Zaggle Prepaid Ocean Services Limited (ZAGGLE) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Zaggle Prepaid Ocean Services Limited Q1 FY '27 Earnings Conference Call. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance, and it may involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Dr. Raj Narayanam, Executive Chairman. Thank you, and over to you, sir.

Thank you so much. A very good evening to everyone. Thank you for joining the earnings call for Zaggle Prepaid Ocean Services Limited for the first quarter of fiscal year 2027. On behalf of the company, I extend a very warm welcome to all of you and an advanced Happy Independence Day. The financial results, press release and the investor presentation are uploaded on the stock exchange and on the company website. I hope everybody has had a chance to look at it. Now I would like to take the opportunity to talk about Zaggle's financial update at a consolidated level. It's been a decade of sustained growth, and it has brought us to a natural and exciting reflection point. For FY '27 for us is going to be about transformation through consolidation, optimizing our core operations, harnessing the power of AI and seamlessly integrating our recent acquisitions. We are moving from a merely profitable growth paradigm that has served us very well in the past decade to a more focused approach on improving cash flows and calibrating capitalization, which will position us well for the next phase of growth with higher margins. By taking a deliberate, focused approach to our fundamental performance today amidst rapid technological shifts and dynamic market, we ensure our business remains resilient, agile and positioned to drive long-term shareholder value and global scale. In Q1 FY '27, we sustained our top line momentum, delivering revenue of INR 423 crores, a 28% year-on-year growth compared to Q1 FY '26. Our adjusted EBITDA stood at around INR 34.7 crores, reflecting key strategic transitions that I will detail shortly. What's more encouraging, however, is our expanding revenue footprint, a clear sign of strong growing demand for our core platform. Now I would like to take the opportunity to elaborate more on our 3 focus areas: revenue, EBITDA and operating cash flow. On revenue, our total revenue growth of 28% reflects operational momentum across both our stand-alone business and our subsidiaries. On a stand-alone basis, Q1 FY '27 revenue reached approximately INR 390 crores, representing an 18% expansion over INR 331 crores in Q1 FY '26. This 18% top line is particularly resilient given that Q1 is historically a soft quarter due to seasonality. Meanwhile, performance across our subsidiaries has been exceptional, and I look forward to detailing those results shortly. As always, we expect growth to accelerate through Q2 and remainder of the fiscal year. Now on EBITDA. In Q1 FY '27, our adjusted EBITDA margin stands at around 8.2% as compared to 10.1% in Q1 FY '26. Our overall cost base, which includes employee cost as well as other expenses went up by around 25% comparing Q1 FY '27 to Q4 FY '26 at a consolidated level. While we were successfully able to optimize around 15% of the cost base throughout FY '26, which would have reflected in FY '27, there were 4 major areas, which contributed to the rise. Expenses related to Dice acquisition, which we absorbed when we absorbed around 100 talented AI professionals, costs, including their transfer onetime costs and also would want to highlight at this point that we will start realizing the revenue from novated Dice contracts only from Q2 FY '27. A moderated push of expenses into the P&L, which we were earlier capitalizing, and this is what we are going to continue to do it over the year. The standard employee increments, which come at the end of the year -- end of the financial year and gets reflected in the Q1 is also one of the reasons. Added employee costs, marketing costs and other expenses from the acquisition of Zagg.Money. Expenses related to Dice acquisitions were predominantly relocation costs for transitioning 100 employees from Pune to Hyderabad between May and June, along with onetime tech vendor payments to ensure continuity between the transition, along with onetime transaction costs reflected primarily under other expenses. With the relocation now complete, the Dice team cost from Q2 FY '27 will sit under our employee benefit expenses. On the capitalization front, we are reviewing and updating our policies in close consultation with our advisers. Rather than waiting for a full policy rollout, we took immediate proactive measures in Q1 FY '27 to moderate new capitalization levels. This calibrated moderation aligns with our focus on operational prudence and ensures our P&L better reflects our run rate costs. On operating cash flow, strengthening our operating cash flow trajectory remains a key priority. We look forward to detailing our progress on the next earnings calls, highlighting not only the actions what we have already taken to improve cash conversion, but also the additional levers, which we are preparing to execute forward -- going forward. Now I would like to give you an overview of Zaggle investments and acquisitions. I would like to start off by talking about our latest investment. We have made a strategic investment of around INR 8 crores in Unobanc Private Limited, which operates under the brand of moneyHOP. Unobanc now holds an authorized dealer Category 2 license from the