Avenuesai Ltd · NSE:CCAVENUE
Avenuesai — Infibeam Avenues — Q1 FY22 Earnings Presentation
48 slides from Avenuesai's earnings presentation, Aug 10, 2021
Slide 1: Accelerating eCommerce: Earnings & Investor Presentation Q1 FY22
Accelerating eCommerce PAYMENTS | PLATFORMS In the fast growing digital economies of the world A Global FinTech Company Earnings & Investor Presentation 1Q FY22 (Apr’21 – Jun’21) 10 – Aug – 2021
Slide 2: 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 3: Financial & Operational Performance
FINANCIAL & OPERATIONAL PERFORMANCE
Slide 4: Key developments
Key developments ➢ Gross Revenue more than doubled, YoY o up 120% YoY ➢ GeM quarterly TPV at all time high o up 344% YoY; annual run-rate of approx. US$ 10 bn, >2x compared to last year ➢ Payments TPV more than doubled YoY o up 134% YoY, despite much of the quarter being impacted due to lockdown ➢ O
Slide 5: Performance snapshot – Q1 FY22
Performance snapshot – Q1 FY22 TPV Gross Revenue Net Revenue (NR) Net Take Rate INR 50,651 cr INR 216 cr INR 52 cr 7 bps 170 % YoY 120 % YoY 3 % YoY EBITDA EBITDA % of NR PAT PAT % of NR INR 28 cr 54 % INR 13 cr 26 % 9 % YoY 61% in Q1’21 14 % YoY 23% in Q1’21 5
Slide 6: TPV performance review
TPV performance review TPV by industry segment – Q1 FY22 TPV INR 50,651 crore 6% up 170% YoY 12% Education, Govt, Insurance, Utility Retail 49% All Payments GeM Travel, Ticket, Hotel up 129% YoY up 344% YoY IT, Telecom, Recharge, 33% Grocery, Financial UAE Payments up 39% YoY Go Payments up 379% YoY
Slide 7: Consolidated operational performance
Consolidated operational performance Transaction Processing Value (INR crore) ➢ Overall TPV up QoQ despite lockdown in India 202,603 ▪ GeM records highest ever qtly TPV despite lockdown $28bn ▪ India Payments TPV up 1% QoQ, lockdown impacted April 139,406 and May volumes; June TPV up vs. May 85,251
Slide 8: Bill payment performance
Bill payment performance BillAvenue bill payments volume (million) 64 750+ bps YoY increase in market share by volume in Q1’22 90%+ biller market share 25 16 8 10 4 3 FY22E volume at 64 mn above projected volume of 60 mn FY19 FY20 FY21 FY22E* Q1'21 Q4'21 Q1'22 Agent network 725,000+ in 2000+ Indian
Slide 9: Secured lending (express settlement) performance
Secured lending (express settlement) performance Fully secured lending to the merchant against consumers payment already received in the escrow account Express Settlement Growth Long-term IRR Potential p.a. US$ 50+ mn 2x higher than Increase avg. 12% - 48% up 26% QoQ Q4’21 average daily ES 9
Slide 10: Enabling credit / lending business through algorithms, frameworks, platforms and merchants
Enabling credit / lending business through algorithms, frameworks, platforms and merchants 20 - 25 mn 1 3+ mn merchants across portfolio, avg. 1500+ MSMEs merchants activated daily in Q1’22 Potentially addressable merchants >50 mn across the fintech portfolio 3 - 5 mn 1 Lending TAM Express Settlemen
Slide 11: Net revenue and net take rate performance – Q1 FY22
Net revenue and net take rate performance – Q1 FY22 Net revenue Transaction Net Rev INR 52 crore INR 34 crore up 3% YoY up 55% YoY Transaction Net Rev 1 Other Operating Rev TPV 1 Net Take Rate 1 INR 34 crore INR 18 crore INR 50,651 crore 7 bps up 55% YoY down 41% YoY Payments NTR 2 up QoQ Intl. Paym
Slide 12: Payments Business – India
Payments Business – India Ahead of industry in cards vol & val growth and lower UPI share: Industry Leading Net Take Rate CCAvenue Credit Card TPV Growth vs. Industry CCAvenue UPI contribution to TPV vs. Industry UPI contribution 249 222 15.6% CCA Vol: 226 Ind Vol: 89 11.7% 11.4% 10.1% 117 8.4% 100
Slide 13: EBITDA performance by business segments – Q1 FY22
EBITDA performance by business segments – Q1 FY22 ➢ Payments EBITDA review (excl Go Payments) ▪ Consistently high EBITDA as % of NR compared to most payments company ▪ EBITDA margin comparable with some of the top international payment companies; better in some cases 2 ▪ UAE Payments: Very high EBIT
Slide 14: IAL's revenue model
IAL’s revenue model Gross revenue Operating expenses / (Payments + Platforms) - Direct Costs = Net Revenue (Payment processing charges) OR Transaction (txn.) based Non- transaction revenue net revenue (Payments + Platforms) + (Subscriptions + License + set-up fee + AMC + VAS) = Net Revenue Growth dr
Slide 15: 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 16: Financial performance – Growth acceleration continues in transaction based business
