Q1 2027 One MobiKwik Systems Lt Earnings Call

August 3, 2026

Operator 2: Ladies and gentlemen, thank you for your patience. We will be beginning with the conference in a while. Thank you. Ladies and gentlemen, good day, and welcome to the One MobiKwik Systems Q1 FY27 Earnings Conference Call. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 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. Rahul Jain. Thank you, and over to you, sir.

Speaker #1: Ladies and gentlemen, thank you for your patience. We will be beginning the conference in a while. Thank you. Ladies and gentlemen, good day, and welcome to the One MobiKwik Systems Q1 FY27 earnings conference call.

Operator: Ladies and gentlemen, good day, and welcome to the One MobiKwik Systems Q1 FY27 Earnings Conference Call. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 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. Rahul Jain. Thank you, and over to you, sir.

Speaker #1: As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Rahul Jen. Thank you, and over to you, sir.

Speaker #2: Thank you, Ananya. Good evening, everyone. On behalf of Dhaulat Capital, I would like to thank One MobiKwik Systems for giving us the opportunity to host this earnings call.

Rahul Jain: Thank you, Ananya. Good evening, everyone. On behalf of Dolat Capital, I would like to thank One MobiKwik Systems for giving us the opportunity to host this earnings call. I welcome the Senior Management of One MobiKwik, represented by Ms. Upasna Rupesh Taku, Executive Director and CFO of the company, Mr. Sohum Roy, who is Associate Director of Corporate Development. I would like now management to take us through Q1 FY27 results, Request management to take it over from here. Over to you guys.

Speaker #2: I welcome the senior management of One MobiKwik, represented by Mr. Parsna Rukrishan Thakur, Executive Director and CFO of the company, and Mr. Soham Roy, who is Associate Director, Corporate Development.

Speaker #2: I would now like management to take us through the Q1 FY27 results, and request management to take it over from here. Over to you, guys.

Speaker #3: Hello and good afternoon to all of you who have joined today for the MobiKwik earnings call. My name is Rupasna Thakur, and I am one of the co-founders of the company.

Upasana Taku: Hello, good afternoon to all of you who have joined today for the MobiKwik earnings call. My name is Upasna Taku. I'm one of the co-founders of the company. With regard to our Q1 FY27, I just wanted to make some brief remarks. Q1 FY27 has been our most successful and profitable quarter yet. It has also been a tightrope walk where we have balanced reaping profits today while at the same time calibrating the investments that we make for our tomorrow so that we'll be able to deliver better value to our shareholders. In terms of the key metrics, Q1 PAT stood at INR 76 million. We are now profitable for three straight quarters. The INR swing that we have delivered from Q1 last year to Q1 this year is INR 495 million.

Upasana Rupkrishan Taku: Hello, good afternoon to all of you who have joined today for the MobiKwik earnings call. My name is Upasna Taku. I'm one of the co-founders of the company. With regard to our Q1 FY27, I just wanted to make some brief remarks. Q1 FY27 has been our most successful and profitable quarter yet. It has also been a tightrope walk where we have balanced reaping profits today while at the same time calibrating the investments that we make for our tomorrow so that we'll be able to deliver better value to our shareholders. In terms of the key metrics, Q1 PAT stood at INR 76 million. We are now profitable for three straight quarters. The INR swing that we have delivered from Q1 last year to Q1 this year is INR 495 million.

Speaker #3: With regard to our Q1 financial year '27, I just wanted to make some brief remarks. Q1 FY '27 has been our most successful and profitable quarter yet.

Speaker #3: It has also been a tightrope walk, where we have balanced reaping profits today while at the same time calibrating the investments that we make for our tomorrow, so that we'll be able to deliver better value to our shareholders.

Speaker #3: In terms of the key metrics, Q1 PAT stood at ₹76 million. We are now profitable for three straight quarters, and the INR swing that we have delivered from Q1 last year to Q1 this year is ₹495 million.

Speaker #3: EBITDA also delivered at $158 million, with an improvement of $470 million year over year. In terms of the margin expansion story, payments gross profit landed at $777 million, up 31% year over year, whereas the financial services gross profit grew 5.6x year over year and landed at $433 million, demonstrating robust credit quality.

Upasana Taku: EBITDA also delivered at INR 158 million with an improvement of INR 470 million year-over-year. In terms of the margin expansion story, payments gross profit landed at INR 777 million, up 31% year-over-year, whereas the financial services gross profit grew 5.6x year-over-year. Landed at INR 433 million, demonstrating robust credit quality. As a result of both payments gross profit and financial services gross profit growing nicely, the contribution profit of the company therefore rose 66% year-over-year. In terms of the credit quality improvement, we saw 25% improvement. 60% of the loans this time went to repeat customers. In terms of the payments business, the platform GMV of the company reached an all-time high of INR 587 billion. This is 50% up year-over-year. This is also the 14th straight quarter of growth of payments GMV that the company has delivered.

Upasana Rupkrishan Taku: EBITDA also delivered at INR 158 million with an improvement of INR 470 million year-over-year. In terms of the margin expansion story, payments gross profit landed at INR 777 million, up 31% year-over-year, whereas the financial services gross profit grew 5.6x year-over-year. Landed at INR 433 million, demonstrating robust credit quality. As a result of both payments gross profit and financial services gross profit growing nicely, the contribution profit of the company therefore rose 66% year-over-year. In terms of the credit quality improvement, we saw 25% improvement. 60% of the loans this time went to repeat customers. In terms of the payments business, the platform GMV of the company reached an all-time high of INR 587 billion. This is 50% up year-over-year. This is also the 14th straight quarter of growth of payments GMV that the company has delivered.

Speaker #3: As a result of both Payments Gross Profit and Financial Services Gross Profit growing nicely, the Contribution Profit of the company therefore rose 66% year over year.

Speaker #3: In terms of credit quality improvement, we saw a 25% improvement, and 60% of the loans this time went to repeat customers. In terms of the payments business, the platform GMV of the company reached an all-time high of ₹587 billion—this is 50% up year over year.

Speaker #3: This is also the 14th straight quarter of growth of payments GMV that the company has delivered. In terms of UPI, the company's UPI transactions grew five times faster than the overall industry, making MobiKwik the second fastest growing TPAP, or third-party UPI app, in the country.

Upasana Taku: In terms of UPI, the company's UPI transactions grew 5x faster than the overall industry, making MobiKwik the second fastest growing TPAP, third-party UPI app in the country. In a nutshell, this has been a strong quarter in terms of the cost. We have been able to do a great job at compressing cost at scale. Direct costs have been brought down 21% year-over-year. Post-payment side, the direct cost was down 15%. Lending side, the direct cost was down 40%. Net-net, it has been a great quarter. This is not a one-off quarter. We do believe that this is sustainable performance. We are targeting full year PAT profitability for this financial year, Q1 is, of course, the baseline.

Upasana Rupkrishan Taku: In terms of UPI, the company's UPI transactions grew 5x faster than the overall industry, making MobiKwik the second fastest growing TPAP, third-party UPI app in the country. In a nutshell, this has been a strong quarter in terms of the cost. We have been able to do a great job at compressing cost at scale. Direct costs have been brought down 21% year-over-year. Post-payment side, the direct cost was down 15%. Lending side, the direct cost was down 40%. Net-net, it has been a great quarter. This is not a one-off quarter. We do believe that this is sustainable performance. We are targeting full year PAT profitability for this financial year, Q1 is, of course, the baseline.

Speaker #3: In a nutshell, this has been a strong quarter in terms of cost. We have been able to do a great job at compressing cost at scale.

Speaker #3: Direct costs have been brought down 21% year over year, both payment side. The direct cost was down 15%. Lending side, the direct cost was down 40%.

Speaker #3: Net-net, it has been a great quarter, and this is not a one-off quarter. We do believe that this is sustainable performance. We are targeting full-year profitability for this financial year, and Q1 is, of course, the baseline.

Speaker #3: We expect that GMV and revenue will both grow in both the payment and financial services businesses, and will compound. At the same time, we aim to keep fixed costs anchored, and therefore, each rupee of incremental contribution should essentially flow to EBITDA and PAP.

Upasana Taku: We expect that GMV and revenue will both grow, in both payment and financial services business, and will compound, while at the same time, we aim to keep fixed costs anchored and therefore each rupee of incremental contribution should essentially flow to EBITDA and PAT. We are focused on deepening our payments leadership in the market, expanding our digital financial services footprint, and creating sustainable long-term value for all of our customers, merchants, as well as our shareholders. Thank you.

Upasana Rupkrishan Taku: We expect that GMV and revenue will both grow, in both payment and financial services business, and will compound, while at the same time, we aim to keep fixed costs anchored and therefore each rupee of incremental contribution should essentially flow to EBITDA and PAT. We are focused on deepening our payments leadership in the market, expanding our digital financial services footprint, and creating sustainable long-term value for all of our customers, merchants, as well as our shareholders. Thank you.

Speaker #3: We are focused on deepening our payments leadership in the market, expanding our digital financial services footprint, and creating sustainable long-term value for all of our customers, merchants, as well as our shareholders.

Speaker #3: Thank you.

Speaker #1: Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone.

Operator 2: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Divyansh Jaju from Trinetra Asset Managers. Please go ahead.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Divyansh Jaju from Trinetra Asset Managers. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Devyansh Jaju from 3Netra Asset Managers.

Speaker #1: Please go ahead.

Speaker #4: Hello, good afternoon. Thank you for the opportunity, first of all. My first question is: over the last 7 to 8 quarters, the company has seen reasonably muted revenue growth.

Divyansh Jaju: Hello, good evening, ma'am. Thank you for the opportunity, ma'am. My first question is, over the last seven to eight quarters, the company has seen relatively muted revenue growth. What are the key growth areas that management is expecting which will be accelerating revenue growth going forward?

Speaker #4: So, what are the key growth levers that management is expecting, which will drive very significant revenue growth going forward?

Speaker #3: Can you repeat your question? The voice was not very clear to us.

Upasana Taku: Can you repeat your question? The voice was not very clear to us.

Upasana Rupkrishan Taku: Can you repeat your question? The voice was not very clear to us.

Speaker #4: No, I am audible.

Divyansh Jaju: Now I am audible?

Speaker #3: Yes, this is better.

Upasana Taku: Yes, this is better.

Upasana Rupkrishan Taku: Yes, this is better.

Speaker #4: Yes, so my question is around the last 7 to 8 quarters. The company has seen, on a quarter-on-quarter basis, that revenue growth is very muted.

Divyansh Jaju: Yes. My question was around from last seven, eight quarters, the company has seen on a quarterly basis, revenue growth is very muted. What are the key growth areas that management is expecting revenue growth will be good going forward?

Speaker #4: So, what are the key growth levers that management is expecting? Will revenue growth be good going forward?

Speaker #3: Right, now we've got it. Thank you very much for the question—great question. See, I think that in the last financial year, almost until half of the year and more, we were trying to re-stabilize some of our businesses.

Upasana Taku: Right. Now we got it. Thank you very much for the question. Great question. See, I think that in the last financial year, almost till half of the year and more, we were trying to restabilize some of our businesses. I will look at the last few quarters and the current quarter as a baseline to answer your question. Let's take one business at a time. On the lending side, the revenue this quarter has also been great. Even though there was a dip in disbursements, the revenue is still holding strong. We are expecting to grow the disbursements in lending from the current baseline of about INR 700 crore to INR 1,000 crore every quarter in the coming quarters. We are planning to do that on the back of two, three things.