Reserve Bank of India, which allows it to offer digital cross-border payments, remittances and foreign exchange services as well as ForEx cards. Much like Zaggle, Unobanc operates a powerful B2B, B2B2C model, partnering with leading NBFCs and money changers to power seamless cross-border payments for their clients while simultaneously driving direct-to-consumer remittances through its established B2C channel. The investment comes at an opportune time with significant regulatory tailwinds working in our favor. Under the new guidelines of AD Category 2 entities are now permitted to process cross-border trade-related transactions up to INR 25 lakhs per transaction. The investment strategically aligns with our Save and Zoyer products to further enable ForEx cards, cross-border payments and remittances for our corporate and retail base in the future. Next, I would like to elaborate further on Dice acquisition. Just to refresh, the deal has transitioned to an asset purchase from the erstwhile share purchase, we have secured the complete spend management product suite and intellectual property, along with their entire enterprise and partnership contract portfolio for approximately INR 68 crores, excluding GST, a significant INR 55 crore optimization from the initial INR 123 crore valuation. As highlighted earlier, we have completed the relocation of around 100 talented AI professionals. The contract novation of around 85-plus clients is underway, and we should complete by the end of Q2 FY '27. One point I would like to reiterate, the revenue accruing from these contracts has not been realized in Q1 FY '27 and will only start from Q2 onwards as part of the deal. As a part of the innovation, we have seen marquee names getting successfully novated and onboarded already, including the likes of Hindalco, Bajel, Trident Group, IDFC First Bank, Lenskart, XpressBees, amongst others. To note, we have already merged existing sales pipeline of Dice as well as, and we will keep you posted in upcoming quarters on updates regarding the same. The acquisition of Dice has proven to be a vital catalyst for our technology road map, significantly accelerating our AI capabilities across both Zaggle Save and Zoyer. By integrating Dice AI-driven core technical expertise, we are enhancing automated spend analytics, intelligent approval workflows and predictive expense management within these products, allowing us to deliver far greater operational efficiency and value to our corporate clients. This capability positions Zaggle very well to tap into other global markets like UAE and U.S. as well. And in the coming quarter, we would also take the opportunity to showcase these capabilities of AI by holding our Investors Day, and we will let the exchanges know in advance. Next, I would like to talk about our acquisition of Rio.Money, which has been rebranded as Zagg.Money. We have continued -- we have seen continued transaction with continued traction within the entire credit card on UPI and TPAP ecosystem. In our last earnings call, we had reached an annualized run rate for new acquisition of 36,000 cards within just an 8-week window. Now I'm happy to announce that we have increased the annualized run rate by almost 2.3x to now reach around 84,000 cards in a short span of time. Along with this, we have also launched a first-of-its-kind Twin co-brand card with Punjab National Bank across Visa and RuPay, which has been issued on a biodegradable plastic. Along with this, we have also gone live with AU Small Finance Bank on both networks, which is Visa and RuPay. The program with AU not only rewards contactless and UPI spends, but also our custom value packs, enabling hyper-personalized features and reward points for consumers. On the marketing front, Zagg.Money, we are actively engaging our B2B2C user base by positioning ourselves as a vibrant digital-first brand through targeted social campaigns. This quarter, we focused on major cultural movements, launching thematic campaigns around the FIFA World Cup and the release of the movie Odyssey to drive user engagement. Parallel to this, we completely revamped our co-brand user journey across both app and web, seamlessly aligning it with our upgraded brand identity, Zagg.Money. I would also like to give you a little bit of policy tailwinds, which we have seen. This opportunity to welcome the proposed amendments in the taxation and other laws Amendment Bill 2026 regarding a limited MDR on high-value merchant transactions. Crucially, this policy -- since this policy focuses on large enterprise transactions, our sustained investments in building out the UPI ecosystem now positions us perfectly to capture enhanced transaction monetization. Next, I would like to talk about our investment in 86400 earlier known as Mobileware, which is poised to enjoy the benefits from the MDR on UPI. Revenues grew from around INR 17 crores in Q1 FY '26 to INR 22 crores in Q1 FY '27, representing a Y-o-Y growth of 29%. EBITDA grew from around INR 2.8 crores in Q1 FY '26 to around INR 8.8 crores in Q1 FY '27, representing 400% Y-o-Y growth. This unprecedented growth stems from the massive growth in UPI transaction volumes. Even with a large base, 86400 is seeing 2% to 3% month-on-month growth in volumes they currently support with various banks. On the new customer acquisitions, I am happy to announce that 86400 signed its first major international partner, having partnered with LankaPay to strengthen their digital