Nexmo Gaining Traction in Wholesale Text Messaging Market

Nexmo is quietly sneaking up on its older and larger competitor Twilio. The wholesale text messaging provider is now handling 250 million app-to-person text messages a month, as reported in Gigaom.

Sending high-volume SMS through old-school telco carriers is a hassle that doesn’t meld with the web friendly world of APIs. If you wanted to do it yourself through your own app, you would have to forge relationships with multiple carriers, operate heavy infrastructure and negotiate pricing and contracts. Try doing this with hundreds of carriers around the globe. It is simply too big a headache for most to deal with.

Enter Twilio and Nexmo. Both firms offer RESTful APIs that let developers seamlessly add SMS to their apps with only a few lines of code. Twilio has an API for voice as well, but Nexmo has remained focused on the global SMS market and charges up to 30% less per text.

More and more companies are relying on SMS to communicate important information instantly to customers. They use text messaging to send notifications on hotel or car bookings, bill payments, password changes, disruptions in service and more.

Nexmo is behind the SMS service for Line, Viber, and Glide. It also sends text alerts and booking confirmations for Airbnb and Tagged.

The London-San Francisco startup’s current run rate is 2 billion SMS transactions annually, and company CEO Tony Jamous told Gigaom, he expects traffic to grow by 20% each month.

In February, the company received a $3 million in series A funding from Intel Capital and continues to look for addition funding to pay for infrastructure. Right now, Nexmo offers service in 200 countries, but pans to eventually offer service in every corner of the world.

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