Veefin Solutions Limited (VEEFIN.BO) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Veefin Solutions Limited Q3 and 9-month FY 2026 Earnings Conference Call hosted by Valorem Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and over to you, ma'am.

Good evening, everyone, and a very warm welcome to you all. My name is Purvangi Jain from Valorem Advisors. We represent the Investor Relations of Veefin Solutions Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the third quarter and the 9 months ended of the financial year 2026. Before we begin, a quick cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's conference call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now let me introduce you to the management participating with us in today's earnings call. We have with us Mr. Raja Debnath, Managing Director; Mr. Gautam Udani, Chief Operating Officer; and Ms. Payal Maisheri, Chief Financial Officer. Without any delay, I request Mr. Raja Debnath to start with his opening remarks. Thank you, and over to you, sir.

Good evening, everyone, and welcome to Veefin Solutions Earnings Conference Call for the third quarter and 9 months ended financial year 2026. Thanks for joining, and we appreciate your continued interest in Veefin. For people who are joining in, we had uploaded the presentation. So if you want, you can refer to the presentation while we are on the call. Let me start first by sharing a few operational highlights for the quarter under review before handing it over to Payal, who will take you through the financial performance. Now during the period under review, we continue to demonstrate very strong execution across our core platforms, supported by steady demand for our supply chain finance solutions, and we are seeing increasing traction across our non-SCF products. The people who are referring to the slide, this is at the back end of the deck after the numbers -- number slides, where we speak about drivers for the profitability and drivers for future growth. There you will see a chart on our pipeline. So you will see that our unified product architecture, modular platform approach, it continues to resonate well with banks and financial institutions, enabling faster deployments and deeper client engagement. So as you will see, our qualified deal pipeline remains very robust. It's moved up from the last time we had a call, it's now at USD 61 million across 50 enterprise opportunities, okay, USD 61 million across 50 enterprise opportunities and the heartening part is nearly 78% of this pipeline, which we are seeing is coming from non-supply chain finance products such as cash management, trade finance, internet banking, loan management systems, or loan origination system. Now this reflects the gradual diversification of our revenue base and the growing acceptance of Veefin as a full stack digital banking technology partner. For people who have been following Veefin and have heard our calls over the last couple of calls, this is something that we have been harping on in terms of moving from being a single product company to moving across the entire transaction banking value chain. So that we leverage the relationship that we have built with our clients, we leverage the opportunity that supply chain finance had afforded us and the trust that supply chain finance has allowed us to play in the transaction banking space. So these numbers and the pipeline numbers are extremely important from that point of view. From a geographic standpoint, the pipeline you will again see very well diversified, led by India and South Asia at around 42%, Southeast Asia at 36%, and we're seeing growing traction in GCC and Africa, which continues to the remainder. So overall, this regional mix, it reinforces our confidence that demand for Veefin's platforms is not concentrated in any single geography, and it supports our long-term international growth ambitions. The pipeline represents qualified enterprise opportunities only, which are currently under active client evaluation with multiple solution opportunities being pursued within the same client relationships. So this is important. There are many client opportunities that we're talking about, where it's not just 1 product that we're talking about, we're taking of multiple products in the transaction banking space that we are pursuing with the same client. This is again, it goes in line and prove the thesis that we have had in Veefin. Moving on. I think lots of you would want to know what's happening on PSBXchange and the adoption and the operating momentum. I'm happy to announce that the platform has moved decisively from onboarding to live transaction activity. Now over the last quarter, we have -- on the lender side, we currently have 3 integrations live. Now when we say integrations live, it means that the API connectivity from the PSBXchange platform is now take it with the core bank on the bank side or the LMS or the LOS on the bank side. So the bank is now ready to consume the business digitally end-to-end. So 3 banks have gone live. Another 3 integrations are in progress. We're doing the same thing with another 3 banks. And there are 15 agreements across PSU banks, private sector banks and NBFCs, which are under process. So once the agreements are signed, we will then move into the integration phase. That's the journey. This was on the lender side. Now in parallel, on the sourcing partner side, that is from where we get business, 5 integrations are already live, 8 are in progress as we speak, and we have 23 agreements that are under process. These are the full-blown agreements because these are supported, remember, by 79 MOUs that we have signed till date. So on the lender side, we have 3 real integrations live, 3 in progress. On the sourcing side, we have 5 integrations live and 8 are in progress. Now more importantly than the integrations, we are now seeing meaningful transaction activity on the platform. So what we have seen over the last quarter is around 80 corporate deals have been initiated on the platform. They're in various stages, 80, okay? Approximately INR 12,000 crores of limits requests have been requested on the platform. So these 80 corporates, they have requested around INR 12,000 crores of limits. Out of this INR 4,000 crores of limits have already been approved by the banks. And this INR 4,000 crores is across 90 anchor corporates, INR 4,000 crores across 90 anchor corporates. But remember one thing is this, here, we have many large corporates, very, very large corporates. Some of them individually can bring in INR 40,000 crores to INR 70,000 crores. Initially, they have put only INR 200 crores, INR 300 crores because they want to see how this will work because this is the first time this kind of a platform is actually coming up live. So they have given very small limits out there. So once these limits are consumed, even from the same corporates we expect a manifold increase in the actual approved limits. Now what this tells us 2 things, very clearly. First both sides of the ecosystem, that is lender and sourcing partners are being scaled in parallel. That's the first. And second, PSBXchange has transitioned from being an onboarding led initiative to a live operating marketplace with real credit activity flowing through the platform. Now for this, we want to say thanks to all our investors and our team, which has stood by us in this long journey. This is a very important milestone for us. Finally, moving on to the next slide for the people who have the slide in front of them. Let me touch upon the on-ground operating readiness of PSBXchange. There is one thing to have the tech ready, but the other is operating readiness of PSBXchange. We have built a pan-India execution-ready operating model, okay? It is supported by dedicated field credit and technology teams. So our physical presence today. So we have moved from being just a pure tech company in PSBXchange. Now we have 22 locations beyond Delhi, Mumbai, Bangalore, Chennai, that means total of 26 locations across the country where we have dedicated field staff available for PSBXchange. And officially, the platform follows a clear end-to-end ownership model, okay? This covers sourcing and anchor engagement, regional partner coverage, credit deployment and lender coordination, platform reliability and user experience. And each of these verticals, we have senior leaders leading each of these initiatives with most of them joining us in the last quarter. So what this enables us is now parallel onboarding of corporates and partners, scalable regional execution without central bottlenecks and faster credit deployment as the platform activity grows. Let me just summarize all of this, the PSBXchange today is not just a concept or a pilot. It is a live expanding platform with a diversified pipeline, the growing transaction throughput and we have shown that we now have strong on-ground execution capabilities. So focus at this stage remains on widening the ecosystem participation and deepening the engagement rather than just focusing on maximizing volumes. So volumes will come because as I said, each of these corporates which are coming in has very large requirements. They are all testing the waters right now with the platform. Once the transaction starts flowing in, then we can expect much larger volumes from the same corporates. So I think enough of all of this, so what I'll do is I'll now hand over to Payal, who is our Chief Financial Officer, who will walk us through the financial performance of the company. Payal?