Upasana Rupkrishan Taku: Right. Now we got it. Thank you very much for the question. Great question. See, I think that in the last financial year, almost till half of the year and more, we were trying to restabilize some of our businesses. I will look at the last few quarters and the current quarter as a baseline to answer your question. Let's take one business at a time. On the lending side, the revenue this quarter has also been great. Even though there was a dip in disbursements, the revenue is still holding strong. We are expecting to grow the disbursements in lending from the current baseline of about INR 700 crore to INR 1,000 crore every quarter in the coming quarters. We are planning to do that on the back of two, three things.

Speaker #3: So I will look at the last few quarters and the current quarter as a baseline to answer your question. But let's take one business at a time.

Speaker #3: On the lending side, the revenue this quarter has also been great. Even though there was a dip in disbursals, the revenue is still holding strong.

Speaker #3: We are expecting to grow the disbursals in lending from the current baseline of about ₹700 crore to ₹1,000 crore every quarter in the coming quarters.

Speaker #3: And we are planning to do that on the back of two, three things. First is that we have added new lending partners this quarter in Q1, and we are adding more in Q2.

Upasana Taku: First, we have added new lending partners this quarter, Q1, and we're adding more in Q2. On the back of new lending partnerships as well as products, we do expect that we will be able to scale the business. Secondly, we have also employed two, three growth initiatives on the lending business. The first one being very simply, we have a very large engaged user base on MobiKwik, thanks to our diversified payments business. We are trying to generate more and more pre-approved and pre-qualified offers for these customers. On the back of that, we are confident that we can increase our pace of disbursements. In addition, currently in our lending funnel from the start of where the customer gets interested and sees a loan offer to the completion of the journey, there are several points at which there is drop-off.

Upasana Rupkrishan Taku: First, we have added new lending partners this quarter, Q1, and we're adding more in Q2. On the back of new lending partnerships as well as products, we do expect that we will be able to scale the business. Secondly, we have also employed two, three growth initiatives on the lending business. The first one being very simply, we have a very large engaged user base on MobiKwik, thanks to our diversified payments business. We are trying to generate more and more pre-approved and pre-qualified offers for these customers. On the back of that, we are confident that we can increase our pace of disbursements. In addition, currently in our lending funnel from the start of where the customer gets interested and sees a loan offer to the completion of the journey, there are several points at which there is drop-off.

Speaker #3: And on the back of new lending partnerships as well as products, we do expect that we will be able to scale the business. Secondly, we have also employed two or three growth initiatives on the lending business.

Speaker #3: The first one being, very simply, we have a very large, engaged user base on MobiKwik thanks to our diversified payments business. And we are trying to generate more and more pre-approved and pre-qualified offers for these customers.

Speaker #3: On the back of that, we are confident that we can increase our pace of disbursal. In addition, currently in our lending funnel, from the start—when the customer gets interested and sees a loan offer—to the completion of the journey, there are several points at which there is drop-off.

Speaker #3: And to address that, we have built our own AI engine, which will automatically detect the steps at which a user is getting dropped off.

Upasana Taku: To address that, we have built our own AI engine, which will automatically detect the steps at which a user is getting dropped off. According to the place in the funnel the drop-off is happening, we will automatically address that and therefore try to get the user back into the funnel and get the user converted. On the back of these two growth initiatives, as well as on the back of new lending partners, as well as new lending products that we will be launching, we feel very comfortable about generating at least INR 1,000 crore disbursal in every quarter going forward. That should give us definitely a strong revenue growth.

Upasana Rupkrishan Taku: To address that, we have built our own AI engine, which will automatically detect the steps at which a user is getting dropped off. According to the place in the funnel the drop-off is happening, we will automatically address that and therefore try to get the user back into the funnel and get the user converted. On the back of these two growth initiatives, as well as on the back of new lending partners, as well as new lending products that we will be launching, we feel very comfortable about generating at least INR 1,000 crore disbursal in every quarter going forward. That should give us definitely a strong revenue growth.

Speaker #3: And according to the place in the funnel where the drop-off is happening, we will automatically address that and therefore try to get the user back into the funnel and get the user converted.

Speaker #3: On the back of these two growth initiatives, as well as on the back of new lending partners and new lending products that we will be launching, we feel very comfortable about generating at least ₹1,000 crore disbursal in every quarter going forward.

Speaker #3: And that should give us definitely strong revenue growth. To add to that, we have also shown in our earnings presentation this time that from our past book, where the loans are either completed or on the verge of completion, there also we have been performing much better than what we had thought.

Upasana Taku: To add to that, we have also shown in our earnings presentation this time that from our past book, where the loans are either completed or on the verge of completion, there also we are performing much better than what we had thought. Therefore, we are also getting recoveries in the form of revenue on our old books. Put together, this is how we expect to grow the lending revenue as well as the margin that will be flowing from there to the bottom line of the company. Now coming to the payments side. See, payments is a tricky business. As you all know, the largest growth that we are seeing as well as everybody in the market continues to see is on the UPI side, and there, you know, that revenue is problematic over there.

Upasana Rupkrishan Taku: To add to that, we have also shown in our earnings presentation this time that from our past book, where the loans are either completed or on the verge of completion, there also we are performing much better than what we had thought. Therefore, we are also getting recoveries in the form of revenue on our old books. Put together, this is how we expect to grow the lending revenue as well as the margin that will be flowing from there to the bottom line of the company. Now coming to the payments side. See, payments is a tricky business. As you all know, the largest growth that we are seeing as well as everybody in the market continues to see is on the UPI side, and there, you know, that revenue is problematic over there.

Speaker #3: And therefore, we are also getting recoveries in the form of revenue on our old books. So, put together, this is how we expect to grow the lending revenue, as well as the margin that will be flowing from there to the bottom line of the company.

Speaker #3: Now, coming to the payments side, see, payments is a tricky business. As you all know, the largest growth that we are seeing, as well as everybody in the market continues to see, is on the UPI side.

Speaker #3: And there, you know that revenue is problematic over there. So, what has happened is that we have seen significant growth on the UPI side, on the merchant side, and in the categories where the take rate is either zero or very low.

Upasana Taku: What has happened is that we have seen significant growth on UPI side, on merchant side, and the categories where the take rate is either zero or is very low, a few basis points. While at the same time, the high revenue-generating categories are typically categories which are card-linked, either credit or debit card. In some of those categories, actually, in the last quarter as well as this quarter, due to which there is a revenue dip also, and there is a direct cost in payments dip also, which is directly visible in the slide that we have given. We are working on relaunching some of these payment categories, so we expect to recover from the payments revenue dip also in Q2. Separately, we have already highlighted last quarter that we are trying to scale up the merchant business in a big way.

Upasana Rupkrishan Taku: What has happened is that we have seen significant growth on UPI side, on merchant side, and the categories where the take rate is either zero or is very low, a few basis points. While at the same time, the high revenue-generating categories are typically categories which are card-linked, either credit or debit card. In some of those categories, actually, in the last quarter as well as this quarter, due to which there is a revenue dip also, and there is a direct cost in payments dip also, which is directly visible in the slide that we have given. We are working on relaunching some of these payment categories, so we expect to recover from the payments revenue dip also in Q2. Separately, we have already highlighted last quarter that we are trying to scale up the merchant business in a big way.

Speaker #3: A few basis points. While at the same time, the high revenue-generating categories are typically categories which are card-linked, either credit or debit card. And in some of those categories, actually, we have had to pause in the last quarter as well as this quarter, due to which there is a revenue dip also, and there is a direct cost in payments dip also, which is directly visible in the slide that we have given.

Speaker #3: We are working on relaunching some of these payment categories, and so we expect to recover from the payments revenue dip also in Q2. Separately, we already highlighted last quarter that we are trying to scale up the merchant business in a big way, both our online as well as offline merchant acquiring business.

Upasana Taku: Both our online as well as offline merchant acquiring business. These are revenue generating businesses, and therefore we will see the revenue flow through. One interesting point I wanted to tell you is that even though it has been hard to see revenue growth in payments, we have been able to translate the 50% year-over-year GMV growth into 31% year-over-year gross profit growth in the payments business. Last year on a similar revenue, we made INR 59 crore in gross profit, and this quarter on a similar revenue of INR 208 crore, we have generated INR 77 crore in gross profit. We are trying our level best from all sides to either increase the top line or the gross profit from the business so that the overall profitability of the company keeps going up.

Upasana Rupkrishan Taku: Both our online as well as offline merchant acquiring business. These are revenue generating businesses, and therefore we will see the revenue flow through. One interesting point I wanted to tell you is that even though it has been hard to see revenue growth in payments, we have been able to translate the 50% year-over-year GMV growth into 31% year-over-year gross profit growth in the payments business. Last year on a similar revenue, we made INR 59 crore in gross profit, and this quarter on a similar revenue of INR 208 crore, we have generated INR 77 crore in gross profit. We are trying our level best from all sides to either increase the top line or the gross profit from the business so that the overall profitability of the company keeps going up.

Speaker #3: And these are revenue-generating businesses, and therefore, we will see the revenue flow through. One interesting point I wanted to tell you is that even though it has been hard to see revenue growth in payments, we have been able to translate the 50% year-over-year GMV growth into 31% year-over-year gross profit growth in the payments business.

Speaker #3: So, last year, on a similar revenue, we made ₹59 crore in gross profit. And this quarter, on a similar revenue of ₹208 crore, we have generated ₹77 crore in gross profit.

Speaker #3: So, we are trying our level best from all sides to either increase the top line or the gross profit from the business, so that the overall profitability of the company keeps going up.

Speaker #4: Okay, I'm sorry. And the second question was around our existing users only. So are we observing anything regarding whether our existing users are only using our other products?

Divyansh Jaju: Okay, I understand. The second question was around our existing users only. Are we observing something regarding that our existing users are only using more of our other products? Like any pattern of cross-selling opportunity meaningfully observed there?

Speaker #4: Is there any pattern of cross-selling opportunities that has been meaningfully observed there?

Speaker #5: Hi, Divyansh. So I'm here. One of the points that Upasna already mentioned is that we are looking to tap into that existing customer base. Our largest cross-sell product right now is lending.

Soham Roy: Hi, Divyansh. Soham here. One of the points which Upasana already mentioned is we are looking to tap into that existing customer base. Our largest cross-sell product right now is lending. We are working on tapping into that. We have a good set of customers, or a ready base, which we have mentioned in the investor presentation also, roughly 96 million. We are looking to tap into them, and generate roughly about INR 100 crore, or rather INR 150 to 250 crore of additional dispersal every quarter. That is the biggest line. Obviously, as we continue to build other lending products along with some of the wealth products that we are also working on, this further adds to the cross-sell opportunities.

Speaker #5: So we are working on tapping into that. We have a good set of customers, or a ready base, which we have mentioned in the investor presentation also—roughly 96 million.

Speaker #5: So we are looking to tap into them and generate roughly about ₹100 crores, or rather ₹150 to ₹250 crores, of additional disbursal every quarter.

Speaker #5: So, that is the biggest line. Obviously, as we continue to build other lending products, along with some of the wealth products that we are also working on, this further adds to the cross-sell opportunities.

Speaker #3: In addition, also, our users that in addition, all of the users that we acquire from UPI, because UPI is a low-cost acquisition funnel for us, we also definitely cross-sell them into the revenue-generating payment categories.

Upasana Taku: In addition, all of the users that we acquire from UPI, because UPI is a low-cost acquisition funnel for us, we also definitely cross-sell them into the revenue-generating payment categories.

Upasana Rupkrishan Taku: In addition, all of the users that we acquire from UPI, because UPI is a low-cost acquisition funnel for us, we also definitely cross-sell them into the revenue-generating payment categories.

Speaker #4: Okay. Okay. Understand. Sorry.

Divyansh Jaju: Okay. Understood.

Speaker #1: Thank you. The next question is from the line of Ankur Golati from Genuity Capital. Before that, a reminder for all participants: please press star and one to ask a question.

