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Infibeam Avenues Ltd.

BSE: 539807 Sector: IT
NSE: INFIBEAM ISIN Code: INE483S01020
BSE 00:00 | 12 Aug 14.89 -0.01
(-0.07%)
OPEN

15.10

HIGH

15.11

LOW

14.80

NSE 00:00 | 12 Aug 14.85
(%)
OPEN

15.20

HIGH

15.20

LOW

14.80

OPEN 15.10
PREVIOUS CLOSE 14.90
VOLUME 227782
52-Week high 26.50
52-Week low 12.50
P/E 48.03
Mkt Cap.(Rs cr) 3,986
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.10
CLOSE 14.90
VOLUME 227782
52-Week high 26.50
52-Week low 12.50
P/E 48.03
Mkt Cap.(Rs cr) 3,986
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Infibeam Avenues Ltd. (INFIBEAM) - Chairman Speech

Company chairman speech

India with its 1.4 billion population jumped on the digital bandwagonand is steadily racing ahead. Most Indian families now have access to at least one mobileand thus the telecom and internet revolution paved the way for other technologicalrevolutions such as fintech e-commerce digital banking e-governance and more.

Dear Shareholders

I hope you and your loved ones are safe and healthy and vaccinated. Theworld entered the second year of the global Covid-19 pandemic with millions more impactedby the known and unknown dangers the virus has presented. While India got off a littleeasy during the first wave of the coronavirus even as Europe and the US suffered highdeath rates during that time we got hit brutally during the second wave. While there areseveral debates and opinions about the hows and whys of it we must acknowledge and acceptthat the virus and a pandemic both are almost unknown to the larger populace that iscurrently living through these unprecedented times. We also must acknowledge the effortsunderway by humanity as a whole - the scientific community the healthcare workers thegood Samaritans and the common man - each playing their part contributing their best toalleviate the emotional social health and economic impact of the virus.

Infibeam which began as a platforms company in 2010 and became adigital payments and platforms focused company in 2017 has consistently delivered valueto the shareholders investors and society at large. With our platform being adopted bythe Government of India for its e-marketplace to our growing presence across the spectrumin the digital payments space we have put all our energies and forces into bringing thebest products and services to our merchant customers. Digital adoption is not a choiceanymore and we want to be the digital payments and ecommerce platform provider of choicefor merchants enterprises financial institutions and governments around the globe.

Covid-19 - challenges impact and action

The Covid-19 pandemic brought challenges to the entire globe andimpacted individuals enterprises and the economies. Some industries were more affectedthan others - travel tourism transportation and hospitality were harder hit whiletechnology companies grocery retail delivery companies healthcare and pharma companiesdid well. In India the festive season rang in good tidings for the retail sector and themanufacturing PMI Index went up to 54.1 in October 2020 after being down for 6 months.Overall power rail auto sales GST collections and digital transactions started doingwell around this time.

Government initiatives of Atmanirbhar Bharat financial assistance tothe MSME sector and infrastructure spend commitments gave a further boost to the economy.While the beginning of January 2021 started on a positive note with approved vaccinationsunderway in production

India got impacted by the second wave of the Covid-19 stronger andmore hard hitting than the first wave. Even as healthcare systems tried to gear up totackle the severity of cases the central and state governments NGOs and volunteers allworked towards doing their best to help the people during the crisis. By June 2021 thingshave started easing up. The country has now successfully administered more than 25 milliondoses of vaccines and daily average new Covid positive cases are under 100000 afterhaving peaked at over 400000 in early April 2021.

Global Fintech story

Digital payments remote consumption of services online shopping andonline banking got a huge acceleration due to the pandemic which necessitated socialdistancing and staying indoors. In short the payments and remittances market startedgrowing fast with several merchants vendors and providers of goods and services tryingto digitize their offerings and processes to retain market share survive the pandemic andsustain beyond it.

While financial and economic indicators were negative the world overthe startup segment saw a lot more innovation investment and excitement. The globalfintech industry saw about $56.1billion infused during 2020-21 (April to March) comparedto $84.billion in 2019 and $77.8billion in 2018.

Opportunities landscape

India with its 1.4 billion population jumped on the digital bandwagonand is steadily racing ahead. Most Indian families now have access to at least one mobileand thus the telecom and internet revolution paved the way for other technologicalrevolutions such as fintech e-commerce digital banking e-governance and more.