Thank you, Raja. Good afternoon -- good evening, everyone. As the company is required to publish a quarterly financial results for the first time for the quarter ended December 31, 2025, therefore, the financial results for the quarter ended September '25 that was the previous quarter, for the quarter ended December '24, that is Q3 for last financial year and 9 months for December 2024 are not applicable and accordingly have not been presented. Now on to our performance for Q3. It has been a strong quarter for us with Q3 performance almost matching our H1 numbers. Starting with the revenue. So our consolidated revenue for quarter 3 and 9 months period has shown a very strong growth. The quarter 3 revenue was INR 104 crores and the 9 months revenue was INR 214 crores on a consolidated level, which is driven mainly by a combination of organic growth or organic scale and the full impact of our consolidation. The key growth drivers here mainly are: First, the contribution from all our existing clients, that is the standalone decent revenue, increase in monetization of the platforms, which are live, increase in the AUM on the platform. Third, for the first full year visibility of the subsidiaries and all our acquired entities. So that's on the revenue performance. One more very important thing to note here is that a large share of our product revenue is now recurring in nature, which gives us a lot of predictability and a lot of visibility going forward. On profitability, I want to address this very clearly as it's a key investor question. At a standalone level, our core product business continues to operate at EBITDA margin of 52% on a YTD basis, that is for 9 months and a PAT margin of 27%. On a consolidated level, our EBITDA margins are 19.95% and PAT margins are 7.75% which is lower as compared to the standalone, but this is entirely a mix driven and not performance driven. So when I say mix driven and not performance driven, what I actually mean is the quarter -- the consolidated result includes product entities and service entities, service businesses. Service businesses structurally operate at lower operating margins. That's the reason why on a weighted average basis, the consolidated PAT margins as compared -- are lower as compared to my standalone PAT margin. However, in terms of absolute number, the absolute PAT for my 9 months for current financial year is almost matching with the last financial year. So one more very important factor that we should consider is, the increase in the absolute PAT number as well as increase in the earnings per share for the 9-month period. So to summarize on the profitability, standalone margins remain strong, consolidating margins reflect an investment and scale sales and absolute profit pools are expanding steadily. Further also important to note that as our products, the PSBXchange, cash management, trade finance move on to the monetization piece, the revenue mix will naturally shift and this will result in higher margins towards IP-led revenue. So while the margins may look optically compressed today, structurally, the model will support margin expansion over the coming quarters. Now leaving with this thought, I would like to conclude. We can now open the session for question and answers. Thank you.