payment ecosystem. Along with this, 86400 also signed up with Union Bank of India for their Bharat Bill payment stack and signed up with Maharashtra State Cooperative Bank for their UPI transaction. Another noteworthy and heartening point was on ease, 86400 processed over 2 crore transactions, underscoring the scalability and reliability of the platform, supporting peak value execution. Next, I would like to talk about GreenEdge, which runs the golf privileges program for various banks and networks like ICICI, Amex and others, along with the entire reward program for NPCI -- for NPCI. Revenues grew significantly at around 160% from INR 17 crores to around INR 44 crores in Q1 FY '27. EBITDA grew 66% from INR 2.6 crores in Q1 FY '26 to about INR 4.3 crores in Q1 FY '27. We are seeing significant growth with NPCI, especially on the RuPay benefit program quarter-on-quarter, having driven deeper technical integrations to ensure seamless service delivery among an unprecedented growth in UPI transactions. On new customer acquisitions, we are in talks to onboard new banks in the coming quarters. Now I would like to talk about TaxSpanner. As guided in the last earnings call, we made a few changes in our approach, having appointed new Board members to have a fresh look going into FY '27. We have also begun the initiative of rebranding TaxSpanner to ZatiX and we'll keep all of you posted with updates on the same in the coming quarters. Happy to share that TaxSpanner reported revenues of INR 80 lakhs in Q1 FY '27, marking a 65% increase over Q1 FY '26. This performance keeps TaxSpanner well on target to breakeven this financial year.. What is more heartening to see is that we will have a growth of around 120% on B2B side of the business, which primarily caters to the income tax and GST compliances of the enterprise corporates. To further enhance our scope, we are also undergoing integrations with external partner ecosystem, including large payroll companies to further strengthen the embedded tax filing opportunity. Lastly, we seek to accelerate TaxSpanner growth by placing AI automation at the heart of the platform, allowing us to disrupt traditional tax filing models, deliver superior speed and accuracy and expand our market footprint. Lastly, we would like to take a disciplined, highly selective approach to M&A, prioritizing value-accretive acquisitions in adjacent domestic and international markets. Moving forward, we intend to deploy our QIP proceeds into adjacent sectors, ensuring every transaction drives meaningful synergies and accelerate our long-term growth trajectory. Now I would like to take this opportunity to address our AI investments as well. For us, investing in AI is a very crucial driver in transforming Zaggle from a traditional platform into an indispensable autonomous financial operating system. As enterprise market requirements rapidly shift from simple digitization towards real-time governance and predictive intelligence, our AI investment ensures we stay ahead of evolving client expectations. By embedding AI natively across Save, Zoyer and Propel, we automate complex spend patterns and compliance workflows at scale. We are actively taking on larger and more complex enterprise problem statements. Beyond basic spend reporting, our platforms now solve sophisticated corporate challenges, including multi-entity accounts -- multi-entity accounts payables and procure-to-pay automation, dynamic tax compliance, predictive cash flow visibility and deeper ERP integrations. Solving these mission-critical pain points for larger corporates naturally is leading to significantly higher contract values and margins. Stickier client relationships and significantly increased switching costs, cementing Zaggle, as an essential operational engine for enterprise clients. While we continue to invest and actively look at building these next-generation AI capabilities, I want to reassure our shareholders that we remain deeply mindful of our cost structure. We are disciplined in moderating our execution expenses, ensuring that capital is deployed prudently without compromising on operational efficiency. However, we firmly believe that the long-term strategic returns will far outweigh current development costs. History has shown us that moments of foundational technology shifts, much like the advent of the Internet or the migration to cloud computing reward those who build ahead of the curve. By absorbing these upfront development costs today, we are positioning Zaggle to capture a lion's share of tomorrow's market, securing high-margin recurring revenue and a structural competitive advantage that will compound value for years to come. Now I would like to give an update on our international expansion plans. Now we are in the process of opening a subsidiary in ADGM, Abu Dhabi Global Markets International Financial Center and Free Economic Zone within this quarter, which is Q2 FY '27. While we remain mindful of regional volatility, our engagement with local government, banking and commercial partners has met with overwhelming interest. Furthermore, through the Dice acquisition, we inherited key client relationships that clearly validate our product market fit. As a result, we are prepared to enter the UAE with our core product stack, Save, Zoyer and Propel to capture significant market share in an expanding sector with a fragmented competitive landscape. With this, I now hand over to our CEO and MD, Mr. Avinash Godkhindi.

