Q1 26/27

Aug 13, 2026

Summary

Q1 standalone revenue, EBITDA and PAT more than doubled YoY, with expanded margins and five new clients. The qualified pipeline remained near $80 million after $15.27 million of wins; management is focused on cross-selling, lender integrations and completing amalgamation.

May ladies and gentlemen, and welcome to the Veefin Solutions Limited Q1 FY27 earnings conference call hosted by Valorem Advisors. At this point, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. At that time, you may click on the Q&A tab to ask a live question. Please note that this conference is being recorded. I would now like to hand the conference over to Ms. Purvangi Jain from Valorem Advisors for opening remarks. Thank you, and over to you, Ms. Jain. Thank you. Good afternoon, everyone, and a very warm welcome to you all. My name is Purvangi Jain from Valorem Advisors. We represent the investor relations of Veefin Solutions Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the first quarter of the financial year ended 2027. We kindly request all participants to connect to the Veefin Solutions video conference call via the official video call link. Before we begin, let me mention a quick cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings conference call is purely to educate and bring awareness about the company's fundamental business and financial performance for the quarter under review. Now, let me introduce you to the management participating with us in today's earnings call. We have with us Mr. Raja Debnath, Chairperson and MD, Mr. Gautam Udani, full-time Director and COO, and Mrs. Payal Maisheri, CFO. Without any delay, I request Mr. Raja to start with his opening remarks. Thank you, and over to you, sir. Thanks, Purvangi. Good afternoon, everyone, and a very warm welcome from Veefin Solutions for the first quarter 2027 earnings call. I have with me my colleagues, my leadership team, and thank you all for taking time today. The presentation that I will walk you through has already been filed with the exchanges. It is available on our website, so you can follow along if any of you have joined just along the calling bridge. Before we get into the numbers, let me set the frame of this call, because the cover slide says this only on one line, that building a global multi-product BFSI tech platform. So, what is it that we have been doing? For people who have been following us for the last few years know that the work which has gone in, which is building products, building the common chassis which we speak about, building a client base, the geographic footprint. All of this is getting culminated in FY 2027 is a critical year for us, where this agenda of building is shifting decisively towards monetizing this platform. Today, I will tell you the story in three parts. First, I will talk about the quarter itself, and it has been a very strong quarter. It has been a strong quarter in terms of a standalone revenue growth and profit, both of which have doubled over last year. Second, the commercial engine underneath. What is it that we have signed this quarter? How our wins convert into revenue over time? Because this is a question which keeps coming up, I thought that I will take some time out and explain how to convert our wins into revenue over time and how to visualize it. What is the pipeline that we are building behind it? The third is the structural work, which is the balance sheet. We will talk about the amalgamation, and we will talk about the PSB Xchange. This is the way we will go about. If you start with the quarter at a glance, you will see two rows on this slide, standalone and consol. Throughout this presentation, these are the two lenses that you will have to look at our numbers with, and I will keep bringing you back to this. The top row is Veefin Solutions Limited standalone. This is the listed entity, and this is the purest lens for product economics. From a product economics standpoint, what you should be looking at is the revenue for this quarter was at INR 23.14 crore. The standalone EBITDA was INR 12.83 crore. I am reading out the numbers because I believe some of you may not have the presentation in front of you, so I will still read out the number. The standalone PAT is at INR 6.74 crore. We have also signed five new clients this quarter, so we will come on that also. The standalone EBITDA is at INR 12.83 crore, at a margin of 55.4%. Cameras warning, meeting has reached maximum number of cameras. I do not know what that means. Going back to this, our standalone EBITDA is reported at INR 12.83, which is at a 55.4% margin. The standalone PAT, which is there, that is a 29.1% margin. On the consol side, that includes our subsidiaries and our other group entities. There, the revenue is at INR 113.97 crore. The consol EBITDA is at INR 22.4 crore at a 19.7% margin. Here you will also see a PAT of INR 9.5 crore at an 8.3% margin. The qualified pipeline, an important number here, is at $80.13 million. That is where we are at end of the quarter, and we will spend proper time on the pipeline towards the end of the presentation. One thing to note it here right upfront, and I think you will have questions on this, is the consol margins look very different from the standalone margin. That is a structure actually. That is not any deterioration of margin, that is the structure the way it is, because the Veefin product business and the subsidiaries have a very different profile of the business itself, and their margins are different. When you are looking at the Veefin numbers, use the standalone lens to judge the product economics and look at the consol from the full statutory perimeter as such, okay? What is the shareholder attribution? Look at it only from that point of view. You see at the bottom, we have also put the third-party recognitions of our player for investors who have joined the call who do not know Veefin as much. The key thing here is IBSi Sales League Table, Global Sales League Table ranked us as number one in wholesale transaction banking. Euromoney Awards 2025, we were awarded as the most innovative software provider. We are industry leader again in both editions of the IBSi Supply Chain Finance Spectrum. These are important because this is not our claim, this is what the industry independent assessments