Avenuesai Ltd · NSE:CCAVENUE
Avenuesai — Infibeam Avenues — Q3 FY22 Earnings Presentation
46 slides from Avenuesai's earnings presentation, Jan 31, 2022
Slide 1: Exchange filing cover letter for investor presentation
INFIBEAMfM AVENUES January 31, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Mumbai• 400 001 Sandra (East), Mumbai• 400 051. Company Code No.: 539807 ____ ICompany Symbol: INFIBW.M Dear Sir / Madam, Sub:
Slide 2: Earnings & Investor Presentation 3Q FY22
Purpose Fuels Growth PAYMENTS | PLATFORMS Powering Infinite eCommerce A Global FinTech Company Earnings & Investor Presentation 3Q FY22 (Oct’21 – Dec’21) 1 31 – Jan – 2022
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: Financial & Operational Performance – Q3'22
FINANCIAL & OPERATIONAL PERFORMANCE – Q3’22 First Listed Fintech in India
Slide 5: Consolidated Earnings' Performance snapshot – Q3 FY22
Consolidated Earnings’ Performance snapshot – Q3 FY22 Total TPV Gross Revenue Net Revenue (NR) Net Take Rate ➢ Gross Revenue Review ▪ Increasing contribution from new INR 75,430 cr * INR 397 cr INR 70 cr 6.2 bps merchants and … $ 10.2 bn $ 53.3 mn $ 9.4 mn ▪ … pick up in travel & hospitality, airlin
Slide 6: Key Q3'22 highlights: All-round growth continues
Key Q3’22 highlights: All-round growth continues across Payments, Platforms, Secured Lending Transaction Processing Value (INR crore) ➢ Total TPV up 90% YoY 1,90,380 ▪ Dec’21-based annualised total TPV run-rate of ~$41bn; ahead of our guidance of $40bn set for Dec’21 $26 bn ▪ GeM GMV up 182% YoY; Ta
Slide 7: Key business developments – Q3'22
Key business developments – Q3’22 ➢ AI-based credit platform launch: greenfield development o Platform launched today, branded TrustAvenue; www.trustavenue.com o Zero Liability and Zero risk; profitable lending business model o Banks & NBFCs to embed their loan products on Company’s lending platform
Slide 8: Key business developments – Q3'22
Key business developments – Q3’22 ➢ Bonus o Board of directors have approved a bonus in the ratio of 1:1 ➢ Dividend o Board of directors have approved an interim dividend of 5%, record date 8 February 2022 ➢ New umbrella entity (Payment Network) license o Awaiting RBI approval 7
Slide 9: Net revenue and net take rate performance – Q3 FY22
Net revenue and net take rate performance – Q3 FY22 Net revenue Transaction Net Rev INR 70 crore INR 46 crore up 14% QoQ up 19% QoQ up 15% YoY up 22% YoY Transaction Net Rev 1 Other Operating Rev INR 46 crore INR 24 crore TPV 1 Net Take Rate 1 up 19% QoQ up 6% QoQ INR 75,430 crore 6.2 bps up 22% YoY
Slide 10: Payments Business – India: ahead of industry in cards growth
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 Payments TPV vs. Industry UPI 417 contribution to Digital Payments 19.0% 353 16.8% 17.4% 222 11.4% 11.7%
Slide 11: IAL's revenue model
IAL’s revenue model Operating expenses Gross revenue - (Payment charges / Pass-thru) = Net Revenue OR Transaction based net Non- transaction revenue revenue (Payments + Platforms) + (Subscriptions + License fee + set-up fee + AMC + VAS) = Net Revenue Growth driven Fixed annuity revenue revenue Trans
Slide 12: 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 13: Financial performance – Growth acceleration across all business segments
Financial performance – Growth acceleration across all business segments Consol. P&L (FYE Mar 31, 20xx) Q3 Q2 change Q3 change FY20 1 FY21 YoY in INR crore FY22 FY22 QoQ FY21 YoY Total TPV 75,430 64,300 17% 39,760 90% 87,822 139,405 64% ($10 bn) ($9 bn) ($4 bn) ($12 bn) ($19 bn) Net take rate (bps)
Slide 14: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow ↗ 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 2018 FY 2019
Slide 15: Company Overview
COMPANY OVERVIEW First Listed Fintech in India
Slide 16: Company overview
Company overview ➢ Incorporated in 2010, based in India, started as an eCommerce 5 mn Rs 3.3 tn ($44 bn) ~Rs 1.9 tn ($25 bn) No. 2 enabler, entered the payments sector through the merger with one of merchants 1yr forward Cumulative orders in India & India’s leading payment gateway platform CCAvenue
