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BW Businessworld

US-based Arrcus Sets Sights On $5 Bn Indian Networking Market

Currently, around 40 per cent of Arrcus' workforce is based in Bengaluru

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In a bid to capitalise on the unprecedented wave of technology adoption and infrastructure consumption in India, Arrcus, a cutting-edge networking solutions provider, is making significant strides in the Indian market. Led by CEO Shekar Ayyar, the company is aiming to bring its innovative networking solutions to the rapidly evolving Indian landscape, which has witnessed remarkable progress in mobile telephony and digital transactions.

Speaking with BW Businessworld, Ayyar says Arrcus has recognised the immense potential India holds with its vast population and the rapid adoption of technologies like mobile telephony and digital payments, which have leapfrogged into the mainstream. The country's ever-increasing numbers of mobile users and digital transactions create a tremendous demand for seamless and low-latency networking solutions to support connectivity for millions of consumers.

Expanding Presence In India

With the Indian market opening up as a lucrative destination for Arrcus, the company plans to invest further in the region to leverage the growing opportunities. Currently, around 40 per cent of Arrcus' workforce is based in Bengaluru, but the company anticipates a significant expansion in both development and sales and marketing operations across various cities in India.

Ayyar says that the networking market Arrcus is targeting, primarily centred around routing and switching, is valued at approximately USD 80 billion globally. This includes the deployment of routers and switches in various networking environments, ranging from data centres to multi-cloud setups and the expanding 5G landscape.

But what’s the total addressable market (TAM) in India for Arrcus? “Historically, India's consumption in this market has been relatively smaller. However, at present, we anticipate that India's market share could account for around 6-8 per cent of the global TAM (i.e., about USD 4.8-6.4 billion) in the foreseeable future,” explains Ayyar.

In India, Arrcus is looking to engage with large financial services organisations, data centres, telecommunication and industrial companies, all of whom have shown strong interest in the company's innovative networking solutions. The company is currently initiating proofs of concept and trials with potential customers and expects to be commercially deployed in India by the end of the year, Ayyar told BW Businessworld.

Unique Approach: Software Programmability And Distributed Networking

Arrcus Networks differentiates itself from traditional networking providers like Cisco, Juniper and Arista by offering a unique approach to networking technology. While established players have been operating in an era where software programmability, edge computing, 5G, and AI were not the norm, Arrcus embraces these technologies to provide a more modern and agile networking solution.

The San Jose, California-based company’s core innovation lies in its network operating system, ArcOS, which opens up the networking infrastructure to programmability and distribution. Unlike the conventional centralised networking approach, Arrcus allows for more distributed networking, supporting multi-cloud environments and seamless extension into 4G and 5G networks. This architecture is ideal for serving the connectivity needs of hundreds of millions of people, enabling cost savings and scalability for customers.

Funding And Growth Prospects

Arrcus Networks has been gaining significant traction in the market, leading to impressive growth both in terms of revenues and valuation. The company's revenues experienced a remarkable 100 per cent growth last year, and its current valuation stands at approximately USD 400 million. Recently, Arrcus raised USD 50 million in funding, and more recently, secured an undisclosed sum from Hitachi Ventures, showcasing the company's attractiveness to investors despite a challenging market environment.

CEO Shekar Ayyar attributes Arrcus' success to the company's focus on quality and its cutting-edge technology solutions that cater to the rapidly evolving cloud, multi-cloud, and 5G networking landscapes. The Indian market is expected to play a pivotal role in Arrcus' growth trajectory, with the company foreseeing a substantial portion of the global market potential attributable to India.


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