Thank you, Dr. Raj. A very warm welcome to everyone joining us on the call today. I would like to give an overview of a few key metrics. I'm happy to share that today around 4 million users actively use Zaggle powered cards and platform, software platform, a strong testament to the scalability and adoption of our platform. We now serve more than 4,000 customers across a wide spectrum of industries and sectors. Talking about our consolidated revenue mix this quarter, the SaaS platform fees contributed around INR 12.5 crores; program fees contributed around INR 160 crores; Propel points contributed around INR 251 crores. Now to talk about a few business highlights. I'd like to start talking with the Save business. As Dr. Raj mentioned, on the tax benefit side of the business, as guided last quarter, we have seen significant favorable tailwinds with the new income tax regulations, which not only added wallets to our new -- for the new taxes [Technical Difficulty] in the per user wallet for existing as well as new corporate customers. We have multiple marquee names, including Radisson Hotels, SCA, Avighna India, Slice Small Finance Bank, Bikaji Foods, Bureau Veritas, Nuvama Wealth, amongst others and have a large pipeline to showcase for Q2 and forward. Post income tax regulations, we also seen a significant increase in the onboard user count across our entire customer base. While the focus has been on new client acquisition, around 73% of the new users onboarded came from our existing corporates, where we were able to upsell new wallets and add new users. On the travel and reimbursement side of the Save business, while we have onboarded marquee names such as APAC Financial Systems, ARC Infosystems and GSK India amongst others. As highlighted by Dr. Raj earlier, we have also invited clients from Dice such as IDFC First Bank, Manipal Hospitals, DARCL amongst others, whose billing will begin in Q2 FY '27. Next, I would like to talk about key updates in our Zoyer business. We have seen a very positive uptake in the Zoyer business with focused AI-driven rollouts of earlier signed customers. One such example is a large retail chain we signed up a few quarters back, where we have already onboarded about 2,000 stores with an impending rollout of the balance 17,000-odd stores in the coming months. We signed up a few marquee names as well as Diesel Fashion, Mokobara Lifestyle, AppsForBharat, CBM Retail, amongst many others. We have also invited clients from Dice such as Hindalco, Bajaj projects such as Bajel, Dezerv, Navi and many others, whose billing is going to begin from Q2 of FY '27. Next I'd like to talk of a few -- key updates in our Propel business and would like to start with a small case study. A strong example of Propel's enterprise traction is a recent deployment in a large entity managing 5,000-plus channel partners. The client was constrained by legacy offline voucher business tied with a significant [indiscernible] working capital and prevented real-time program tracking. We address this by implementing Propel, automating their incentive delivery, while providing real-time analytics to boost partner engagement. Additionally, transitioning from what they were using as a single brand voucher to a multi-brand vouchers and multi-brand digital point system effectively release gross working capital for the customer and created a vastly superior partner experience. During the quarter, we have signed up marquee names such as Saint Gobain, Supreme Pipes, Phoenix India, amongst others. Next, I would like to talk about the key updates in our fleet business. Having captured a majority market share in the CDG, city gas distribution companies, we have seen major traction coming with much faster rollouts in these programs. Compared to Q1 '27 -- comparing Q1 FY '27 to Q1 FY '26, we have seen a remarkable 43% increase in the total transactions, along with a resounding [indiscernible] increase in transaction value, which has reached an annualized spend rate of INR 100 crores as of today. We have focused over the last few quarters on driving higher revenue and transaction volumes in the existing programs, and we look for fleet programs to meaningfully contribute to our top line and bottom line in the coming quarters. I'm also very happy to announce that we have signed our first contract with 1 of the 3 OMCs, oil marketing companies, which highlights the effort we have been putting in this space over the last 2, 3 years. We signed a 5-year agreement with HPCL as an aggregator for their flagship Driver Track Plus, DT Plus program to facilitate purchase of petroleum products and enable additional discounts and benefits to the entire corporate and retail base of Zaggle. As a part of this agreement, we also get to add incentive for driving these spends towards HPCL, so Zaggle also