talk of Veefin. These are the kind of recognitions that clients look for when they are signing up with us. Moving on to Veefin, if there is one sentence I can sum this slide up in, it is that the installed base is 50 plus installations. We have close to $47 billion of transactions which are flowing through the platform on an annual basis, and we are present in 16 countries, and we have 10 products which have been already deployed on this platform. The key line here is that 50 plus institutions, 16 countries, and all of this installed base which is there, this is the base which is actually providing us the revenue year on year. Every time we add new clients, they get added to this base of clients that we have. New clients will give us revenue, the old clients will continue giving us revenue. That is the most critical thing here. The other piece is that all of these products are being modeled on the Veefin 4.0 architecture. We will spend some time on it, and that is very critical because that is one of our core moat which is there, our architecture. We are not building multiple products in parallel. We are building all of these products on the same chassis, okay? There is a lot of reusability which is there between all of these products. This slide is the actual investment thesis of the company, all in one page. Let me spend a minute here. Right at the top, what you see is the monetizing products. All Veefin products that we saw till now, they are classified in three different layers. Right at the top is your supply chain finance and LOS. These are our most mature products. That is where we have our 50 plus financial institutions and the $47 billion annual disbursement that you see. That is on these platforms. These are the platforms which are live. These are the platforms where our clients are paying us month on month, year on year, okay? Then the next ones are our products which are our entry and efficient products, which are your LMS, collections, fraud and risk, the GenAI products. These are the products that we use to deepen our relationship with other clients. And many a times, these also become our cross-sell entry points. A client may want just a GenAI point solution. We get in using that, and then the other products will follow through. These products, they actually increase the share of wallet in an account, and they also increase share of mind space in an account, because then you are talking with your banks and your counterparts in the banks, not on one product, but you are talking of multiple products. You are that much more deeply entrenched in the bank. The third layer is the strategic IP, and this is where a lot of investments have gone in over the last few years, which is on your trade finance, cash management, liquidity management, corporate internet banking, retail internet banking. Now, these are large enterprise systems, and these have long-term monetization potential. Now, this is what changes a product relationship into an enterprise relationship, because now you then have larger transformation deals that you go after. Your client tenure will become even longer, and the lifetime value is much higher. We are seeing that. As we are signing deals, we are seeing that. So, underneath all of these layers is your shared architecture, reusable services, common APIs. I will show you what that exactly means, and because of this, what is actually happening in terms of our thesis. So, if you look at the part that this is the culmination of what I was just talking about, okay? So, we are not naming clients here because we have their confidentiality requirements which we have. But these are some of the flagship deals that we have signed in the first quarter. Look at the first one. It is one of the largest digital banks in the GCC, and there we have sold six products. We are all talking about right now cross-sell, entry points, larger ticket size, larger wallet share, exactly. One deal gets you LOS, LMS, collections, trade finance, supply chain, and a limits microservice. Now, limits microservice is usually a core service which sits within the core bank itself. Here, this has been removed from the core bank and they handed out to Veefin. If you see this is not a tech point solution purchase. This is basically a platform decision that the bank has taken by saying, "I would rather move everything that I have and I need onto one Veefin platform." So, that is really heartening for us. The second one, very similar, is again some non-bank company in the Middle East which now takes LOS, LMS, and collections, all three. It is a full lending stack that they are going for. Not one product per vendor, all three products from the same vendor. Again, they chose us because they liked the fact that we were all on the same single stack. The third one is a supply chain finance deal. Why I am telling this? Supply chain finance win, because five countries are there. That is one single deal shown as five countries, both for supply chain and LOS. That is what we are doing. So, if you look at the story, what is it? Five new clients signed in the quarter, largest single win with six products at one shot, okay? USD 15.27 million of wins, the qualified pipeline. You remember last time I showed the qualified pipeline. So, out of that, USD 15.27 million as these five deals put together, which have got signed. And five countries in one single rollout. This is a single rollout that we will be doing with five countries. The takeaway that was very clear that Veefin is now increasingly being bought as a platform, not as a single product. This therefore changes the deal size, it changes the tenure, and it changes the quality of the deals that we get. This is a new slide. We have not used this ever in the past, but let me therefore take some time and explain. I got a message, my camera was turned off, so it is turned on again, okay? This slide, let us take some time here and understand this slide. When we go deeper into this slide which is there, how do signings get converted to revenue? We get this question a lot. How do the signings get converted to revenue? If the signings are strong, like if it is $15.27 million, when can you see it in revenue? That is what many people want to model. I want all of you all who are here to actually internalize this very well. A typical