[Operator Instructions] The first question is from Rajkumar Rathi from Kotak Asset Management. Mr. Rajkumar Rathi you may go ahead with the question. There seems to be no response from the line of Mr. Rajkumar Rathi. Next question is from Kushal Kasliwal from InVed Research.

So I think I'm slightly new to the company, but I just wanted to understand or maybe clarify this point, that your standalone numbers are currently driven by the SCF business alone? Or are there any other businesses apart from supply chain finance platform in the standalone numbers?

Standalone numbers are SCF only.

Got it. And does this SCF business also include PSB business?

No. That's a separate line.

Okay. So PSB will come in consol?

Correct.

Understood. Got it. Can you properly split consol numbers by business segment? Because I think in your PPT -- in your presentation, you have spelled out that you have some strategic IT investments on different platforms, which you are trying to generate, which includes CMS, LMS, LOS. So can you maybe -- is it possible to give top line numbers for the consol business? Now SCF we know is in standalone, but apart from that, business-wise split and business-wise also EBITDA margin profile of each business?

Hello.

Yes.

So in our results in our disclosure, there is a segment-wise breakup between the products and the services. To answer your question further, out of the entire INR 82 crores of total 9 months revenue, which comes from product, INR 53.85 crores is the revenue that is generated from standalone Veefin plus our organic growth, that is PSBXchange, cash management, and trade finance.

There is a product-wise pipeline which is given...

In the results that are uploaded, in the consolidated result in the disclosure just to summarize the product revenue, out of this entire INR 214 crores revenue, INR 82.4 crore comes from product and INR 131.3 crores is from services. And in the INR 82.4 crores we have the standalone leasing plus the organic growth that is PSBXchange, cash management, trade finance that all comes to INR 53.85 crores.

Got it. But within this overall product revenue, I'm assuming SCF will be the highest EBITDA margin versus some of the new verticals like PSB and trade finance, right?

Correct.

Would it be possible to give some numbers on this and maybe our future guidance on these products scale up? How do we expect the other products as well as maybe SCF and margin profiles today and maybe 2 years out?

Payal, you can give the first part. The margin profile, 2 years out and the numbers, how they pan out, that I can take.

Yes. So on the first part, in the 9 months YTD numbers, when I say INR 53.85 crores is the revenue, the EBITDA is INR 23.54 crores, and PAT is INR 12.4 crores, okay, for the product. These are only decent historic either PSBXchange, cash management, and the trade finance products. Like you mentioned, currently, our EBITDA margin for other products are a little low because it's in a growth phase in our monetization phase. So total EBITDA margin for all these products is currently 43.4%. And with respect to the future growth, I think Raja can explain.

So just to reiterate, our standalone, just SCF, if you look at just SCF numbers, their our EBITDA margin was 52% and when you look at this on a steady-state basis once cash trades, what are the product groups that we have. We have supply chain that we know what the EBITDA margins are. Then on top of this, what you will add, are your cash, trade, internet banking, LOS, LMS, on this -- on a steady-state basis, we should be looking at between 40% to 45% EBITDA, okay? That's what -- that's the EBITDA that we look at here. Specifically on PSBXchange because that's a separate type of business, there, we look at EBITDA from anywhere from 28% to 33%. That's the margin that you will see EBITDA on the PSBXchange business. That's the way to look at it.

And Raja, maybe can you also spell out some guidances or some expectations, maybe internal expectations on how do you plan to scale up the other 2 verticals, which is PSB and trade finance? I'm sure SCF is now pretty much scaled, but maybe 3 years out, can you give some guidance or some growth number around these platform business?

