In rural India, where the fintech infrastructure is still developing, there is a dire need for companies to set up shop with digital payment services. But until that happens, Findi (ASX: FND), formerly Vortiv, is witnessing substantial earnings growth via transaction fees charged throughout their ATM network.
With its country-wide ATM rollout with the Central Bank of India (CBI) ahead of schedule, the Company set itself up for a profitable year. Factoring in its Transaction Solutions International (TSI-India) acquisition in February 2022, Findi recorded revenue of $24.387 million for the half year to 30 September 2022, with EBITDA of $6.816 million and a net profit of $190k.
To add to its profitability portfolio, the Company also received a contract extension from the State Bank of India (SBI) to December 31, 2022.
Findi Limited Chairman, Nicholas Smedley, shared, “These results and the progress we are making operationally show the strategy adopted and performance of the team is delivering positive results for shareholders. We’re looking forward to building upon this momentum as we grow our customer ecosystem across cash, payments and digital transactions.
With TSI, Findi provides end-to-end ATM management services across India—from surveillance to transactions. In October of this year, the Company raised $2.8 million specifically to see through its Indian growth plan. Now, it is reaping the rewards as the ATMs have made Findi a money machine.
In 2012, Findi launched its partnership with SBI. As part of the agreement, the Company is responsible for supplying, installing and maintaining 3,912 ATMs across the states of Odisha and Chhatisgarh, Rajasthan, Karnataka and Goa, Gujarat & UT of Daman, Diu, Dadra and Nagar Haveli. Initially, the contract was expected to end by December 2022, with the Company replacing its ATMs. However, an excellent twist of fate saw Findi have its SBI contract extended till the end of next year.
Plus, as of November 24, 2022, the Company installed its 500th ATM under its CBI contract ahead of schedule. The rest of the 2,050 ATMs are set to be installed and operating by the end of this financial year.
The 500 deployed ATMs have exceeded expectations. Findi expected 75 transactions per day, but the actual number averaged 90 transactions per day. With CBI, Findi will double the number of states where the Company operates. It will be present in every state of India by the time of completion. The CBI contract remains on course to deliver revenue of $25-30 million per year.
In a see-it-to-believe-it fashion, Findi’s Australian Board members recently completed a site visit to meet with senior management and staff in India. Pleased with the Company’s footprint, Findi is excited to travel through the bumpy rural roads that help it make a pretty profit.
Alinda is a Business Reporter for The Sentiment
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