Avenuesai Ltd · NSE:CCAVENUE
Avenuesai — Infibeam Avenues — Q2 FY22 Earnings Presentation
49 slides from Avenuesai's earnings presentation, Oct 28, 2021
Slide 1: Earnings & Investor Presentation 2Q FY22
Purpose Fuels Growth PAYMENTS | PLATFORMS Powering Infinite eCommerce A Global FinTech Company Earnings & Investor Presentation 2Q FY22 (Jul’21 – Sep’21) 1 28 – Oct – 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 Only Listed Fintech in India
Slide 4: Key Q2'22 highlights: All-round growth
Key Q2’22 highlights: All-round growth (Payments, Platforms, Secured Lending) ➢ Total TPV: up 111%, Annualised run-rate of $40bn vs. FY21 based TPV of $19bn ➢ Payments: bettered all previous highs o TPV up 80% YoY and 32% QoQ ➢ GeM: Creating new high every quarter o GeM GMV up >3x YoY o GeM to achie
Slide 5: Performance snapshot – Q2 FY22
Performance snapshot – Q2 FY22 Total TPV Gross Revenue Net Revenue (NR) Net Take Rate INR 64,300 cr INR 311 cr INR 61 cr 6.0 bps $ 8.7 bn $ 42.0 mn $ 8.3 mn 27 % QoQ 44 % QoQ 17 % QoQ 6.6 bps in Q1’22 111 % YoY 109 % YoY 10 % YoY EBITDA EBITDA % of NR * PAT PAT % of NR INR 34 cr 60 % INR 18 cr 29 %
Slide 6: Consolidated operational performance
Consolidated operational performance Transaction Processing Value (INR crore) ➢ Total TPV up 111% YoY 1,39,406 ▪ Sep’21-based annualised Total TPV run-rate of $40bn; avg. daily run-rate Rs. 800 cr ($110mn) $28bn 85,251 ▪ Accelerating towards our guidance of $100bn $8.7 bn 69,223 64,300 50,391 50,651
Slide 7: Key business developments – Update
Key business developments – Update ➢ AI-based credit platform launch: greenfield development o Platform to be ready for launch before December 2021 o Investment in tech platform started from Q1; building a dedicated team comprising industry and domain experts o Zero Liability and Zero risk; profitbl
Slide 8: Key business developments – Update
Key business developments – Update ➢ B2Biz: Neo Banking for corporates o Increasing traction from large corporate clients for processing bulk payments o Integrates well into our strategy of offering complete neo banking experience to corporates including balance check, open bank account, collect pay
Slide 9: Key business developments – Update
Key business developments – Update ➢ Go Payments update: Expanding into payment issuance o Large projects with multiple top Indian private banks including HDFC Bank, Yes Bank and more o Built its own ‘payments issuance switch’ (similar to our CPGS offering built for ‘payments acquiring’) o Closed Us
Slide 10: Key business developments – Update
Key business developments – Update ➢ Fable Fintech: Growing the B2B and B2C international remittance o Recently raised money thru Series A funding, raised money from many marquee investors (inhouse incubated, IAL largest minority investor) o Launched services in Singapore, Dubai and New Jersey with
Slide 11: Secured lending performance
Secured lending performance Fully secured lending to the merchant against consumers payment already received in the escrow account Express Settlement Growth Mid-term (3 yrs.) IRR Potential p.a. US$ 156 mn 4x higher than Targeting annual 12% - 48% up 3x QoQ Q4’21 average lending of $5bn ➢ Zero risk l
Slide 12: Enabling credit / lending business through algorithms, frameworks, platforms and merchants
Enabling credit / lending business through algorithms, frameworks, platforms and merchants 20 - 25 mn 1 4+ mn merchants across portfolio, avg. 5000+ MSMEs merchants activated daily in Q2’22 Potentially addressable merchants >50 mn across the fintech portfolio; potential TAM of 3 - 5 mn 1 Lending TAM
Slide 13: Net revenue and net take rate performance – Q2 FY22
Net revenue and net take rate performance – Q2 FY22 Net revenue Transaction Net Rev INR 61 crore INR 39 crore up 17% QoQ up 15% QoQ up 10% YoY up 60% YoY Transaction Net Rev 1 Other Operating Rev INR 39 crore INR 22 crore TPV 1 Net Take Rate 1 up 15% QoQ up 21% QoQ INR 64,300 crore 6 bps up 60% YoY
Slide 14: Payments Business – India
Payments Business – India Ahead of industry in cards volm & value growth and lower UPI share: Industry leading Net Take Rate CCAvenue Credit Card TPV Growth vs. Industry CCAvenue UPI contribution to Payments TPV vs. Industry UPI 249 222 222 contribution to Digital Payments 204 17.5% 16.9% 16.8% 166
Slide 15: EBITDA performance by business segments – Q2 FY22
EBITDA performance by business segments – Q2 FY22 ➢ Payments EBITDA review (excl subsidiary 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: Ver