I think a good sense of that you'll get from the deal pipeline. The fact that 78% of the deal pipeline right now -- because all of these products have just been -- just got ready in the last quarter, 5 months, 6 months, okay? That's the time period. You could think of it then last quarter got ready. Now after getting ready, the team has already been working and already we are seeing a 78% pipeline of non-SCF. So that gives you a clear idea of where we are headed. This SCF will become one large piece of business, yes, but the others are catching up very, very fast, significantly. So that's where the TAMs in those products are much larger than SCF. Those are much larger products than SCF. The challenge in terms of complexity was much higher out there. And the world -- the global banking world has been crying for products in that segment for the last 20 years. So the future seems more skewed towards the other products. SCF continue growing. But as a percentage contribution, SCF will clearly not be the major player, say, a couple of years down the line.

No, I think I agree. I mean I understand that. But just in terms of my modeling exercise where I probably want to take a basis point out of this pipeline, I think, in your deck, you have USD 61 million of pipeline which you are trying to bid for or maybe you are currently in evaluation stage. But from a modeling perspective, how much of the pipeline should actually get converted? And after conversion, SCF is a basis point business, but just wanted to get a sense that how will revenues flow? Maybe you can tell me some win rates or some basis point numbers.

Okay. So the transaction banking business is unlike other SaaS businesses. So let me explain why. First is that even after you sign a deal, the revenue starts hitting your account 9 to 18 months down the line, not -- because once you sign a deal, post that there is an integration effort, there's an implementation effort, then in more of more cases than not the client starts building up their numbers. If there is a data which we already have, it will migrate. So all of these processes could take 9 months to 18 months, sometimes even longer than that. But once they start coming on, once it comes on board, that's when we start making money. That is in the SCF business. In the cash and trade business and the internet banking business, there, what we are seeing is the market is moving towards recurring payment of pay-as-you-go models, either monthly or annual subscriptions. We are seeing that with most of the deals that we are talking with our clients on. The same thing will happen there also that post signing is 9 to 18 months where they will transition, we'll get some fees coming from this on the implementation and integration side and the remainder will come once we go live. So the right way to look at these pipeline numbers is not to take a percentage and say, next quarter or the quarter after how much of this is going to come in. These are slightly more longer term than that. From a revenue augmentation on the P&L perspective. So don't just take these revenue numbers and just put a percentage and add them into numbers, they are some way off from hitting the P&L. Right now, the numbers that are hitting the P&L, those may have been closed a couple of years back. They have a lag in this business.

[Operator Instructions] The next question is from Himanshu Rathore from IIM.

Just 1 question. Looking at the pipeline -- product pipeline that we have regarding on SCF businesses, this cash management, it constitutes about 26%, which is more than SCF. Cash manage -- I mean 2 things. How are we distinguishing ourselves in this space? Because as you rightly pointed out, it's a very thriving space, but this space specifically is characterized by single-digit profit margins at max. There are big -- there are companies like Zaggle who are finding it -- who are growing revenues at a grade who are totally focused on this segment, but are finding it difficult to be value accretive, so to say. So my question to that end would be in the long run, where -- how much -- what are the PAT margins that you expect from the consolidated business? Given the fact that now we are steering our business away from the supply chain finance aspect, and we are probably moving towards non-SCF products and services as well.

Sure. The first thing, when we say cash management business, we sell our products to banks. We don't sell this product to anybody else. So the other names that you spoke about, they are all corporate focused. They do not run the core cash business of the bank. These are complex products, nobody has in the last 20, 25, 30 years, built a cash management product. So the product that we have and the product that you spoke of, Zaggle, they're completely different. They are not same at all. A bank cannot take Zaggle's platform and use it to run the cash management internally. But Zaggle would be a great platform for a corporate to use out, that's the reason customers of Zaggle are corporates and not banks. The second point is the EBITDA margin on the cash product would be very similar to the EBITDA margin on the supply chain finance product because these are enterprise grade products sold to bank. And again, cash management product is not sold to each and every bank. Any midsized and upward bigger banks are the banks which will take cash management. So from an EBITDA perspective, as I said, all or these products, whether it's internet banking, LMS, trade, supply chain, they will all be between 45% to 50% -- 40% to 45%, 50% EBITDA. This is the range of EBITDA for these products, because they're enterprise grade products. How we are differentiating ourselves? The differentiation is that we are a complete microservices-based architecture. There's nothing legacy in what we are doing. And functionally, they are extremely rich with a lot of AI which is embedded. Now the good thing for Veefin is these products have been gone in the AI age and is competing with the legacy software, which was born many, many, I think, decades back, and they have been used. That is the reason when clients have seen this software they are super thrilled, and they all want to have conversation with us.

