Ladies and gentlemen, good day and welcome to AvenuesAI Limited Q4 and FY 2026 earnings conference call hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajat Gupta from Go India Advisors . Thank you, over to you, sir.
Yeah. Thank you, Danish. Good evening, everyone, and welcome to AvenuesAI Limited earnings call to discuss the Q4 and FY 2026 results. We have on the call with us today Mr. Vishal Mehta, Chairman and Managing Director, Mr. Vishwas Patel, Managing Director and Chief Executive Officer, and Mr. Sunil Bhagat, Chief Financial Officer. Also joining us on the call today is Mr. B. Ravi, who is advising AvenuesAI on corporate and financial strategy as an Independent Consultant. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk that the company faces. I now request Mr. Vishal Mehta to take us through the company's business outlook and financial highlights, subsequent to which we'll open the floor for Q&A. Thank you, and over to you, sir.
Thank you, Rajat. Good evening, everyone, and thank you for joining us today. FY 2026 has been one of the most important strategic years in the evolution of AvenuesAI. This year was not simply about financial growth. It was about convergence of multiple strategic building blocks that we've been assembling over the last several years. Payments infrastructure, merchant ecosystems, consumer platforms, AI capabilities, the regulatory infrastructure that we operate in, and international expansion. What we are building today is fundamentally different from a traditional payment gateway business. AvenuesAI is evolving into an AI-first financial infrastructure and transaction intelligence platform. We believe historically, fintech businesses were largely valued on transaction processing scale. We believe the next decade, going forward, of value creation will increasingly come from ownership of transaction intelligence, merchant workflows, AI-led automation, embedded finance, and intelligent financial ecosystems sitting on top of transaction infrastructure.
That is the strategic direction in which we are moving. Today, our ecosystem spans enterprise merchant acquiring, consumer engagement platforms, AI orchestration layers, regulatory infrastructure, cross-border capabilities, embedded finance opportunities, and increasingly intelligent systems. Importantly, these are no longer standalone businesses operating independently. They are now beginning to reinforce one another structurally. Our payment infrastructure through CCAvenue gives us access to a large and diversified merchant ecosystem across enterprise merchants, SMEs, education, travel, telecom, government, and digital commerce. Our consumer ecosystem through Rediff, Rediff One, and Rediff Pay gives us a direct engagement layer with users. Our AI platforms include our recently announced participation with AIRO, which is India AI Research Organization, and buildup of CommerceAI, PayCentral, agent frameworks. We are building agent frameworks and intelligent layers across transaction routing, merchant operations, fraud management, reconciliation, compliance automation, and customer engagement.
When these layers begin integrating together, the platform significantly becomes more powerful than the sum of individual businesses. We believe this creates a compounding ecosystem advantage. The more transactions we process, the more intelligent the platform accumulates. The more intelligent the platform accumulates, the better the automation, risk optimization, merchant monetization, and operating leverage that becomes out of it. The more embedded the ecosystem becomes, the stronger the long-term defensibility of the platform. One of our major strategic priorities going forward is embedded finance and lending. We believe lending is undergoing a structural transformation globally. Traditional lending models were balance sheet-driven and institution-centric. The future, in our view, will increasingly become transaction-driven, AI-assisted, ecosystem-embedded, and asset-light. Our approach is not to become a large balance sheet lender ourselves. Instead, we are building an intelligent lending orchestration and distribution ecosystem leveraging payments, merchant data, transaction intelligence, and AI-led underwriting capabilities.
Because of our merchant network payment infrastructure and transaction intelligence capabilities, we believe AvenuesAI is uniquely positioned to participate in this opportunity through an asset-light lending architecture. We see significant opportunities in merchant financing, checkout financing, working capital solutions, consumer financing, AI-assisted underwriting, transaction intelligence-based, credit frameworks, and ecosystem-led financial distribution. Our strategic investments and partnerships are being designed specifically to reinforce this direction. The proposed strategic investment that we announced today in Online PSB Loans is important because it potentially connects us to one of India's most important digital lending infrastructure backed by major financial institutions. Similarly, our investment thesis initiatives in NBFC companies, starting with Ratnaafin, further strengthens our ability to participate in lending distribution. Credit intelligence and financial product ecosystems without necessarily taking disproportionate or balance sheet risk ourselves.
We believe the combination of merchant transaction data, AI-led intelligence, lending partnerships, regulatory infra and ecosystem distribution creates a highly scalable and capital-efficient opportunity over the long term. Importantly, this also aligns with where global fintech models are evolving toward embedded finance platforms that monetize intelligence, distribution, and transaction ecosystems rather than pure balance sheet deployment. Another major strategic focus area for us is artificial intelligence. We are not approaching AI as a superficial productivity tool alone. We are embedding intelligence directly into the operating architecture of our platform. We believe AI will fundamentally shape commerce payments, all financial workflows, customer serving, service compliance, risk assessment operations, and practically even autonomous transaction execution. Through our collaboration and participation in AI research and our broader AI infrastructure, we are positioning AvenuesAI for this transition towards AI-native commerce and agentic financial ecosystems.