Operator 2: Thank you. The next question is from the line of Ankur Gulati from Genuity Capital. Before that, reminder for all participants, please press star and one to ask a question. Please go ahead with your question.

Operator: Thank you. The next question is from the line of Ankur Gulati from Genuity Capital. Before that, reminder for all participants, please press star and one to ask a question. Please go ahead with your question.

Speaker #1: Please go ahead with your question.

Speaker #4: Okay. Hi. I'm audible. Hello?

Ankur Gulati: Hi, am I audible? Hello?

Speaker #5: Yes, Ankur, you are audible.

Soham Roy: Yes, Ankur, you are audible.

Speaker #4: Perfect. Can you give me UPI GMV and non-UPI GMV first in payments?

Ankur Gulati: Perfect. Can you give me UPI GMV and non-UPI GMV first in payments?

Speaker #5: So this quarter, we have provided the UPI GMV. For the quarter, it was ₹269 billion in terms of UPI GMV. The remaining roughly ₹300-odd billion is non-UPI GMV.

Soham Roy: This quarter we have provided the UPI GMV. For the quarter it was INR 269 billion in terms of UPI GMV. The remaining, roughly INR 300 odd billion, is non-UPI GMV.

Speaker #4: So then non-UPI has been pretty much flattish in Q1 and Q2, correct? Hardly any growth—like 2 or 3 percent.

Ankur Gulati: Non-UPI has been pretty much flat as QOQ, correct? Hardly any growth, maybe 2% to 3%.

Speaker #5: So, last quarter it was 300 billion. This quarter, it is 317 billion.

Soham Roy: Last quarter it was INR 300 billion. This quarter it is INR 317 billion.

Speaker #4: To 5 percent. And is that—the take rate on the overall payment business—has come down a bit?

Ankur Gulati: 5%. Is that the rate, the take rate on the overall payment business has come down a bit?

Speaker #5: So one point which Upasana previously mentioned was the card-linked—the credit and debit card-linked payment options—where we made more money. Those segments, we have seen a de-growth because of regulatory pressures?

Soham Roy: One point which Upasana previously mentioned was the card link, the credit and debit card link payment options where we made more money. Those segments we have seen a degrowth because of regulatory pressures. We are trying to relaunch those segments.

Speaker #4: Yes. Can you give us more color on those issues? What are the regulatory restrictions?

Ankur Gulati: Can you give us more color on those issues? What are the regulatory restrictions?

Upasana Taku: For example, you would have heard one of our competitors had also mentioned in their prospectus that they had to lose a good chunk of revenue for a category like rent or education, et cetera. These are categories that are quite popular on all the payment apps. There has been changes in the perception of these products and therefore the guardrails are being changed across all platforms, not just MobiKwik. To that extent, we just mentioned that we have also paused one of our products in Q4 as well as in Q1, and we intend to relaunch it in Q2.

Speaker #5: So you would.

Speaker #3: So, for example, you would have heard one of our competitors had also mentioned in their prospectus that they had to lose a good chunk of revenue for a category like rent or education, etc.

Upasana Rupkrishan Taku: For example, you would have heard one of our competitors had also mentioned in their prospectus that they had to lose a good chunk of revenue for a category like rent or education, et cetera. These are categories that are quite popular on all the payment apps. There has been changes in the perception of these products and therefore the guardrails are being changed across all platforms, not just MobiKwik. To that extent, we just mentioned that we have also paused one of our products in Q4 as well as in Q1, and we intend to relaunch it in Q2.

Speaker #3: These are categories that are quite popular on all the payment apps. There have been changes in the perception of these products, and therefore the guardrails are being changed across all platforms, not just MobiKwik.

Speaker #3: To that extent, we just mentioned that we have also paused one of our products in Q4 as well as in Q1, and we intend to relaunch it in Q2.

Speaker #4: So going forward, is a 35-bps take rate a new norm? Is that what we should work with?

Ankur Gulati: going forward, is 35 bits take rate a new norm that we should work with?

Speaker #5: More or less. As UPI grows further, you will see a bit more going down in terms of gross take rates. But we continue to guide in the roughly 12 to 14 bps in terms of my net payments take rate.

Soham Roy: More or less. UPI grows further, you will see a bit more going down in terms of gross take rates. We continue to guide in the roughly 12 to 14 bits in terms of my net payments take rate. That is what we are focused on.

Speaker #5: That is what we are focused on.

Ankur Gulati: When you're saying net payment, this is gross profit level, right?

Speaker #4: When you're saying net payment, this is at the gross profit level, right?

Speaker #5: Yes. Gross profit level.

Soham Roy: Yes, gross profit level.

Speaker #4: So then the question is, let's say if your total UPI—sorry, payment GMV—is increasing at 30–40 percent, the gross profit will keep growing at that rate.

Ankur Gulati: The question is, let's say if your total payment GMV is increasing at 30% to 40%, the gross profit will keep growing at that rate. We should not be focused much on payments revenue as such. Is that a fair way to look at it?

Speaker #4: We should not be too focused on the payments revenue as such. Is that a fair way to look at it?

Upasana Taku: Not at that rate. Yeah, I would agree with that because ultimately what matters is that how much of the property you are going to retain. To that extent, that is what we've been saying every quarter, that the gross take rate or gross revenue will be under pressure because one, UPI will keep bringing it down, and B, all the flux in all other categories that we keep seeing across the ecosystem. Therefore, we have been guiding at the net payments margin level, which is revenue minus direct cost and payment, what is the net retention, which we call gross profit for payments. That is what we've been guiding. If you see every quarter, we keep giving a number, showing it quarter by quarter, and so far it has been in that 13 to 15 basis point range.

Upasana Rupkrishan Taku: Not at that rate. Yeah, I would agree with that because ultimately what matters is that how much of the property you are going to retain. To that extent, that is what we've been saying every quarter, that the gross take rate or gross revenue will be under pressure because one, UPI will keep bringing it down, and B, all the flux in all other categories that we keep seeing across the ecosystem. Therefore, we have been guiding at the net payments margin level, which is revenue minus direct cost and payment, what is the net retention, which we call gross profit for payments. That is what we've been guiding. If you see every quarter, we keep giving a number, showing it quarter by quarter, and so far it has been in that 13 to 15 basis point range.

Speaker #5: Not at that rate.

Speaker #3: Yeah, I mean, I would agree with that because, see, ultimately, what matters is how much of the profit you are going to retain.

Speaker #3: And to that extent, that is what we've been saying every quarter—that the gross take rate, or gross revenue, will be under pressure because, one, UPI will keep bringing it down.

Speaker #3: And B, all the flux in our other categories that we keep seeing across the ecosystem. Therefore, we have been guiding at the net payments margin level, which is revenue minus direct cost in payment.

Speaker #3: What is the net retention, which we call gross profit for payments? And that is what we've been guiding—if you see every quarter, we keep giving a number, showing it quarter by quarter.

Speaker #3: And so far, it has been in the 13 to 15 basis point range. But because we have also decided to scale up our merchant business significantly, this time we have also given the breakup of merchant GMV versus consumer GMV.

Upasana Taku: Because we have also decided to scale up our merchant business significantly, this time we have also given the breakup of merchant GMV versus consumer GMV. Typically, merchant GMV also has slightly lower take rate than consumer, which is why we are guiding that on a long-range basis, 12 to 14, which is where we will be on the overall payment volume.

Upasana Rupkrishan Taku: Because we have also decided to scale up our merchant business significantly, this time we have also given the breakup of merchant GMV versus consumer GMV. Typically, merchant GMV also has slightly lower take rate than consumer, which is why we are guiding that on a long-range basis, 12 to 14, which is where we will be on the overall payment volume.

Speaker #3: And typically, merchant GMV also has a slightly lower take rate than consumer, which is why we are guiding that, on a long-range basis, 12 to 14 bps is where we will be.

Speaker #3: On the overall payment volume.

Ankur Gulati: Upasana, can you give us more color on merchant rollout? How should we look at numbers next two, three, four quarters from a two years perspective?

Speaker #4: So Opasna, can you give us more color on merchant rollout? How should we look at numbers next two, three, four quarters, and maybe a two-year perspective?

Speaker #3: So, one number that we have given is in terms of the merchant business. We have done about ₹1.25 million, or...

Upasana Taku: One number that we have given is in terms of the merchant business. We have done about INR 1.25 million

Upasana Rupkrishan Taku: One number that we have given is in terms of the merchant business. We have done about INR 1.25 million

Speaker #5: 25 billion. What 25 billion?

Ankur Gulati: INR 125 billion.

Soham Roy: INR 125 billion.

Upasana Taku: INR 125 billion in Q1 in merchant GMV. This number was INR 107 billion last quarter. That's a 17% QOQ growth in the merchant GMV. It's only last quarter that we started speaking about how we are trying to build the merchant payments vertical, and this includes both our online payment acquiring business called Zaakpay, which is housed in our wholly owned subsidiary, as well as our offline merchant acquiring business, which is housed directly in MobiKwik, where we deploy QR Soundbox and EDC machines. This scale-up has just literally started at the end of last quarter and beginning of this quarter, Q1. What we had said last time is in two years, we expect to do a 10X ramp-up here.

Upasana Rupkrishan Taku: INR 125 billion in Q1 in merchant GMV. This number was INR 107 billion last quarter. That's a 17% QOQ growth in the merchant GMV. It's only last quarter that we started speaking about how we are trying to build the merchant payments vertical, and this includes both our online payment acquiring business called Zaakpay, which is housed in our wholly owned subsidiary, as well as our offline merchant acquiring business, which is housed directly in MobiKwik, where we deploy QR Soundbox and EDC machines. This scale-up has just literally started at the end of last quarter and beginning of this quarter, Q1. What we had said last time is in two years, we expect to do a 10X ramp-up here.

Speaker #3: 125 billion rupees in Q1 in merchant GMV. And this number was 107 billion last quarter. So that's a 17% Q-o-Q growth in the merchant GMV.

Speaker #3: Now, it's only last quarter that we started speaking about how we are trying to build the merchant payments vertical. And this includes both our online payment acquiring business called ZakPay, which is housed in our wholly owned subsidiary.

Speaker #3: As well as our offline merchant acquiring business, which is housed directly in MobiKwik, where we deploy QR, soundbox, and EDC machines. Now, this scale-up has just literally started at the end of last quarter and the beginning of this quarter, Q1.

Speaker #3: And what we had said last time is that in two years, we expect to do a 10x ramp-up here. So we have just started; the early signs seem good.

Upasana Taku: We have just started. The early signs seem good, 17% QOQ growth. Therefore, apart from this, whether it is number of merchants, number of devices, merchant revenue, we don't feel comfortable about sharing any of those numbers right now. It is too early. Needless to say, as we ramp up, we will be delivering, showcasing more numbers about this business. What I can tell you is, since we were talking right before this also about payments, is that we feel comfortable that the mature consumer payment businesses, we will expect 5% to 6% quarterly growth in terms of revenue. That is our expectation for ourselves. In the emerging and fast-growing merchant businesses, we expect that we'll be able to grow about 25% in terms of revenue quarter on quarter.

Upasana Rupkrishan Taku: We have just started. The early signs seem good, 17% QOQ growth. Therefore, apart from this, whether it is number of merchants, number of devices, merchant revenue, we don't feel comfortable about sharing any of those numbers right now. It is too early. Needless to say, as we ramp up, we will be delivering, showcasing more numbers about this business. What I can tell you is, since we were talking right before this also about payments, is that we feel comfortable that the mature consumer payment businesses, we will expect 5% to 6% quarterly growth in terms of revenue. That is our expectation for ourselves. In the emerging and fast-growing merchant businesses, we expect that we'll be able to grow about 25% in terms of revenue quarter on quarter.