enterprise deal that we are in will have revenues coming from three places, okay? First is the implementation fee, right at the top. That is a one-time thing. That is something which we trickle in, build. Implementation fee is billed on milestones. There could be some money right upfront on signing. There will be some money on certain milestones that you will have then over a period of the journey of implementation. Our standard implementation, assuming it is a 9-month implementation, we will therefore see that we get implementation fees, which is a one-time fee, coming in the first 9 months, okay? Starting from signing and concluding at go-live. Once this is done, then post that is usually the second set of fees, which are the license fees. License fees could be your SaaS, AUM-based fees. License fees could be a monthly recurring, it could be an annual recurring, quarterly recurring. We know there are various types. That fee starts post the system goes live. Now, we are in 9 to 12 months, 15 months period. This period which is there, which is the next 9 months from the go-live, that is when you start seeing a ramp-up of numbers. Because if the client has an existing business, that has to get migrated. The migration activity will happen. If they have an existing book, that will have to get transferred here so that we start seeing revenues. The second line, the license, is basically billed annually, quarterly, monthly, but that is a recurring fee which now starts. The third type of fees that you then now get is your AMC and support fees. That will usually start from year 2 onwards, because year 1, you do not charge AMC. Year 2 onwards, you start AMC, and that is again recurring. AMC is annual maintenance contract. That starts from year 2 onwards. What you are seeing here, a deal that I sign today starts paying me fees right from now- 21 months right upfront, and then will extend the license fees and the AMC fees, will extend to 4 to 7 years, depending on the contract period. When we explain, now let's go back and see, when I say a USD 15.27 million worth of deals we have closed in quarter one, it means they will all go through the similar cycle. There will be a chunk of that which comes to implementation in the first nine months. Then the license and the AMC, depending on the contractual obligations there, will start flowing for the contract period. All of these contracts that we have signed are five-year periods. You will see these revenues over the next five years. The most important thing which is there is, what is critical? Today, the revenues that you are seeing, therefore, they are revenues which are deals that we had signed in 2024. These are all FY 2024 deals. FY 2025 deals, money of that is what you are seeing right now. Similarly, what we are signing now, therefore, sees to it that our FY 2028, 2029, the annuity base at that point in time is taken care of what we are doing right now. When you are modeling Veefin, therefore, you should model Veefin in terms of cohorts, not just a quarter. An annual cohort is what you should be looking at. That's how what will make the most sense for you. These dates that I've given you, these are indicative timelines. When I'm saying nine months, it's not nine months. There are customers who go live in three months also. There are customers who go live in five months also. I'm saying, depend, because now we are moving into a territory of large deals, so therefore, you may have a situation where you will have a longer implementation period also. This is about standalone, the how to read between Veefin numbers. I said there are two lens which are there. I'll just reiterate this again, because this keeps coming back again and again, so I've taken the liberty of adding a slide here. That standalone tells you the product economics. The consol will tell you the statutory parameters. Both lens are important, but when you're going through the financials, use two separate lenses. If you want to ask, "How is Veefin as a product company doing?" Look at standalone. How you as a shareholder want to look at Veefin, then look at the consol numbers. Moving on to the numbers, the first what we'll do is we'll look at the standalone numbers year-on-year. If you look at the standalone numbers year-on-year, your Q1 at INR 23.14 crore vis-a-vis INR 10.14 crore is at 128% jump. Revenue has grown 128%. Your reported EBITDA from which is there, which is INR 12.83 crore against INR 5.49 crore, that's a 133% jump out there. Your PAT, which is there at a INR 6.74 crore against a INR 2.68 crore last year, which is a 151% jump. Just look at the sequence. Your revenues are 128%, your EBITDA is up 133%, and PAT is up 151%. Each line is growing faster than the other, and this is the operating leverage that we keep speaking about. Your EBITDA margins have improved. The takeaway is very simple. On a standalone level, the revenue, EBITDA, and PAT have more than doubled versus last year, and the margins have also expanded. The margins have also expanded while doing that. Growth at Veefin is compounding. That's the story that you take away from this slide. If you look at the standalone revenue quality, now that's again extremely important because the quality of growth, revenue is growing, that's great, but what about the quality of growth? If you see in this, in the revenues, recurring is 74%. So from existing clients, our recurring revenue is 74% here. One-time revenue is 26%. So that's the stickiness that we keep talking about. On the client mix that you see, 77% of the revenues came from our existing clients and old clients. Only 23% came from new clients. Now, when you read that with the five new clients that we added this quarter, what it means is, the existing clients will keep buying more, and our cross-sell thesis is validated from this. On the geography side, we are close to 50/50 between domestic and international. It just shows that we are not dependent on any one geography. We are very well spread out, and on the pipeline slide also, you will see that much more. We've added this slide because we keep feeling questions on the DSO. If you see the DSO trend, we mapped out the DSO trends over the last few years, FY 2024, FY 2025, FY 2026, FY 2027. You will see FY 2027 is actually at 80 days, with a 69 days improvement over FY 2024. Every year, we have been improving. So what you are seeing right now is that while revenue is growing, and you've seen the revenue is growing very fast, so despite a very fast growth in revenue, more than 100%, 128% growth in revenue, our DSOs are coming down. That means we are able to collect money faster. And you remember, I'd explained this earlier also to you, that as we keep growing, as a company becoming stronger, we will then be in a position to start asking our clients to pay us faster. So, 80, is it a good number? I think it's a brilliant number. In our planning that we do in our internal planning, we plan for more closer, a number which is closer to 100. 