We believe future commerce environments will increasingly involve machine-assisted and machine-executed workflows, where AI agents participate in discovery payments, reconciliation, optimization, and financial decisions. This is still an early-stage opportunity globally. However, we believe our combination of transaction infrastructure, merchant relationships, AI orchestration, and financial workflows gives us a very strong foundation to participate meaningfully in this evolution. International expansion is another strategic pillar for the company. Over the past year, we continued expanding our global capabilities through Middle East and GIFT City infrastructure. Going forward, United States represents an important strategic focus area for us as a country. We believe cross-border commerce, global merchant acquiring international settlements, and AI-native payment orchestration represents a large under-penetrated opportunity. Our objective is not merely geographical expansion. Our objective is to build globally relevant infrastructure capabilities originating from India. We are also increasingly optimistic about our strategic importance of Rediff ecosystem.
Historically, Rediff was viewed primarily as an internet media and a communication platform. We increasingly see it becoming a broader consumer engagement and financial participation layer. Over time, we intend to gradually expand Rediff One and Rediff Pay into areas including payments, financial engagement, wealth participation and brokerage, consumer commerce, intelligent communication systems, and AI-led consumer ecosystems. Importantly, we remain disciplined in how we build these businesses. Our strategy is not subsidy-led growth. Our strategy is infrastructure-led, intelligence-led, and ecosystem-led growth. We are focused on building durable long-term operating leverage rather than short-term expansion at cost of sustainability. As we enter FY 2027, we believe the company is moving into the next phase of its evolution. FY 2026 was the year where the building blocks came together for us.
FY 2027, in our view, becomes a year where scale, intelligence, monetization, lending, AI orchestration, international expansion, and ecosystem integration, they begin reinforcing one another much more visibly. We remain extremely excited about the long-term opportunity ahead. Our vision is to build one of the world's most important AI-first fintech infrastructure companies emerging from India. At this point, I will hand over the call to Vishwas to talk about payments in CCAvenue. Vishwas, over to you.
Thanks, Vishal, good afternoon, everyone on the call. India's payments ecosystem is entering a completely new phase of evolution. Over the last decade, the industry focused on digitization of transactions. The next decade, in our view, will be about the intelligence layer on top of the payments, where payments become the starting point for commerce, engagement, credit, communication, and financial decision-making. At CCAvenue, we see payments evolving from being a transaction utility into a much larger merchant operating ecosystem powered by AI. Today, merchants are not only looking for payment acceptance, they're looking for customer acquisition, engagement, financing, automation, analytics, and intelligence business tools all integrated into a single digital ecosystem. This is where we believe the future opportunity lies. Our vision is to bring CCAvenue, Rediff Pay, Rediff, and a broader AvenuesAI ecosystem into a unified AI-led commerce and financial infrastructure platform.
CCAvenue brings one of India's largest merchant payment ecosystems with deep transaction relationships across enterprises, SMEs, and digital businesses. Rediff brings communication, engagement, and consumer reach capabilities. Rediff Pay centers our fintech and payment infrastructure stack. Together, these platforms creates a powerful ecosystem that can enable merchants to not only process payments, but also grow, engage customers, and access financial products, and operate more intelligently. Artificial intelligence will play a foundational role in this transformation. We are building AI-led capabilities across merchant servicing, fraud management, customer engagement, predictive analytics, workflow automation, and embedded finance. We believe AI can help merchants better understand customer behavior, optimize collections, improve conversion rates, and access more customized financial solutions. One of the largest opportunities we see is embedded finance and merchant lending.
Through our liability-light strategy, we aim to work alongside regulated NBFCs partners, while AvenuesAI focuses on merchant distribution, AI-led analytics, orchestration, and engagement infrastructure. Our merchant ecosystem, combined with the transaction intelligence and AI frameworks, can help create smarter working capital and business financing solutions integrated directly into the merchants' workflows. Importantly, our strategy remains asset-light and scalable. We are not looking to become a traditional balance sheet lender. Instead, we aim to build the digital intelligence and distribution infrastructure layer that powers the next generation of financial services. FY 2027 will therefore be a year of ecosystem integration, AI deployment, and deeper merchant monetization across payments, communications, and embedded financial services. Our strategic investments and partnership with platforms like OPL and Ratnaafin Capital align closely with this long-term vision.