The startup sector is booming overall with 14 Indian startups becomingunicorns in the first six months of the calendar year 2021. India's tech startups unicorntally is 55 of which 12 are fintech startups. Indian Fintech startups raised about $3billion during 2020-21 (April-March).

Various research indicates that the opportunity in payment sectors inIndia will cross US$1 trillion in the next three to five years' timeframe growing at35%-40% CAGR and P2M (person-to-merchant) size will reach $500 billion due to very strongtailwinds in India increase in the penetration of e-commerce and growth from emergingindustries like online groceries ed-tech med-tech e-gaming tech companies and manymore that will join in the future including the e-governance.

The next 10 years could see several industries flourishing onlinewhich is great for the payments gateway business.

Digital Payments has touched the lives of many. The first boost to thissegment came from the demonetization move by the Government in November 2018. From smallbusinessmen and service providers to large scale enterprises and the Govt. of Indiaeveryone is trying to digitize all aspects of their business and the exchange of money isa crucial component. India is still a highly cash driven economy and currently only about15-18% of payments are digital. India also has one of the lowest per capita digitaltransactions in the world at 33 in March 2021 as compared with other emerging countriessuch as Brazil (148.5) Russia (178.5) and China (96.7). These two data points indicatethe massive growth potential of the industry. Tailwinds such as regulatory changes and theGovernment's thrust to digitize the country give further impetus for this growth.

Expanding our opportunities landscape we went to the UAE in 2018 andKSA in 2019. We are already number two among the non-bank private payment companies in theUAE. Our 'country in a box' strategy has been successful and we are looking to penetratefurther with the launch of USA and more international markets. We are also movingstrategically into other segments of payments acguiring to make enterprises and banks asour customers and entering payment issuance business to offer neo banking and lending tosmall and medium enterprises and the corporates. We have started seeing early success insome of these newer service offerings in the Payments business. Our Platforms businesscontinues to expand by engaging with large enterprises and giving us an opportunity tocross sell and engage with them to offer payment solutions.

Way forward

Just as the big telecom players have dreamt of putting a phone in everyIndian's hand and internet service providers have played a pivotal role in making thedigital dream come true in the remotest corners of India we dream of enabling allmerchants with digital payments. Whether it is a payment network gateway processing .acguiring lending manging receivables and payables A online banking orcredit cards we want to play a role in digitizing these for every business. Our marketshare product portfolio experience leadership team and profitability put us in a verygood position to achieve this dream. We proudly want to be at the forefront of theexplosive growth and digital payments revolution of India.

Maximise returns to shareholders

I am delighted to report that we had another great year in terms ofperformance. FY21 saw a 59% jump in YOY value of transactions processed and 17% in volumeof transactions. Gross revenues grew despite covid impacting businesses during most partof the year. We achieved growth in all our key fintech offerings. Bill Payments businessperformed exceptionally well with volumes up 226% YoY. Improvement in performance ofsectors like aviation travel & tourism hospitality entertainment and recovery ofdiscretionary spends in FY22 as the economy opens up will push growth. These sectorswere impacted in FY21 due to Covid.

Our new partnerships and acquisitions help in driving our strategy andaccelerating our growth. We are well placed versus competition as we are broadening ourpayment offerings through our collaborations acquisitions and organic product andsolution development. We are proud to be present across the entire spectrum of paymentscomprising payment acquiring issuance and remittances and in offering a niche ecommercemarketplace platform to large enterprises.

Our Board has approved a final dividend of 5% after issuing 1:1 bonusshares in December 2020 effectively translating to a 10% dividend pre-bonus. Our EBITDAto cash conversion continues to be above 100% for five consecutive years. We are also freecash flow positive and have negligible debt. These strong financials give us theconfidence to continue to generate maximum value for our shareholders.

We are proud of our work culture and dedicated to improve the customerexperience with our fintech products. Our rich experience attention to detailsinnovation and forward thinking helps us bring out the best products and solutions to ourcustomers. Our policies and practices are guided by strong ethics an aspiration to haveoperational excellence and bring our best to work everyday.

I would like to give my thanks to our employees and their families fortheir contribution and support during these difficult times for the world at large. I amimmensely grateful to all of our stakeholders including vendors investors customerspartners and the society who all form the fabric of the landscape we operate in. I hopefor the world to heal and move past the pandemic and for everyone to be safe healthy andhappy.

Regards

Ajit Mehta

Chairman

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