[HN Gopher] Sinch to acquire Mailgun
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       Sinch to acquire Mailgun
        
       Author : lox
       Score  : 139 points
       Date   : 2021-09-30 10:15 UTC (12 hours ago)
        
 (HTM) web link (www.mailgun.com)
 (TXT) w3m dump (www.mailgun.com)
        
       | blueatlas wrote:
       | I recently switched over to MailerSend for all of our
       | transactional e-mail. It's drop-dead simple to setup a new
       | domain, and you can manage multiple domains under one account.
       | Their domain validation is rock solid and IP address pool is
       | clean and not blacklisted. Logging and analytics could use some
       | feature upgrades, but it's not bad. Support has been excellent. I
       | have no connection to MailerSend other than being a relatively
       | new customer.
       | 
       | https://www.mailersend.com/
        
         | abdusco wrote:
         | Wow, I've been looking for a Mailgun replacement for a long
         | time. I was using it to receive emails at @mydomain.com and
         | forward them to my primary email. Then they started charging
         | for inbound routes, and I couldn't justify the price for <200
         | emails a month. So I switched back to my registrar's free email
         | forwarding, and had to give up API support.
         | 
         | MailerSend seems to be a great alternative.
        
         | fosron wrote:
         | Thanks for your kind words! I'm a lead developer over at
         | MailerSend and every happy customer is a driving force to make
         | our product better!
        
           | system2 wrote:
           | Minimum $25 per month is not a good deal for many customers
           | like me. Sometimes clients send $9-15 per month emails from
           | their sites, sometimes $50 worth (with mailgun). I don't want
           | to pay a fixed price like $25 when I may only use 1/5 of it.
        
           | jacobobryant wrote:
           | I love that the pricing page is simple instead of having
           | multiple paid tiers each with their own pricing scale for #
           | of monthly emails. I'm currently doing 100k/month with
           | Mailgun, and while saving money on sending isn't much of a
           | priority at the moment, I'll definitely look into this more
           | down the road. Maybe try it out for a side project in the
           | mean time.
           | 
           | I'm sort of surprised I haven't noticed this before when
           | researching email providers.
        
       | orliesaurus wrote:
       | I remember talking to some folks from Sinch in 2014, i always
       | laughed because I thought they were just Twilio copycats...well
       | now they have acquired two companies I worked at. Impressive. I
       | guess they're the ones laughing now!
        
       | corobo wrote:
       | What is it that keeps Mailgun being passed from company to
       | company like a hot potato?
       | 
       | Feel like I've had "oh here we go, incredible journey that needs
       | me to reconfigure everything" a few times now
       | 
       | e: in fairness to Mailgun the most recent one I was thinking of
       | (Pathwire) was a branding thing not a purchase
        
         | yetanother-1 wrote:
         | I woild say different expectations from each acquisition, less
         | profit and more overhead.
        
           | toomuchtodo wrote:
           | Trying to squeeze profits out of what should be a non profit
           | (like Let's Encrypt, Quad 9, etc).
        
         | Hamuko wrote:
         | Yeah, the first thing that I thought when I opened the blog
         | post and saw "Mailgun by Pathwire" was "wait, I thought this
         | was Mailgun by Rackspace".
         | 
         | Apparently I'm way behind on the Mailgun ownership saga.
        
         | laurent92 wrote:
         | I'm afraid how much sensitive information transits through
         | email services. Notably, all credentials to access accounts,
         | and possible viruses. Maybe, after the buyer takes ownership,
         | they realize the immense liability it is, and decide to get rid
         | of it.
        
           | jaywalk wrote:
           | > all credentials to access accounts
           | 
           | What?
        
             | cldellow wrote:
             | Proof of ownership of an email address is often used to
             | prove ownership of an account on a third-party site.
             | 
             | Common examples are "forget password" workflows and
             | Spotify/Slack's magic login link workflows.
             | 
             | If you own the transactional mail service through which all
             | these flow, you are now responsible for the security of a
             | large chunk of the Internet.
        
         | tootie wrote:
         | Well, it seems the actual deal is that Sinch is acquiring
         | Pathwire. Mailgun is their biggest brand, but they also own
         | Mailjet and Email on Acid.
        