These partnerships enable us to combine regulated lending infrastructure and underwriting capabilities with AvenuesAI's merchant ecosystem, payment infrastructure, AI frameworks, enterprise communication capabilities, and distribution reach to accelerate embedded finance and intelligent merchant lending opportunities across India's digital economy. We believe the convergence of payments, AI, commerce, and financial infrastructure will define the next era of India's digital economy. Our company, AvenuesAI, is positioning itself to participate meaningfully in that transformation. Thank you, and over to you, Sunil Bhagat.
Thank you, Vishwas, sir. Good evening, everyone. FY 2026 was a strong year for AvenuesAI from both a growth and execution perspective. We delivered our highest-ever annual revenue while continuing to maintain profitability and disciplined operating performance. On a consolidated basis, revenue from operations for financial year 2026 increased to INR 8,116 crore compared to INR 3,993 crore in FY 2025, representing strong year-on-year growth of 103%. Our net revenue on a consolidated basis for FY 2026 increased 15% year-over-year to INR 603 crore as compared to INR 526 crore in FY 2025. Our consolidated profit after tax for FY 2026 increased 58% year-on-year to INR 332 crore as against INR 209 crore in FY 2025. Overall, the full-year performance reflects continued scaling of our transaction infrastructure business, improving ecosystem monetization, and healthy operating leverage across the platform. Coming to Quarter four of FY 2026.
Our revenue from operations stood at INR 2,490 crore, reflecting strong growth of 115% year-on-year and 5% sequential growth. Our Quarter four net revenue grew 11% year-on-year to INR 149 crore. Our quarterly adjusted PAT grew strongly by 90% year-on-year to INR 95 crore. The quarterly and annual performance was driven by continued growth in transaction processing volumes, expansion in enterprise merchant relationships, strong transaction across digital commerce ecosystems, international business momentum, and increasing operating leverage across the platforms. Importantly, we achieved this while continuing to invest in AI infrastructure, regulatory capabilities, international expansion, and ecosystem integration. As discussed earlier, our focus remains on building long-term ecosystem value rather than optimizing for short-term take rates. As transaction scale increases, we are seeing improving operating leverage through automation, AI-led efficiencies, better payment routing, fraud optimization, and deeper merchant monetization opportunities. Another important strategic area for us is embedded finance and lending.
Our approach remains asset-light and ecosystem-oriented. We are leveraging transaction intelligence, merchant data, and AI-led underwriting capabilities to participate in lending opportunities without building a balance sheet-heavy lending model. Our strategic initiatives involving Online PSB Loans and investments in platforms such as Ratnaafin reinforce this direction and strengthen our positioning within embedded finance and lending ecosystems. As we move into FY 2027, our priorities remain focused on profitable growth, AI-led automation, ecosystem monetization, international expansion, operating leverage, and disciplined capital allocation. We believe the company is entering a phase where scale, intelligence, and monetization can increasingly compound together over time. Thank you. We will now open the floor for questions and answers.
Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hansets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Rahul Jain with Dolat Capital. Please go ahead.
Hello. I would just like to understand what are the top three use cases that are driving extraordinary TPV growth for us within the payment business. Secondly, on the lending side, if you could further clarify what is the level of exposure we would like to go on the balance sheet side. Is it identified in terms of capital allocation, or initially could be all about distribution to begin with? Thank you.
Rahul, I'll take the second question first. We are not going to put our balance sheet for lending. The strategy that we have applied is that we will work with NBFC companies to be able to open up our ecosystem, and that strategy will continue to percolate. What we will do selectively is to invest minority stakes in more than one NBFC. You may have heard earlier in the call, Ratnaafin is the first one that we've opened up, where we've taken up to 2.5%. The idea here is that we are able to connect our ecosystem very tightly with such NBFCs, where we have some minority investments. We would allow the NBFCs to continue opening up the lending opportunities to our merchant and merchant ecosystems and consumer and consumer ecosystems.
We will work with them in building products and opportunities to be able to take advantage of. To your question, our investment thesis in some of these NBFCs is that we want to pick up certain NBFCs with a few thousand crores of AUM, which have a good operating history, which have scale, which are next generation, and well-run management. We would work with them in terms of building such bridges, products, and opportunities. Does that answer your question?
Yeah. This part is clear.
Yeah. As far as the payments is concerned, Vishwas will take that up. Vishwas, you want to go ahead?
Yes. Overall, Rahul, there's been a good merchant wins that we have had in this last Q4 quarter, which has translated into good growth of TPV. Overall, merchant transactions across thousands and thousands of our merchants were growing and also a lot of big wins that is there. In India, specifically, on the utility government payments, B2B payments, everything was growing very well. Hence that relates into the transforming into the higher TPV numbers, Rahul.
Basically, Vishwas, what I was trying to understand, if I look at the industry growth, this growth looks pretty phenomenal. There must be something that is driving this kind of a traction. Is there something which we have identified as a gap or area where we are seeing this momentum?