Speaker #3: 17% quarter-on-quarter growth. And therefore, apart from this—whether it is number of merchants, number of devices, merchant revenue—we don't feel comfortable sharing any of those numbers right now.

Speaker #3: It is too early. Needless to say, as we ramp up, we will be delivering and showcasing more numbers about this business. What I can tell you is, since we were talking right before this also about payments, is that we feel comfortable that the mature consumer payment businesses, we will expect 5% to 6% quarterly growth in terms of revenue.

Speaker #3: That is our expectation for ourselves. And in the emerging and fast-growing merchant businesses, we expect that we'll be able to grow about 25% in terms of revenue quarter-on-quarter.

Speaker #4: That's good. So this $127 billion sits in the $318 billion of non-UPS, is that correct?

Ankur Gulati: That's good. This INR 127 billion fits in INR 318 billion of non-UPI. Is that correct?

Upasana Taku: I don't think that's the right way to think about it. I think one way to think about it is that we are giving you our overall GMV and the merchant GMV once you remove it. The consumer GMV is what is the constituent of the UPI, PPI, and recharge and bill payments, but there is overlap between all of them. Obviously you can do a bill payment using a wallet or you can do a bill payment using UPI.

Upasana Rupkrishan Taku: I don't think that's the right way to think about it. I think one way to think about it is that we are giving you our overall GMV and the merchant GMV once you remove it. The consumer GMV is what is the constituent of the UPI, PPI, and recharge and bill payments, but there is overlap between all of them. Obviously you can do a bill payment using a wallet or you can do a bill payment using UPI.

Speaker #3: I don't think that's the right way to think about it. I think one way to look at it is that we are giving you our overall GMV.

Speaker #3: And the merchant GMV, once you remove it, then the consumer GMV is what constitutes the UPI, PPI, and recharge and bill payments.

Speaker #3: But there is overlap between all of them, because obviously you can do a bill payment using a wallet, or you can do a bill payment using UPI.

Speaker #4: Fair enough. So, when you're saying 10x, let's assume last quarter, FY26, was 100-odd billion of merchant, which makes ARR of 400. So by any internal targets, we are to take it to about 4,000 over the next quarter.

Ankur Gulati: Fair enough. When you're saying 10x, let's say the last quarter FY26 was INR 100 odd billion of merchant, which makes ARR of INR 400 billion. By any internal targets are to take it to what, INR 4,000 billion over next-

Upasana Taku: In revenue. I said in revenue. I said in revenue, not in GMV.

Speaker #3: So, in revenue—I said in revenue. I said in revenue, not in GMV.

Upasana Rupkrishan Taku: In revenue. I said in revenue. I said in revenue, not in GMV.

Speaker #4: Understood. Sorry, can you give me the revenue again this quarter for merchant, if you can?

Ankur Gulati: Understood. Sorry, can you give me the revenue again of this quarter for merchant, if you can?

Speaker #3: It's too early. That's what I said—that apart from the GMV for merchants, we are not revealing any other numbers yet. But I think as we make progress, we will start revealing more metrics.

Upasana Taku: It's too early. That's what I said, that apart from the GMV for merchant, we are not revealing any other numbers yet. I think as we make progress, we will start revealing more metrics.

Upasana Rupkrishan Taku: It's too early. That's what I said, that apart from the GMV for merchant, we are not revealing any other numbers yet. I think as we make progress, we will start revealing more metrics.

Speaker #4: Directionally, this will have lower GPM margins. That's what you guys are guiding for.

Ankur Gulati: Directionally, this will have lower GPM margins. That's what you guys are guiding for.

Speaker #3: Yeah, I mean, you have the competitor data to see, right, where the businesses are far more merchant-focused. So it's a well-known fact in the industry that the net take rate is less than 10 bps.

Upasana Taku: Yeah. You have the competitor data to see, right? Where the businesses are far more merchant-focused. It's a well-known fact in the industry that the net take rate is less than 10 basis points.

Upasana Rupkrishan Taku: Yeah. You have the competitor data to see, right? Where the businesses are far more merchant-focused. It's a well-known fact in the industry that the net take rate is less than 10 basis points.

Ankur Gulati: How much money, if any, spent on the merchant equipment, if you can share that. I think you mentioned you guys would be spending more on that side from a CapEx perspective.

Speaker #4: And how much money have you spent on the merchant equipment, if you can share that? I think you mentioned you were going to be spending more on that side from a KPX perspective.

Ankur Gulati: How much money, if any, spent on the merchant equipment, if you can share that. I think you mentioned you guys would be spending more on that side from a CapEx perspective.

Speaker #3: So, for KPX, we've already given the disclosure in our financials as well. We had taken IPO proceeds just for KPX, and we still have a good amount of that money available for further purchase of equipment.

Upasana Taku: See, for CapEx, we've already given the disclosure in our financials also. We had taken IPO proceeds just for CapEx, and we still have a good amount of that money available for further purchase of equipment. INR 2,530 crores we have available to buy more devices.

Upasana Rupkrishan Taku: See, for CapEx, we've already given the disclosure in our financials also. We had taken IPO proceeds just for CapEx, and we still have a good amount of that money available for further purchase of equipment. INR 2,530 crores we have available to buy more devices.

Speaker #3: 25 to 30 crores we have available to buy more devices.

Speaker #4: And that's what you guys will spend this year? All of the same IPO, or more than that?

Ankur Gulati: That's what you guys will spend this year, all of this year, I think, or more than that?

Speaker #3: So first, we have to— I mean, first, we have to utilize all of that, is what I was trying to say. And the utilization is also getting updated every quarter in the financials itself.

Upasana Taku: First we have to utilize all of that, is what I was trying to say, and the utilization is also getting updated every quarter in the financials itself.

Upasana Rupkrishan Taku: First we have to utilize all of that, is what I was trying to say, and the utilization is also getting updated every quarter in the financials itself.

Ankur Gulati: Fair enough.

Upasana Taku: We don't expect that we will need more than that for now, for this year.

Upasana Rupkrishan Taku: We don't expect that we will need more than that for now, for this year.

Speaker #3: We don't expect that we will need more than that for now, for this year.

Speaker #4: Correct. Last thing for now—if I go to page 23, there is some reference to this person from New Initiatives. If you can give us more color on that.

Ankur Gulati: Got it. Last thing for now, if I go to page 23, there is some reference to disbursement from new initiators. If you can give us more color on that. Is this just new clients or is this new product?

Speaker #4: Is this a new client, or is this a new product?

Speaker #3: So, if you're looking at slide 23, you just looked at slides 21 and 22, where we are showcasing two things. The first initiative is that we have a very large non-lending user base on our platform, which we have identified as 96 million users.

Upasana Taku: If you're looking at slide 23, you just look at slide 21 and 22 where we are showcasing two things. The first initiative is basically we have a very large non-lending user base on our platform, which we have identified as 96 million users. Out of those, we are taking a couple of tracks based on which we expect to segment these users and provide them the right pre-approved offers for loans. From this track, we expect that we will be able to generate about INR 150 to 250 crores of incremental disbursements. This is what Soham had explained some few minutes ago also. This is one growth initiative.

Upasana Rupkrishan Taku: If you're looking at slide 23, you just look at slide 21 and 22 where we are showcasing two things. The first initiative is basically we have a very large non-lending user base on our platform, which we have identified as 96 million users. Out of those, we are taking a couple of tracks based on which we expect to segment these users and provide them the right pre-approved offers for loans. From this track, we expect that we will be able to generate about INR 150 to 250 crores of incremental disbursements. This is what Soham had explained some few minutes ago also. This is one growth initiative.

Speaker #3: And out of those, we are taking a couple of tracks based on which we expect to segment these users and provide them with the right pre-approved offers for loans.

Speaker #3: And from this track, we expect that we will be able to generate about 150 to 250 crores of incremental disbursals. This is what Sohom had explained a few minutes ago also.

Speaker #3: So, this is one growth initiative. The second growth initiative is on slide 22, where we are saying that we are trying to leverage the AI engine that we have built so that we can retain customers we are losing at different parts of the loan journey on our app.

Upasana Taku: The second growth initiative is on slide 22, where we are saying that we are trying to leverage an AI engine that we've built so that all the customers that we are losing in different parts of the loan journey on our app. Top of the funnel is anyone who has seen the loan offer and filled in the first screen to show their loan intent, and then there are different steps till the end, till the disbursement. We have highlighted that there are few steps where we are seeing 50% drop-off, 10% to 20% drop-off. By building an engine which will help those users, whether it is by talking to them in their language, whether it is by figuring out what triggered the drop-off and assisting them in their journey.

Upasana Rupkrishan Taku: The second growth initiative is on slide 22, where we are saying that we are trying to leverage an AI engine that we've built so that all the customers that we are losing in different parts of the loan journey on our app. Top of the funnel is anyone who has seen the loan offer and filled in the first screen to show their loan intent, and then there are different steps till the end, till the disbursement. We have highlighted that there are few steps where we are seeing 50% drop-off, 10% to 20% drop-off. By building an engine which will help those users, whether it is by talking to them in their language, whether it is by figuring out what triggered the drop-off and assisting them in their journey.

Speaker #3: So, top of the funnel is anyone who has seen the loan offer and filled in the first screen to show their loan intent. Then there are different steps until the end, up to the disbursal.

Speaker #3: So we have highlighted that there are a few steps where we are seeing a 50% drop-off, and a 10% to 20% drop-off. And by building an engine which will help those users—whether it is by talking to them in their language, or by figuring out what triggered the drop-off and assisting them in their journey—we do believe that there is enough juice here that we are leaving right now.

Upasana Taku: We do believe that there is enough juice here that we are leaving right now, and we should be able to generate about INR 100 crore per quarter from this engine also that we have recently built. In slide 23, what we are saying is that if you assume that Q1 is the baseline for the upcoming Q2, Q3, Q4 quarters, then we do believe that we have enough opportunities in terms of these two initiatives based on which we should be able to generate another INR 300 crore of disbursements. Therefore, our expectation from ourselves is that we should be able to do INR 1,000 crore disbursal every quarter in the upcoming quarters.

Upasana Rupkrishan Taku: We do believe that there is enough juice here that we are leaving right now, and we should be able to generate about INR 100 crore per quarter from this engine also that we have recently built. In slide 23, what we are saying is that if you assume that Q1 is the baseline for the upcoming Q2, Q3, Q4 quarters, then we do believe that we have enough opportunities in terms of these two initiatives based on which we should be able to generate another INR 300 crore of disbursements. Therefore, our expectation from ourselves is that we should be able to do INR 1,000 crore disbursal every quarter in the upcoming quarters.

Speaker #3: And we should be able to generate about ₹100 crore per quarter from this engine also, that we have recently built. So, in Slide 23, what we are saying is that if you assume that Q1 is the baseline for the upcoming Q2, Q3, and Q4 quarters, then we do believe that we have enough opportunities in terms of these two initiatives, based on which we should be able to generate another ₹300 crore of disbursals.

Speaker #3: And therefore, our expectation from ourselves is that we should be able to do ₹1,000 crore disbursal every quarter in the upcoming quarters.

Speaker #4: And how much of that will be pure origination, and how much is on the books by SIDB?

Ankur Gulati: How much of that will be pure origination and how much is on books via FLDG?

Speaker #2: So, as of this quarter, 32% is pure distribution and 68% is FLDG. As we go forward, we are looking at more of a 40-60 kind of mix.

Soham Roy: As of this quarter, 32% is pure distribution and 68% is FLDG. As we go forward, we are looking more of a 40-60 kind of a mix, potentially by the end of this year.

