After experiencing a lull in FY22, Fintech company Findi Limited (ASX: FND) has announced its financial results for the full year ending on March 31, 2023, surpassing expectations and achieving significant growth.
The Company reported revenue of $54.5 million, exceeding the forecasted $50 million. This success translated into an EBITDA of $16.8 million, surpassing the projected $14 million, and a net profit of $2.438 million, up from a loss of $1.5 million in FY22. The impressive results included an EBITDA margin of 31%, exceeding the projected 25% for the year.
Chairman Nicholas Smedley expressed his satisfaction with the positive outcome, stating, “We’re proud to be able to deliver a result for the financial year that has exceeded forecasts, while we’ve concurrently developed the Company’s strategy to provide a compelling proposition for both customers and investors moving forward.”
The revenue increase of $13.94 million and an EBITDA increase of $9.43 million from the previous fiscal year (FY22), considering the consolidation of Transaction Solutions International (India) Private Limited (TSI India) during FY22, contributed to Findi’s success. Its revenue shot up by 1,041% from $4.7 million in FY22.
In February 2022, Findi acquired the remaining 75% of its interest in TSI India, leading to the consolidation of TSI India’s balance sheet, profit and loss, and cash flows into the group’s financial statements.
Smedley added, “It has been a pivotal year for the business, having locked away strategic capital raisings, completed a rebranding and developed a new five-year business plan. I want to credit my fellow directors for their efforts in delivering on the milestones we set for the Company in February 2022, which has required significant time commitments to Findi. This has led to both an excellent outcome with this financial result, and growth in shareholder value over the course of the year.”
The positive financial results can be attributed to the successful deployment of over 2,000 ATMs under Findi’s contract with the Central Bank of India (CBI). It reached the milestone of 1,000 ATMs deployed by December 2022 and further expanded to 2,000 ATMs by March 2023. The Company also secured a contract extension with the State Bank of India (SBI) until December 2023, with the potential for future continuation.
Findi’s ATMs have demonstrated high utilisation across the portfolio, with new CBI ATMs averaging more than 100 transactions per day per machine after being in operation for over 90 days.
To unlock additional value from the CBI contract, Findi is actively pursuing initiatives related to debit cards and PIN activations. Furthermore, the Company continues to focus on its White Label strategy, having applied for a White Label license. Plus, to support TSI India, the Company secured $4.3 million in capital, which elevated its net assets beyond INR 100 Crore (about $18 million). This milestone enabled TSI India to apply for a White Label ATM License with the Reserve Bank of India.
If approved, this license would provide numerous strategic advantages, such as supporting the integration of Findi’s ATM and digital payments business and room for potential acquisitions.
Findi’s performance in FY23 sparks curiosity about its growth trajectory and strategic moves, leaving shareholders intrigued about what lies ahead for the company in the Fintech landscape.
Alinda is a Business Reporter for The Sentiment
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