Yes. I think a lot of customization has come into play. Payments, you put up a platform layer over a payments layer, so it becomes a big hook for bigger merchants to stay on and increase volumes. It makes it easier for them to go online. Multiple problems, like we launched our own form builder, which corresponds to a lot of education institutions, a lot of small merchants, a lot of event merchants, and everything. More than 5,000 merchants were onboarded on the form builder in less than a month. A lot of growth on the platform. It's just not a vanilla payment gateway. It's a platform plus a payments play that has come. Like for the hospitality industry now, we're scaling up to more than 3,000 hotels where we're building the entire central reservation system along with the payment gateway built in.
The workflows which connects to the global distribution systems, to their own property management systems. Like we are certified with OPERA systems or MICROS-Fidelio, which is used by almost all the five-stars, and some of the bigger four-star chains. It makes them easier because everything is automated end-to-end when reservation comes in through, say, any OTA like Booking.com or Hotels.com or Expedia or MakeMyTrip. It gets automated systems and payments are collected automatically. Those workflows customization is where we are winning, putting a platform with the payments play. That's where the real growth for us is coming, Rahul.
Yeah.
One more thing to add to what Vishwas said, we've been very focused in terms of merchants who have signed up with us, but who Normally, you know that merchants will be using multiple payment gateway options. We have been very consciously going after the merchants to move processing volumes to us. It comes at a cost, but I think it's one worth making. The growth is supported by additional merchants as well as increasing share of the existing merchants that process from us.
Sure. That's pretty helpful and good to know. Lastly, from my side, on the profitability side, last year we did extremely well on the TPV and revenue side, and our run rate seems much stronger now. I'm assuming we are investing in so many areas, which has caused FY 2026 profitability to be where it was. From going forward perspective, do you think some of the operating leverage might start playing out in FY 2027? You think, for now, we will stay in a similar profitability band and the acceleration on that part would come much later?
You're right. Quite a few of our costs are front-loaded. Specifically, some of the investments that we're making in the AI setup and also the opportunities that are there in front of us. The costs are front-loaded. I think that in pockets, we are seeing the operating leverage kicking in with scale. We also think that the productivity that we're getting through this optimization and productivity gains from AI are also not insignificant in some ways. We think that's adding up to what we think this year will look like. I think It's reasonable to assume that profitability, we don't see a hockey stick in FY 2027 in profitability. We'll work very hard in terms of ensuring that we are able to get our take rates better. That will require quite a bit of work and optimization.
We want to continue building up from where we left off in 2026. We will also invest in the Rediff ecosystem, as you are aware, which is a very large opportunity that we believe is in front of us. I think that it's reasonable to assume that it will be similar to what we have seen in the past years, FY 2027 should be. We'll give guidance in the first quarter call for the full year.
Thank you. Thank you, and best of luck for the time being.
Thank you. Our next question come from the line of Amish Ganani from Knowise Investment Managers . Please go ahead.
Yeah. Hi, sir. Congrats on your decent performance. Sir, while we have grown in payment side, if one look at the segment performance, I think your e-commerce platform is de-growing. If you can explain why this is happening, because that's a high margin business for us. In that context, we have noted that Rediff has filed for a confidential DRHP. Whatever you can share in terms of their financial and/or plans for the year. Any timelines that we should look for in quarter where we probably have planned that IPO, that'll be helpful, sir.
Sure. Largely, we've seen, yeah, you're right. The platform business is slightly flat to slightly high. I think that overall, we have not seen a big growth in that business. The full year, if you look at full year, and I'm not talking about the quarterly. Quarterly, you'll have some changes, of course, as you go through. If you look at the full year numbers in the segment, you'll see that they're somewhat flat to slightly higher. I think that as we build out, and fortunately for us, with the AI-first approach in terms of building out frameworks, you'll see a lot more activities on the platform side in FY 2027. What Vishwas said is also true, which is we'll combine the platform and the payments more, which actually increases quite a bit of our stickiness. We think a lot of secret sauce lies in that.
You'll see some amount of growth in that business that comes from a combination of building out a suite of new products and also opening up our existing frameworks internationally. We think international is a fairly large opportunity in the platform space. Given the currency rates and so on and so forth fluctuations, we believe that international focus will be a big area to look at going forward. That's as far as the platform business is concerned. Your questions around Rediff, yes, we have filed a confidential DRHP. Given the regulatory compliances, we are not able to share anything additional at this time. What we will do is we'll keep everyone updated in terms of where we stand. I think that Rediff, I can tell you, Rediff has got a lot of consumer interactions going, not just merchant interactions.
Given the macroeconomics of data privacy, and sovereignty of data, there's a lot of incentives for very large institutions and merchants to move to a sovereign stack. I think that that's where we are seeing a lot of movement at this time happening. Last year, we were just focused on moving these merchants and large merchants and institutions onto our framework. We believe that it becomes a very large opportunity in 2027 and 2028 to build up upon, because that's when we can offer a lot more services to the existing merchants. Then we are also working on Rediff Pay, which is a consumer-facing UPI app. It's actually live and in production.