Speaker #2: Potentially by the end of this year.

Ankur Gulati: Now this is happening through your NBFC, is it correct? The FLDGs.

Speaker #4: And now this is happening to your NBFC? Is that correct? The FLDGs?

Ankur Gulati: Now this is happening through your NBFC, is it correct? The FLDGs.

Soham Roy: FLDGs are happening through our NBFC partners. We have a set of roughly 10 to 15 partners. We have mentioned some of them previously also. Like this quarter, we have nine large or major partners. Through them, we are doing this FLDG business.

Speaker #2: So, FLDGs are happening through our NBFC partners. We have a set of roughly 10 to 15 partners. We have mentioned some of them previously also—for example, this quarter, we have 9 large or major partners.

Speaker #2: Through them, we are doing this FLDG business.

Ankur Gulati: When do you expect your own NBFC to start building the book for them?

Speaker #4: And when do you expect your own NBFCs to start building the book?

Ankur Gulati: When do you expect your own NBFC to start building the book for them?

Speaker #3: So, we have also given an update on slide 7 in our earnings presentation that when we received the in-principle approval from RBI in April, one of the conditions of that was that we have to take the digital lending business, which we have been discussing for the last few minutes.

Upasana Taku: We have also given an update on slide seven in our earnings presentation that when we received the in-principle approval from RBI in April. One of the conditions of that was that we have to take the digital lending business, which we have been discussing last few minutes from the parent company, MobiKwik, to a wholly owned subsidiary. The shareholder approval for that we received in July, 2 July, since then that project is going on. As we have given in the slide seven, we are in progress of transitioning this business, which is a large cumbersome process in terms of recontracting with all the NBFCs, technology migration from one company to the other, people migration, and all of that.

Upasana Rupkrishan Taku: We have also given an update on slide seven in our earnings presentation that when we received the in-principle approval from RBI in April. One of the conditions of that was that we have to take the digital lending business, which we have been discussing last few minutes from the parent company, MobiKwik, to a wholly owned subsidiary. The shareholder approval for that we received in July, 2 July, since then that project is going on. As we have given in the slide seven, we are in progress of transitioning this business, which is a large cumbersome process in terms of recontracting with all the NBFCs, technology migration from one company to the other, people migration, and all of that.

Speaker #3: From the parent company, MobiKwik, to a wholly owned subsidiary. And the shareholder approval for that, we received in July on July 2. And since that project is going on and as we have given in the slide 7, we are in progress of transitioning this business, which is a large cumbersome process in terms of re-contracting with all the NBFCs, technology migration, from one company to the other.

Speaker #3: People migration and all of that. So, we intend to close that in August. And it is after completing that only that we will be able to go back to the regulator and ask for the final license — from the in-principle to the final certificate of registration.

Upasana Taku: We intend to close that in August and it is after completing that only that we will be able to go back to the regulator and ask for the final license from the in-principal to the final certificate of registration. In terms of launching the own NBFC and disbursing loans from there, I do believe that we are still some time away from that and we should have a better update to give you in the next results.

Upasana Rupkrishan Taku: We intend to close that in August and it is after completing that only that we will be able to go back to the regulator and ask for the final license from the in-principal to the final certificate of registration. In terms of launching the own NBFC and disbursing loans from there, I do believe that we are still some time away from that and we should have a better update to give you in the next results.

Speaker #3: And so, in terms of launching our own NBFC and disbursing loans from there, I do believe that we are still some time away from that.

Speaker #3: And we should have a better update to give you in the next results.

Speaker #4: Perfect. And then, last call, Q4, there was some guidance of, let's say, ₹75 crore EBITDA for FY27, which includes other income as well. Now, at least for Q1, the operating EBITDA ex-other income is roughly ₹80 million odd.

Ankur Gulati: Perfect. Last call, Q4, there was some guidance of, let's say, INR 75 crore EBITDA for FY27, which includes other income as well. At least for Q1, the operating EBITDA ex other income is roughly INR 18 million odd. If you can give us more color that should we still hope, shoot for INR 750 million EBITDA this year, including other income, or would you like to tone it down a bit?

Speaker #4: So if you can give us more color on that, should we still shoot for $750 million EBITDA this year, including other income? Or would you like to tone it down a bit?

Upasana Taku: I think that we feel very comfortable and confident in the current financial numbers, and this is the baseline. Not only EBITDA, but even in terms of PAT, if you see, this has been a good quarter and we've delivered INR 7.6 crores in PAT. Even if you take that as a baseline, we believe that we should easily able to achieve INR 40 crores of PAT for the full financial year, assuming at the rate of 10-10 and 12.5. INR 75 EBITDA and INR 40 PAT is the kind of numbers that we are fairly confident of achieving.

Upasana Rupkrishan Taku: I think that we feel very comfortable and confident in the current financial numbers, and this is the baseline. Not only EBITDA, but even in terms of PAT, if you see, this has been a good quarter and we've delivered INR 7.6 crores in PAT. Even if you take that as a baseline, we believe that we should easily able to achieve INR 40 crores of PAT for the full financial year, assuming at the rate of 10-10 and 12.5. INR 75 EBITDA and INR 40 PAT is the kind of numbers that we are fairly confident of achieving.

Speaker #3: I think that we feel very comfortable and confident in the current financial numbers, and this is the baseline. Not only EBITDA, but even in terms of PAT, if you see, this has been a good quarter.

Speaker #3: And we have delivered 7.6 crores, in fact. So even if you take that as a baseline, we believe that we should easily be able to achieve 40 crores of facts for the full financial year.

Speaker #3: Assuming at the rate of 10, 10, and 12.5. So, yeah, 75 EBITDA and 40 PAT is the kind of numbers that we are fairly confident of achieving.

Speaker #4: Perfect. Any last questions? Can you give me the cash balance as of 30th June, please?

Ankur Gulati: Perfect. Last question, can you give me the cash balance as of 30 June, please?

Speaker #3: Yeah, one moment. So, the net cash that the company has is ₹437 crore.

Upasana Taku: One moment. The net cash that the company has is INR 437 crores.

Upasana Rupkrishan Taku: One moment. The net cash that the company has is INR 437 crores.

Speaker #4: Perfect. Okay. Thanks. I'll fall back. Thank you.

Ankur Gulati: Perfect. Okay. Thanks. Well forward. Thank you.

Speaker #1: Thank you. Reminder for all participants, please press star one to ask a question. Participants who wish to ask a question may press star one.

Operator 2: Thank you. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask a question may press star and one. The next question is from the line of Dixit Doshi from Whitestone Financial Advisors. Please go ahead.

Operator: Thank you. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask a question may press star and one. The next question is from the line of Dixit Doshi from Whitestone Financial Advisors. Please go ahead.

Speaker #1: The next question is from the line of Dixit Toshi from Whitestone Financial Advisors. Please go ahead.

Speaker #5: Yeah, hi. Thank you for the opportunity. I just wanted to understand—this quarter, our PPI wallet transactions are up by 68%, but GMV was up only by 24%. If you can explain the reason behind it?

Dixit Doshi: Hi, thank you for the opportunity. Just wanted to understand, this quarter, our PPI wallet transactions are up by 68%, but GMV was up only by 24%. If you can explain the reason behind it?

Speaker #3: One second.

Upasana Taku: One second.

Upasana Rupkrishan Taku: One second.

Speaker #2: Hi, thanks for the question. So I think there are two parts to it. One, people are using wallets more and more for lower ticket transactions.

Soham Roy: Hi. Thanks for the question.

Dixit Doshi: Yeah.

Soham Roy: I think there's two parts to it. One, people are using wallet more and more for lower ticket transactions. More people are using Pocket UPI, which is effectively using wallet and paying on a UPI QR code. That is a reason because of which the number of transactions is increasing. GMV is not at the same rate because of lower ticket sizes. Secondly, which we also mentioned, the card-linked payment transactions have reduced a bit, or there has been a pause in terms of card-linked payment transactions.

Speaker #2: More people are using Pocket UPI, which is effectively using a wallet and paying on a UPI QR code. So that is the reason why the number of transactions is increasing.

Speaker #2: But GMV is not growing at the same rate because of lower ticket sizes. Secondly, as we also mentioned, the card-linked payment transactions have reduced a bit, or there has been a pause in terms of card-linked payment transactions.

Speaker #5: Okay. Those were higher ticket sizes.

Dixit Doshi: Those were higher ticket sizes.

Speaker #2: Those were higher ticket sizes. Yes.

Soham Roy: Those were higher ticket size. Yes.

Speaker #3: Additionally, one point I want to make is the parent rate. While the transaction volume of wallet has grown 68% year-over-year, the GMV has grown 24%, which was what you were asking.

Upasana Taku: One point I want to make, which is apparent, right? While the transaction of wallet has grown 68% YOY, the GMV has grown 24%, which was what you were asking. Krum is explaining that a good chunk of this also happens to be wallet on UPI, where people are using the wallet balance as a bank balance and paying on the UPI rails.

Upasana Rupkrishan Taku: One point I want to make, which is apparent, right? While the transaction of wallet has grown 68% YOY, the GMV has grown 24%, which was what you were asking. Krum is explaining that a good chunk of this also happens to be wallet on UPI, where people are using the wallet balance as a bank balance and paying on the UPI rails.

Speaker #3: And Soam is explaining that a good chunk of this also happens to be wallet on UPI, where people are using the wallet balance as a bank balance and paying on the UPI rails.

Speaker #3: You should also know that we are not making revenue on this. So, for example, if you use your wallet to pay at a wallet merchant, then I make money on that.

Dixit Doshi: Correct.

Upasana Taku: You should also know that we are not making revenue also on this. For example, if you use your wallet to pay on a wallet merchant, then I make money on that. If you're using your wallet to pay on a UPI merchant, then just like UPI, there is no MDR, UPI. Similarly, PPI and UPI also currently we are not earning any MDR, although RBI had mandated it, NPCI has still not rolled it out despite 2 and a half years. There again, we are losing revenue.

Upasana Rupkrishan Taku: You should also know that we are not making revenue also on this. For example, if you use your wallet to pay on a wallet merchant, then I make money on that. If you're using your wallet to pay on a UPI merchant, then just like UPI, there is no MDR, UPI. Similarly, PPI and UPI also currently we are not earning any MDR, although RBI had mandated it, NPCI has still not rolled it out despite 2 and a half years. There again, we are losing revenue.

Speaker #3: But if you're using your wallet to pay on a UPI merchant, then just like UPI, there is no MDR. UPI. Similarly, PPI and UPI also currently, we are not earning any MDR.

Speaker #3: Although RBI had mandated it, NPCI has still not rolled it out despite two and a half years. So there again, we are losing revenue.

Speaker #5: Right. Okay. And is it possible to share what was the ZAGPAY GMV or revenue this quarter?

Dixit Doshi: Right. Okay. Is it possible to share what was the Zaakpay GMV or revenue this quarter?

Speaker #3: One second.

Upasana Taku: One second.

Upasana Rupkrishan Taku: One second.

Speaker #2: Hi, sorry. Yeah. So, we provide this in our key performance indicators. So, my payment gateway GMV, or ZAGPAY GMV, for the quarter was $25 billion.

Soham Roy: Hi, sorry. Yeah. We provide this in our key performance indicators. My payment gateway GMV or Zaakpay GMV for the quarter was INR 25.6 billion.

Speaker #2: 25.6 billion.

Speaker #5: Okay. And the revenue would be for the payment gateway?

Dixit Doshi: Okay. The revenue would be? For the payment gateway.

Speaker #2: Revenue, we do not disclose separately for that at this point. But point taken.

Soham Roy: Revenue we do not disclose separately for that at this point taken.