       | gh123man wrote:
       | Ive been using mailgun since before they restricted the free tier
       | to forward emails from my personal domain to my gmail (and
       | respond to them with SMTP creds via gmail).
       | 
       | Thankfully my wildcard routes have been grandfathered when the
       | change happened but I feel that my days are numbered on their
       | service. Since I send/receive <100 emails/month, $35 is far too
       | much for my simple use case.
       | 
       | Can anyone recommend a pay as you go, or a cheaper mail routing
       | service that I can use this way?
        
         | KyleJune wrote:
         | I have catch all emails for 2 of my domain and wildcard
         | subdomains for them all go to one inbox using fastmail. I have
         | it sync emails from my gmail to fastmail so that I can continue
         | to get mail to my old address. It's just $5/month, I'm pretty
         | happy with it.
        
         | czardoz wrote:
         | I've moved to Zoho mail. It's $1/month for a single user, which
         | seems to be well worth it. The catch is, it's not possible to
         | _send_ from Zoho without creating additional users (which has a
         | cost).
        
         | moogly wrote:
         | I also am a happy paying Fastmail customer w/ a custom domain,
         | but perhaps you could look into Cloudflare Email Routing[1]
         | that was announced just a few days ago? It's in private beta.
         | 
         | [1] https://news.ycombinator.com/item?id=28670125
        
       | pipnonsense wrote:
       | I hope their customer support continues to be good.
       | 
       | I had a hit on HN with a side-project last year [0]. It delivers
       | public domain books in chapters to your email. So I was needing
       | to send over 1,000 emails a day from day one basically.
       | 
       | I initially used SendGrid for my project, but SendGrid's free
       | trial had a limit of 100 emails a day. Well, I just needed to
       | upgrade, right? Wrong. Sendgrid had a rule where it was
       | impossible to upgrade from the free trial until the trial period
       | was over. So 90% of my emails were not being delivered because I
       | wasn't in a paid plan and I couldn't upgrade to a paid plan.
       | 
       | The worst part is that it wasn't very straightforward to
       | understand I was in that catch 22. It took me about 4 or 5 days
       | of sending their customer support messages and them taking too
       | long to reply and not being very clear in their replies to
       | understand the whole issue. And even proving that my traffic was
       | legit (the HN post was enough evidence that I was not sending
       | spam I think) was not enough for them to allow me to upgrade.
       | 
       | So I immediately changed to MailGun. They had similar worries
       | about a new account with significant email traffic, but I sent an
       | email to customer support right after signing up, they replied in
       | an hour or so already allowing me to upgrade. Never had an issue
       | with MailGun and I am very happy with their tech and service.
       | 
       | I am now creating a business on top of email delivery and staying
       | with them. Hope this acquisition doesn't change much in that
       | front.
       | 
       | [0] https://news.ycombinator.com/item?id=24307752
        
         | samdung wrote:
         | Have you tried https://sendwithses.com or https://sendy.co/ ?
        
           | kehers wrote:
           | It's not the same as what Mailgun does. Mailgun lets you send
           | emails programmatically. Sendy/Sendwithses lets you send
           | campaigns from an interface (using your SES).
        
           | pipnonsense wrote:
           | I changed at the time to Mailgun and I am happy there, so not
           | looking into other options for now.
           | 
           | But at the time I look at those and preferred a solution with
           | less upfront configuration required and less things to manage
           | in general. It was a side-project that required a very quick
           | solution. Mailgun was perfect for this.
        
         | baobabKoodaa wrote:
         | > I initially used SendGrid for my project, but SendGrid's free
         | trial had a limit of 100 emails a day. Well, I just needed to
         | upgrade, right? Wrong. Sendgrid had a rule where it was
         | impossible to upgrade from the free trial until the trial
         | period was over. So 90% of my emails were not being delivered
         | because I wasn't in a paid plan and I couldn't upgrade to a
         | paid plan.
         | 
         | I feel like there's a business lesson in there somewhere, but
         | can't quite put my finger on it.
        
           | statictype wrote:
           | "Never get in the way of someone wanting to give you money"
        
             | BrianOnHN wrote:
             | SendGrid was still right imo, and I hate shitty customer
             | service. What they could've done better is explain that $$$
             | for sending @1000 emails/day isn't worth sidestepping
             | procedures which are wholly designed to stop spammers that
             | can have %% impact on bottom line by degrading email IP
             | reputations.
             | 
             | Sorry for the winded explanation. I think the gist is
             | there.
        