Given the recent launches and also the number of transactions and being able to ensure that we are stabilizing and then scaling it up, the team's been working on it, but you can try it out. You'll hear a lot more about those kinds of activities which are consumer-facing in the coming weeks.
Sure, sir. Sir, any new launches that Rediff has done and what kind of investments we'll be making this year, which may, kind of, probably say, affect our overall margins? Are we going to keep, say, our overall consolidated margin in mind while kind of calibrating the investments that Rediff might make? One, given the IPO money that they may receive and the investment that they may make, should we worry about our consolidated margin getting affected? That's one. Overall, any sense of the CapEx guidance, one, we have made some investments in NBFCs, so including those types of investment, the CapEx guidance, if at all you can share with us, across investments in NBFCs, overall CapEx guidance on the infrastructure that we're building and that Rediff as a platform might make for the year.
We see pockets where we see expansions and margins, and we will also incur CapEx. The payment gateway business is somewhat. There is margin pressure. I think a combination of that is, of course, playing out. Yeah, we believe the margins should continue, in terms of consolidated basis, we should continue seeing similar numbers or maybe slightly higher, which we'll guide you at the end of first quarter. Yeah, in terms of the CapEx, we have certain guidelines and policies that we are not able to share a lot of information about specifics on Rediff. What I can tell you is that Rediff is going to be given the platform framework as part of Rediff and also growth is there. Today, most of the Rediff business is B2B, which is being able to offer frameworks and platforms to companies. Given the opportunity with Rediff Pay and also embedded finance.
Yeah, you go ahead, Vishal. I think there's some other background noise. You may go ahead.
I think we lost Vishal.
I think, yes.
Just continuing on that, yes, a lot of momentum growth will be there in Rediff. As and when we are there at the IPO level, we'll give out more details.
Oh, sure, sir. One last just suggestion, sir. Whenever it's possible, if you can share Rediff line item separately, even at a very broad level, of, say, revenue and EBITDA, that will help because going forward, maybe, there'll be a SOTP kind of valuation, which might merge if and when we get Rediff.com listed. Some scratch bare detail on Rediff will really be helpful. Thanks and all the best.
Absolutely. Absolutely. Thanks.
We'll share.
Amish, have you done with your question?
Yeah. Thanks, sir.
Thank you. Our next question come from the line of Shri Ganesh Barugcherla from Shub Capital. Please go ahead.
Yeah. Congratulations for the good numbers. I have only one question that how much of the current transaction routing through the AI-assisted versus rule engine-based?
If you come to think of it, AI is in all facets of transaction processing. In other words, what we do is traditionally I'm assuming your question is around how much is automated and fraud checked using AI and AI frameworks compared to humans or rule-based engines.
Yeah.
Yeah. I think that, fortunately for us, with two-factor authentication in India, the fraud rates are pretty low. We think that these AI-based frameworks have been evolving. We've been checking and building up. I can tell you for sure that practically, in all different areas of payments, we are using AI. In one way, we can say that all our transactions will have some component of AI-based checks and validations that are happening across the company.
Okay.
If that makes sense.
Okay. Thank you so much.
Thank you. Next question comes from the line of Sanjay Malik with Champion Enterprises. Please go ahead.
Yeah. Thanks for the opportunity. Can you hear me? Hello?
Yes, we can hear you, sir.
Yes, we can.
Please go ahead.
Yeah, go ahead.
Thank you so much. I have two questions. One of them is linked to the question just now asked of you. In fact, I just become a small shareholder, but I am more keen to understand how AI will manifest. From the outside, the best way to understand that is to see the sort of metrics. Personally speaking, today, someone might say CCAvenue is a payment company that talks about AI. From an investor standpoint, I think it is important that AI is already becoming a measurable, revenue-generating business line, and for that, there are a number of areas. This is more of an observation. You do not need to answer the question. It is more of an observation, but please feel free to comment on it.
If there was some sort of AI revenue disclosure in terms of merchant adoption, revenue per merchant, how much of your processes, the queries, the frauds, the recommendations, the underwriting decisions, the fraud management that you talked about. There are so many metrics which are AI-related, partially or entirely. If there can be a slide or two that gives us that kind of confidence on how you are tracking on AI, I think then you can call yourself an AI company and not a payments company talking about AI. I think you're going there, but I'm not able to fully grasp it. That was the first part, and the second part also is somewhat connected. I've been a banker for many years, and I've seen a lot of banks, payment banks, fintechs, completely come undone.
