DiGiSPICE Technologies Limited

90%

e Money is India’s leading Rural Fintech platform. This segment today contributes more than 90% of the total consolidated revenues of Digispice. The other segment relates to Digital Technolog

10%

revenues of Digispice. The other segment relates to Digital Technology services and is less than 10% of the total revenues. This segment largely deals with providing digital solutions to enterpris

1 million

status of where Spice Money as a rural Fintech platform has reached is that we have in excess of 1 million Spice Money Adhikaris who operate on Spice Money platform. Spice Money Adhikaris are rural entr

1,70,000 crore

ing and financial services to the end consumers. Spice Money today processes transactions worth 1,70,000 crores on an annualized basis. And for one of our key products, AEPS, which is Aadhaar Enabled Paymen

17.2%

e of our key products, AEPS, which is Aadhaar Enabled Payment System, we have a market share of 17.2%, in the off-us AEPS value market share. In terms of our penetration, we cover most of the 6,000 p

46%

et and how large and addressable is the rural market for India. So, rural today contributes about 46% to the National GDP and over the last more than five years it has consistently grown over at the

35 crore

ond, about 2/3rd of the total workforce in the Country is employed in rural India, that's about 35 crore people employed and about 34 crores Internet subscribers in rural India, which has now exceeded u

34 crore

kforce in the Country is employed in rural India, that's about 35 crore people employed and about 34 crores Internet subscribers in rural India, which has now exceeded urban India. In fact, it is 20 per

20%

India, which has now exceeded urban India. In fact, it is 20 percent, this number in absolute is 20% more than urban India. So the point is that the overall economy and banking and financial servi

46 crore

ers to the bank accounts which have been opened for people in general. So, today, there are about 46 crore Jan Dhan accounts that have been opened. A majority of them, about 31 crores, is for rural citi

31 crore

oday, there are about 46 crore Jan Dhan accounts that have been opened. A majority of them, about 31 crores, is for rural citizens and also a significant part of them is for women. So in general the mes

rs,

stem and what does it mean.So, if you look at the left (side of slide), we have all Service Partners, which can be also called as product manufacturers in our paralance, providing them service partn

“What will lead to the growth going forward, I think these are very important parameters to understand besides what has already been leading to the growth, is building customer trust, addressing concerns around fraud management and simplify digital onboarding.”

“This slide represents the Spice Money, that's a Fintech business’ last three years numbers and the CAGR growth with respect to financial numbers and on the right hand side we have put up the quarter results year on year and the last quarter.”

Shiv Muttoo

2

Attendees

1

Rajneesh Arora

1

Sanjeev Kumar

1

Sunil Kapoor

1

Attendees

Mr. Dilip Modi, Chairman, DiGiSPICE Technologies Limited; Mr. Vinit Kishore, CFO, DiGiSPICE Technologies Limited; Mr. Sanjeev Kumar, Co-Founder and CEO of Spice Money Limited; Mr. Rajneesh Arora, Co-Founder and Chief Product and Strategy Officer, Spice Money Limited; and Mr. Sunil Kapoor, Director and CFO, Spice Money Limited.

Shiv Muttoo

Good afternoon, Everyone. Warm welcome to the Digispice Technologies Q1 FY23 earnings zoom webinar. We have with us today Mr. Sanjeev Kumar, Co-Founder and CEO of Spice Money; Mr. Rajneesh Arora, Co-Founder and Chief Product and Strategy Officer, Spice Money; and Mr. Sunil Kapoor, Director and CFO, Spice Money. Before we begin, I would like to state that some statements made in today's discussion maybe forward-looking in nature. The actual results may vary as they are dependent on several external factors. A statement in this regard has been included in the result presentation sent to you earlier. We will commence the call with the management taking you through the operational and financial performance for the period under review, following which we will have an interactive Q&A session. I would now like to invite Mr. Rajneesh Arora to commence the presentation. Over to you, Rajneesh.

Rajneesh Arora

Thank you, Shiv. Hi everyone, a very warm welcome to this session. Thank you so much for taking out the time. Let's begin with the presentation, please. So this presentation is available on the website and also shared with the relevant stock exchanges. What I'll do is, I mean just hope some of you would have gone through the presentation. So what we'll do is we'll touch upon the key messages out of these presentations so we can quickly move on to the Q&A session. So as some of you may be aware or people who are attending are new to Digispice. There are two primary segments within Digispice business. One of them is called Fintech segment which houses the Spice Money business, Spice Money is a subsidiary of Digispice and Spice Money is India’s leading Rural Fintech platform. This segment today contributes more than 90% of the total consolidated revenues of Digispice. The other segment relates to Digital Technology services and is less than 10% of the total revenues. This segment largely

Sanjeev Kumar

Thanks Rajneesh! Good afternoon everyone and thank you so much for joining in. Over the next few slides and maybe 15 to 20 minutes, I want to cover on our operating model, the business model, especially what are we trying to do, the way forward and how we are trying to win Rural India in few of these services. So, carrying forward from what Rajneesh was speaking about on talking about the difference between urban India and rural India and fundamentally solving the problem of lack of access, what are we trying to do is kind of build a Super App for rural consumers. Now, what does this mean in simple words, what did we do is, we said let's put the consumer in the center, a rural consumer, and let's put down all his needs, and if I can put all these services using Technology and I put another platform and when we build a network of Entrepreneurs who we call Spice Money Adhikaris, at every village and block of this Country, then essentially, why does the rural consumer have to step out of

Sunil Kapoor

Thanks Sanjeev. This slide represents the Spice Money, that's a Fintech business’ last three years numbers and the CAGR growth with respect to financial numbers and on the right hand side we have put up the quarter results year on year and the last quarter. So if we see that our customers GTV from the quarter on quarter in comparison to the last year has grown from Rs. 18,000 crores to Rs.26,000 crores, almost 45%. Also in line, the revenue has grown from Rs. 69 crores to Rs. 103 crores. Almost 49% this is on the back of the number of Adhikari growth and the enhancement in the products and new product launches. And on the gross margin side, if we see that gross margin has improved in terms of percentage more than what increase in service revenue and the customer GTV that's due to product mix and the basis of what's the scale we are achieving. EBITDA for this quarter is almost 35% up from the previous quarter last year. PBIT is almost flat and if we see that service fees GM and service

Shiv Muttoo

We will now start with the question and answer session. Please note that Mr. Dilip Modi, Chairman, Digispice Technologies and Mr. Vinit Kishore, CFO, Digispice Technologies will also participate in the Q&A session. Request the participants to raise their virtual hand to ask the question. Please state your full name and name of the Organization you represent before asking the question. There are no questions from any participant. We'll conclude this discussion and thank you for joining the Q1 earnings call of Digispice Technologies and with this, we close this session. Thank you for your participation. Note: This Transcript has been slightly edited at few places for clarity and accuracy.