Speaker #5: Okay, no problem. And in the lending business, the gross margin improvement was partly because of the write-back of the guarantee cost of the previous year's loan, I think.

Dixit Doshi: Okay, no problem. In the lending business, the gross margin improvement was partly because of the writeback of the guarantee cost of the previous year loan, I think. Can you tell us how much that would be?

Speaker #5: So, if you can, can you tell us how much that would be?

Speaker #2: So in the unit economics, we have actually given what percentage was from my existing books and what percentage was from this write-back. So if I...

Soham Roy: In the unit economics, we have actually given what % was from my existing book and what % was from this writeback.

Dixit Doshi: Yeah, 1.8% or something. Yeah.

Speaker #5: Yeah. 1.8% or something. Yeah.

Speaker #2: So you can take my entire gross revenue in lending, and roughly 18% of that is from my past book recoveries, which contributes to roughly ₹16 crore, if I'm not wrong.

Soham Roy: 1.87. You can take my entire gross revenue in lending, and roughly 18% of that is from my past book recoveries. Which contributes to roughly INR 60 odd crores, if I'm not wrong.

Speaker #5: Okay. And this becomes a cycle. So these write-backs will keep coming every quarter, right?

Dixit Doshi: Okay. This becomes a cycle, these writebacks will keep coming every quarter, right?

Speaker #3: Yes, they'll keep coming every quarter, but they may not be of the same value because, obviously, the write-backs that we are getting now—we could already see in the credit cohorts that the losses are going to be much lower—but the lender has already kept a good margin with them, which is what we are getting back.

Upasana Taku: Yes. They'll keep coming every quarter, they may not be of the same value because, obviously the write backs that we are getting now, we could already see in the credit cohorts that the losses are going to be much lower, the lender has already kept a good margin with them, which is what we are getting back. Over a period of time, as our cohort kept improving, we also reduced the amount of upfront collateral sitting with them. Therefore write backs will keep coming, maybe not to the same tune.

Upasana Rupkrishan Taku: Yes. They'll keep coming every quarter, they may not be of the same value because, obviously the write backs that we are getting now, we could already see in the credit cohorts that the losses are going to be much lower, the lender has already kept a good margin with them, which is what we are getting back. Over a period of time, as our cohort kept improving, we also reduced the amount of upfront collateral sitting with them. Therefore write backs will keep coming, maybe not to the same tune.

Speaker #3: But over a period of time, as our cohorts kept improving, we also reduced the amount of upfront collateral set with them. So, therefore, write-backs will keep coming, maybe not to the same tune.

Speaker #5: Okay, so you're saying that earlier, say, we used to provide, say, 5% upfront. That provision has come down now?

Dixit Doshi: Okay, you're saying that earlier, say we used to provide, say 5% upfront, that provision has come down now?

Speaker #3: As in, with different C, 5% is the max we can give as per RBI. But that doesn't mean we give 5% to every lender.

Upasana Taku: As in with See, 5% is the max we can give as per RBI guidelines.

Upasana Rupkrishan Taku: As in with See, 5% is the max we can give as per RBI guidelines.

Dixit Doshi: Okay.

Upasana Taku: That doesn't mean we give 5% to every lender. Out of the nine lenders, maybe I have given 4.75 somewhere, 2.5 somewhere, and 5 somewhere.

Upasana Rupkrishan Taku: That doesn't mean we give 5% to every lender. Out of the nine lenders, maybe I have given 4.75 somewhere, 2.5 somewhere, and 5 somewhere.

Speaker #3: Out of the nine lenders, maybe I have given 4.75% somewhere, 4.5% somewhere, and 5% somewhere.

Speaker #5: Okay, so you tweak your provision depending on the behavior or credit cost that is happening on your loan book?

Dixit Doshi: Okay. You tweak your provision depending on the behavior or credit cost that is happening on your loan book?

Speaker #3: Correct. Correct.

Upasana Taku: Correct.

Upasana Rupkrishan Taku: Correct.

Speaker #5: Okay.

Dixit Doshi: Okay.

Speaker #3: And which is why, if you see—just to address this from a long-range perspective—like, if you see Q3, our net financial services margin was 4.1%.

Upasana Taku: Which is why if you see, just to address this from a long-range perspective, if you see Q3 our net financial services margin was 4.1%, and last quarter and this quarter it's now 5.4% and 5.8%.

Upasana Rupkrishan Taku: Which is why if you see, just to address this from a long-range perspective, if you see Q3 our net financial services margin was 4.1%, and last quarter and this quarter it's now 5.4% and 5.8%.

Speaker #3: And last quarter and this quarter, it's now 5.4% and 5.8%.

Speaker #5: Yeah. Yeah. Yeah.

Dixit Doshi: Yeah.

Speaker #3: And which is great for us. But on a long-range basis, we believe that this will continue to be between 4.5% to 5%. And anything beyond 5%, we are happy only.

Upasana Taku: Which is great for us, but on a long-range basis, we believe that this will continue to be between 4.5% to 5%. Anything beyond 5% we are happy only, but I'm just saying that we can't always assume it will be 5.9%. It could be 4.5% to 5.5% is the right range.

Upasana Rupkrishan Taku: Which is great for us, but on a long-range basis, we believe that this will continue to be between 4.5% to 5%. Anything beyond 5% we are happy only, but I'm just saying that we can't always assume it will be 5.9%. It could be 4.5% to 5.5% is the right range.

Speaker #3: But I'm just saying that we can't always assume it will be 5.9%. It could be 4.5% to 5.5%—that is the right range.

Dixit Doshi: Yeah. It will keep. Got you. Right. In the merchant business, you said that we want to anchor our fixed cost and this. As we scale up our merchant business, can you guide us how much this fixed cost can increase maybe in next 2 years?

Speaker #5: Yeah, it will keep changing, right? And in the merchant business, so you said that we want to anchor our fixed cost. But as we scale up our merchant business, can you guide us on how much this fixed cost can increase?

Speaker #5: Maybe in next two years?

Upasana Taku: See in the fixed cost thing you can see clearly employee benefit expense is going up and it has gone up last quarter INR 46 crore to INR 53 crore this quarter. Most of it is for the new merchant businesses itself, which are of course manpower-intensive in the off-role side, in the offline business side I mean.

Speaker #3: So, see, in the fixed cost section, you can see clearly employee benefit expense is going up. And it has gone up from last quarter—₹46 crore to ₹53 crore this quarter.

Upasana Rupkrishan Taku: See in the fixed cost thing you can see clearly employee benefit expense is going up and it has gone up last quarter INR 46 crore to INR 53 crore this quarter. Most of it is for the new merchant businesses itself, which are of course manpower-intensive in the off-role side, in the offline business side I mean.

Speaker #3: And most of it is for the new merchant businesses itself, which are, of course, manpower-intensive on the off-roll side—in the offline business side, I mean.

Speaker #3: So we do believe that, while this may go up slightly even more, we will keep that in measure to what we are, as we are breaking even.

Upasana Taku: We do believe that while this may go up slightly even more, we will keep that in measure to what we are, as we are breaking even in the different segments of the merchant business. We had said that we don't expect for the full year merchant business burn will be more than INR 50 to 60 crore and we are running on that timetable only on a quarterly basis. 15 4s are 60. While our PAT reported a INR 7.6 crore, of course we have burned money to the tune of INR 15 to 16 crore in building the merchant business and we will continue to do it in that manner only. I don't expect this to go up by 50% as an example. Can it go up by the merchant-related manpower cost, can it go up by 5% to 15% on a year-to-year basis?

Upasana Rupkrishan Taku: We do believe that while this may go up slightly even more, we will keep that in measure to what we are, as we are breaking even in the different segments of the merchant business. We had said that we don't expect for the full year merchant business burn will be more than INR 50 to 60 crore and we are running on that timetable only on a quarterly basis. 15 4s are 60. While our PAT reported a INR 7.6 crore, of course we have burned money to the tune of INR 15 to 16 crore in building the merchant business and we will continue to do it in that manner only. I don't expect this to go up by 50% as an example. Can it go up by the merchant-related manpower cost, can it go up by 5% to 15% on a year-to-year basis?

Speaker #3: In the different segments of the merchant business, we had said that we don't expect the full-year merchant business burn will be more than ₹50–60 crore.

Speaker #3: And we are running on that timetable only on a quarterly basis, so Q1, Q2, Q3, Q4. And so, while our PAT reported ₹7.6 crores, of course, we have burned money to the tune of ₹15–16 crores in building the merchant business.

Speaker #3: And we will continue to do it in that manner only. So I don't expect this to go up by 50%, as an example. But can it go up by the merchant-related manpower cost—can it go up by 5% to 15% on a year-to-year basis?

Speaker #3: Yes, of course, it will be. But it will be directly linked to the break-even and the margin that we will generate from that business.

Upasana Taku: Yes, of course it will be, it will be directly linked to the break-even and the margin that we will generate from that business.

Upasana Rupkrishan Taku: Yes, of course it will be, it will be directly linked to the break-even and the margin that we will generate from that business.

Speaker #5: Correct. And at what scale do you think the merchant business, or by what time do you think the merchant business, should break even on this burn that we are doing—₹50 to ₹60 crores annually?

Dixit Doshi: Right. At what scale do you think merchant business or by what time do you think merchant business should break even? This burn that we are doing INR 50 crore, INR 60 crore annually, do you think we should break even next two years?

Speaker #5: Do you think we should break even in the next two years?

Speaker #3: We expect FY28.

Upasana Taku: We expect FY28.

Upasana Rupkrishan Taku: We expect FY28.

Speaker #5: Right. And my last question, ma'am: the lending disbursement has degrown for the last two quarters. What do you think is the reason for this degrowth in the disbursement amount this quarter?

Dixit Doshi: Right. My last question, ma'am. The lending disbursement is de-grown since last two quarters. What is the reason do you think is for this degrowth in the disbursement amount this quarter?

Speaker #3: So I think two things. One is that we have given a lot of detail on this since, like, '23, in our earnings presentation. But just to summarize, firstly, if you will see in Q2 and Q3, you will see that while we had more partners, the key partners that we had were six to seven.

Upasana Taku: I think two things. One is that we have given a lot of detail on this in Slide 23 in our earnings presentation. Just to summarize, firstly, if you will see in Q2 and Q3 you will see that while we had more partners, the key partners that we had were six to seven and the lending concentration in the top three lenders was about 91%, which we saw it as a risk and we wanted to consciously bring it down. Last quarter we brought that to 87% and this quarter to 71%, which we believe is important from a mid to long-range perspective that we should diversify our loans across several partners and to that extent we have been adding partners. In Q1 also we have added two new partners which will further scale up in Q2.

Upasana Rupkrishan Taku: I think two things. One is that we have given a lot of detail on this in Slide 23 in our earnings presentation. Just to summarize, firstly, if you will see in Q2 and Q3 you will see that while we had more partners, the key partners that we had were six to seven and the lending concentration in the top three lenders was about 91%, which we saw it as a risk and we wanted to consciously bring it down. Last quarter we brought that to 87% and this quarter to 71%, which we believe is important from a mid to long-range perspective that we should diversify our loans across several partners and to that extent we have been adding partners. In Q1 also we have added two new partners which will further scale up in Q2.

Speaker #3: And the lending concentration in the top three lenders was about 91%, which we saw as a risk and we wanted to consciously bring it down.

Speaker #3: So last quarter, we brought that to 87%, and this quarter to 71%, which we believe is important from a mid- to long-range perspective, that we should diversify our loans across several partners.

Speaker #3: And to that extent, we have been adding partners in Q1. Also, we have added two new partners, which will further scale up in Q2.