Either because they flouted a regulatory license or they have not kept pace with technology. You see what Mytos is showing up in so many banks. You see what Andromeda is doing to someone, like, all the pop-ups and the cookies. Everything is changing so quickly. It's very important to understand how you're managing your risk and whether there can be some sort of risk management slide. Because to me, apart from AI, the only other key issue in the company is operating risk. And if something goes wrong there, you don't get a second chance, especially not from the regulators or someone who's trying to hack your system. I'm very keen to understand if you have any comments on these two observations. I think other than that, you have a very interesting trajectory going forward.
Thanks, also thanks for the question. Something that we think about all the time. We always think that in some ways, pretty much what you said, the best metrics to track are the ones that clearly show improvements in efficiency, scale, merchant experience, risk management, and somewhat monetization at the end. The things that internally we would want to track in some ways are the things like the payment success rates driven by intelligent routing using AI, some reduction in transaction failures and, in some ways, the way you would want to get productivity through onboarding turnaround times and increase the cross-sell across the ecosystem products.
When you think about risk and fraud, you'd want to think about, internally, we look at things which are like the detection times, the response times, and the transactions monitored through the AI-led risk systems and so on and so forth. In terms of efficiencies, we'd look at all the way from customer service, support resolution times to the reconciliation settlement turnaround times introduction and all those manual overloads and operating overloads. Pretty much the answer from the question which was asked earlier, which is, what percentage of the workflows are automated using AI systems and these productivity gains. The key, we think, in terms of the opportunity, and this is how we think and our mental model is also evolving because it's a moving target.
We think that we need to think of this opportunity of AI not just as a technology productivity gain or an experiment, but as a driver for our efficiency, risk management, and a long-term operating leverage. That's how we look into this, at least. So far, we think that AI is just not a separate initiative. It is increasingly becoming embedded all across our platforms, and we are leveraging AI across fraud management and analytics and customer servicing and intelligent transaction routing and all the lending-related risk assessment that we plan to do going forward to enhance both scalability and support the margin expansion going forward. That's how our approach is, not just simply deploy AI on a standalone feature, but to integrate it as a layer across our payments, commerce, and financial services to build somewhat an efficient platform over time.
This has been our thought process so far. Your point about actually specifically talking about AI as a separate line item, given that we are not just a services company, we are more of a product company. Historically, we have seen services companies segregate their revenues on AI and non-AI. Yes, there are some cloud service providers who do that in terms of the large ones, including Microsoft and others, or data center providers. We are somewhat embedding AI into all different aspects of what we do. As a result, we think that just embedding AI across all these multiple layers of our organization with a focus on some of the key areas that we need to leverage is perhaps the way we need to think about it.
We do have specific AI revenue as well, which from a size of the P&L is not material, but we think that there's a lot more potential in that. As and when it becomes large enough that we'd want to talk about it, and you'll hear more and more of that in this year from us. I think that's how we think about it. To your points about how we would want to manage risk and so on and so forth, and you mentioned MITRE and a few other security vulnerability issues and so on and so forth, keeps us up all the time. We don't know too much about that, because the new frameworks are coming up by the day.
I think only a handful of companies have access to such large frameworks, given the amount of scrutiny and so on and so forth that come along with it. I think that we'll evolve. We'll have to learn. Much like us, even banks will have to build up on that. I think that a lot of things are new in that space, but there are good, great compliance standards in place even today. That much I can tell you. I think that this exposure that comes in is about a small vulnerability in a piece of software which was not patched, which was not even known. That risk is now becoming significantly more, and something that we have to keep on reviewing and looking at. We also have a lot of compliances on data security, and DPDP and many others.
I think a proper framework in terms of looking at it is very important. More at a CapEx level, we look at three things, which is, in the world of AI, genuinely, we think there's only compute, algos, and data. At the end, abstract it out to these three. We think that we don't have a very large role to play in compute because we are not a chip design firm and we don't manufacture chips, and we are not going that route. We just think that we have to work on algos and data, and that's where we are at at the moment and apply it within our embedded ecosystem.
I know it's a long answer, but hopefully in the coming quarters, we'll be able to specifically when we gain significant traction, not just from our embedding of AI within our ecosystem, but also direct revenues coming from certain products that we've built out in AI that potentially have a lot more interesting use cases, which we believe there are, that we'll be able to share that as well going forward.
Thank you very much. Only recommendation is if at all, whatever fabric of your organization and whichever process front, middle, or back end, to the extent possible, you can disclose what part of that is AI. That will really help people understand where you are in that AI journey.
That's a good suggestion. Thanks. We'll take that up.
Thank you so much for your feedback.
Thank you, Sanjay, sir. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touch-tone telephone. Our next question come from the line of Anita Bajaj from SK Advisors. Please go ahead.
Hi. Good evening. Thank you for giving me this opportunity and also many congratulations for great set of number. First, I wanted to understand that if AI agents increasingly execute commerce autonomously, does the control point of the ecosystem shift away from merchants towards orchestration platforms like AvenuesAI?
