Avenuesai Ltd · NSE:CCAVENUE
Avenuesai — Infibeam Avenues — Q3 FY21 Earnings Presentation
40 slides from Avenuesai's earnings presentation, May 21, 2021
Slide 1: Submission of Investor/Analyst Meet Presentation
FIBE E UES May 21, 2021 BSE Limited 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 Sub: Submission of Investor/Analyst Mee
Slide 2: Accelerating eCommerce Investor Presentation 3Q FY21
Accelerating eCommerce PAYMENTS | PLATFORMS In the fast growing digital economies of the world A Global FinTech Company Investor Presentation 3Q FY21 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 USA 428.8 420.9 481.4 442.6 497.9 473.6 22.4 Per capita Euro Area 156.9 172.6 186.8 transactions in India, Ru
Slide 8: Structural and secular trends driving digital payments market growth
Structural and secular trends are driving digital payments market growth … ➢ Businesses are going digital to capture broader markets … resulting in exceptional momentum in Payments and achieve higher growth business in India ➢ Banks adopting digital technology to offer more services to consumers thr
Slide 9: Rapid adoption of digital payments amid Covid-19 outbreak – India
Rapid adoption of digital payments amid Covid-19 outbreak – India As per a report published by Capgemini Research Institute in May’20; ➢ The covid-19 pandemic has expedited the shift towards digital payments, increased digital channel adoption, spurred consumer interest in savings and safer investme
Slide 10: Opportunity and Outlook – India
Opportunity and Outlook – India Digital usage in India : All set for exponential growth (Source: McKinsey Report, March 2019) $500 bn1 → $1 tn4 Projected digital payments market size from 2020 to 2023 37% $224 bn 220 300 mn 2x 700 mn 475 mn `50 cr Digital P2M market Cashless Active monthly Digital t
Slide 11: Opportunity and Outlook – India P2M segment
Opportunity and Outlook – India Projected P2M sub-segments share in 2020 (Source: BCG Google study, Digital Payments India 2020) P2M segment has the potential to more than double by $224 billon FY 2025 to $500 bn due to strong tailwinds and emerging industries like grocery, edtech, medtech, tech com
Slide 12: 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 13: More merchants getting online – India
More merchants getting online – India As much as 10 million merchants in India could soon be online; driven by COVID push MSME Merchants Base: c.60 million 12
Slide 14: Global Payments industry – Economies are moving to less-cash
Global Payments industry – Economies are moving to less-cash ➢ Globally, the digital payments market size is expected to touch $10 tn by 2026, CAGR of 14.3% from 2019-2026, as per a 2019 KPMG report ➢ North America to contribute highest market presence of 33.6% at CAGR of 12.8% by 2026 due to its ec
Slide 15: Payments Industry Landscape
Payments Industry Landscape Source: Medici- India Fintech Report 2020, 2nd Edition 14
Slide 16: Business Overview
BUSINESS OVERVIEW
Slide 17: 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, Banks/FIs, PSUs and more) ➢ Our fintech platforms enable; ➢ B2B business model o merchan
Slide 18: Digital payments ecosystem players in eCommerce payment transaction
Digital payments - Ecosystem players in eCommerce payment transaction (Credit card option) Charges 2% of txn. Transaction cost is charged to the merchant and shared between all the parties value to merchant Major portion is shared with the below three parties (Payments Cost of Sales) CUSTOMER MERCHA
Slide 19: Company overview
Company overview ➢ Founded in 2007, based in India, started as an eCommerce enabler, 2.5+ mn Rs 100,000+ cr Rs 100,000+ cr Top 2 entered into the payments sector through the merger with India’s merchants; CY 2021 Payments orders processed in India & amongst highest in GTV run-rate 1 on largest platf
Slide 20: Two core business lines (Payments & Platforms) with multiple growth engines
Two core business lines (Payments & Platforms) with multiple growth engines Entp. eComm. Software Full Stack B2B Digital Payment Solutions (Acceptance, Issuance, Remittance, Bill Payments) Platforms Neo Banking + DMT Payment Gateway + Acquiror Processor B2B Payments + Entp. eCommerce + Assisted Bill
Slide 21: Diversified FinTech portfolio to simplify business and payments
Diversified FinTech portfolio to simplify business and payments Payment Acceptance Payment Issuance ➢ Payment gateway (PG) for acceptance & processing of ➢ Neo Banking, Corporate Credit cards, various payment methods (cards, net banking, Wallets, Prepaid cards, and Lending for enterprise EMI, UPI, a
Slide 22: Payment business’ monetization ecosystem