100, 105 number is what we actually aim for, but we have actually done better than that number. Our receivables are moving extremely well. Collection discipline is also tightening as we speak, and you have seen the detailed operating cash flow disclosure will be there with the statutory statements. Moving on to what is mandatorily. This is the Q1 performance versus Q4. Now, Q4 is usually the best quarter of the year. It's usually the highest quarter of the year. But even if you see us vis-à-vis our Q4 numbers, we have nearly touched our Q4 numbers here. So, revenue is nearly there, it's just 4% below the Q4 numbers. Our EBITDA is just 7% shy of that, again because the revenue numbers out there. Our reported PAT though is higher because of various other reasons, because our depreciation is lower, our finance cost is lower out there. But the key point is that our revenues are tracking our Q4, so it means that our base itself is higher. So, if you're looking at some numbers, if you look at our average of last year, our Q1 is already 33, 34% higher than the average of the entire last year. At a quarter-on-quarter basis. So, that's very healthy. It just shows that we are at a different orbit when it comes to 2027. If I move to the consol numbers, consol numbers are obviously much higher, because on the revenue side, our consol is No, no, one second. I am actually Let me see which slide was standalone. Let me come to consol. This is okay. This is the consol which we had vis-à-vis last year. So, that's the reason why it's that much higher. So, 230% growth you see over last year. Revenue has more than tripled. Your EBITDA has grown by more than 100% here. Your reported PAT is close to 40% higher than last year. These numbers were obviously higher because we didn't have the entire consol effect coming in in Q1 of last year. That's the reason these numbers are that much higher. But if you now look at the Q1 performance, or the Q1 consol performance vis-à-vis Q4 of last year, so we are just 13% short of it. Though Q4 was our largest quarter, usually, traditionally in our services business, Q4 is the largest quarter. But despite that, we are very close. We are just 13% shy of that. The PAT numbers which are there, they are 40% lower out here, as you will see. But that is normalization. So, by Q2, Q3, you will see these numbers change, because Q1 is usually the slowest quarter of the year for us in our services line of the business. So, again, look at the both lens. Product lens, standalone, which is the core product. When you look at that, it's sequentially growing, PAT is growing. When you look at the consol basis, there, your Q1 is obviously lower than Q4, but Q4 is obviously the biggest quarter in the services side of the business for us. So, nothing to worry about out there. Very busy slide, very busy slide, but can't help it, but you need to understand this, because if you're an investor in Veefin, this is what you have pumped in your money for. Everything that you see on this slide, everything, other than the last line at the bottom, the gray line, external systems, is not us. Everything else on this slide is Veefin. So, right from channels. So, what you see channels on top, which is your corporate internet banking, retail banking, mobile banking, APIs, marketplace channels, all of those are provided by Veefin. If you look at the bottom, which is the common layers, those are all, again, the common layer, the data layer, the SuperDash, which is the intelligence layer that we have, the Vector, which is the low-code integration orchestrator. All of these are common to all of these products that you see. Your cash, supply chain, trade, digital lending. Your channels right at the top, which is your corporate internet banking, retail internet banking. Your bottom, this part, which is, these are called the common user services. All these common services are used by all of these system makers. So, like a Lego block, we've all played with Lego blocks as kids. Like a Lego block, banks can pick and choose any of these blocks from here. All of the blocks that below follow. So, that is the reason why we are able to deploy products faster. That is the reason why we have higher margin. That is the reason why our clients are choosing us, because of this architecture that makes their life simpler. When the central bank comes and makes a change in any customer classification, the bank doesn't need to go and change the customer classification across all of the customers in each of the different systems, if they were to work with Veefin. You saw the bank in GCC. The reason they chose us is that when they make a change, they would like to make a change only in one place, not in 10 different systems. They are not then held hostage by the slowest-moving tech vendor, but by a vendor who's moving at the same pace across all the products. Moving on, amalgamation, this is again something which is a very critical thing for us. In the seven-step process, we have completed four steps. We are now at the fifth step. Which were the first four? BSE approvals, the NCLT first motion, the stakeholder meetings have happened, got the board approval, got the stakeholder meeting approval. The chairman appointed by NCLT, they have come in, they have held the meetings with the chairman, the report has also been presented. Now, we are filing the NCLT petition, which is the second motion. We are filing it anytime right now, okay, over the next 2, 3 days. Then the statutory NOCs. Now, these are just standard NOCs which will come in from the ROCs, the GSTs, all of these different statutory bodies, the NOCs we will receive, and it's a