Truecaller Founders Transition Leadership as App Gains New Momentum

The co-founders of Truecaller, Alan Mamedi and Nami Zarringhalam, are stepping back from day-to-day leadership of the popular caller identification app. The duo, who launched the Swedish company in 2009, will hand over operational control in January to Rishit Jhunjhunwala, Truecaller’s product chief and the head of its fast-growing Indian division. Mamedi and Zarringhalam will remain involved as board members and strategic advisors.

“Reaching half a billion users is incredible, and we’re on track to reach a billion,” said Mamedi, reflecting on their journey in his final quarterly report as CEO. Jhunjhunwala, who joined the company in 2015, inherits a business that has rebounded after recent challenges, including share price drops after the 2021 IPO and a slump in ad revenue last year.

Truecaller’s third-quarter financials this year revealed a promising upswing: revenue grew 15%, while advertising revenue climbed by 8%, addressing earlier concerns about the ad segment. Growth has also been strong in markets such as Colombia and Nigeria, with a 40% increase in user numbers, and subscription revenues have surged in the U.S.

Analysts at JPMorgan note that Truecaller’s expanding presence in new markets and diversifying revenue streams could continue to drive growth. The app, which leads the caller ID market in several emerging economies, plans to launch a significant iOS update, aiming to enhance functionality for its growing base of iPhone users, who currently generate 40% of subscription revenue despite representing only 7% of users.

However, Truecaller faces ongoing challenges, including competition from telecom operators like Airtel in India, its largest market, and regulatory pressures in key regions. Still, Mamedi and Zarringhalam expressed optimism about Truecaller’s future in a joint statement, citing a strong management team poised to lead the next phase.