Upasana Taku: I'm happy to tell you that we are already on the INR 1,000 crore run rate in Q2, whichever date we are standing on today. The second thing is that we also mentioned because of this NBFC license condition, we had to move our digital lending business from the parent top co to a wholly owned subsidiary. It is a fairly cumbersome project to move all your pipes, novate all your agreements and redo everything again with all the lenders, with all the bureaus in a new company from a new tech stack. Specifically in Q1 we have had quite a lot of focus on that technology migration between our parent system, our child company and all the different lending partners. This project has been going on for the last couple of months and we expect to close it in August.

Upasana Rupkrishan Taku: I'm happy to tell you that we are already on the INR 1,000 crore run rate in Q2, whichever date we are standing on today. The second thing is that we also mentioned because of this NBFC license condition, we had to move our digital lending business from the parent top co to a wholly owned subsidiary. It is a fairly cumbersome project to move all your pipes, novate all your agreements and redo everything again with all the lenders, with all the bureaus in a new company from a new tech stack. Specifically in Q1 we have had quite a lot of focus on that technology migration between our parent system, our child company and all the different lending partners. This project has been going on for the last couple of months and we expect to close it in August.

Speaker #3: And I'm happy to tell you that we are already at the ₹1,000-crore run rate in Q2, whichever date we are standing on today.

Speaker #3: The second thing is that we also mentioned, because of this NBFC license condition, we had to move our digital lending business from the parent TopCo to a wholly-owned subsidiary.

Speaker #3: It is a fairly cumbersome project to move all your pipes, novate all your agreements, and redo everything again with all the lenders and all the bureaus.

Speaker #3: In a new company, from a new tech stack, and specifically in Q1, we have had quite a lot of focus on that technology migration.

Speaker #3: Between our parent system, our child company, and all the different lending partners, this project has been going on for the last couple of months.

Speaker #3: And we expect to close it in August, which is why we are confident that whatever we have lost in Q1, we will make good for it in Q2 itself.

Upasana Taku: Which is why we are confident that whatever we have lost in Q1 we will make good for it in Q2 itself. While I'm trying to tell you that in Q2 we will do INR 1,000 crore easily because we are already on the run rate plus we have built new capabilities also which give us the confidence. We do hope that we should be able to do even better in Q3, Q4 but at the least we should be able to do INR 1,000. Yeah, I think adding new partners as well as adding new capabilities was a key component.

Upasana Rupkrishan Taku: Which is why we are confident that whatever we have lost in Q1 we will make good for it in Q2 itself. While I'm trying to tell you that in Q2 we will do INR 1,000 crore easily because we are already on the run rate plus we have built new capabilities also which give us the confidence. We do hope that we should be able to do even better in Q3, Q4 but at the least we should be able to do INR 1,000. Yeah, I think adding new partners as well as adding new capabilities was a key component.

Speaker #3: And while I'm trying to tell you that in Q2, we will do ₹1,000 crore easily because we are already on the run rate. Plus, we have built new capabilities also, which gives us the confidence.

Speaker #3: We do hope that we should be able to do even better in Q3 and Q4. But at the least, we should be able to do thousands.

Speaker #3: So yeah, I think adding new partners as well as adding new capabilities was a key component. New partner addition will continue, and new products also, you will see coming up.

Upasana Taku: New partner addition will continue. New products also you will see coming up because we have done some slides on user profiling also and we do believe that with the kind of diverse users we have, we do need a spread of products at different ticket sizes, different pricing models, etc., and that also we are trying to expand this year. This will be a big year. I think we've made a lot of investments and I think we expect that they will reap benefit in the latter half of the year. Definitely in Q2 there should be much stronger performance from the lending side.

Upasana Rupkrishan Taku: New partner addition will continue. New products also you will see coming up because we have done some slides on user profiling also and we do believe that with the kind of diverse users we have, we do need a spread of products at different ticket sizes, different pricing models, etc., and that also we are trying to expand this year. This will be a big year. I think we've made a lot of investments and I think we expect that they will reap benefit in the latter half of the year. Definitely in Q2 there should be much stronger performance from the lending side.

Speaker #3: Because we do. We have been seeing some slides on user profiling also. And we do believe that with the kind of diverse users we have, we do need a spread of products.

Speaker #3: At different ticket sizes, different pricing models, etc. And that is also something we are trying to expand this year. So, this will be a big year.

Speaker #3: I think we have made a lot of investments, and I think we expect that they will reap benefits in the latter half of the year.

Speaker #3: But definitely in Q2, there should be much stronger performance from the lending side.

Speaker #5: Great. Thank you. Thank you, ma'am, and good luck.

Dixit Doshi: Great. Thank you. Thank you, ma'am. Good luck.

Speaker #2: Thank you. The next question is from the line of Ankush Agarwal from Surge Capital. Please go ahead.

Operator 2: Thank you. The next question is from the line of Ankush Agrawal from Surge Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Ankush Agrawal from Surge Capital. Please go ahead.

Speaker #1: Yeah. Hi. Thank you for taking my question. Firstly, if I look at our payment GMV, and if I exclude UPI, which is already non-monetizable at the moment, the GMV growth has come down to, say, about 20-odd percent, versus earlier, which was slightly higher at about the 30 percent range.

Ankush Agrawal: Yeah. Hi, thank you for taking my question. Firstly, if I look at our payments GMV and if I exclude the UPI as it is probably non-monetizable at the moment, the GMV growth has come down to say about 20-odd% versus earlier it was slightly higher at about 33. From a medium to long-term perspective, we assume that ex-UPI what will be the rough range that you believe you can grow the payments business at excluding UPI?

Speaker #1: So, from a medium- to long-term perspective, if we assume excluding UPI, what would be the rough range at which you believe you can grow the payments business, excluding UPI?

Speaker #6: I'm sorry, could you please repeat the last part of your question? Excluding UPI?

Upasana Taku: I'm sorry if you could repeat the last part of your question, excluding UPI?

Upasana Rupkrishan Taku: I'm sorry if you could repeat the last part of your question, excluding UPI?

Speaker #1: Excluding UPI, what would be the broad, long-term growth aspiration for the payment system?

Ankush Agrawal: Excluding UPI, what would be the broad long-term growth expectation for the payments business?

Speaker #3: So, in terms of—I mentioned this in terms of revenue already—that, in terms of revenue, we have two buckets. One is, we have our mature consumer payments business.

Upasana Taku: I mentioned this in terms of revenue already, that in terms of revenue, we have two buckets. One is we have our mature consumer payments business. In the mature consumer payments business, which is where the recharge and bill payment falls, the wallet falls, and the CC link categories fall. All of these businesses we expect about 5% to 6% quarterly revenue growth, is what I had mentioned earlier. In the new and emerging businesses, which is our online payment aggregator merchant business and our offline payment aggregator merchant business, combined together we call them the merchant business. These businesses are still small for us. Therefore we expect to grow them much rapidly. There we are expecting about 25% quarter-on-quarter revenue growth. That is sort of how we are looking at it. This time we have given our merchant GMV and consumer GMV.

Upasana Rupkrishan Taku: I mentioned this in terms of revenue already, that in terms of revenue, we have two buckets. One is we have our mature consumer payments business. In the mature consumer payments business, which is where the recharge and bill payment falls, the wallet falls, and the CC link categories fall. All of these businesses we expect about 5% to 6% quarterly revenue growth, is what I had mentioned earlier. In the new and emerging businesses, which is our online payment aggregator merchant business and our offline payment aggregator merchant business, combined together we call them the merchant business. These businesses are still small for us. Therefore we expect to grow them much rapidly. There we are expecting about 25% quarter-on-quarter revenue growth. That is sort of how we are looking at it. This time we have given our merchant GMV and consumer GMV.

Speaker #3: In the mature consumer payments business, which is where the recharge and bill payment falls, the wallet falls, and the CC Link categories fall, all of these businesses—we expect about 5% to 6% quarterly revenue growth.

Speaker #3: As I mentioned earlier, in the new and emerging businesses—which are our online payment aggregator merchant business and our offline payment aggregator merchant business, combined together, which we call the merchant business—these businesses are still small for us.

Speaker #3: And so, therefore, we expect to grow them much more rapidly. And there, we are expecting about 25% quarter-on-quarter revenue growth. So, that is sort of how we are looking at it.

Speaker #3: This time, we have given our merchant GMV and consumer GMV. So, you can assume that the merchant business will grow and the revenue will come out at the rate of 25%, whereas the consumer side will grow at the rate of 5%.

Upasana Taku: You can assume that the merchant business will grow at the revenue will come out at the rate of 25%, versus the consumer side will grow at the rate of 5%.

Upasana Rupkrishan Taku: You can assume that the merchant business will grow at the revenue will come out at the rate of 25%, versus the consumer side will grow at the rate of 5%.

Speaker #1: Right, right. And at scale, we do believe that the merchant business will generate profitability, right? Even though it might not be as high as the consumer business that we are doing currently, it will still be a decently profitable business.

Ankush Agrawal: Right. At scale, you do believe that merchant business will generate profitability, right? Even though it might not be as high as the consumer business that we are doing currently, but it will still be a decent profitability.

Speaker #3: No, no, absolutely. In fact, that is one of the reasons why we are trying to build the merchant business and diversify our overall payments business, moving away from consumer only.

Upasana Taku: No, absolutely. In fact, that is one of the reasons why we are trying to build the merchant business and diversifying our overall payments business away from consumer only. The first advantage in the merchant business is that it is possible to make money. Whether you look at offline merchant or you look at online merchant, in both cases, it is possible to earn MDR. Unlike UPI on consumer side where there is no way to make money. Secondly, while we are the second fastest-growing in UPI on the consumer side and our transactions have also grown 5x on UPI, still, there are so many more competitors on the UPI side. We are still ranked 13th in the overall UPI stack rankings published on the NPCI website. Whereas on the merchant side, there aren't 13 players. You can count the number of players on one hand.

Upasana Rupkrishan Taku: No, absolutely. In fact, that is one of the reasons why we are trying to build the merchant business and diversifying our overall payments business away from consumer only. The first advantage in the merchant business is that it is possible to make money. Whether you look at offline merchant or you look at online merchant, in both cases, it is possible to earn MDR. Unlike UPI on consumer side where there is no way to make money. Secondly, while we are the second fastest-growing in UPI on the consumer side and our transactions have also grown 5x on UPI, still, there are so many more competitors on the UPI side. We are still ranked 13th in the overall UPI stack rankings published on the NPCI website. Whereas on the merchant side, there aren't 13 players. You can count the number of players on one hand.

Speaker #3: Because the first advantage in the merchant business is that it is possible to make money, whether you look at offline merchants or you look at online merchants.

Speaker #3: In both cases, it is possible to earn MDR, unlike UPI on the consumer side, where there is no way to make money. Secondly, while we are the second-fastest growing in UPI on the consumer side, our transactions have also grown 5x on UPI.

Speaker #3: But still, there are so many more competitors on the UPI side. We are still ranked 13th in the overall UPI stack rankings, published on the NPCI website.

Speaker #3: Whereas on the merchant side, there aren’t 13 players. You can count the number of players on one hand, so the competition is much less.

Upasana Taku: The competition is much lesser. It is easier to acquire and retain merchants. In terms of monetization also, if you see there are multiple opportunities. On the UPI transactions, one can make money on CC on UPI MDR. On the devices like Soundbox and EDC, one can make money on the device rental itself, followed by all the card transactions that happen where you make the card MDR. Along these lines, if you are able to lock in the merchants on the device rental and scale up payments business with them, then it is possible to make money out of lending also from those merchants.