The next question is from Bharat Reddy from AB Capital.

Sir, regarding the preferential round that was approved in 2025, has the company now received the full amount for the allotted equity shares and 25% for the warrants?

Yes, we have.

Okay. And can you explain the utilization so far?

The utilization breakup is already uploaded, so out of that, there are 4 objects of the fund raise. One is utilization for international expansion, product development, sales and marketing and general corporate purpose over a period of 12 to 18 months. So out of the entire INR 94.3 crores, international expansion is INR 10 crores, product development is INR 29.33 crores, sales and marketing is INR 12 crores and general corporate purpose is INR 23 crores. That is the breakup.

Okay. So next question, like how does the management view the equity dilution over the next 2 to 3 years? Are there any further rounds that one can expect?

Currently, that is -- currently, that is something that we will not be able to disclose. We'll not be able to comment at this stage because it's unpublished price-sensitive information. However, if there is any such fundraise or any such happening it'l be -- all the material events and the developments will be disclosed on a time-to-time manner.

Okay. Last question. So I can see we are hiring top senior executives from [indiscernible]. May I know what is the incentive structure that aligns this leadership within long-term scale up?

Everybody who joins Veefin is on ESOPs. And ESOPs of senior management is always linked with the revenues and the bottom line of the company. So the reward structure for senior management is always aligned with how well the company will do in the long term, and all are on 4-year vesting periods in terms of ESOPs.

The next question is [ Darshil Jhaveri ] from Crown Capital.

Can you hear me?

Yes.

Yes, so I just wanted to firstly congratulate on a great set of results, sir. I just wanted to know like in terms of guidance that you had given previously. Do we stick by that because we've acquired, I think in terms of revenue that we've already nearly we're about to surpass that this year, so any kind of comment on our guidance for revenue and EBITDA this year and next year, sir?

Whatever guidance we had given during H1, we are in line to meet those, so no change in the guidance. So we stick to that.

I think we're going to outperform that. That's the reason I was asking for that, sir.

I think let's stick to that guidance. Ideally last time I was -- I ended up giving you guidance, but as a rule, we do not like giving guidance. But now that we gave the guidance last year -- last time, we are sticking to that. If we overperform, that's great for the market, but let's stick to this guidance.

Okay. Fair enough. And just so with regards to our FY '27 revenue, any color on that, how much do we -- are we targeting, sir?

So it's the same thing. We're not -- as you can see that whatever we had given as guidance, we will meet that and most probably surpass that. Let's stick with that. We are doing extremely well. You're all seeing what the numbers are looking like. You are seeing that what we had committed in terms of the product being ready, they are ready on time. We are seeing traction in the market. We are seeing the supply chain continues to be a very, very strong product for us. We are continuing to see that the new products which we had built they are complementing supply chain very well. The same clients who are taking supply chain are now coming back to us to take other products. So things are looking fine and good from that point of view. So the future looks nice. That's all I would say.

Okay. Perfect. Perfect. Sir, just 1 last question from my end. So now when we've already developed a lot of new products. So any other product like we are looking to enter, maybe that can also grow? So just wanted to know like what are the new products that we are targeting right now, sir? Maybe not this year or next year, just with something that's in development that we see as a great potential right now?

There are always products on the horizon, but nothing that we are developing right now because these products that we have ended up building these are massive products. So all the investments that we have done now is the time to actually juice out the investments. So the focus of the team is now to juice out whatever we can from these products and concentrate on selling this more and more across the world.

Next question is from Hitaindra Pradhan from Maximal Capital.

Sir my first question is on PSBXchange. My understanding is correct, sir, like this is where like we are created a platform where we are aggregating the different vendors, those are sourcedby the fintechs, and we help the banks in terms of the origination and we charge the commission of it, right? So can you just elaborate on the revenue model? What is the commission that you are charging and what is our net -- on the net basis, what is our earnings from a transaction? And what is our current transactions run rate is like on the PSBXchange?