I think it's a slightly loaded question, but the way I think we need to think about agents is that there is agents and who is the custodian of that agent. So in a clasical way, you know what you do is intended and execution are two different things. We as a company will provide a framework for someone to build an agent. There are guardrails around that agent. There is control mechanisms to an extent of a kill switch, which has been given to the custodian of the agent. The important part is that, much like you can imagine that what the agent would need to execute will always stay in the control of the merchant within the merchant ecosystem.
If AvenuesAI is providing the agent for the merchant to do certain tasks and activities, the back end, technically we are an infra provider, but the control mechanism of the agent will always be with the merchant. It gets slightly more gray area because we are also the custodian, and we provide the framework to build the agents. I think a lot of this is slightly. It's new to all, and we have built out payment agents as well, just so that you know. In other words, using the protocols which are out there. A classical example is the customer can go and say that, "I want to buy a ticket from, say, Ahmedabad to Mumbai." There's a discovery agent on the site that will actually go discover the lowest cost and whatever it may be, and give you that information.
Once the intent is given, the opportunity for the customer to give intent is always in the control of the customer. I'm just using one use case to perhaps walk you through how we think through it. The customer control is always with the customer. It is never with the agent, because the intent comes from the customer. The agent is executing on that intent. I think from a customer perspective, we don't think that the agent can take over the customer intent at any given point in time, because that's a huge risk, if you will. That's one part. Once the agent is able to go and discover and find the right set of search results, and if the customer wants to purchase a particular sector of tickets or whatever it may be, that intent goes into a command to execute.
That again, comes from the customer. It can't be an agent which will just run the command by itself. At that point, that execution will go from a discovery agent to a payment agent. There will be an agent-to-agent protocol transfer that happens. That payment agent is actually going to go again to AvenuesAI payment framework, whether it's through MCP, or it will go directly into executing that if the merchant is integrated using CCAvenue. Once that happens, again, the two-factor authentication is still in the hands of the customer. Which means that they can't execute, or a payment agent cannot execute the command without the customer finally going in and saying that, "Yes, I'm going to verify," because a two-factor authentication is required.
Once it executes it'll again give it back to the site agent, the site agent gives the information back to the customer. I think in some ways, we think the intent of the customer will always be safe. The intent of the merchant will be more around the amount of guardrails and the controls that you would want to set as a merchant onto your own agent. Then there'll be infra providers, in certain cases us, who provide the agent framework for someone to create such agents and give the controls in the hands of the creator. Creator, in this case, would be a merchant, or creator, in this case, could also be a software developer working for a merchant.
You will have pretty much all the guardrails and the metering and everything else on the agent that potentially also safeguards the interest of the person who controls the agent. I hope that makes sense. We don't see the control moving to us easily.
Yeah. Thank you so much. My next question is that where do you believe the largest long-term profit pool will kind of emerge from? Is it payments, AI orchestration, or lending software, or transaction intelligence?
I think transaction intelligence is an input into the profit pool. It's like the most important input in a profit pool. If the output is profits, then the input is the transaction intelligence. That's what we are after, that becomes the monetization on merchant data distribution, credit automation, all the workflows built on top of payments. The biggest value creation is not merchant MDR alone. In some ways, we believe the intelligence, and that's where we think the opportunity lies.
Right. Okay. Thank you. Thank you so much.
Thank you. Our next question come from the line of Ayushi. Please go ahead.
Hi. My first question is regarding XDuce. We had acquired XDuce in 2024, acquired a 20% stake for $10 million. I wanted to ask about what is the status with respect to the company. What is the turnover? Where are we at? I expect an answer for that first, and then I'll ask my follow-up question.
Yeah. We've not acquired, we've taken 20% in XDuce. The participation of XDuce comes up in the share of associates of the company. XDuce is based out of the U.S. This year as a company, we will want to expand international payments in the United States also. We invested post all the regulatory RBI clearances. They don't show up directly in our balance sheet. It show up as a share of associates in our books. We have got a lot of opportunity because once we build out more infrastructure in the U.S., we'll have more collaborative partnerships with companies we've invested in, and become strategic in some ways for us going forward. I hope that answers the question. Yeah, the specifics around associate companies, hope we'll, of course, start discussing it out, given our interest in the United States and how we'd like to grow there going forward.
Sir, I have two follow-up questions to that. Sir, actually, your answer doesn't give me a lot of confidence right now because when we acquired XDuce, and within the board had stated two specific objectives. One was that we were embedding Phronetic.AI into XDuce's framework and second was we were growing CCAvenue's U.S. payments business. Since that investment, XDuce has made at least two significant capital deployments that are entirely unrelated to those objectives. I think you would probably know about that more than I do. Sir, at that point also, you had told that the 30% target for international revenue was made in February 2024. As of now also, we are not close to that number. What do you expect us to believe that, even five years down the line, if you don't reach that number, we are just supposed to wait?
