Karachi June 27 2024: TRG Pakistan Portfolio company is in discussions with prospective and existing capital providers in relation to the refinancing of the maturing portion of its long term debt.
TRG Pakistan portfolio company that provides Artificial Intelligence Enterprise Software Afiniti continues to focus on consolidating recent new logo wins to mitigate revenue volatility on some of its existing large accounts.
The AI Software Business has also made significant progress in commercializing new products related to call routing infrastructure that it expects to monetize via external partnerships. The Business expects its revenue run-rate to accordingly normalize during the upcoming fiscal year and also remains committed to strengthening renewed cost discipline implemented during FY23-24.
“Revenue volatility loomed due to industry pressures on the top two clients, though other client revenues remained stable. The previous fiscal year, FY23, had seen revenues at a robust $266 million, but FY24 was expected to see a decline due to the impact from these key clients” says management of the company.
In addition, following the appointment of an investment banking advisor in late 2023, the Business is engaged in discussions with prospective and existing capital providers in relation to the refinancing of the maturing portion of its long term debt.
“The company faced a daunting challenge: a debt load exceeding $500 million. This was deemed excessive for the current business environment, especially given the decline in industry valuations” says management.
Company continue to remain cautiously optimistic of the long-term trajectory of the Business, despite market headwinds in the broader enterprise software industry, changes in the technology landscape, and more challenging capital markets.