As I said, there are 3 parts to PSBXchange. There is sourcing of business angle from where we get fees, that's 30 basis points. Then we have the technology, where it is 20 basis points in a graded manner, then you have the onboarding services which you provide to banks for getting the channel partners signed up onto the platform for the bank, specific bank, there is another 15 basis points. And these all basis points are on the AUM that the bank generates out of the platform. So that's in terms of the pieces. It is not only for vendor finance. It is for all types of supply chain financing, including trade finance or including any other form of financing that either the corporate anchor or the channel partners or the dealers itself may require, including term loans. Right now, we have started with supply chain financing, but all the others are also in the pipeline to come in one after the other. In terms of the throughput, we have just shared the numbers. In terms of where we are seeing our initial traction in terms of the number of corporates, the number of approval, the limits that we have got approved. All of those have been shared in the presentation. So it's INR 4,000 crores as we speak in terms of the approved limits, which will eventually translate into actual transaction AUM on the platform. And that's the AUM on which PSBXchange gets revenue.

That would be in total, like, sir, like as you mentioned, it would be somewhere around 50 to 60 basis points. That will be our revenue.

Depending on which services each bank uses. In some cases -- correct, the lowest is 30, the maximum is 65.

Lower is 30, maximum is 65. Okay. Yes. And sir, like on this like the main driver is the 30 bps, which is on the vendor financing, right? So on that, we need to pay to...

No, no. Again, I am saying, it is not just vendor finance. It is all forms of financing, whether it's a vendor finance, whether it is a dealer finance, for all forms of financing, the pricing is the same. It's 30 basis points. To answer your other point, where do we have to share? Yes, if it is our own source business, we do not have to share. If it's a sourced through partner between 10 to 20 basis points, it is shared with the partner.

Okay. If it is our own, we don't share, but if it's sourced from someone, then we say 10 to 20 bps.

Correct. Depending on what they bring to the table in terms of what services they provide.

Okay. Okay. Okay. And sir, the second question, just to clarify, like you mentioned earlier, the standalone SCF business, the contribution was INR 52 crores on the product revenue, which was INR 82 crores.

INR 53.85 crores is the core revenue. So out of that standalone SCF business is INR 46.56 crores and other products, PSBXchange, cash management, trade finance we've started, which is monetizing now is the additional INR 8.3 crore. So that comes to a total of INR 53.85 crores out of the entire INR 82.45 crores of product revenue.

I'm sorry, if I missed this, but why are we splitting this into product and services for the SCF business?

No, no, not for the SCF business. In the consolidated. In the standalone, we do not give segment-wise disclosure. In the consolidated book, wherein we have IT services and other service entities also, there we give a segment-wise disclosure into product and other service entities, entities, which are into IT services and other types of product business.

Got it. And then, on the final one on the sales outstanding. So our consolidation is over, right? So the sales outstanding will remain as it is or it will like change in future quarters?

No, it will now -- the consolidation is now done 100% that we now continue the same thing.

[Operator Instructions] The next question is from [ Priyansh Mari ] from Family Office.

Congrats on a great numbers. Hope I am audible?

Yes.

Yes. So I have a 2-part question. I want to understand like though we had a decision period, we built the product, now we sold it, right? So -- what will be the down...

Sorry, you have to speak a little slowly, your voice is not clear.

Okay. So I was saying, sir, we have recently shipped our product, right? So there will be downstream dependency on the service revenue, right? So how do you see...

Sorry, Payal, can you hear?

I was missing the middle part.

Yes, what is that word? That word I'm missing that you have done this sort of product, what is the word?

Is it better now sir?

Yes, yes.

Yes. I was saying we have shipped over 6 products, right? So this will also have our service revenue downstream potential revenue, right? So can you share some like as we -- as the first stage of selling our product, right? Like what sort of revenue multiplier will see in our downstream revenue and also to mitigate those what sort of hiring strategy we are looking at? Like what percentage of on-roll employes we need to increase that? And if you have any margin set on that.

We get what you're saying. We could have done that. But as a part of the strategy, we are going for a partner-led strategy, where we are partnering with system integrators globally in terms of helping us on the implementation. So we are not focusing right now on the service side of the revenue. So that is not the focus at all. So Veefin's focus remains not on the service business, but on the product business. So we are not going ahead and assuming that there is going to be an effect on the service line revenues and therefore, hiring, we are doing none of those.

The next question is from Arunav Bhattacharjee, who's an individual investor.

I wanted to understand one thing. I hope my voice is clear first of all.

Yes. Yes, it is clear.

Yes. So with respect to PSBXchange, the way I see it, it's more like a marketplace. So we have the full stack deployed, right, every of our product -- is our eventual goal to move today's existing clients also to PSBXchange? Or do you see them still standing on standalone clusters?