Upasana Rupkrishan Taku: The competition is much lesser. It is easier to acquire and retain merchants. In terms of monetization also, if you see there are multiple opportunities. On the UPI transactions, one can make money on CC on UPI MDR. On the devices like Soundbox and EDC, one can make money on the device rental itself, followed by all the card transactions that happen where you make the card MDR. Along these lines, if you are able to lock in the merchants on the device rental and scale up payments business with them, then it is possible to make money out of lending also from those merchants.

Speaker #3: It is easier to acquire and retain merchants. And in terms of monetization also, if you see, there are multiple opportunities. On the UPI transactions, one can make money on credit card on UPI MDR.

Speaker #3: On the devices, like Soundbox and ADC, one can make money on the device rental itself, followed by all the card transactions that happen, where you make the card MDR.

Speaker #3: And along these lines, if you are able to lock in the merchants on the device rental, and scale up the payments business with them, then it's possible to make money out of lending also.

Speaker #3: From those merchants. So, we do believe that merchant acquiring has a strong value proposition. The TAM itself is huge—offline merchant TAM is around $1 trillion.

Ankush Agrawal: Right.

Upasana Taku: We do believe that merchant acquiring has a strong value proposition. The TAM itself is huge. Offline merchant TAM is around $1 trillion. Online payment aggregator is another just less shy of a billion. It is a big opportunity I think, there are very few players taking a stab at it, and we feel well poised that we should be able to capture a good chunk of it.

Upasana Rupkrishan Taku: We do believe that merchant acquiring has a strong value proposition. The TAM itself is huge. Offline merchant TAM is around $1 trillion. Online payment aggregator is another just less shy of a billion. It is a big opportunity I think, there are very few players taking a stab at it, and we feel well poised that we should be able to capture a good chunk of it.

Speaker #3: An online payment aggregator is another, just less shy of a billion. So it's a big opportunity, I think. And there are very few players taking a stab at it.

Speaker #3: And we feel well-poised that we should be able to capture a good chunk of it.

Speaker #1: Right. Any thoughts on if and when the UPI might become monetizable for you?

Ankush Agrawal: Right. Any thoughts on if and when the UPI might become monetizable for you?

Upasana Taku: That only the government can decide. Your guess is as good as mine. If an MDR or a subsidy flows through, I am sure we will capitalize on it as much as is possible.

Upasana Rupkrishan Taku: That only the government can decide. Your guess is as good as mine. If an MDR or a subsidy flows through, I am sure we will capitalize on it as much as is possible.

Speaker #3: So, that's something only the government can decide. I mean, your guess is as good as mine. If an MDR or a subsidy flows through, then I'm sure we will capitalize on it as much as possible.

Speaker #1: No, I think six, eight odd months back, there was this expectation that at least on the PCI side, we'll start making some money.

Ankush Agrawal: I think 6, 8 odd months back there was this expectation that at least on the PPI side, we'll start making some money.

Speaker #3: Yeah, and we do want to, because as I mentioned, RBI had mandated that PPI on UPI should make money just like RuPay credit card makes money on UPI.

Upasana Taku: We do want to because as I mentioned, RBI had mandated that PPI on UPI should make money just like RuPay credit card makes money on UPI rails.

Upasana Rupkrishan Taku: We do want to because as I mentioned, RBI had mandated that PPI on UPI should make money just like RuPay credit card makes money on UPI rails.

Speaker #3: Rails. And so the documentation is there, it is publicly available. RBI's guidance is there. The instrumentation of that seems to keep getting pushed back or delayed on NPCI's end.

Upasana Taku: The documentation is there, it is publicly available. RBI's guidance is there. The instrumentation of that seems to keep getting pushed back or delayed on NPCI's end, and NPCI runs the UPI stack as you are aware. We, along with all the other wallet players in the market, have given several written representations at all levels in the government that this MDR should flow through as soon as possible because we have all spent money for doing full KYC, and it's only full KYC users who are able to transact using their wallet on the UPI rails. Of course, before the UPI rails, when these users were paying on the wallet rails, I was making money on it. It is a cannibalization for all of the wallet players.

Upasana Rupkrishan Taku: The documentation is there, it is publicly available. RBI's guidance is there. The instrumentation of that seems to keep getting pushed back or delayed on NPCI's end, and NPCI runs the UPI stack as you are aware. We, along with all the other wallet players in the market, have given several written representations at all levels in the government that this MDR should flow through as soon as possible because we have all spent money for doing full KYC, and it's only full KYC users who are able to transact using their wallet on the UPI rails. Of course, before the UPI rails, when these users were paying on the wallet rails, I was making money on it. It is a cannibalization for all of the wallet players.

Speaker #3: And NPCI runs the UPI stack, as you are aware. We, along with all the other wallet players in the market, have given several written representations at all levels in the government that this MDR should flow through as soon as possible.

Speaker #3: Because we have all spent money for doing full KYC, and it's only full KYC users who are able to transact using their wallet on the UPI rails.

Speaker #3: And of course, before the UPI rails, when these users were paying on the wallet rails, I was making money on it. So, it is a cannibalization for all of the wallet players.

Speaker #3: And we are all pushing for it, but so far, we have not received any green update on this. And I'm as demoralized about it as I can tell you.

Upasana Taku: We are all pushing for it, but so far we have not received any green update on this.

Upasana Rupkrishan Taku: We are all pushing for it, but so far we have not received any green update on this.

Ankush Agrawal: Right.

Upasana Taku: I'm as demoralized about it as I can tell you. I guess this is one of the disadvantages of being a fintech company in a very regulated market like India.

Upasana Rupkrishan Taku: I'm as demoralized about it as I can tell you. I guess this is one of the disadvantages of being a fintech company in a very regulated market like India.

Speaker #3: And I guess this is one of the disadvantages of being a fintech company in a very regulated market like India.

Speaker #1: Right. Lastly, just the debt and cash numbers for quarter end.

Ankush Agrawal: Right. Lastly, just the debt and cash number for Q8.

Speaker #3: Yeah. On the debt side, as of the end of financial year '26, which is 31st March, we have repaid all our long-term loans. So the only loans that we have now are short-term working capital facilities, which are from two major private banks.

Upasana Taku: Yeah. On the debt side as of financial year 2026 end, which is 31 March, we have repaid all our long-term loans. The only loans that we have now are short-term working capital facilities, which are from two major private banks. The total value of which is INR 320 crores or INR 3,204 million. This is used for payment settlement funding only.

Upasana Rupkrishan Taku: Yeah. On the debt side as of financial year 2026 end, which is 31 March, we have repaid all our long-term loans. The only loans that we have now are short-term working capital facilities, which are from two major private banks. The total value of which is INR 320 crores or INR 3,204 million. This is used for payment settlement funding only.

Speaker #3: The total value of which is ₹320 crore, or ₹3,204 million. And this is used for payment settlement and refunding only.

Speaker #1: Right. And cash will be how much? $437 million.

Ankush Agrawal: Right. Cash will be around INR 437 million?

Speaker #3: Yes. Yes. Yes.

Upasana Taku: Yes.

Upasana Rupkrishan Taku: Yes.

Ankush Agrawal: Okay. That's helpful. Thank you.

Speaker #1: Oh, oh, oh, that is helpful. Thank you.

Speaker #2: Thank you. The last question is from Darshil Zaveri of Crown Capital India. Please go ahead.

Operator 2: Thank you. The last question from the line of Darshil Jhaveri from Crown Capital India. Please go ahead.

Operator: Thank you. The last question from the line of Darshil Jhaveri from Crown Capital India. Please go ahead.

Speaker #4: Hi. Thank you so much, ma'am. A lot of my questions have already been answered, so just one clarification. I think—did we say that we want to target ₹40 crores by this year-end, ma'am?

Darshil Jhaveri: Thank you so much, ma'am. A lot of the questions have already been answered. Just one clarification, I think. Did we say that we want to target INR 40 crores by this year-end, ma'am? Hello?

Speaker #4: Hello?

Speaker #3: Yes. For the full year.

Upasana Taku: Yes, for the full year.

Upasana Rupkrishan Taku: Yes, for the full year.

Speaker #4: for the full year. For the full year, ma'am. So right now, we are at a very lower scale. So how will this ramp up be?

Darshil Jhaveri: For the full year, ma'am. Right now we are at a very lower scale. How will this ramp up be? Will it be more H2 or quarter on quarter linear growth can we see for that?

Speaker #4: Will it be more H2 or quarter-on-quarter linear growth? Can we see for that?

Speaker #3: No, we are at 7.6 crores. So, 7 into 4 itself is 28. And we do believe that we will try to improve it, like we have improved it from last quarter.

Upasana Taku: No, we are at INR 7.6 crores. Seven into four itself is 28. We do believe that we will try to improve it. We have improved it from last Q, we were at INR four and a half crores, we have improved it by INR 3 crores. If we just improve it by INR 3 crores every Q, then also we should be able to land at around 40.

Upasana Rupkrishan Taku: No, we are at INR 7.6 crores. Seven into four itself is 28. We do believe that we will try to improve it. We have improved it from last Q, we were at INR four and a half crores, we have improved it by INR 3 crores. If we just improve it by INR 3 crores every Q, then also we should be able to land at around 40.

Speaker #3: We were at 4, 4.5 crores. So, we have improved it by 3 crores. If we just improve it by 3 crores every quarter, then also we should be able to land at around 40.

Speaker #4: Okay, fair enough, ma'am. And just a bookkeeping question from my end. So, with the profitability coming in, how much of a tax shield from prior losses would we have?

Darshil Jhaveri: Okay, fair enough, ma'am. Just two bookkeeping questions from my end. With profitability coming in, how much of a tax shield of prior losses would we have? Because I'm assuming that we would not have to pay taxes for some time, right? Could you have any quantification on that? That will be really helpful.

Speaker #4: Because I'm assuming that we would not have to pay taxes for some time, right? So, do you have any quantification on that? That would be really helpful.

Speaker #3: Yeah, we have substantial losses. I don't have the exact number, but it will be somewhere in the range of ₹900,000 crore.

Upasana Taku: Yeah, we have substantial losses. I don't have the exact number, but it will be somewhere in the range of INR 900,000 crores.

Upasana Rupkrishan Taku: Yeah, we have substantial losses. I don't have the exact number, but it will be somewhere in the range of INR 900,000 crores.

Speaker #4: Okay, so this we can carry.

Darshil Jhaveri: Okay, this we can.

Upasana Taku: We do not have to pay tax. Yeah. Anytime soon, we are not paying taxes.

Speaker #3: So, how do we pay tax? Yeah. Yeah. For any time soon, we are not paying taxes.

Upasana Rupkrishan Taku: We do not have to pay tax. Yeah. Anytime soon, we are not paying taxes.

Speaker #4: Okay, okay, okay. Fair enough, ma'am. Yeah, that's it from my side. Thank you so much.

Darshil Jhaveri: Okay. Fair enough, ma'am. These are just from my end. Thank you so much.

Speaker #2: Thank you. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Operator 2: Thank you. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Operator: Thank you. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Speaker #5: Thank you, Ananya. On behalf of MobiKwik's management, I thank everybody for joining us on the call and being part of our Q1 FY27 results.

Soham Roy: Thank you, Ananya. On behalf of MobiKwik's management, I thank everybody for joining us on the call and being part of our Q1 FY27 results. Wishing a very happy start of the year to everybody, and have a good day.

Speaker #5: Wishing a very happy start to the year to everybody, and have a good day.

Speaker #3: Thank you.

Upasana Taku: Thank you.

Upasana Rupkrishan Taku: Thank you.

Operator 2: On behalf of Dolat Capital, that concludes this conference. Thank you for joining us today, and you may now disconnect your lines.

Operator: On behalf of Dolat Capital, that concludes this conference. Thank you for joining us today, and you may now disconnect your lines.

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Q1 2027 One MobiKwik Systems Lt Earnings Call

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