Dove Soft IPO: Enterprise Customers, AI Solutions and Open Network APIs at the Core of Business Strategy

Dove Soft Limited, which began operations in 2011 as a messaging aggregator, has evolved into a cloud communication provider offering solutions across SMS, WhatsApp, Voice, RCS and other digital channels. According to Muktesh Narula, the company’s shift towards enterprise-focused business over the past three years has been a key contributor to its recent financial performance.

Dove Soft recorded a 46% increase in revenue and a 42% rise in profit after tax between FY25 and FY26. Muktesh Narula attributed the growth primarily to the company’s transition from channel sales towards enterprise sales. At the same time, the company maintained tight control over salary and other operational costs, which helped improve margins alongside revenue growth.

Muktesh Narula said the broader CPaaS market is also undergoing a transition from traditional messaging aggregation towards comprehensive customer engagement. While SMS remains an important communication channel, enterprises are increasingly using WhatsApp, Voice and RCS to engage with customers across multiple touchpoints.

Artificial intelligence is emerging as another important layer of this evolution. Dove Soft has been working on integrating AI capabilities across its communication platform, including SMS, Voice, RCS and WhatsApp. Muktesh Narula said the company is using large language models for bot responses as well as voice and chat applications, while developing AI-native tools in-house.

According to Muktesh Narula, AI can enable enterprises to provide customer support and engagement around the clock. By integrating AI into multiple communication channels, businesses can respond to customer queries through voice or chat without being restricted to conventional working hours. This is contributing to growing enterprise interest in AI-based customer engagement solutions.

Dove Soft’s customer base spans sectors including retail, media, healthcare, e-commerce and banking. Muktesh Narula said customer communication has become relevant across industries, with healthcare emerging as one area where the company is seeing growing applications, including appointment reminders and patient engagement. Banking and e-commerce also continue to offer opportunities, given the extensive use of transactional, promotional and authentication-based communication.

IPO proceeds to address working capital requirements

The company is looking to raise ₹73.26 crore through its IPO, with the fresh issue proceeds primarily earmarked for working capital requirements and general corporate purposes.

Explaining the working capital requirement, Muktesh Narula said the company’s enterprise business typically requires offering customers credit periods of around 90 days, while direct connectivity arrangements with telecom operators and platforms such as Meta and Google for RCS generally involve payment expectations of around 30 days.

The IPO proceeds are therefore expected to provide greater working-capital flexibility. Muktesh Narula also said that greater direct procurement of communication channels from operators could potentially help the company reduce its costs by 5–8%, which could support margins.

Expansion beyond existing markets

Dove Soft is also looking to expand its geographical footprint. The company has operations across Mumbai, Ahmedabad, Gurugram and Dubai, with Muktesh Narula highlighting strong growth in the northern market following the opening of its Gurugram office.

While the company has established a stronger presence in western and northern India, it now plans to expand further into eastern and southern markets. Internationally, Dubai remains an important market for the company, while Europe and Southeast Asia are being explored for future expansion. Muktesh Narula specifically mentioned markets such as Indonesia, Malaysia and South Korea as areas of interest.

AI and Open Network APIs remain key focus areas

As enterprises increasingly seek unified communication platforms, Dove Soft is positioning its integrated platform around multiple communication channels combined with AI-led tools.

Muktesh Narula pointed to solutions such as SupportX, which helps generate support tickets through chat platforms, and Calendrix, along with the company’s Open Network API capabilities, as areas that differentiate its platform.

Looking ahead, Muktesh Narula identified Open Network APIs as a key area to watch. Dove Soft is currently working on authentication and SIM-swap services through these APIs and has already acquired large banking customers while piloting the technology with larger organisations requiring authentication and security solutions.

Muktesh Narula said the company sees significant potential in this segment and plans to continue expanding its presence in the space as it moves into its next phase as a listed company.