PSBXchange is a very different piece, let's remember. PSBXchange is a marketplace, which also has tech. The individual banks who work with us they require tech not just to do work with PSBXchange, but they all have their large sourcing teams themselves. So when their own bank teams go and source business, they require a core system, which they can use for managing that business. That's where Veefin standalone comes in. When they want business beyond what the teams are going and acquiring, that's where PSBXchange comes in. So both of them are complementary in nature. Banks will have their own teams go and source, put their business on Veefin. Banks after they have done the business from sourcing from their own team, they want additional business. There, they will go to PSBXchange. If they don't have the tech, they will use PSBXchange tech. If they already have a Veefin tech, there, they're only going to be do sources from PSBXchange. So they are complementary businesses as such. They will not -- no bank will shift its entire [indiscernible] close its business and move to PSBXchange because they will have to still cater to the business which their own teams are acquiring. For that, they will always require Veefin.

The next question is from Ankit Narshana from Nuvama.

Yes. Sir, I just wanted to know like whatever you discussed right now, I just wanted to get a clarity. Have you pivoted some supply chain financing? So can you just give a brief elaboration on that?

No, we have not pivoted. Supply chain is our core. Veefin was known for supply chain. Veefin has used the same platform and on top of the platform brought in the entire transaction banking suite. So we've added more products to the Veefin supply chain. So when we are seeing here that our pipeline is expanding, it is not at the expense of the supply chain. Supply chain has a life of its own, it will continue. The other transaction banking products which are there, they are now adding revenue on top of what supply chain was adding. So it's not a pivot. It's the same journey we are on, just more products are getting added to Veefin.

The next question is from Uday, who is an individual investor.

Hello, yes. Sir, I have actually 2 questions. One is quick. Sir, what is the update for our merger plan? I see from the last update like BSE approval is still pending, right? And how -- when do you think this merger plan will do in action? Like any tentative update on that plan?

BSE approval has come in. We are at SEBI. Over the next week, 10 days, we are expecting their approval. Post that, it goes for NCLT.

Okay.

Just to add onto this. So basically, BSE has sent their observation letter, like what Raja mentioned, they have approved and sent their observation letter to SEBI. The final NOC from SEBI is awaited. So once we get that NOC from SEBI in the next 10, 15 days, we've already got some queries and we've replied to that. After that, we'll go on to the NCLT.

Okay. My second question is on the standalone. Sir, what I know, like as of now, we are having 70% recurring revenue in standalone, where our SCF 4.0 or SCF platform is -- so that is running quite well. And because we know until and unless the merger plan actually happened, the consolidated margin will be dragged because of the lower PAT. So I just want to understand what is the next -- like what is the assurance for recurring revenue in standalone business? And is this -- do you have something like 5, 7 year period lock in with clients like HSBC and all in standalone because that is quite a lucrative business for us?

Yes, all our agreement that we do, they usually come with 5- to 7-year lock-in period, including the names that you mentioned. So that's one. And in terms of the amalgamation, we expect the amalgamation to be effective first April 2026. That's what we have filed as amalgamation scheme.

Next question is from Shubham from Minerva Capital.

Am I audible?

Yes.

My question is regarding one of your previous acquisition in White Rivers Media Solution, which is a digital marketing agency. I wanted to know the rationale behind this particular acquisition?

This was a great case of an investment. So it's a noncore product for us, but it was a great investment opportunity wherein the company is one of India's largest independent digital content creation and marketing companies. We have seen the company closely over many years. The company was something where we felt there was an opportunity for us not just to add value to them when it comes to their business by bringing in BFSI client, but they had a large roster of clients. The secondary by nature, but they had a large roster of clients where we thought we could bring those on onto the PSBXchange. Plus, that company is now going for listing. It's going for main board listing in this year itself. DRHP supposed to be filed in June, July and it's going for listing. So it was a great investment opportunity that we saw.

Okay, sir. Okay. And sir, No, we are not giving out any guidance. I wanted to know apart from PSBXchange, what do you think would be the major driver of revenue for Veefin?

So I think the product company, so PSBXchange, yes, it's got an outsized operating leverage upside. I understand that. I understand why the market is so taken in by PSBXchange that's a one-of-a-kind product. And we all understand that it's a marketplace, a marketplace with all the banks are buying from NBFC in the country. It's a marketplace where it made perfect sense for all corporates to be on the platform. So we have a life of its own as soon as it starts because more banks need more corporates and more corporates need more banks on the platform. So that's great. But the core products of Veefin, which is your supply chain finance, and now going forward, our other transaction banking products, they themselves have great opportunities because these are very large markets as such, globally, not just India. Globally, these are very large markets where banks have been looking and waiting for a new platform and new products to come in. So we are very gung-ho about our product business, which is there, along with what will happen in PSBXchange. So it's not either or, it's both.

