In the dynamic world of telecommunications, where giants and pioneers battle for supremacy, there are a few visionaries who stand apart. Among them is Ravi Vamathevan, the charismatic CEO of Valyou Sdn Bhd, whose journey through the industry is nothing short of legendary. As we delve into the fascinating story of Ravi and Valyou, we discover the inspiring tale of a man who not only founded Malaysia’s pioneering telco but also changed the lives of millions of migrants along the way. Valyou is a wholly owned subsidiary of Merchantrade Sdn Bhd, that now drives the MVNO business since transfer in 2022.
The Birth of Inclusive Telco services: Connecting Migrants with Dreams
Imagine leaving your homeland behind in search of better opportunities, only to find yourself miles away from family and friends, disconnected from the world you once knew. This is a reality for millions of migrants in Malaysia, a country known as one of the largest migrant-receiving nations in Southeast Asia.
In 2003, Ravi and his co-founder, Ramasamy K. Veeran, embarked on a journey that changed the telecommunication landscape in Malaysia. Their vision started off with the procurement of an Application Service Providers (ASP) license, which paved the way for Merchantrade’s entry into the telecommunications market. In just two short years, from 2003 to 2005, they established approximately 5,000 nationwide shops known as ‘Warong Talipon’ allowing customers to make voice calls.
Subsequently, Merchantrade Mobile emerged, offering affordable prepaid SIM cards, data, and calls. By 2007, the company became Malaysia’s first Mobile Virtual Network Operator (MVNO) under Celcom (now known as CelcomDigi).
A Blue Ocean Strategy: Venturing into an Untapped Market
In a highly competitive telco landscape dominated by industry giants like DiGi, Celcom (now Celcom and Digi have merged and known as CelcomDigi), Maxis and U Mobile, Ravi embarked on a unique journey, showcasing sharp market acumen and a profound understanding of industry dynamics. They discerned an opportunity within a rapidly expanding market that no other telco had dared to explore.
At a time when Malaysia’s economy was witnessing a significant influx of migrant workers and stood out as a country in the Asia Pacific region with a high ratio of migrants to the total population in 2008, this vast underserved segment remained largely ignored by the telecom giants. However, Merchantrade possessed the foresight to recognize the immense potential hidden within this untapped segment. The strategic move by Ravi was a striking departure from the industry norm, driven by their entrepreneurial-thinking, and foresight led them to become the pioneers in this segment.
In 2015, they reached a significant milestone by achieving a subscriber base of 1 million customers. Ravi’s determination to provide connectivity to underserved migrants had borne fruit and the decision to focus on a niche segment proved to be a success. In 2015 to 2016, the company was at the peak of its glory days.
Ravi Vamathevan: A Telecom Titan’s Journey
Ravi’s extensive experience in the telecommunications industry played a pivotal role in Valyou’s success. With 30 years of telecom expertise, his journey began with Maxis (formerly known as Binariang Sdn. Bhd) during its startup phase. Ravi was instrumental in launching Maxis’ international gateway business, which was once valued higher than the mobile business. He also secured Maxis’ first interconnect agreement.
Thereafter, Ravi ventured to the United States, joining Pacific Gateway Exchange Inc., a Nasdaq-listed company based in San Francisco. He then moved on to iBasis, a pioneering VoIP company, where he served as the Director of the South East Asia region.
In 2014, Ravi returned to the company with renewed vigour, focusing on its growth. His extensive background in telecommunications and leadership in the VoIP sector laid the foundation for Merchantrade’s venture into the VoIP business. His journey from a startup to leading Valyou showcases his indomitable leadership and commitment to making a difference.
Ravi’s passion for startups, entrepreneurship, and leadership is truly remarkable. Throughout his illustrious career, he has demonstrated an uncanny ability to spot opportunities, challenge the status quo, and transform innovative ideas into thriving businesses.
Navigating the Storm: Long term business growth vs. short-term gains
Merchantrade Mobile’s venture into the migrant segment proved highly profitable. In 2017, as the Malaysian customer base reached saturation, larger competitors began to penetrate the migrant segment, triggering aggressive price wars.
These competitors, leveraging their substantial financial resources, entered the market with an aggressive approach to acquire customers and gain market share. Additionally, migrant workers, known for their cost sensitivity, frequently switched between service providers, resulting in a significant decline in our subscriber base, which had previously boasted over one million users.
Despite facing pressure from various stakeholders and the looming possibility of phasing out the business, Ravi remained steadfast in his belief that this was a cyclical phase, and that competing in price wars was not sustainable. He made the bold decision to stay in the market and weather the storm until stability returned. Instead of engaging in direct price competition with our rivals, our strategic focus shifted to maintaining long-term growth and profitability and resilience during this turbulent period.
In contrast, Ravi and his team embraced a different approach. They prioritized the development of a sound and profitable business model, emphasizing cost control and efficient operations to keep customer acquisition costs low while maintaining the delivery of quality services.
Covid-19: Resilience Amidst Adversity
The COVID-19 pandemic brought about unprecedented challenges for the company. As borders closed and restrictions were imposed, a large number of migrant workers chose to return to their home countries due to uncertainty and health concerns. Moreover, with restrictions in place, new migrants were unable to enter the country, further impacting the potential customer pool. This mass exodus, combined with the influx of new competitors in the migrant segment, set the company back. Nevertheless, Ravi’s determination remained unwavering, as he envisioned the company making a strong comeback when the opportune moment arrives.
Strategic Decisions and Growth Trajectory: Charting a Comeback
In September 2020, Merchantrade acquired a 100% stake in Valyou from the Norwegian Telenor. Then, in April 2022, the MVNO business transitioned from Merchantrade to Valyou. This strategic move aimed to enhance both companies’ focus, facilitate agile decision-making, and improve customer experiences for specific segments. With this transition, both companies are better positioned to capitalize on their distinct market positions and priorities.
