Avenuesai Ltd · NSE:CCAVENUE
Avenuesai — Infibeam Avenues — Q4 FY21 Earnings Presentation
28 slides from Avenuesai's earnings presentation, May 27, 2021
Slide 1: Infibeam Avenues exchange filing letter
Tl.t FIBE E UES May 27, 2021 BSELimited National Stock Exchange of India ·Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Company Code No.: 539807 Company Symbol: INFIBEAM Dear Sir/ Madam, Sub: Investors Pr
Slide 2: Accelerating eCommerce: Q4'21 Investor Presentation
Accelerating eCommerce PAYMENTS | PLATFORMS In the fast growing digital economies of the world A Global FinTech Company Q4’21 Investor Presentation 3Q FY21 27 May 2021
Slide 3: Disclaimer
Disclaimer This presentation contains certain words and statements concerning Infibeam Avenues Limited (“the Company”) and its prospects, and other statements relating to the Company’s expected financial position, business strategy, the future development of the Company’s operations and the general
Slide 4: Industry & Opportunity
INDUSTRY & OPPORTUNITY | )
Slide 5: Digital payment options for the consumer
Digital payment options for the consumer The Indian consumer is spoilt for choice Consumer’s Choices today Most innovations in India are around debiting the bank account India is a debit market and has high cash usage (People spend only what they have in Bank or as cash) 4
Slide 6: Cash has been the king in India
Cash has been the king in India Why digital payments will grow 5
Slide 7: Low digital transactions per capita in India presents massive opportunity
Low digital transactions per capita per annum in India presents massive opportunity Digital transactions per capita per annum (Global) Country 2015 2016 2017 Singapore 727.9 759 782.4 Sweden 428.8 481.4 497.9 17.5 * Per capita USA 420.9 442.6 473.6 transactions in India, Euro Area 156.9 172.6 186.8
Slide 8: Opportunity and Outlook – India Payment Gateways
Opportunity and Outlook – India Payment Gateways Potential 800 million Indian mobile payment consumers Most Lucrative Payment gateway/m-PoS High Competition Long Gestation Lending platform / Payment Neo Banks Embedded finance Platforms Wealth-tech/Insur-tech Consumer Play Source: BofA Global Researc
Slide 9: Payments Industry Landscape
Payments Industry Landscape Source: Medici- India Fintech Report 2020, 2nd Edition 8
Slide 10: Business Overview
BUSINESS OVERVIEW
Slide 11: Company overview
Company overview ➢ Founded in 2007, based in India, started as an eCommerce enabler, 2.5+ mn Rs 2+ tn ($28 bn) Rs 100,000+ cr Top 2 entered into the payments sector through the merger with India’s merchants; FY 2022 orders processed in India & leading payment gateway platform CCAvenue in 2017 (CCAve
Slide 12: Company and Business snapshot
Company and Business snapshot What we offer Customer Segment ➢ We offer financial technology (fintech) platforms to enable merchants ➢ Merchants (brick-and-mortar, MSMEs, large to do business online enterprises incl. Govt., Banks/FIs, PSUs and more) ➢ Our fintech platforms enable; ➢ B2B business mod
Slide 13: Two core business lines (Payments & Platforms) with multiple growth engines
Two core business lines (Payments & Platforms) with multiple growth engines Entp. eComm. Full Stack B2B Digital Payment Solutions Software Payment Acceptance, Payment Issuance, Neo Banking, Assisted commerce, Remittances, Bill Payments Platforms Neo Banking + DMT Payment Gateway + Acquiror Processor
Slide 14: Payment business' monetization ecosystem
Payment business’ monetization ecosystem Merchant Sourcing Platforms > 2.5mn+ total merchants > avg. 2000+ merchants integrated everyday > opportunity to offer various FinTech solutions Receive Payments > Payment solutions for merchants to accept money online Lending > Lending solutions targeted at
Slide 15: Performance Review
PERFORMANCE REVIEW | \
Slide 16: Key business developments and highlights during the year