Sir, if you can quantify a little bit the total addressable market? And what kind of percent in terms of percentage revenue growth you see from these other products apart from PSBXchange?

I will refer -- it's a little technical, so I will refer you to our last H1 presentation that we had shared the earnings. It's got product-wise TAM for each of these. So that will be very interesting reading for anyone who's interested in the Veefin story where it talks of each product and the TAM that we're looking at. The total TAM across all of these products is between $40 million to $65 million annually.

The next question is from Ashu Raj, who's an individual investor.

I joined a bit late, so I'm not sure if the question is repeated. But my question is that -- 2 questions. First question is, when we report the numbers, we showed entire revenue, but we show only the profit based on the stake that we have. So I wondered -- question was, can we not show the revenue also in terms of that way like 10% for a subsidiary, if we are showing profit 10%? So that's what my first question is. So that will give a more realistic figure how it looks from my side.

I wish we could have done that, but Payal, is going to answer this.

So in the P&L, in our consolidated financials, we show entire 100% revenue and the PAT is also 100% initially and after that, we reduce minority interest from the entire PAT, and we show the PAT which is available to the shareholders of the company. The main reason for consolidating the revenues on 100% and the PAT is because, we hold management control or maximum board control in all of these entities. Therefore, as per IGAAP account AS 25, we need to consolidate the revenue and the expenses all at a 100% basis. And then we bifurcate the NCI. So just to clear out your question, we not just consolidate revenue 100%, but till the PAT, it's all 100% consolidated. After PAT, when we divide the PAT into the NCI, which is a noncontrolling interest and the percentage available for these in shareholder.

Okay. And my second question is, what's the plan on the time line to increase our stake in the EpiKindifi [indiscernible]?

So we have the agreement for that is somewhere in 2027. So it's not right now. It'll come up later.

The next question is from Pradeep, who is individual investor.

Congrats on great performance. My first question is, so are there any subsidiaries which are performing below average or making loss? So what's the strategy to bring up this?

Can you repeat the question, please? It is not very clear.

Yes. We have many subsidiaries, right? So are there any subsidiaries, which are performing below the average, below the profit range and again they or loss-making?

We have, we have subsidiaries. As we said, some of our subsidiaries which house our PSBXchange exchange, our transaction banking products. These are all in the investment phase right now. So yes, they will be loss-making. But are they performance below average? No, absolutely not. They're performing extremely well, in line with what we want them to perform right now because they are in the product buildout phase. So the right way to look at those companies are today, they are in product build-out phase. The expectation from them should be how far they are able to build out the product, how well the products are accepted by the market? So as long as they meet these 2 parameters, we would classify them as performing well. And that's the reason we see that very strong pipeline and traction on both of these.

Understood. My next question is, when can we expect like if you want to improve like 5% to 10% of the bottom line. So when can we expect that change? And what are the focus areas to get that improved number?

The numbers will improve on a standard basis just by our new products starting to pump in revenue, because if you look at our entire structure right now, we are in the product build-out phase in most of the products other than supply chain financing. Supply chain financing is great, but everything else is in the product build-out phase. When you also look at the pipeline, you see that now that there's a lot of traction which you're seeing on the other products, which we have not seen even last time -- 6 months back or 3 months back when we had the last call. So you are seeing a lot of traction on the new products. So that means that we are all on the right track in terms of where the strategy was, what we had envisaged and whether the execution ability, execution ability is in line with what we have strategized. So we are very comfortable with how we are executing on our strategy.

Okay. And one request is, so when we have huge deals like that example like for example, [ $2 million ] as such. Can you publish our BSE side, that will be greater?

See, as a SaaS company, we generally can't publish our future revenues out there because that's something which our clients will also not like. So we don't do that, but we do keep publishing our large deals at BSE. And we'll see to it that in future also what we do, we continue publishing.

Thank you very much. We'll take that as the last question. I would now like to hand the conference back to the management team for closing comments.

I think I would like to take this opportunity and thank everyone for being with us on this journey. I know it's an exciting journey. It's a first of its kind for many of you too because it's a new segment, complex segment, new type of business but we are very thankful for the faith that all of you have reposed in the management and the company. Thanks a lot.

Thank you.

Thank you very much. On behalf of Veefin Solutions Limited, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.