Infibeam Avenues Ltd

CMD Speech

I am thrilled to report that Infibeam Avenues has achieved remarkable financial results during the fiscal year. Our total income has grown significantly, reaching 31,711 million, up 62% YoY. Our profitability also surged, with EBITDA increasing by 41% to 2,526 million and Profit After Tax (PAT) rising by 56% to 1,478 million.

Dear Shareholders,

I am honoured to write our annual shareholder letter as Chairman and MD of Infibeam Avenues Ltd. For us, it's all about long term and we believe our fundamental measure of success is the shareholder value we create in the long term. Our decisions have consistently reflected this focus. Albert Einstein is sometimes credited with describing compound interest as the eighth wonder of the world. He who understands it, earns it. He who doesn't pays it. We think of product innovations in much the same way. Constantly improving and optimizing our products for clients has a compounding effect on our business prospects. We will continue to invest in our business that we are in, and in new businesses that we have yet to launch as well as in finding opportunities that we have not yet imagined!

It is my pleasure to present to you Infibeam Avenues' outstanding financial achievements for FY 2023-24 and our optimistic outlook for the future. Our commitment to innovation, strategic expansion, and robust financial management has driven significant growth and positioned us for continued success.

HIGHLIGHTS:

I am thrilled to report that Infibeam Avenues has achieved remarkable financial results during the fiscal year. Our total income has grown significantly, reaching 31,711 million, up 62%

YoY. Our profitability also surged, with EBITDA increasing by 41% to 2,526 million and Profit After Tax (PAT) rising by 56% to 1,478 million.

One of the key drivers of our success, and a testament to our commitment to your future returns, has been our unwavering commitment to innovation and embracing emerging technologies. Through targeted investments in research and development, we have created cutting-edge products and services that cater to the ever-evolving needs of our merchants. These technological advancements have improved our offerings and enabled us to gain a competitive advantage in the market, ensuring a promising future for Infibeam Avenues.

Our expansion into new markets and strategic partnerships has also played a pivotal role in our financial success. By exploring untapped opportunities and partnering with like-minded organisations, we have broadened our reach and unlocked new revenue streams. We strategically invested in Pirimid Technologies, enhancing our AI capabilities and global IT services.

Moreover, our commitment to providing an unparalleled service experience has increased merchant retention and led to more banks partnering with us. We now have over 10 million merchants on our platform.

Our balance sheet remains robust and healthy, a testament to our financial strength and our commitment to your long-term returns. We have maintained a conservative approach to debt management and remain focused on generating positive cash from

Vishal Mehta

Chairman & Managing Director operations and free cash flow. This allows us to weather economic uncertainties and capitalise on growth opportunities when they arise. Our prudent financial policies and philosophy to earn profitable revenue have further strengthened our position as a reliable and trustworthy partner for all stakeholders, ensuring the security of your investment in Infibeam Avenues.

THE STRONG FUTURE AHEAD:

Looking ahead, I am filled with great optimism and excitement. We are standing at the cusp of a new era for Infibeam Avenues, where our dedication to continuous improvement and innovation will propel us to even greater heights.

Our commitment to digital transformation remains unwavering. We recognise that the future of business lies in harnessing the potential of technology to deliver superior products and services. In this regard, we launched a revolutionary omnichannel payment solution called CCAvenue TapPay, which can be downloaded on any Android smartphone, converting a mobile phone into a Point-of-Sale (POS) terminal to accept payments anytime, anywhere. This solution is the first in India to allow merchants to accept payments using 200+ payment options and permits credit card transactions above the

RBI limit of 5000 using a PIN.

Furthermore, we are actively exploring opportunities in adjacent markets and potential mergers and acquisitions to bolster our growth trajectory. We acquired UVIK Technologies to enhance our omnichannel payment solutions. Additionally, we received final authorisation from the RBI for the Payment Aggregator License and the perpetual Bharat Bill Pay System (BBPS) License, solidifying our regulatory standing.

In 2024, we made significant strides in artificial intelligence under our brand Phronetic.ai, introducing THEIA, a revolutionary video AI platform poised to redefine how businesses, institutions, and governments harness AI for increased productivity and efficiency.

The business of Artificial Intelligence (AI) shall enable fraud detection & prevention, market space with an initial focus on fintech & financial sector building AI solutions for Fraud detection, Authentication and Risk identification (FAR) to nurture AI ecosystem & develop solutions for the domestic and global market.

These AI based solution would be a "One-Stop Shop" to bring AI and Machine Learning (ML) into the day-today activities as well as analyse data and provide actionable winning fraud detection solutions for businesses, organizations and governments to tackle rising threats to financial systems, businesses and national interest.

AI plays a significant role in fraud management and improving operational efficiency for organisations by helping them identify, prevent, detect, and respond to fraudulent activities. By utilising AI and machine learning algorithms, combining big data sources with real-time monitoring and utilizing adaptive and predictive analytics techniques, it can detect patterns and anomalies that indicate fraudulent activities, such as payment fraud, identity theft, or phishing attacks. These AI-based solutions can continually adapt and learn from new fraud patterns and trends, continuously improving their detection capabilities. Furthermore, video AI based systems can integrate with security systems like CCTV data to provide more comprehensive approach to fraud prevention and improvement of overall operational efficiency of organisations.

IN CONCLUSION:

As we reflect on our achievements and look forward to the future, I am filled with immense pride and gratitude. Infibeam Avenues' strong financial performance is a testament to our team's hard work, dedication, and collective efforts.

With a clear vision, innovative strategies, and a shared commitment to excellence, we are poised to navigate the challenges and seize the countless opportunities that lie ahead. As we embark on this exciting journey together, I extend my heartfelt appreciation to all our shareholders, employees, and Board of Directors for their unwavering support.

We aim to strengthen our position as a leading global fintech company by expanding our international footprint, particularly in high-potential markets such as Saudi Arabia, Australia, and the USA. We are committed to leveraging our advanced AI capabilities through our Phronetic.ai brand and the THEIA platform to offer innovative solutions that enhance operational efficiency and productivity for our clients.

Our strategic investments and acquisitions will continue to play a critical role in our growth. We will pursue opportunities that complement our core business and enable us to offer comprehensive and cutting-edge solutions to our clients. The integration of advanced technologies and expansion into new markets will drive our growth and profitability.

We are also focused on increasing our ‘net take rate' in the payments business by enhancing our service offerings and expanding our presence in the offline payments market through CCAvenue TapPay. Our goal is to achieve double-digit net take rates from FY25 onwards, further solidifying our market leadership.

Sustainability and responsible business practices remain at the core of our operations. We are committed to adopting environmentally responsible practices, promoting social initiatives, and embedding ethical principles throughout our business. By aligning our business practices with sustainable goals, we will contribute positively to society while securing a sustainable future for Infibeam Avenues.

With a clear vision, innovative strategies, and a shared commitment to excellence, we are poised to navigate the challenges and seize the countless opportunities that lie ahead. The future is bright for Infibeam Avenues, and we are excited to build on our successes and create a sustainable, prosperous, and inclusive future for all.