5paisa Capital Ltd. · NSE:5PAISA
5paisa Capital — Q3 FY21 Earnings Presentation
26 slides from 5paisa Capital's earnings presentation, Jan 13, 2021
Slide 1: Cover letter to stock exchanges on investor presentation
January 13, 2021 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Dalal Street, Exchange Plaza, 5 Floor, Plot C/1, G Block, Mumbai 400 001 Bandra - Kurla Complex, Bandra (E), Tel No.: 22721233 Mumbai 4
Slide 2: Investor Presentation Quarter ended December 2020 (Q3FY21)
Investor Presentation Quarter ended December 2020 (Q3FY21) Because every paisa matters!
Slide 3: Disclaimer
Disclaimer This presentation (the “presentation”) contains selected information about the activities of 5paisa Capital Limited (the “Company”) and its subsidiaries and affiliates ( the “Group”) as at the date of the presentation. It does not purport to present a comprehensive overview of the Group o
Slide 4: Any investor that intends to deal in any existing or prospective securities of the
Any investor that intends to deal in any existing or prospective securities of the Company is required to make its own independent investigation and appraisal of the business and financial condition of the Group and the nature of the securities at the time of such dealing. No one has been authorised
Slide 5: 5paisa: An overview
5paisa: An overview
Slide 6: 5Paisa Capital: India's fastest growing online broker
5Paisa Capital: India’s fastest growing online broker Mobile-first online 6th largest broker as on 6 Mn+ app downloads with broking platform Dec 2020* a sustained 4.2 Star rating 0.79 Mn+ Active 5.6 % Retail Cash ADTO Crossed INR 1Bn YoY 144% Market Share in Q3FY21 Revenues in FY20 YoY 78% Customers
Slide 7: Reliable investment platform servicing the young and first-time investors
Reliable investment platform servicing the young and first-time investors FY18 Dec-20 Among them… 42% 64% 84% Investors less than 30 years Investors less than 30 years First-time investors & 61K 1,147K Total Customers Total Customers 88% Total customers from Tier II/III 59% 69% cities Active investo
Slide 8: Offers a wide bouquet of investment and lending solutions
Offers a wide bouquet of investment and lending solutions… Online Trading Mutual Funds Insurance Stock, F&O, Commodity & Instant & lifetime free Demat account Compare & Buy from Currency trading leading Insurers INR 20 flat fee per order Access to Direct Plans Launch in 2021* Customise
Slide 9: Service offering focussed on ease of trading
…with service offering focussed on ease of trading Multi-lingual support in Fully digital 3-step customer 4 different languages onboarding process 01 Multiple research based products 07 such as Swingtrader, Smallcase, Smartinvestor & Sensibull Complete paperless and hassle free 06 02 procedures Pers
Slide 10: Rapid and consistent growth in customers and revenue
Rapid and consistent growth in customers and revenue “Revenues crossed INR 1 Bn in first 4 years” Revenue (INR Mn) Ever-active customers* ('000s) Total customers ('000s) 1,147 956 1,007 844 710 542 644 424 476 324 248 358 159 191 259 121 175 37 61 85 42 54 117 22 38 52 12773 18196 210 229 232 268 35
Slide 11: Increasing organic investors leading to consistent reduction in CAC
Increasing organic investors leading to consistent reduction in CAC Organic Investors CAC (INR) 3,300 3,073 1,723 1,671 1,371 1,483 1,006 1,148 894 23,042 20,931 39,204 50,652 60,601 64,344 1,10,954 1,83,535 1,35,797 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Note: CAC = Marketin
Slide 12: Improving unit economics
…with improving unit economics Reducing CAC YoY Increasing Gross Margins % CAC - Marketing CAC - Other Opex 2,818 58% 50% 1,984 22% 2,251 1,671 809 547 723 458 -57% FY18 FY19 FY20 9M FY21 FY18 FY19 FY20 9M FY21 Note: CAC – Other Opex = Sales team salary cost + Other operational cost for sales team G
Slide 13: Our ADTO & Retail Market Share