Financial performance – Growth acceleration continues in transaction based business Consol. P&L (FYE Mar 31, 20xx) Q1 Q1 change Q4 change FY20 1 FY21 YoY in INR crore FY22 FY21 YoY FY21 QoQ Total TPV 50,651 18,765 170% 50,391 1% 87,822 139,405 64% ($12 bn) ($19 bn) Total Volume (Nos. mn) 55 40 39% 4
Slide 17: Balance Sheet & Cash Flow – Q1 FY22
Balance Sheet & Cash Flow – Q1 FY22 ↗ Stable cash and cash equivalent ↗ Positive cash from operations1: consistent in the last five years ↗ >100% EBITDA to cash conversion2: consistent in the last five years ↗ Negligible debt; under INR 5 crore ↗ Consistently FCF positive 1 Cash from Operations (CFO
Slide 18: Company Overview
COMPANY OVERVIEW
Slide 19: Company overview
Company overview ➢ Founded in 2007, based in India, started as an eCommerce enabler, 3+ mn Rs 2+ tn ($28 bn) Rs 1+ tn ($15 bn) Top 2 entered into the payments sector through the merger with India’s merchants; FY 2022 Cumulative orders in India & leading payment gateway platform CCAvenue in 2017 (CCA
Slide 20: Business snapshot
Business snapshot What we offer Target customer segment ➢ We offer financial technology (fintech) platforms to enable merchants ➢ Merchants (brick-and-mortar, MSMEs, large enterprises to do business online incl. Govt., Banks/FIs, PSUs and more) ➢ Our fintech platforms enable; ➢ B2B business model o
Slide 21: Comprehensive technology solutions for merchants to do business online
Growth oriented business model Comprehensive technology solutions for merchants to do business online PAYMENT STACK ONLINE PAYMENT GATEWAY PLATFORMS PORTFOLIO INVESTMENTS NUE (Payment) FABLE FINTECH GO PAYMENTS Network International Remittances Credit + Issuances + Neo Banking + Assisted Services Mu
Slide 22: 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 23: Revenue and cost drivers of key business offerings
Revenue and cost drivers of key business offerings Govt eMarketplace Enterprise ecommerce Payment Gateway Bill Payments platform marketplace platform Value Added Services Businesses • CCAvenue (India + Intl.), • BillAvenue • BuildaBazaar for • BuildaBazaar for • .OOO • ResAvenue Enterprise Enterpris
Slide 24: Business Overview
BUSINESS OVERVIEW Building a strong, sustainable and scalable business model
Slide 25: Enabling merchants online journey thru comprehensive technology solutions
Growth oriented business model Enabling merchants online journey thru comprehensive technology solutions Comprehensive merchant Tech infrastructure offered Multi-tech solutions Multi-merchant target enabling services Ecommerce platforms • eCommerce infrastructure • GeM & Jio • SMEs - Marketplace pla
Slide 26: Enterprise Software Platforms: end-to-end ecommerce marketplace platform
Enterprise Software Platforms: end-to-end ecommerce marketplace platform & services A hosted e-commerce platform built for large scale eCommerce implementation Business Overview ➢ A cloud-based, e2e SaaS platform allowing corporates to transact online, manage the back-end (orders, inventory & logist
Slide 27: CCAvenue – Payment Gateway + White Label
CCAVENUE – Payment Gateway + White Label A leading online payment solutions provider in India and UAE ➢ Among the leading payment gateway in India and the UAE Strong tailwinds in India & GCC ▪ Among the leaders in India & UAE ➢ Regulatory and Central Bank push ▪ 200+ payment options & multi currency
Slide 28: Strong merchant wins and growing digital payments adoption in the UAE
` AED 2.8 bn 2nd payments processed in the UAE in FY’21, up 72% among non-bank vs private online AED 1.7 bn in FY20 payment companies Strong merchant wins and growing digital payments adoption in the UAE 28
Slide 29: BillAvenue (Bill Payments thru Bharat BillPay System)
BillAvenue (Bill Payments thru Bharat BillPay System) Steep growth in bill payments business Bill Payments Volume (in nos. mn) ➢ Built on the BBPS1 infrastructure, BillAvenue is a unified, 25 interoperable, online payments platform for Indian citizens ➢ Among select non-bank private players licensed
Slide 30: New business – CCAvenue Payment Gateway Services (CPGS)
New business – CCAvenue Payment Gateway Services (CPGS - backward integration in PG) PG agnostic payment processor for banks internationally CPGS – An on-premises and SaaS based global payment solution to process cards of various payment networks (like Visa/Mastercard/Amex and more) for financial in