Ravi’s decision to make a resurgence in the market was strategically timed to align with the market’s stabilization following the price wars and the impact of COVID-19. The first order of business was a comprehensive rebranding exercise and a thorough revamping and enhancement of their existing plans and packages, marking a significant step in the right direction. Through extensive on-ground surveys and focus group studies, Valyou aimed to ensure that their plans and packages were competitive enough in the market to regain market share from competitors.
Valyou’s Range of Products and Services: Bridging the Connectivity Gap
Valyou’s HelloSIM offers comprehensive coverage and high-speed services across Malaysia, with attractive data packages starting at just RM5, tailored to customers’ needs. Their product range includes prepaid SIM cards, data plans, International Direct Dialling (IDD), and domestic calls.
Its partnership with CelcomDigi, one of Malaysia’s leading telco companies, ensures customers can enjoy nationwide coverage, excellent call quality across borders, and high-speed mobile data.
Their mission aligns with UNSDG No. #10, “Reduced Inequality,” as they focus on serving underserved segments, particularly blue-collar migrant workers. By providing affordable and accessible telecommunications services, Valyou significantly contributes to reducing inequality and promoting inclusivity.
A Distinctive Customer Base: Awareness and Education
Valyou’s primary focus was on serving the blue-collar migrant segment, a customer base with unique challenges and requirements. Marketing and selling to this segment present language barriers, limited tech-savviness, and the need for additional education and support. To address these challenges, the company offered diverse plans and packages, along with well-informed sales personnel capable of effectively engaging and educating customers. Different marketing strategies are employed to acquire these customers while adhering to regulatory requirements.
Valyou has over the years built the right infrastructure and invested in the expertise necessary to effectively serve this segment. Their commitment to serving and educating this customer base has been unwavering.
Adapting and Innovating to remain customer-centric
The COVID-19 pandemic accelerated the shift towards digitalization, prompting Valyou to proactively embrace digital technology in its product and service offerings. Their differentiation strategy revolves around leveraging technology, data analytics, and a deep understanding of customer behaviour to tailor products to specific needs.
Valyou’s commitment to enhancing customer experiences extends beyond acquisition. They plan to introduce new offerings that facilitate topping up family mobile phones, online shopping, bill payments, and more, all within a single platform. This comprehensive ecosystem enhances the overall value and convenience for customers, fostering closer collaborations with local and international partners to consistently offer the best products and services.
A Bright Future Ahead
Since January 2021, Valyou has experienced remarkable growth, with subscriber numbers increasing 2.1 times and revenue rising 2.8 times for the same period. With their cutting-edge services, extensive expertise, and a track record spanning over two decades in serving the migrant worker market, Valyou is positioned for substantial growth.
As Ravi Vamathevan leads Valyou, he envisions the company continuing to be a resilient digital enabler, particularly for their target segments. The company’s outlook is optimistic, with expectations of achieving 4x to 5x growth in the coming years, solidifying their position as the preferred choice among the migrant segment.
How the legacy began
Ravi Vamathevan’s incredible journey in the telecommunications industry didn’t start with Valyou; it began even before the telecom giant Maxis got its name. In those early days, when the telecommunications industry had an oligopolistic structure, with the international telecommunication gateway largely dominated by Telekom Malaysia and a few other major players in the market, Ravi saw an opportunity to challenge the status quo.
It was a time when the telecommunication landscape was still evolving, and the potential for growth was immense. Ravi’s vision was to provide an alternative to the existing telecommunication infrastructure, one that would offer innovative solutions and greater connectivity for the people of Malaysia.
Determination and Perseverance: A Vision Realized
The path to establishing an alternative telecommunications gateway was not an easy one. Ravi faced numerous challenges and hurdles, both regulatory and operational. But his determination and unwavering commitment were unparalleled. He was driven by the belief that telecommunications services should be inclusive, and he strived to create a level playing field that would ultimately benefit the customers by providing the best possible services.
This pursuit involved forging strategic partnerships, navigating complex regulations, and pioneering new technologies. He worked tirelessly to build the infrastructure and networks necessary to compete with established players in the industry. It was a journey that required not only technical expertise but also a deep understanding of market dynamics and customer needs.
The Legacy Lives On: Valyou and Beyond
Ravi Vamathevan’s journey in the telecommunications industry has been marked by innovation, determination, and a deep passion for connecting people. His early career laid the foundation for his future endeavours, including his pivotal role in Valyou. Yet, Ravi’s story is not just about building telco companies; it’s about transforming industries, building sustainable businesses, and making a profound impact on millions of lives.
Championing Entrepreneurship and Sustainable Business Growth
In a world where many companies are tempted to cast a wide net to attract a broad customer base, Valyou’s strategy of laser-focused service and support for their specific segment is not only innovative but also deeply impactful. The key takeaway is that maintaining competitiveness hinges on the ability to pinpoint and leverage a distinct competitive advantage.
A Remarkable Career Dedicated to Innovation, Inclusivity, and Connectivity
Today, as Valyou looks ahead to a future of substantial growth and continued innovation, Ravi Vamathevan’s indomitable spirit and unwavering commitment to his vision remain unshaken. His story serves as an inspiration to all those who seek to make a difference in the world of telecommunications and beyond.
Ravi and Valyou’s journey not only reflect the power of vision, innovation, and unwavering commitment but also the transformative potential of entrepreneurship and niche-focused strategies. They have not only connected migrants with their dreams but have also reshaped the telecommunications landscape in Malaysia. As Valyou continues to grow and innovate, it’s clear that Ravi Vamathevan’s legacy in the industry is far from over, and the impact of Valyou on the lives of millions is immeasurable.