Slide 17: Growth oriented business model
Growth oriented business model Comprehensive technology solutions for merchants to do business online Standalone growth model (Payments + Platforms + Lending) PAYMENT STACK PLATFORM STACK CREDIT STACK 1 (2001 onwards) growth 2 (2010 onwards) growth 3 (2020 onwards) ONLINE PAYMENT GATEWAY AI-based le
Slide 18: Business Overview
BUSINESS OVERVIEW Building a strong, sustainable and scalable business model First Listed Fintech in India
Slide 19: Two core business lines 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 20: 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 21: CCAvenue – A leading online payment solutions provider in India and the UAE
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 22: 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 4 bn+ up 40% from AED 3 bn Infibeam’s UAE payments business is the only non-funded private FY’22E TPV guided in FY21 run-rate company among all the pay
Slide 23: 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 24: BillAvenue (Bill Payments through 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, interoperable, online payments platform for Indian citizens 61 ➢ Among select non-bank private players licensed
Slide 25: ResAvenue - Hospitality Platform
ResAvenue - Hospitality Platform Fragmented market and digital adoption to drive strong growth o an integrated platform & payment solution for hotel industry o offers a complete Central Reservation System (CRS) for hotel reservation and hotel inventory distribution across various online 2000+ Integr
Slide 26: Enterprise Software Platforms: 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: 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. $175 mn 4x higher than Targeting annual 12% - 48% up 11% QoQ Q4’21 average lending of $5bn ➢ Zero risk len
Slide 28: Growth oriented business model (contd.)
Growth oriented business model (contd. from prev slide) Enabling credit / lending business through algorithms, frameworks, platforms and merchants 30 - 35 mn 1 MSMEs 5+ mn merchants across portfolio, avg. 8000+ merchants registered daily in Q3’22 Potentially addressable merchants >50 mn 3 - 5 mn 1 a
Slide 29: 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 30: 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 31: New opportunity: RBI umbrella entity (NUE) license
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 32: 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 33: 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 ✓ ✓ ✓ Bill Payments thru Bharat BillPay ✓ ✓ ✓ Hospitality Payments ✓ Domestic Remitt
Slide 34: 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 35: The IAL ecosystem advantage
The IAL ecosystem advantage Human Capital Customer Capital 650+ 5 mn IAL employees Merchants integrated on IAL fintech platforms 400+ 100+ mn Domain experts ✓ Consumers accessed ✓ ✓ through various solutions 7-8 people 8000+ in each international Avg daily merchants location (lean team) enabled acro
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: Investment Thesis
INVESTMENT THESIS Long term value creation First Listed Fintech in India
Slide 38: 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 37
Slide 39: 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, ➢ Offline Payments Kuwait, Qatar) ➢ CGPS – Processing online card ➢ GeM + Jio Platforms ➢ USA payments for banks ➢ Lending ➢ Operations i
Slide 40: Industry & Opportunity
INDUSTRY & OPPORTUNITY First Listed Fintech in India
Slide 41: 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 42: 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 43: Annexure
ANNEXURE First Listed Fintech in India
Slide 44: 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 45: Enterprise eCommerce Platforms Business: 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 46: 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