Majesco is one of the recommended stocks in our advisory services to our clients.

We are happy as well as sad about this deal.

Please read the thread.

@jitenkparmar and @niteen_india both the founders of @CapitalAurum have background in s/w product cos
(1/11) https://twitter.com/CNBCTV18News/status/1285435661911113728

@jitenkParmar founded one product co and successfully exited in the USA during the peak of dot com bubble and @niteen_india associated with a software product company that requires cloud infra and a software co that dealt with the US based insurers.

We had seen the crazy valuations the product cos get in the US. Majesco was one of the rare successful product companies from India. It requires different vision, execution capabilities to establish a software product company vs a software services company.

Unfortunately we don't value these cos in India. When we recommended this stock, we had to educate a lot to our subscribers abt merit of this investment. We were confident as we had seen how Guidewire, Duck Creek, CSC (now DXC) get valued in the USA. We hv seen their dominance.

Majesco's positioning was very smart. They were serving small insurance companies of the size of USD 500Mn-2Bn. None of the major software companies had a strong presence.

Majesco was also smart to move to cloud infra from on-demand. This made a huge difference. This helps in deploying the product super fast. The stated strategy of the company to move away from the traditional IT services and on-prem product to cloud installations.

Cloud installations are futuristic, help cos manage operations easier. There are many successful examples. One of the examples is from the CRM industry. The traditional companies were selling CRM installations but Salesforce took away all the biz through its cloud installations.

Product mgmt and upgrades become very easy. Also, the model changes to the subscription-based model ensuring a win-win for both product co as well as customers. The product co has to constantly innovate in its product but that is the case with traditional product model as well.

It is much easier to manage product upgrade in cloud based model where upgrades pushed right in one go instead every customer. @niteen_india, one of co-founders of @CapitalAurum, has experience in cloud-based product model. It was natural to relate and foresee benefits.

We hv been asked questions abt viability of biz 4-5yrs down the line. We believed customer stickiness is higher in cloud-based model. In Ins sector, vendors are not changed quickly due to nature of biz and regulatory requirements. Majesco's move towards cloud was better for co.

We are happy as Investment turns out super bumper but sad as one of the rare successes in product space from India is not valued in the Indian market.

Disc: Recommended to clients, holding in personal/family portfolios. No recommendations, just sharing as case study. (11/11)