standard procedure. Then is the final NCLT order. So there's going to be one meeting after this of NCLT. This is on the verge. I will not give you a date, but you can understand based on what I've explained that it's on the verge of getting closed. Amalgamation is around the block. That's good news for all the shareholders because it simplifies the way we look at the numbers. It simplifies not just for us. Shareholders who are here, who have already got into Veefin, you are shareholders who have understood this piece and have gotten. Once this gets completed, you will have a clutch of other shareholders who will then come in, people who have been waiting on the sidelines for this amalgamation to get completed. The direction is one simplified listed perimeter, and each step now is just procedural in that sense. Moving on to PSB Xchange, the headline is the platform is moving from builder to operator. That's exactly where we are. From the lender side, we were tracking 32 integrations last time. We still continue tracking that. First quarter is usually a slower quarter in the banking world and more so in the public sector world, because close to by mid-May, end-May, the transfers which keep happening within the bank, those have to happen. A lot of work does not happen in PSU banks in the first quarter because of the various transfers. People are coming in, they have to understand what is happening. That is the reason why we have not had more go-lives out there. But we have added, if you remember, last time we had five integrations which were work in progress. We have added 2 more to it, so there are 2 more integrations which are work in progress. So combined, you have 10. What this means is that when a deal comes in now, that deal is presented to 10 lenders right now, and not just three, just because three are live. Deals are now getting presented to more number of lenders. On the sourcing partner side, the traction is still the same. We are waiting for more lenders to then keep adding more sourcing partners. On the platform throughput side, there you will see that our limits have increased from 5,400 last time to 5,800. Accumulated requirements have gone up a lot. They have gone INR 26,000 crore, because we have a lot of demand out here. Many of these demand, these are name cleared. Out of this INR 5,800 crore, there are a lot of names which have been cleared by the bank. Maybe not have given formal approval, but they have already approved saying, "Yes, this customer, this anchor, this corporate I like." 94 corporate deals are in the pipeline at some stage. At some stage, they are there. That is what we are working on, okay? Moving to the qualified pipeline, this is extremely important. If you see the qualified pipeline movement, this is a bridge which is important. This is the first time we are sharing this bridge. We opened with a $79.62 million pipeline. We added $20.4 million to the pipeline this quarter. That is what we added. We converted 15.27 out of 79.62. Okay, the 15.27 conversion is out of 79.62. We added more than what we converted. We are close to $4.5 million of pipeline which has gone to deferred because of timeline issues. We know it is going to take much longer, so we have removed that out of the pipeline that we are tracking. We go back to now tracking a pipeline which is close to $80 million again. Despite closing a $15 million out of the pipeline, we have been able to add, so our pipeline addition is extremely strong, and therefore, we are back to a number of $80 million again. But that is a sign of a very healthy funnel, that it refills faster than what we are able to harvest. On the qualified pipeline, we had shared this earlier, and some of these slides that you will see, we have updated the numbers. We will try to keep to the same slides, at least for the next three, four quarters. We will only add slides, but whatever slides we show you, we will continue keeping the same slides and just change the numbers, so that it becomes easier for the analysts to follow the numbers quarter on quarter. Similarly, if you look at the qualified pipeline from a product and geography standpoint, today 70% of the pipeline is non-supply chain financing, and 70% of the pipeline is outside India. Both 70s, 70 is a good number in that sense. 70 is non-supply chain financing, and 70% is outside India. If you remember, going back to our standalone numbers and revenues, our revenues currently are 50/50. 50% India, 50% outside India. But from a pipeline perspective, we have more outside India than within India. I think this international pipeline as a number, I can hazard a guess, we will continue growing that. As a percentage, that will continue growing. What you will also see here is close to 50% of our deals, which is 26 out of 52, the number of deals that we are tracking in the pipeline, are more than a single product. Our thesis on multiple products selling to the same institution, selling non-supply chain financing, and selling outside India, these are all bearing fruit, and the pipeline shows that very well. This is the validation which I would like to leave you with. This is the last slide which I have. What are the priorities? If you ask me what are the priorities that we as a team are tracking ourselves on, the first and foremost is that we have a very strong pipeline. Our sales team is focused on converting their qualified pipeline into opportunities and contracts and implementation milestones. That is what we are focused on. We are focused on expanding more of these multi-product wins, cross-selling to our existing customers already. If you have 50 customers, we still have to do a far better job of cross-selling what we have to our existing customers. That is low-hanging fruit, which we have not still added to the pipeline, but that is something which the team will start focusing on more. The third is PSB Xchange. The PSB Xchange, we know it is a marketplace. The build-out is slower than what we had anticipated, but we are absolutely on the right track. The corporates that we are seeing, the large corporates, all marquee names, the top 100 corporates of India, the fact that they are coming onto the platform, they are patient with it, banks are patient with it, tells us that the problem that we have picked up to solve is the right problem