               | twodollars wrote:
               | Sendgrid took the time to go back and forth and ended up
               | doing nothing. Why not spend that time vetting the
               | legitimacy of the emails?
        
               | pipnonsense wrote:
               | That's my biggest issue.
               | 
               | One day at the front page of HN of a single page where
               | the only thing you can do is sign up to receive emails is
               | enough to justify 1,000 emails a day IMO. Without knowing
               | anything else, I think the customer support person that
               | took the time to reply me a few times to explain the
               | issue, could have made the decision that likelihood of my
               | service being spam is ~0%.
               | 
               | edit: that's exactly what they did at Mailgun btw. The
               | first reply came with a _" I'll need to check with other
               | team"_. Hours later, without any followup from me, came
               | the second reply with _" Thanks for providing the
               | information. We have removed the limitations to your
               | account."_ (copied pasted). Excellent execution in both
               | getting the account and keeping the risk of delivering
               | spam through their service very low. Compare this to
               | Sendgrid, with three or four cryptic replies, and a lost
               | account.
               | 
               | Check Amplitude's CEO HN thread about what drove the
               | success of the company to the IPO. Among other things,
               | making it easy/free for small companies to use Amplitude,
               | even though their sole business model was to aim at big
               | corporate accounts. For a few small companies that would
               | turn into big corporate accounts or that were acquired by
               | big corporations that would then adopt Amplitude and
               | become big corporate accounts.
               | 
               | I think it would make strategic sense for SendGrid to
               | greenlight my account. It was not a sensible, necessary
               | anti-spam policy IMO, it was just poor execution.
        
             | Twirrim wrote:
             | It never ceases to be amazing how often I have to bite my
             | tongue and not say that during meetings.
             | 
             | Someone wants to give us money, for our product, at a price
             | that will make us a profit. Let them.
        
               | munk-a wrote:
               | Every once in a while that profit will come at a large
               | opportunity cost - so you can't commit freely to every
               | such offering... but yea if you find yourself frequently
               | turning down opportunities like this then you need to
               | examine why your business direction doesn't seem to match
               | customer needs.
        
           | EleanorKonik wrote:
           | Ghost just won't let users upgrade from a complimentary plan
           | right now and it's _maddening_ because I had to comp a bunch
           | of people who would probably be happy to pay me if it wasn't
           | a hassle, because of a billing error.
           | 
           | I wish more businesses knew this lesson :(
        
       | crocodiletears wrote:
       | I just created an account on mailgun the other day for a project
       | I'm working on. In case they go downhill, what are the best
       | alternatives?
        
         | abdusco wrote:
         | See this comment: https://news.ycombinator.com/item?id=28705793
        
       | 1cvmask wrote:
       | Seems like they are following the Twilio playbook.
        
         | brightball wrote:
         | Yea. I wasn't familiar with Sinch but it does sound like they
         | are a Twilio competitor.
        
           | moogly wrote:
           | I haven't heard of them either, but this is apparently the
           | third company they've acquired for more than a billion
           | dollars this year. The others were Inteliquent for $1.1B in
           | February and MessageMedia in June for $1.3B.
           | 
           | https://investors.sinch.com/acquisitions
        
       | fasteo wrote:
       | I am a customer of both Sinch (actually mblox and mobile 365) and
       | mailgun. Let's see how things works in the day to day operations.
       | 
       | More financials details here [1]
       | 
       |  _Using yesterday's closing Sinch share price of SEK 165.9, and
       | USD /SEK exchange rate of 8.8, this corresponds to an enterprise
       | value of approximately USD 1.9 billion, or SEK 16.6 billion._
       | 
       |  _In the twelve months ending December 31, 2021, Pathwire is
       | expected to record revenues of USD 132 million, Gross Profit of
       | USD 104 million, and Adjusted EBITDA of USD 55 million. This
       | corresponds to a gross margin of 79 percent and an adjusted
       | EBITDA margin of 42 percent. The business employs around 290
       | people and is headquartered in San Antonio, Texas._
       | 
       | If my math is right, they are paying x34 EBITDA, x14 ARR, huge
       | multipliers if you ask me.
       | 
       | Too much cash in the system I guess.
       | 
       | [1] https://investors.sinch.com/news-releases/news-release-
       | detai...
        