Our ADTO & Retail Market Share Cash Commodity FnO 4.44% 5.61% 5.33% 2.25% 3.96% 5.01% 3.58% 4.35% 3.26% 1.75% 1.71% 1.74% 1,103 1,383 1,753 1,845 408 265 410 503 32,618 25,996 33,104 42,408 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Cash Market Share FNO Mark
Slide 14: Subscription model to provide recurring revenues
Subscription model to provide recurring revenues Monthly subscription revenues has grown ~24x since launch Subscription Revenues INR Mn 28 25 23 19 17 18 15 16 13 9 9 9 1 2 0 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Wide range of resear
Slide 15: Active presence in social media for customer engagement
Active presence in social media for customer engagement 14
Slide 16: Leading to increasing brand awareness
…leading to increasing brand awareness # Followers # Followers # Followers 1,42,000 1,04,681 17,486 81,700 56,984 1,997 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 # Followers # Followers # Followers 3,30,518 11,857 2,501 3,09,417 507 1,34
Slide 17: Growth supported by a fast, reliable and scalable digital platform
Our growth is supported by a fast, reliable and scalable digital platform Scalable & Reliable Secure Advanced Technology We are ISO/IEC 27001 :2013 certified Handled maximum of 1.2Mn orders company Multi Cloud approach to leverage best of world in a single trading day SERVICES Next gen secur
Slide 18: 5paisa advantage
5paisa advantage Traditional Broker 5paisa Higher people involvement End-to-end digital process Small and less active customers hardly get any Democratized customer service service Physical branch requirement constraint in pace of Ability to grow faster and penetrate markets growth and expanding dee
Slide 19: Customer growth drivers
Customer growth drivers 01 Increasing investor awareness and growing young population 02 Rising popularity of mobile trading along with smartphone penetration and cheaper data 03 Convenience for investors in tier 2/3 cities due to 100% digital process 04 Discount brokers attracting first time invest
Slide 20: Multiple growth levers in play to create a digital platform
5Paisa has multiple growth levers in play to create a digital platform Platform geared with full suite of products International investing, PMS & other cross sales PREMISE PROFITABILITY PREMIUMIZATION PLATFORM PLAY P2P Lending Crossed 1 million Recorded 1st ever Premier fintech Mutual Funds
Slide 21: Strategy going ahead
Strategy going ahead Focus on market share and assets 01 Customer acquisition, strategic partnerships and organic channels focussed on growing market share, assets as foundation for long term profitable growth Improving unit economics Increase ARPUs through cross sales with new lines of business
Slide 22: Financial Information – Consolidated
Financial Information – Consolidated
Slide 23: Consolidated Profit & Loss quarter ended December 2020
Consolidated Profit & Loss quarter ended December 2020 Quarter Ended Quarterly Variances INR Mn Q3FY21 Q2FY21 Q3FY20 Q-o-Q Y-o-Y A. Income From Operations Brokerage Income 196 215 122 -8% 61% Allied Broking Income 160 201 80 -20% 101% Cross Sales Income 76 52 28 45% 175% P2P Loan Commission 2 3 - -2
Slide 24: Consolidated Profit & Loss for 9 months ended December 2020
Consolidated Profit & Loss for 9 months ended December 2020 Nine months ended Nine Months Ended variances Year Ended INR Mn Dec 31, 2020 Dec 31,2019 Y-o-Y Mar 31,2020 A. Income From Operations Brokerage Income 615 327 88% 478 Allied Broking Income 492 267 84% 352 Cross Sales Income 173 88 97% 133 P2
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet INR Mn FY19 FY20 As on Sep 30,2020 Assets Financial assets Cash and cash equivalents 622 201 802 Bank Fixed deposit balance (other than above) 532 2,505 4,272 Loans/Client funding book 998 916 1,929 Other financial assets 416 2,260 207 Sub-total 2,568 5,882 7,210 Deferred
Slide 26: Thank You
Thank You 5paisa Capital Limited CIN: L67190MH2007PLC289249 Corporate Office / Registered Office: IIFL House, Sun Infotech Park, Road No. 16, Plot no. B-23, MIDC, Thane Industrial Estate, Wagle Estate, Thane – 400604 E-mail: ir@5paisa.com | csteam@5paisa Website: www.5paisa.com 25