to solve. People are aware of it, our bankers are aware of it, our sourcing partners, our corporates are aware of it, and they are comfortable with the pace at which we are going. They would like the banks to pick up pace slightly faster, but that is easier said than done because the banks will move at their own pace. We, as the exchange, are the bridge. Our job is to keep this bridge ready so that whenever the banks feel comfortable in doing business, the bridge is there, the corporates are there for them to pick up the business and do it. The number that we have in terms of the pipeline of ₹5,500 crore, ₹5,800 crore, getting that translated into getting those numbers distributed into the channel partners and vendors, that is what the focus will be. The amalgamation and the simplification which is there, that for the next quarter and a half, is what we are going to be focusing on. We will exit FY 2027 surely without all of these overhangs on us. Let me close with where I had started. This quarter, the standalone revenue and profits have more than doubled, year over year, and with the margin expanded. We have signed 5 new clients, including a six-product platform win with one of the largest digital banks in the GCC. Our collections have improved very highly from 149 days in the past to 80 days right now. The pipeline closed is higher than it opened, even after converting $15 million. That is important. The structural work on the amalgamation, the PSB Xchange, that is moving forward on schedule. So that is what I leave you with, that whenever you think banking transformation, think Veefin. So the annexure that we have here, it carries our statutory financial statement, our capital allocation policies are there for your reference. With that, I think let us open the floor. Purvangi and I am ready to take questions. Thank you very much. We will now begin the question and answer session. To ask a question, please click on the Q&A tab on the panel and click on the raise hand button. The operator will announce your name when your turn comes. Please accept the prompt on your screen and unmute your microphone while proceeding with your questions. Other participants, you may click on the raise hand button to ask a question. First question is from the line of Vikas Goyal. Please go ahead. Am I audible? Yes, sir. Go ahead. Yeah, Mr. Raja, just one or two questions from my side. I see that you raised the debts at almost 15%-16% net of interest, whereas your equity yields are around 3% or something. So, you could have increased equity itself rather than taking the debts at such a high cost. Hmm. Sure. So what- Let me answer. I will take your question at a time, Vikas, okay? So that I do not forget the question. And this is a very important question. Thanks for asking this, because I think this is a question in a lot of investors' mind. So you are absolutely right that debt is not the cheaper instrument on a simple mathematical comparison. Absolutely correct. But there are three reasons why we did this. The first is, an equity raise has its own process. It has got market timing, and there is a permanent dilution which happens with equity raise. With debt, I have debt, when it is available, I can retire the debt. That is the reason why we picked it up. What it means is, we have visibility today in terms of what our cash flows will look like based on our pipelines, based on the signings that we have, based on the revenue that we are already getting. We are very comfortable that our cash flows will be able to take care of it. But we did not want to carry the debt indefinitely. If I would have issued shares, you are right that it would have been cheaper to get equity. But if I were to do that, then the upside which was going to come two years hence, I would then have to share it with those investors also. But the current investors who are there, they are, according to us, they are better off with this debt because we can retire this debt over the next couple of years, and that is the plan. Our plan is to retire this debt over a period of time. Other thing what you would have seen is that to get this debt, the promoters have pledged their shares. The existing shareholders have not needed to go through any dilution. We have taken the risk of pledging our shares because we believe in what we are doing. Based on that, we have taken the decision of going in for a debt, though short term it looks more expensive, but in the medium term, it is better for all of us because the price in the market right now is not right, and I would not want to raise equity at this kind of pricing right now. Okay. As I remember your last investor presentation, you said that most of the CapEx cycle is over, and we are into a lazy period now. That is what the word I think you used. Correct. What is the need for raising this INR 50 crore debt? Because I do not see that much of the CapEx happening in future. I will explain that. Our business is chunky. Though our DSOs have come down, we continue doing two things. There are continued investments which are happening on the product side, yes, but our revenues are chunky. This is meant for tiding over the cash flow gaps, the working capital gaps that we have. This money is for that. The money is not meant for putting into a business or CapEx cycle from which we cannot get out of. You are absolutely right. Our CapEx cycle this year is much lower than last year. However, we still require these working capital funds because what I will end the year at versus what my quarter 1 is not same. When I am doing my investments, when I am doing my spends, they are nearly constant throughout the year. My spends are constant, but my revenues are not constant. I require this debt capital to come in to bridge that gap for the year. Okay. Another question, where does Veefin win against the incumbents, and where do you lose? Veefin wins against incumbents when it comes to tech. Our clients, our prospective clients, they love our tech architecture. They love the fact that they are able to get all of these things on one single architecture. They love the fact that tomorrow when they want to do a change or add, replace any of their existing products, they can do so far easier with Veefin. That is where we win. Where we would, now I would not say lose, but where we