get bottom line benefit. I will keep you all posted on the go-live and the corresponding monetization of this program in the subsequent quarters. Now I want to briefly touch base on our cross-sell initiatives. Leveraging AI, we have equipped our on-ground sales teams to pitch and solution for multiple products in the same go, while dealing with different stakeholders across various problem statements. In Q1 FY '27, we saw cases like APAC Financial Services, where we were able to cross-sell Save and Zoyer products right at the initial stage itself. Other marquee cross-sell wins have been Campus Activewear, Purple Panda Fashion, V-Bazaar, Impresario Entertainment, Quest Corp amongst others. To elaborate a few cases further, Campus Activewear is an existing customer for the Zoyer solution, mainly leveraging the BROME solution for their retail stores. In light of the new income tax regulations, we recognize the potential for further collaboration and successfully plugged in our Zaggle Save solution for their employee base for tax benefits. Similarly, Quest Corp is an existing customer for our Save solution for its large corporate base. Keeping in mind the complex procurement workflow requirements, along with the corresponding compliance requirements, we recognize the potential for further collaboration and successfully plugged in not only our Zoyer solution, but also the TaxSpanner solution. Now as Dr. Raj highlighted earlier, on our investments in AI, allowing us to pick more complex use cases. I'd like to elaborate further on one specific use case of one of our large clients in the manufacturing space. The client is currently facing with an entire manual reconciliation process with complex workflows and currently uses one of the larger ERP systems to facilitate the entire [Technical Difficulty] journey. We are working with them on the following solutions, which involve purchase order, invoice processing and validation across 24 parameters for offline and online channels. Purchase orders, which require inspection will now be able to have 3 and 4 [Technical Difficulty] purchase orders, invoices, goods received notes and delivery challans, along with facilitating validation of more than 24 parameters, enabling complete automation of the validation and exception routing workflow. [Technical Difficulty] fully automated liquidation analysis evaluation, calculation and routing workflow for [Technical Difficulty] scenarios, where the relevant commission terms are extracted from PO and measured against the goods received [indiscernible] and invoice along with the E-WayBil. Payment retention and [Technical Difficulty] automation, which holds or delays [Technical Difficulty] payments to vendors once all relevant compliance checks of the shipment have been made -- have been met, measuring against all documented touch points, removing all human intervention barring as requested specifically by the client. Order picking of relevant tax compliances on TDS and GST in a preconfigured tax rule engine, which applies relevant tax rates depending on the nature of the supply and vendor categories on the basis of threshold limits. The creation and deployment of the configuration of solutions in a very short span of time has been made possible by leveraging AI solutions at scale. Lastly, I would like to take all of you through some of the key financial updates. With reference to Propel points margin on a consolidated basis, we have reached a margin of 7.1% with heavy attribution to GreenEdge higher margins. On a stand-alone basis, Propel margin stood around 5% with a significant improvement from our Q4 FY '26 margins. As mentioned previously, we had [Technical Difficulty] of a few overriding commissions that we realized in Q1 of FY '27. With reference to cash back as a percentage of program fees, we saw cash back of 66.3% in Q1 FY '27, which is a marginal increase to the cash back of 65.7% in Q1 FY '26, but a significant drop from our Q4 FY '26 where the cash back was closer to 69%. The marginal increase as compared to Q1 FY '26 is primarily on account of mix of higher corporate credit cards as compared to prepaid cards. As you know, credit cards have a higher share of cash back attached to it because we include the cost of funds there and hence, the marginal increase. With reference to stand-alone employee costs, we expect employee costs to go up in Q2 FY '27 to the tune of Dice employees who have come onboard during the quarter, as highlighted previously. With reference to other expenses, Dr. Raj will address the onetime nature of the increase. Going forward, we expect this to taper down starting Q2 to give more realistic picture on how this P&L will be shaping up. With that, I would like to conclude my update, and we are happy to open the floor for questions. Thank you so much.

