The co-founders of Swedish caller identification app Truecaller are stepping back from day-to-day operations, marking the end of an era for one of Sweden’s most successful consumer technology companies.

Alan Mamedi and Nami Zarringhalam (pictured above), who co-founded Truecaller in 2009, will hand over control in January to Rishit Jhunjhunwala, the company’s product chief and head of its crucial Indian business. Both founders will remain with the company as strategic advisers and board members.

“We’re approaching half-a-billion users, and I am convinced we can reach one billion users within a few years,” said Mamedi in his final quarterly statement as chief executive. “We are one of the very few companies globally whose product has managed to attract hundreds of millions of people. By doing that, we have put Sweden on the world map, [and] that accomplishment is something my co-founder Nami and I are incredibly proud of.”

Jhunjhunwala, who joined in 2015 and holds a Swedish passport, inherits a company whose stock is rebounding after a tough few years. The company’s shares lost value steadily following its IPO in 2021, and last year fell more than 32% overnight after the firm reported a 20% decline in quarterly advertising revenues, mostly due to a contracting advertising market.

The stock has recovered well since then, however, nearly doubling in value, and Truecaller on Wednesday said its third-quarter revenues rose 15% to SEK 457.3 million ($42.3 million). More significantly, advertising revenue increased 8% in the third quarter after several quarters of decline — alleviating concerns about its crucial ad revenue stream.

The company also showed promising growth in strategic markets like Colombia and Nigeria, where user numbers jumped 40% year-over-year. Subscription revenues in the U.S. rose more than 60% as the company focused on converting users to paying customers.

J.P. Morgan analysts have noted that new market entries and emerging revenue streams could drive further upside for the stock.

Truecaller dominates caller identification in emerging markets, but has found it difficult to penetrate developed economies. And while iPhone users represent just 7% of the company’s user base, they generate 40% of its subscription revenue — a disparity that highlights both the challenges and opportunities ahead.

Recognizing that opportunity, the company plans to launch what its executives are calling its “largest product improvement ever” for iOS this quarter in an effort to match some of the app’s capabilities on Android.

It's been an incredible journey @AlanMamedi @Zarringhalam. So proud of you guys, from where the company started to now growing faster than ever in users!

And very supportive of this transition to @rishj who I have tremendous respect for, and has built the org alongside you… https://t.co/5CkOHi1qzT

— Shailesh Lakhani (@shaileshlakhani) November 6, 2024

“Having worked closely with Alan and Nami since 2015, I know these are big shoes to fill,” said Jhunjhunwala, who has overseen product development and the company’s two largest revenue streams.

Jhunjhunwala will have to navigate a hopeful but challenging market. The company faces regulatory scrutiny in India, where it generates over 70% of its revenues. Recent reports suggested that telecom operator Airtel’s new spam-blocking tool could threaten Truecaller’s dominance, though early reviews of the telco’s offering favor Truecaller.

“We have a fantastic management team in whom we have immense trust,” said Mamedi and Zarringhalam in a joint statement. “With these pieces in place, we are convinced that the company is well positioned for future success.”