example the penetration of extended warranty would be somewhere in the range of 28-30 per cent. In India, it is still less than 5 per cent. So, there is a long way to go before we can say that the market is saturated. We are also trying to build new businesses,” Mahipal, CEO of Onsitego, told The Telegraph.
“One of the things that we are looking at is through our mobile app, how we can help our retailers offer consumer finance to tech customers. We are hoping to launch this during this financial year. We have a partnership with an NBFC at the back end and the retailers at the front end and the technology layer in the middle,” said Mahipal, an alumnus of IIM Bangalore.
The company is also looking at acquisitions to grow its business. "We are cash positive. We have also raised around $30 million from investors and that put us in a sweet spot as far as inorganic growth is concerned and that is one of the avenues we are also exploring,” he said.
With indigenous manufacturing of consumer electronic products on the rise, the company expects an improvement in affordability and a lowering on turnaround time on repairs.
“As more and more products are made in India, affordability will increase. There is more scope for customers to expend on value-added services like extended warranty. The turnaround time for repairs also gets shorter, because the ecosystem develops and spare parts availability becomes easier,” he said.
