Route Mobile stock surges 17% to reach 30-month high, gains 24% in 5 sessions; what’s behind the rally?

Route Mobile, a prominent provider of cloud communications platform services, experienced another exceptional day as its shares surged by 17.3% to reach a 30-month high of ₹1,930 apiece, taking the five-day gains to 24%.

Today's rally in shares came after the company, during market hours, through an exchange filing, said that its holding company, Proximus Group, and Microsoft signed a 5-year strategic partnership for collaboration on digital communications and cloud.

The company said that the newly formed strategic partnership between Microsoft and Proximus will allow both parties to leverage their respective expertise and product leadership, accelerated by the power and potential of AI applications and solutions.

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The strategic partnership between Microsoft and Proximus aims to leverage their expertise in AI and cloud services across three main areas. Firstly, they will enhance Communication Platform as a Service (CPaaS) and Digital Identity (DI), improving customer engagement and security.

Secondly, Proximus will migrate key platforms to Azure cloud services, enhancing scalability and security while integrating AI technologies. Finally, Microsoft will support Proximus in optimising its go-to-market strategy for Microsoft products in Belgium, strengthening Proximus' role as a top-tier Microsoft reseller.

This partnership promises to drive innovation, improve service delivery, and secure digital communications and operations, according to the company's exchange filing.

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This week marked another significant achievement for Route Mobile as it expanded its WhatsApp-based metro rail ticket booking service to Nagpur, Hyderabad, and Pune, in addition to Delhi, solidifying its position as India's leading facilitator in this sector, serving over 75 lakh commuters daily.

Currently, 15 Indian cities boast active Metro services, with Route Mobile having successfully implemented this solution in four cities, establishing its dominance in the field. The service was initially launched for Delhi Metro in the latter half of 2023 and has now been extended to Nagpur, Pune, and Hyderabad through a partnership with Billeasy, a pioneering integration partner in this technology since 2020.

Ticket booking on WhatsApp involves creating advanced solutions and the latest features, like web views and payment integrations. Route Mobile was one of the early adopters of these features to create a solution that is simple to use for the general public and reliable in terms of availability, speed, and security.

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Route Mobile is a cloud communications platform service provider catering to enterprises, over-the-top (OTT) players, and mobile network operators (MNOs). RML's portfolio comprises solutions in messaging, voice, email, SMS filtering, analytics, and monetisation. RML has a diverse enterprise client base across various industries.

In July last year, Proximus acquired a controlling stake in the company from the founding shareholders for ₹5,922 crore.

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