would fall short is when we are up against incumbents who have a 30, 40-year history with clients, having done this multiple times, we will fall short there. That is where we bank on our supply chain lineage. That is where we bank on the fact that we have enterprise clients over the last so many years who we have serviced. Again, the supply chain is a transaction banking product. The fact that we are able to take care of complex transaction banking products for our large banking clients should give them comfort. I say should give them comfort. That is where we are slightly weaker than our competition. Pedigree, pedigree of 40 years, we do not have that. The last question. You said the PSB Xchange, we have a INR 26,000 crore thing, and whether the approval is only for INR 5,800 crore, only 22%. How do you explain that? Why does this happen? Like banking, that is, as I said, we are a bridge. We are a bridge. Our job is to see that credit requests and credit providers should be able to talk through a common language, a common platform. This was never there. We have been able to bring that into play. But we cannot influence a bank in the speed at which they will operate. The banks continue operating at the speed that they were operating even without this platform. And that is the reason why India has such a large credit gap. We as a platform will never be able to take out the credit gap. But what we are taking care of is the ability of all of this request to be able to be surfaced out to the provider. That itself was not there in the past. That is what we are doing. What will happen, and the way you should look at this is, today we have, as I said, three banks already live, seven under integration. And I had said last time also, the day we have 10, 12 banks integrated on the platform, that is the inflection point. The point in time when we have this influx on the platform is when there will be a race between the banks on who can do things faster. Today, there is no race. Today, there is no race between the banks because there are three banks which are integrated. Once you have 10 banks integrated, the race will start. We ourselves are learning in terms of how we need to engage with the banks. And this is one thing that we have learned, that banks need to have a sense of competition amongst them, even for good quality deals. And we are talking of AAA corporates here, for which also the banks take time. This is the reality of the banking industry. Okay. Thank you very much. Thank you. Thank you. Next question is from the line of Aryan Gupta, individual investor. Please go ahead. Aryan Gupta, kindly unmute your microphone and proceed with your question. Due to no response, we move on to the next participant. Next question is from Kendall Mori from Nuvama Wealth. Please go ahead. Yeah, hi. Am I audible? Yes, go ahead. Yeah. Congrats, Veefin, on a good set of numbers. Just a couple of questions from my side. The services business sits around at 20% of EBITDA margins. How do we see them evolving over the next 3-5 years based on the acquisitions that we have done? They will remain similar. We don't see a material difference in the EBITDA margins out there. We should, from a modeling perspective, track that itself. Okay. Just a question around the debt. Which subsidiaries carry the INR 60 crore debt, and whether the standalone business has provided any guarantees for it? So, INR 60 crore are between our other subsidiaries, which are your Infini, Nityo, those subsidiaries. Details of that are there in the consolidated statements. We actually put that down out there. Yes, to your next, what was the second question in terms of guarantees you are asking? Correct? Yeah. Yes, we have guaranteed. Veefin has provided guarantees for this debt. Yeah. Thank you. That is it from my side. Thank you. Participants, you may click on the raise hand icon to ask a question. Next question is from the line of Aryan Gupta, individual investor. Please go ahead. Hello, am I audible? Yes, go ahead. Yeah. Thank you for the opportunity. I had two questions. One of them is, what triggers the invocation besides the payment defaults? See, I think what you are asking about is regarding our pledge. Now, you have to understand that the pledge that has happened in this share, and thanks for this question. The pledge that has happened, there is no price link. For many people, after I received questions this morning, there is no price link to the invocation trigger. The shares that we have pledged, they are not linked to any price movement. Therefore, it is static in nature from that point of view. There are only two financial tests which are there. There are two covenants. One is on EBITDA, which has a ceiling of 3 times, and on DSCR with a floor of 1.25. And we are comfortable on both of them by a big margin. So, there is no trigger as such. The second question is, in the amalgamation stage, we are at the fifth stage of the seventh. So what happens to the pledge trajectory if the NCLT slips? NCLT, we do not see. So first point, we do not see any reason for NCLT slipping right now because we are at the final stage. As I said, the chairman's report has also been submitted, everything is clear. We just require some statutory NOCs, which are again, like it is a matter of fact, as a matter of process, which will happen. We do not see any issue in terms of that. But if it happens and it gets delayed by a few months, so it gets delayed. But that is not in our control. Thank you. Thank you very much. Next question is from the line of Rahul Malpani, individual investor. Please go ahead. Hey, hi. Am I audible? Yes, go ahead. Okay, so I have a couple of questions. First is pipeline moved from 79.62 to 80.13. Essentially, the pipeline is flat. Is the demand stalling? No, no. The fact that, see, the pipeline that you have been seeing, that pipeline has been built over a long period of time. That pipeline was not built in one quarter, one year. It is not that we started last year with a zero pipeline. We always had a pipeline. I think the good thing is that we removed from the pipeline, or not removed, we converted 15 million out of the pipeline, but we were able to replenish it by 20 million. The fact that we have been able to replenish it by 20 million is a very, very good number. It means, ideally, that