Slide 16: 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 17: 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 2% of transaction value Transaction cost is charged to the merchant and shared with the below parties charged to merchant Maj
Slide 18: Financial performance – Growth acceleration across all business segments
Financial performance – Growth acceleration across all business segments Consol. P&L (FYE Mar 31, 20xx) Q2 Q1 change Q2 change FY20 1 FY21 YoY in INR crore FY22 FY22 QoQ FY21 YoY Total TPV 64,300 50,651 27% 30,484 111% 87,822 139,405 64% ($9 bn) ($7 bn) ($4 bn) ($12 bn) ($19 bn) Net take rate (bps)
Slide 19: Balance Sheet & Cash Flow – Q2 FY22
Balance Sheet & Cash Flow – Q2 FY22 ↗ Strong cash reserves Return on Equity 3 ↗ Zero debt (repaid all outstanding debt in Q2’22) ↗ Positive cash from operations1: consistent in the last five years ↗ >100% EBITDA to cash conversion2: consistent in the last five years ↗ Consistently FCF positive FY 20
Slide 20: Awards & Recognition
Awards & Recognition CCAvenue declared 'Fintech of the Year' at the Tech India Transformation Awards 2021 CCAvenue wins 'Best Technology Solution for Enterprise Risk Management' title at the Innovation & Technology Awards 2021 CCAvenue accredited with ‘Superbrands 2021’ title for excellence and lead
Slide 21: Company Overview
COMPANY OVERVIEW Only Listed Fintech in India
Slide 22: Company overview
Company overview ➢ Incorporated in 2010, based in India, started as an eCommerce 4+ mn Rs 2+ tn ($28 bn) Rs 1+ tn ($15 bn) No. 2 enabler, entered the payments sector through the merger with one of merchants; FY 2022 Cumulative orders in India & India’s leading payment gateway platform CCAvenue in 20
Slide 23: 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 FABLE FINTECH GO PAYMENTS Payment Network International Remittances Credit + Issuances + Neo Banking + Assisted Services Mult
Slide 24: 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 25: Business Overview
BUSINESS OVERVIEW Building a strong, sustainable and scalable business model Only Listed Fintech in India
Slide 26: 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 27: CCAvenue – Payment Gateway + White Label
CCAVENUE – Payment Gateway + White Label A leading online payment solutions provider in India and the 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 curr
Slide 28: Em-Powering digital payments in the GCC
CCAVENUE – Payment Gateway + White Label Em-Powering digital payments in the GCC Infibeam’s UAE operations generate very high profitable margins AED 3 bn+ FY’22 TPV Infibeam’s UAE payments business is the only non-funded private run-rate company among all the payment companies in the UAE 55% Launche
Slide 29: 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 30: 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, 38 interoperable, online payments platform for Indian citizens ➢ Among select non-bank private players licensed
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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, Platforms business (Infibeam) Founder, Payments business
Slide 38: The IAL ecosystem advantage
The IAL ecosystem advantage Human Capital Customer Capital 650+ 4+ mn IAL employees Merchants integrated on IAL fintech platforms 400+ 100+ mn Domain experts ✓ Consumers accessed ✓ ✓ through various solutions 7-8 people 5000+ in each international Avg daily merchant location (lean team) enabled acro
Slide 39: Bootstrapped since inception
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 39
Slide 40: Investment Thesis
INVESTMENT THESIS Only Listed Fintech in India
Slide 41: 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 41
Slide 42: Significant embedded business growth drivers
Significant embedded business growth drivers India growth International expansion New businesses ➢ Retail payments + bill payments ➢ GCC (UAE, KSA, Oman, Bahrain, ➢ CGPS – Processing online card Kuwait, Qatar) payments for banks ➢ Neo banking + domestic remittance + assisted commerce ➢ USA ➢ Neo ban
Slide 43: Industry & Opportunity
INDUSTRY & OPPORTUNITY Only Listed Fintech in India
Slide 44: Low digital transactions per capita per annum 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 45: 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 46: Annexure
ANNEXURE Only Listed Fintech in India
Slide 47: Out of the box capabilities – Payments Business
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 48: Out of the box capabilities – Enterprise eCommerce Platforms
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 49: 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.com