Key business developments and highlights during the year Platforms ➢ Definitive agreement with Reliance Industries’ Jio Platforms Limited and its affiliates (JPL) to; o license, customise, maintain and access IAL’s Enterprise E-commerce Software and Payments Platform for their business use Payments
Slide 17: Strong operational performance
Strong operational performance Payments TPV (Rs.cr) Bill Payments Volume & TPV – Indexed to 100 GeM Cumulative TPV (Rs. cr) 100,780 Volume GTV $100 bn; Govt’s. targeted 103,000 1,032 procurement on GeM 64,827 695 663 Covid 541 52,000 impacted qtr. 29,735 32,554 351 392 23,819 280 14,672 184 100 100
Slide 18: IAL's revenue model
IAL’s revenue model Gross revenue Operating expenses (Payments + Platforms) - (Payment processing charges charged to partners) = Net revenue OR Transaction (txn.) based Non- transaction revenue net revenue + (Subscriptions + License + set-up fee + AMC + VAS) = Net revenue (Payments + Platforms) Grow
Slide 19: Digital payments - Ecosystem players in eCommerce payment transaction
Digital payments - Ecosystem players in eCommerce payment transaction (Credit card option) Typical online payment transaction – Consumer using credit card as a payment option Charges 2% of txn. Transaction cost is charged to the merchant and shared between all the parties value to merchant Major por
Slide 20: FY21 Financial performance – Growth acceleration continues
FY21 Financial performance – Growth acceleration continues in transaction based business (Consolidated) Q4 Q3 chng Q4 chng FY20 FY21 YoY P&L Review in INR crore FY21 FY21 QoQ FY20 YoY ➢ Structured pricing in payments to capture market Txn. Processed 87,822 139,405 ➢ Monthly TPV of approx. Rs.17,000
Slide 21: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Particulars (INR crore) FY20 FY21 Cash and cash equivalent 989 1,782 ➢ EBITDA to cash conversion: >100% consistently for last five years Net (Debt) / Cash 725 1,583 Cash flow from operations (CFO) 1 159 148 ➢ Cash from operations: consistently positive in the last five year
Slide 22: Outlook
Outlook ➢ Increase transaction processing value to US$ 100bn in 3-5 years from FY22 run-rate of US$ 28 bn ➢ EBITDA as percentage of Net revenue to improve from 61% in FY21 to 65% in FY22 ➢ Increase secured lending under neo banking from $100mn to $200mn in FY22 21
Slide 23: Investment Thesis
INVESTMENT THESIS
Slide 24: Significant embedded business growth drivers
Significant embedded business growth drivers India growth International expansion New businesses ➢ Payment Gateway ➢ GCC (UAE, KSA, Oman, Bahrain, ➢ CGPS – Processing online card ➢ Bill Payments Kuwait, Qatar) payments for banks ➢ Domestic remittance + assisted commerce ➢ USA ➢ Neo banking for SMEs
Slide 25: Ahead of competition
Ahead of competition Fintech offering Infibeam Avenues Peer 1 Peer 2 Peer 3 Payment Gateway ✓ ✓ ✓ ✓ B2B Payments ✓ ✓ White label solution ✓ Acquiror Processor (MPI, Switch, etc.) ✓ Lending ✓ ✓ ✓ BBPS ✓ ✓ ✓ ResAvenue ✓ Domestic Remittances ✓ International Remittances ✓
Slide 26: Strong Leadership team
Strong Leadership team Mr. Vishal Mehta – Managing Director Mr. Vishwas Patel – Executive Director Engineering, Cornell Management, MIT Sloan. Chairman – Payments Council of India Dell; Amazon USA LLB, Government Law College Founder, Avenues India Mr. Srikanth Rajagopalan – President Mr. Vijaykumar
Slide 27: Few Awards and Recognition
Few Awards and Recognition Best BFSI Brands 2021 Best Technology Platform The Economic Times Best BFSI Brands Summit 2021 Skotch Award: Technology deployment for Government Projects & Digital Platforms Best Digital Payment Facilitator Best Workplace of the Year Driver of Digital Awards and Summit 20
Slide 28: Thank You
PAYMENTS | PLATFORMS Thank You Investor Relations Purvesh Parekh purvesh.parekh@ia.ooo +91 9930554588 To know more, visit us at: www.ia.ooo | www.ccavenue.ooo