number should have come down slightly because we converted a very large chunk of the pipeline in one quarter. I think we are very good. It is a growing pipeline, a pipeline built over such a long period of time. We have been able to replenish 25% of that in one quarter itself. That is a brilliant number. Okay, got it. The another question is, three of 32 lenders integrations are live, and you mentioned that 22 have not started. What is holding the rest of? I think it is a fair observation. It is a fair observation that others have not started, but this is not a quarter-in-quarter progress which we see, okay? The 22 which have yet to start, because there is a bandwidth issue that we have in terms of how many lenders we can take at one point in time. On the lender side, they have multiple projects which are going on. We need to get a priority within that as to when they will pick up. So many lenders, even after they have signed the agreement, they are saying that, "Okay, we will wait for six months because we do not have any bandwidth in our" What do we say? In their IT pipeline, because they have an IT team inside there also. So they do not have the bandwidth to pick up the integration. That is the reason why we are waiting. This is on the private sector and the NBFCs. On the PSU banks, PSU banks are usually a bit slower for various reasons, because they are much larger in size. They have different challenges. Their systems may be legacy more often than not. Because of that, these things take a little time. I think we, as all of us, have to understand that PSUs will take time, and that is the reason why when we say that there are seven integrations under progress right now, 50% of those are non-PSUs. But we are also now working to try to get non-PSU lenders ahead of the curve of the PSU lenders. Okay, that is from my side. Thank you. Ladies and gentlemen, we take the last question from the line of Anil Nahata from Parami Financials. Please go ahead. Yeah. Hi, Raja. Can you hear me, please? Yes, sir. Go ahead. Yeah. Raja, first of all, I believe the pipeline work that you have done on the deal pipeline is fabulous. Being able to convert nearly 20% of your pipeline in a single quarter, I mean, it's very, very good metrics on a sales perspective. One question around that, when you report a 15 million kind of a conversion or an 18 million kind of pipeline, are you reporting a yearly deal size or a five-year kind of a deal size that you're talking about here? Five years. All are five years. Our pipeline is also five years, deal size is also five years. Because if you remember that slide which I showed, there the implementation fees are there, then post go-live, your license fees and your AMC keep trickling in. So all of these fees for the period of the contract, which is usually five years, is what you got in terms of a pipeline. Great. So that is fine. The second point I had was that in the last quarter, that was the Q4, you had shown a management view where you had put the numbers of the Veefin plus the Estorifi and the GlobeTF, and given what will be the post-amalgamation kind of view. I think at this quarter, the slide got missed out, and we did not have the management view from you. So if you have the numbers handy, I would request if you can share that. If not, I mean, if you can issue an addendum with the management view, that will be nice. On that, what we are seeing is on the bridge, we did not book any revenues on the trade stack for the trade and the cash, because though we have signed deals, though we are implementing them, the payment milestones are in this quarter. When we show the half-yearly number, that is where you will be able to see a far better revenue bridge out there. Okay. By that time, maybe if the amalgamation is done, it will show up automatically in the standalone itself. Yeah, it will automatically show up. Okay. Fair enough. The third question that I have is basically, while I understand your reasons for raising debt in terms of flexibility and other things, but the debts came at a very, very high rate, around 14%-15%, whatever. I mean, you guys are technology suppliers in trade finance and everything. I mean, there could have been better options than NCDs at 15%. No. These are short-term. One is 2 years, one is 3 years. We will, as I said, our commitment is to retire bulk of that before time. We needed to do the debt right now because we did not want to raise equity at the kind of pricing which was available right now. We needed the debt, we needed capital. If you need capital, debt was the only option. Debt is not debt versus equity, because this kind of question we got the last 2 times also, that why are you raising capital through equity? Why are you not raising debt? That's what started us thinking, and it was you investors who asked us to do that. I had said, based on where we stand in our growth trajectory, we are not sure whether we will be able to get debt. But then we went out in the market, searched for debt, and we got this debt. If I am able to pay this off in 2 years' time, you investors in 2 years' time will say that great job done because you did not dilute us, but you used the debt from outside, paid off, it's tax efficient also. You paid off the debt, and we still have the equity left with us when the numbers actually start showing better 2 years down the line. Thank you. Anil Nahata, we will request you to please email your follow-up questions to the company. We will take one last question from the line of Uday Chandra, an individual investor. Please go ahead. Hello? Sir, am I audible? Yes, Uday, go ahead. Yes, sir. Sir, with the Uday, sorry, it is in traffic, but your voice is breaking. Can you come in a better reception area, please? Audible? Not hearing. Uday, can you hear us? Uday, can you hear us? Hello? Uday, your voice is breaking. Uday, can you hear us? Due to no response, ladies and gentlemen, I now hand the conference over to Ms. Purvangi Jain for closing comments. Thank you, everyone, for joining us for today's call. Thank you, management, for participating in today's earnings call. Thank you. Thanks, everyone. Thank you very much. On behalf of Valorem Advisors, that concludes today's session. Thank you for your participation. You may click on the exit meeting and disconnect. Thank you.