Payment business’ monetization ecosystem Merchant Sourcing Platforms > 2.5mn+ merchants > avg. 2000+ merchants integrated everyday > opportunity for IAL to offer various FinTech solutions to increase revenue and margins Receive Payments > Many payment solutions for variety of businesses to collect m
Slide 23: Performance Review
PERFORMANCE REVIEW | \
Slide 24: Key business developments and highlights during the year
Key business developments and highlights during the year ➢ Payment Gateway business achieves annualised GTV* run-rate of over INR 1 tn (>US$15 bn) based on Dec 2020 GTV o Avg daily merchant registration for PG crossed 200 in Q3 from 150 in Q2 ➢ Bill payment platform hits 94% biller market share of B
Slide 25: Strong operational performance
Strong operational performance Payments GTV (Rs.cr) Bill Payments Volume & GTV – Indexed to 100 GeM Cumulative GMV (Rs. cr) 62,200 64,997 Volume GTV 671 103,000 49,400 541 Covid 363 impacted 27,917 279 306 53,000 21,550 qtr 22,785 14,296 179 24,000 100 100 6,500 8,000 FY18 FY19 FY20 9mFY21 Q1'21 Q2'
Slide 26: IAL’s revenue model
IAL’s revenue model Operating revenue Operating expenses (COS) (Payments + Platforms) - (Payment processing charges) = Net operating revenue OR Transaction (txn) based Other net revenue operating revenue + = Net operating revenue (Payments + Platforms) (Subscriptions + License + set-up fee + AMC + V
Slide 27: 9mts FY21 Financial performance
9mts FY21 Financial performance – Growth acceleration continues in transaction based business Particulars (Consol.) 9 mts Q3 Q2 Q3 P&L Review (9mts) FY20 QoQ in INR crore FY21 FY21 FY21 FY20 ➢ In FY21, we have structured the pricing in payment business for capturing Payments GTV 62,200 64,997 27,916
Slide 28: Investment Thesis
INVESTMENT THESIS
Slide 29: Key investment thesis: A leading global financial technology company
Key investment thesis: A leading global financial technology company Large market A. Globally, the digital payments market size is expected to touch $10 tn by 2026, 14.3% CAGR (2019-26) opportunity B. Strong growth potential amid increasing digital transactions as majority of revenues are transactio
Slide 30: Significant embedded business growth drivers
Significant embedded business growth drivers India growth International expansion New businesses ➢ Payment Gateway ➢ GCC (UAE, KSA, Oman, Bahrain, ➢ CGPS – Processing online card ➢ Bill Payments Kuwait, Qatar) payments for banks ➢ Domestic remittance + assisted commerce ➢ USA ➢ Neo banking for SMEs
Slide 31: Strong tailwinds and continuously expanding addressable market
Strong tailwinds and continuously expanding addressable market with multiple growth trajectories Growth Trajectories ➢ Consumers digital demand ➢ Merchants digital adoption ➢ B2B automation Market Size ➢ Low eCommerce share of spending ➢ Increasing eGovernance ➢ Single window bill payments US$ ➢ Dig
Slide 32: 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 33: Strong Leadership team
Strong Leadership team Mr. Vishal Mehta – MD Mr. Vishwas Patel – Director, Head-Payments Engineering, Cornell Management, MIT Sloan. LLB, Mumbai University. Dell; Amazon USA Founder, Avenues India Mr. Srikanth Rajagopalan – President Mr. Vijaykumar Subramanian – CIO FCA, FCMA. Engineering, Universit
Slide 34: The IAL ecosystem advantage
The IAL ecosystem advantage Human Capital Customer Capital 750+ 2.5+ mn IAL employees Merchants integrated on IAL fintech platforms 400+ 100+ mn Fintech team ✓ Consumers accessed ✓ ✓ through various solutions 8-10 people 2000+ in each international Avg daily merchant location (lean team) integration
Slide 35: Infibeam Avenues vs Peers’ performance and valuation
Infibeam Avenues vs Peers’ performance and valuation India International Comparable Peers Unit IAL Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Payments processed US$ bn 15 50 19 8 308 962 44 43 Valuation (EV) US$ bn 0.75 2.5 2.5 1.2 66 312 155 96 EBITDA margin % 23.9% 11.9% -6.3% -25.5% 8.7% 20
Slide 36: 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 35
Slide 37: Service Delivery Wheel for the Payments Business
Payments Business Operational components Adherence to Security Processes and Certifications Regulatory Norms In few Legal Matters and international markets these Governance Norms Business Development components are locally managed Banks and Financial Service Delivery Wheel Institutions Financial Ope
Slide 38: Certificate of Compliance
Certificate of Compliance 37
Slide 39: 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 40: 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