No. Thanks for bringing this up. The way we think about the opportunity is that AI deployment, and you'll read a lot of reports. What the mental model was about a year and a half, two years ago is very different than what the reality is today. Enterprise adoption of AI has been slow. If you read the recent news, you will also realize that companies like OpenAI, they've set up, in some ways, investments even as recent as last quarter, where they said that we will implement it for enterprises.
Because historically, you would've seen that companies which are into software development would actually go and say that, "We know how to implement and give productivity gains to you, so let me help you implement AI within your organization." You'll see N number of reports out there saying that enterprise adoption of AI has been very, very slow. In many cases, many of them, they're even not very bullish about it. The reason is nothing else. The reason is that enterprises have their own challenges. Within those enterprises, unless there is a team that can come in who provide end-to-end solutions, and OpenAI has been working with even companies like Accenture, and there are reports that Accenture may be at risk given that OpenAI is getting into implementation. The reason they want to get into implementation is because it's slow.
The mental model maybe two years ago was that, yes, large enterprises like Morgan Stanley, Goldman Sachs, all of them, they'll adopt AI at every nook and corner of it, and there won't be jobs, and you'll be seeing reports on that. No, it's changed. Yeah, I think that as a company we would make bold bets. We don't control the adoption as much as we'd like to, but you'd want to make such a bet saying that, yes, it's worth it. It will stand the test of time. It's just not that there's some latency involved. That's one. Each company will want to do what they would think is appropriate in terms of their build-out. We can't comment on specific investments and what they'd like to do.
What I can tell you is that two things have happened. One is our focus last year has been on Middle East, and growth in Middle East and Saudi and some other Middle Eastern countries, because we thought that we had achieved certain scale penetration and we should continue building up. U.S. was there in the horizon, it was not an important geography to focus on, because we thought that Middle East was seeing a lot more traction than there. We think that we have lighted a small fire, we pour gasoline on it becomes larger. This year, we will pick up U.S. because of the macroeconomic risk in Middle East. We are also seeing a lot more activities happening in the U.S.
To us, we don't think that we were wrong in terms of thinking that AI adoption in such large financial enterprises will become much cleaner, faster, and companies can provide services to them who already have MSAs with large enterprises. To that extent, of course, we were wrong. That the rate of adoption for large enterprises has been slow. But on the other hand, we also believe that there is a lot more going on. Once there is an adoption that starts, because the frameworks have also evolved, the cost of tokens has also been, some people say it's higher, some people say it's lower, but that's also being optimized. We think that it stands the test of time. I think it'll work.
It is just that it will take time to adopt and maybe we were slightly ahead of our time in terms of our approach to apply AI. In fact, if you come to think of it, even other than productivity tools, in coding and many others, enterprise adoption has been very slow. I think that thing will always happen in a new technology. We think that it's a bet worth making. We won't get all of our bets right in terms of timing, but it stands the test of time. It will work.
T this is universal, not just specific to us, actually. AI adoption is slow.
Yeah.
XDuce, basically, they made one investment in a U.S. cybersecurity firm, and the other investment in Dev Information Technology, which is a Indian-listed company. They spent around INR 12 crore in that particular transaction. Avenues' board would have probably given approval for XDuce to redeploy the money that you gave them, right? What does AvenuesAI think about that? Because if they're not using it according to your stated objectives, it is a concern for me as a shareholder.
I think that's an incorrect statement. We don't participate in the board of XDuce, and we don't allocate their funds. They have their own control mechanism, and they have their own opportunities that they would want to explore. Just so that you know, they've been a profitable company. They make a few million dollars every year. I don't see any reason why we would want to control what, specifically about how firms who derive most of their revenues out of the U.S. would perform and what they would work upon going forward. What I can tell you is that, yes, we think that whatever we want to build up and however we want to think about growing this position, that we think that there's a lot more opportunity going forward.
I think that will specifically in two areas that we think, because we don't have direct MSAs with large financial institutions who are based in the U.S. and New York. We don't have MSAs, and typically an MSA would perhaps take you six to 12 months, maybe two years even, to sign a single MSA. We think that when the enterprise adoption of AI picks up and we are able to build out a lot more this year in FY 2027, that we'll have more collaborations going forward. I don't think that we would have much to say in terms of what some of those decisions on capital allocations happen at that point.
Thank you, sir. Participant has left. Thank you. Ladies and gentlemen, that was the last question. For today, with that, we conclude today's conference. I now hand the conference over to the management for the closing remarks. Thank you, and over to you, team.
Yeah. Thanks all for joining our full-year investor call, and we look forward to keeping everyone updated on the progress. Have a good day.
Thank you so much, sir. Ladies and gentlemen, on behalf of Go India Advisors, that conclude this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.