Slide 31: Subsidiary (52.4%) – Instant Global Paytech
SUBSIDIARY (52.4%) – Instant Global Paytech Empowering unbanked to access digital financial services ➢ Operates through the brand ‘Go Payments’ to provide assisted commerce services such as domestic money transfer (DMT), mobile recharges, bill payments, cash collection, pre- MONEY TRANSFER RECHARGE
Slide 32: Investee Co. – Avenues Payments (Fable Fintech)
INVESTEE CO. – AVENUES PAYMENTS (Fable Fintech) One stop platform for banks and businesses to launch remittance service ➢ End-to-end plug and play bank grade RemTech platform (B2C & B2B) for cross-border remittances and payments ➢ Can be white labelled for banks with blockchain technology to launch
Slide 33: New opportunity: NUE license application
New opportunity Applied for RBI governed pan-India new umbrella entity (NUE) license; Payment Network License ➢ RBI intends to create NPCI-like entity(ies); a for-profit org. ➢ Opportunity o to broaden digital payments reach and make India a less-cash o Large (more than 70%) unbanked, underbanked an
Slide 34: Additional value added services and solutions for merchants
1 Additional value added services and solutions for merchants Domain infrastructure Full-service digital Tier III storage and services to begin marketing agency to compute data center merchants digital serve small and large with blockchain onboarding journey enterprises in India capability at GIFT C
Slide 35: Ahead of competition
Ahead of competition Fintech offering Infibeam Avenues Peer 1 Peer 2 Peer 3 Payment Gateway ✓ ✓ ✓ ✓ Bulk Payments ✓ ✓ White label solution ✓ Acquiror Processor (MPI, Switch, etc.) ✓ Lending ✓ ✓ ✓ BBPS ✓ ✓ ✓ ResAvenue ✓ Domestic Remittances ✓ International Remittances
Slide 36: Leadership Team
Leadership Team Strong pedigree 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. Vi
Slide 37: The IAL ecosystem advantage
The IAL ecosystem advantage Human Capital Customer Capital 650+ 3+ mn IAL employees Merchants integrated on IAL fintech platforms 400+ 100+ mn Domain experts ✓ Consumers accessed ✓ ✓ through various solutions 8-10 people 1500+ in each international Avg daily merchant location (lean team) enabled acr
Slide 38: Bootstrapped since inception; in-house fintech solutions
Bootstrapped since inception All fintech solutions developed in-house IP of all fintech solutions belongs to the Company Local and International standards’ certifications and compliances 38
Slide 39: Investment Thesis
INVESTMENT THESIS
Slide 40: IAL has a focused growth strategy over the next years
IAL has a focused growth strategy over the next 5 years Expand revenue streams through- Build- a powerful international brand Deep penetration in existing markets Offer- leading technology New businesses Nurture- talent International expansion ESG compliance 40
Slide 41: 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 Kuwait, Qatar) payments for banks ➢ Bill Payments ➢ USA ➢ Neo banking for SMEs & Corporates – ➢ Domestic remittance + ass
Slide 42: Industry & Opportunity
INDUSTRY & OPPORTUNITY | >)
Slide 43: 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 44: Opportunity and Outlook – India Digital Payments
Opportunity and Outlook – India Digital Payments Digital Payments Industry 20-21A 25-26E 30-31E Projected Industry Online PG TPV (US$ bn) 3 Units – India 1 (Mar 2021) (Mar 2026) (Mar 2031) 1,500 Avg monthly Digital Payments 2 US$ bn 2,350 5,600 10,100 5 year CAGR % 19% 20% 12% (2016-2021) (2021-2026
Slide 45: Annexure
ANNEXURE
Slide 46: Payments Business: Out of the box capabilities
Payments Business Out of the box capabilities 1. Top notch PG and B2B payments and collections automation with white label solution 2. Onboarding banks globally to process card schemes; backward integration in payments acquiring 3. Neo-banking, digital lending and card issuance through secured or lo
Slide 47: Enterprise Ecommerce Platforms: Out of the box capabilities
Enterprise eCommerce Platforms Business Out of the box capabilities 1. Online registration & verification system for seller on boarding; online verification of KYC proofs 2. Ability to create and manage multiple user per seller profile; supports role based access 3. OEM management 4. Ability to cust
Slide 48: Thank You
PAYMENTS | PLATFORMS Thank You 3 Investor Relations Purvesh Parekh purvesh.parekh@ia.ooo +91 9930554588 To know more, visit us at: www.ia.ooo | www.ccavenue.com