       | annoyingnoob wrote:
       | I send everything from Mailgun to quarantine due to all of the
       | spam and phishing. How do folks that run email services sleep at
       | night?
        
         | etaioinshrdlu wrote:
         | That's funny, I always thought they were the authoritarian
         | email choice, they technically don't even allow sending
         | marketing.
         | 
         | Do they just not police their service well?
        
         | nkotov wrote:
         | I know someone in the "unsolicited" business, their answer is
         | literally, "money". The money that could be made in the
         | industry is insane. Last year, they did $50m.
        
       | parasdahal wrote:
       | Mailgun has the worst customer service I have ever come across,
       | hope this might help them get back on track.
        
       | shafyy wrote:
       | If you're looking for no-fringe transactional email sender that
       | are going down the bootstrapped indie route, I can recommend
       | https://ohmysmtp.com
       | 
       | I have no connection to them except being a happy customer.
        
         | albertgoeswoof wrote:
         | Thanks for the recommendation! I'm the founder of OhMySMTP,
         | happy to answer any questions here or over our support email.
        
           | edoceo wrote:
           | How much work is it, really, to keep IPs "clean" from Spam
           | filters? Or is domain rank more important?
        
             | albertgoeswoof wrote:
             | The main method is to stop spam being sent from your IPs in
             | the fist place. We have a number of mechanisms:
             | 
             | - Automated outgoing spam filters (via rspamd) to prevent
             | obvious spam emails
             | 
             | - Enforced DKIM validation on all accounts
             | 
             | - Automated / manual review of sudden outgoing email spikes
             | 
             | - Automated bounce response management
             | 
             | - Automatic block lists for any emails that hard bounce
             | 
             | - No free plan
             | 
             | - Manual review of new accounts
             | 
             | Additionally behaving as a legit sender helps, so things
             | like greylisting, the right encryption support, rDNS
             | records etc all need to be in place.
             | 
             | We also monitor the public block lists and take action if
             | our IPs are mistakenly added to them
        
               | edoceo wrote:
               | Woah, can you actually get a response from SpamHaus?
        
           | jorams wrote:
           | Just a heads up: If scripts from cdn.paddle.com fail to load
           | your pricing page is currently very confusing, with no real
           | indication that anything is going wrong: The "Solo" plan
           | shows as $40 per month, while the "Scaling" plan starts at
           | $10 per month. In other words, Solo looks 4 times as
           | expensive for 10% of the emails. I spent some time trying to
           | find other differences, but it's just wrong.
           | 
           | Maybe default to showing something like $-- instead, as a
           | clear indicator that prices have not loaded.
        
             | albertgoeswoof wrote:
             | Thanks! We'll rework this so it can work without paddle.
        
           | sleepyhead wrote:
           | Are your servers in the EU? I'm currently using Postmark but
           | looking for alternatives to avoid US data transfer.
        
             | albertgoeswoof wrote:
             | Currently everything is UK based- but we have been asked
             | for an EU version quite a few times now. It's in the
             | pipeline.
        
           | shafyy wrote:
           | Keep up the great work!
        
         | patrickbolle wrote:
         | How many emails do you send with them? I send > 200k and
         | interested to know what their pricing turns into in the
         | 'Enterprise' plan.
         | 
         | Thanks for the link though, good to see other people in the
         | space (currently using Mailgun)
        
           | shafyy wrote:
           | Not that many. I'm on their lowest plan. Sorry that I can't
           | be of further help.
        
       | svdr wrote:
       | Mailjet has been acquired as well:
       | https://www.mailjet.com/blog/news/sinch-to-acquire-pathwire/
        
         | programmarchy wrote:
         | Sounds like Pathwire had previously acquired both Mailgun and
         | Mailjet (and "Email on Acid", which I hadn't heard of until
         | today), then Sinch acquired Pathwire. So lots of consolidation
         | happening.
         | 
         | I'd be curious to know how much of the marketshare they own
         | now. Other players I know of are SendGrid, MailChimp, and
         | Mandrill.
        
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       (page generated 2021-09-30 23:02 UTC)