[Operator Instructions] The first question is from the line of Siva from Ithought PMS.

So firstly, on our revenue growth, it has slowed down significantly. So this is majorly due to both program fee and SaaS fee. So why is this exactly the case? Could you explain?

Yes. So on the revenue growth, I think Q1 is typically about 18% out of the entire year, okay? And the growth rate, which is about 27%, we see that in the coming months, it would significantly increase.

But I'm asking this question, sir, because we've been growing at 40% to 50% for the past 5, 6 quarters. And I believe we've also guided for 40%, 45% on a consol basis this year. And we've already dropped to 28%. So do we still keep up with that guidance?

Sir, Avinash this side. I just want to add what Dr. Raj said. Two clear factors the SaaS revenue gets augmented starting Q2 with Dice numbers. So while we have taken the cost and done the work for those contracts in Q1, that revenue has not come in. So that's on the SaaS side. On the program fee side, we have taken a very conscious call overall itself the business, sir, we've taken a very conscious call to optimize for both cash flow and to work on controlling or calibrating our capitalization. And hence, those banks, where our working capital cycles have been longer, we have taken the decision this financial year that we will move some of those customers to a different bank. So that re-carding process also takes some time. But that's a call that we have taken to make sure that as we go through the year, the cash flows improve and we are moving volumes to those banks where we are getting realization of our revenues faster.

Our guidance was 40% on a consolidated basis, and we are not moving away from that guidance as yet.

The next question is from the line of Deepak Poddar from Sapphire Capital.

Sir, just wanted to understand now with this Dice consolidation, I think you mentioned that you're going to provide the EBITDA guidance, right? So can you throw some more light? I mean, how should one look at your EBITDA margins going forward or this year? Hello? Sir, you're not audible, sir.

Am I audible now? Okay. So our consolidated EBITDA margin is about 8.2%. And what we see is in the coming months, we will come to know more closely as the revenue from Dice also kicks in. Right now, only the cost has come in, but the revenue has not come in, and we will guide in the coming quarters about on the EBITDA margin.

Yes. So when you say only cost has come in and revenue has not come, so ideally when the revenue comes in coming quarters, you will see only upside potential on your margins, right?

Correct. So if you [Technica Difficulty] came in about INR 3 crores is the cost which came in, in the last 2 months of the last quarter. And we were not able to have any revenue because contractually, the revenue is to start from July 1st. So we are hopeful that when revenue kicks in, margin should improve.

Margins should improve. So ideally, this is the lowest point of the margin, I mean, 8.2%. I mean ideally, coming quarters, you will see a better margin profile, right?

[Technical Difficulty] there, we are improving on -- if you see, we have reached about 80-odd thousand cards on Zagg.Money. And if you see that on Zagg.Money, we have lost, which is what we had earlier guided that about INR 2.5 crores is what we have lost on Zagg.Money. So the whole idea is that while we are continuously bringing in operational efficiencies, but all the other investments which we had taken, we have to keep that into account as well.

The next question is from the line of Ankush Agarwal from Surge Capital.

The first thing, I want to understand is this selective pushing of expense, which were earlier capitalized now to P&L. So firstly, if you can explain what is the nature of expense. Why were earlier base being capitalized and not into expense? And now also when you're looking to sort of expense it out, why are we still doing it selectively and not the whole sort of amount.

Ankush, there is no selective capitalization, which is there. This is a part of the process that eventually we are moving towards expensing all the -- if in an ideal state, I would say that we'll go ahead and expense all the costs. But as a process, it will take us a significant period of time to be able to do it. What we are doing is the cost, whichever we can -- whichever we think that it can be expensed is what we are moving towards expensing it.

So what are the reasons for this.

Just to add -- just to add to add. Sorry, just to add a couple of points here, Avinash this side. One, we are looking at our capitalization policy and we will give more clarity in the coming quarters. The second, of course, sir, you will appreciate that this is a decision that we need to take in conjunction with our auditors and we need to be able to convince them also as to what are the expenses that come into the P&L straight of the back and what gets capitalized.

Yes. So I just wanted to understand just like what are the expenses [ were getting capitalized ] and now you feel that you should develop expense them, so if you can whether is the product development expense or something else, you can add.

Yes. So some of this is intra costs.

Sorry, go ahead.

Yes. Just some of the product development costs, which we have taken, okay, on one particular product, which is like an immediate product, which is required by the clients in the market. What we did was that particular cost which we did, which was about -- roughly about INR 6-odd crores is what we have gone and expensed it completely. And the policy is going to be that we expense more than we capitalize over a period of time.

[Operator Instructions] The next question is from the line of Anil Nahata from Parami Financial.

I would just have a couple of questions. The first set of questions are around the Dice acquisition. So congratulations on completing the Dice acquisition. Have we completed the technical integration of our payment rails with the Dice software? And have we started converting customers on the payment rails on Dice?

So majority of the integration is done, okay? Last bit of integration, which is pending will get completed probably by August 31st or max September 10th. Once we have done that, it will be like a complete integration.

So basically, can we look forward to Q3 onwards having some sort of payments-related revenues coming from Dice as well?

100% without a doubt.

The next question is from the line of [ Piyush Narang from Narang Family Office ].

I wanted to check on what's the median revenue per customer, if you can share that?

So it is roughly if you take about INR 423 crores divided by about 4,000 customers, that is what is the revenue per customer.