DiGiSPICE Technologies Limited

Sanjeev Kumar

Co-Founder and CEO of Spice Money Limited (‘Spice Money’); Mr. Rajneesh

Sunil Kapoor

Director and CFO, Spice Money and Mr. Vinit Kishore - CFO, DiGiSPICE Technologies.

90%

ice Money and the other is a Digital Technology Services business. On an overall basis, more than 90% of the revenues come from Spice Money or the Rural Fintech Platform and the other segment contrib

10%

s come from Spice Money or the Rural Fintech Platform and the other segment contributes less than 10%. For the purpose of our today's discussion, we will focus on the Spice Money business. This is so

rs,

h and therefore we serve rural and semi-urban areas within the country. Just some high level numbers, we have about 1 million plus Adhikaris on our network. These Adhikaris are local village merchants

1 million

serve rural and semi-urban areas within the country. Just some high level numbers, we have about 1 million plus Adhikaris on our network. These Adhikaris are local village merchants and entrepreneurs who

Rs. 1,63,000 crore

help serve customers within their village. On an annualized basis, we are clocking a GTV of about Rs. 1,63,000 crores, so this is the annualization of the current quarter gross transaction value. In AePS, which is

17.2%

. In AePS, which is Aadhaar Enabled Payment System which is our key or hook product, we clocked 17.2% market share and we are leaders in this particular product category. On a coverage basis, we cove

65%

ding when it comes to the digital payment ecosystem. As per some reports, by the year 2026, about 65% of penetration will be reached by digital payments and however, what is important to note is that

46%

een as the relevant market for driving India's growth in many segments. Just few numbers on this, 46% of the national income is today contributed by rural economy, 35 crores people are employed withi

35 crore

ents. Just few numbers on this, 46% of the national income is today contributed by rural economy, 35 crores people are employed within rural India and all of this, the rural banking revolution has been br

43%

We have about 1 million plus Adhikaris now at Spice Money. On a Y-o-Y basis, we have grown about 43%, on a quarterly 7%, obviously this is also at a much higher base. The customer gross transaction

7%

on plus Adhikaris now at Spice Money. On a Y-o-Y basis, we have grown about 43%, on a quarterly 7%, obviously this is also at a much higher base. The customer gross transaction value, the second k

26%

customer gross transaction value, the second key operating metric that we measure here, has grown 26% on a Y-o-Y basis, however, on a quarter basis, I must point out that it has de-grown 5% from Rs.

“So this presentation that we are going to run through is available on our website, hope you got a chance to go through the same and I would also like to state that some of the slides in the presentation which talk about our strategy are repetitive, I mean some of them were there in the last quarterly presentation also, but since we get new audience every time, we thought it will be good to kind of include them in this quarterly presentation.”

“As per some reports, by the year 2026, about 65% of penetration will be reached by digital payments and however, what is important to note is that what has driven the growth till now versus what will drive the growth for the next billion users, I think the parameters are going to be different.”

“We will now start the Q&A session and I would request all participants to name themselves and the organizations they represent before asking their questions and before asking a question, raise your virtual hand to ask a question and you will be let into the queue.”

“So according to you, what has led to this growth and what run rate can we expect the segment?”

“But we are very confident, because it is a win- win- win for the ecosystem, that we will be able to build this business on a sustained basis.”

“We have seen numbers of employment at the urban areas and we also have some idea of migration from the rural areas into the cities, which causes different kinds of problems but my idea was that the Jan Dhan Yojana is represented of, ultimately your services particularly at the MFI is and those kind of things will be tightly correlated with the disposable income that the people in the rural areas have, so thanks a lot.”

“So, I think the investments are going in also building Spice Money as an institution, which is not just focused on what the current product is and what the earning out of that is, but also going forward we would want to very clearly call out that.”

“However, the whole industry believes that going forward, there will have to be an answer of, returns to players who on boarded customers on UPI.”

“Is there any plan to open Vakrangee Kendra type of branches in rural India as franchises model.”

Rajneesh Arora

12

Shiv

10

Sanjeev Kumar

6

Prakash Prabhakar

6

Kunal Shetty

2

Attendees

1

Sunil Kapoor

1

Rishu Dhawan

1

Tanay Kotecha

1

Akbar Patel

1

Attendees

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

Shiv

Good afternoon everyone. A warm welcome to the DiGiSPICE Technologies Limited (‘DiGiSPICE Technologies’) Q2 and H1 FY23 Earnings Zoom Webinar. We have with us Mr. Sanjeev Kumar - Co-Founder and CEO of Spice Money Limited (‘Spice Money’); Mr. Rajneesh Arora - Co-Founder and Chief Product and Strategy Officer, Spice Money; Mr. Sunil Kapoor - Director and CFO, Spice Money and Mr. Vinit Kishore - CFO, DiGiSPICE Technologies. Before we begin, I would like to state that some statements made in today's discussion may be 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 Arora

Thank you, Shiv. Good afternoon everyone and very warm welcome. Thank you for taking out the time to listen to our story. So this presentation that we are going to run through is available on our website, hope you got a chance to go through the same and I would also like to state that some of the slides in the presentation which talk about our strategy are repetitive, I mean some of them were there in the last quarterly presentation also, but since we get new audience every time, we thought it will be good to kind of include them in this quarterly presentation. So as you all are aware that DiGiSPICE Technologies is the listed entity and we have primarily two businesses within that or two segments you can say, one of the segments is a Rural Fintech Platform called Spice Money and the other is a Digital Technology Services business. On an overall basis, more than 90% of the revenues come from Spice Money or the Rural Fintech Platform and the other segment contributes less than 10%. For t

Sanjeev Kumar

Thanks, Rajneesh. Good afternoon everyone. Thank you for joining in. What I will do is over the next few slides, I will focus on explaining the Spice Money business model and also touch base on key business metrics. Our business model, what are we building, we are building a Super App for Bharat. In the slide on the left, these are services which are live, the basic banking, payments, travel and collection. On the right, our other services are as a roadmap for our planned launches. At business model, if there are two big building blocks that I can convey to you what is the business model installed, the first is building this network of entrepreneurs in rural India at village and the block level; second, who is enabled with the technology platform which is provided by Spice Money. A combination of this is what is used to offer services of financial and digital services to a billion users. That is the business model. What we also do, we use this data on the platform to innovate, design n

Sunil Kapoor

In this slide, we are covering about Spice Money, that is the financial technology business and have the summary financial highlights. On the left hand side, we have year-on-year numbers, how we have grown and in the middle there is Q2 results in comparison to the previous quarters sequentially and last year same quarter and on the extreme right side, we have H1 results in comparison to the previous year H1. As Sanjeev has covered in his slides, there is a drop in the GTV of AePS Q-o-Q due to degrowth in the AePS OFF-US industry by 9%, thus our revenues and the gross margin, service fees revenue and the gross margin has also dipped on the same line and if we see that on the indirect costs, we have continued to invest in both capacity and capability of the organization, network reach, technology and brand as well. Further, we also continue to invest in new product offerings to have operational efficiency, operational leverage and in this quarter, the EBITDA is negative of 50,00,000 due

Shiv

Thanks, Sunil. We will now start the Q&A session and I would request all participants to name themselves and the organizations they represent before asking their questions and before asking a question, raise your virtual hand to ask a question and you will be let into the queue. The first question from Rishu Dhawan. Can you take that question, please.