Digispice Technologies Ltd (NSE: DIGISPICE) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Dilip Modi — Chairman
Aastha Garg — Head Investor Relations
Sunil Kapoor — Whole-time Director and Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
Unidentified Speaker
Hello? Am I audible? Yeah. Yes sir, perfectly all right. I think we should give rights to Sunil and Asta to also unmute themselves please. Yeah, yeah, yeah. Asta, are you audible? Sunil, are you audible? Yeah, yeah, yeah. This is better. Even Sunder is not echoing now. Okay, good. So can we see if the deck is working? Yes. Are we live right now? Not yet. No sir, just give us two minutes. We are just setting the stuff us two minutes. Since we have just shifted. Are we on time? Are we on time? There is a light coming on your face from the right. Your video is becoming. You can close. I’m in the same building, ground floor. Should I come on the first floor? Better. Yeah, better. Only take care of a forehead is getting cut. If we can close those curtain, it would be better. This is better. Yeah, this works to be fine. Once you all are ready, let us know then we’ll be starting with the session. Okay. V is controlling the slides. Yeah, V will be controlling. And we have another two minutes to go live. So Vira will be controlling. Amit, have you got some confirmed participation for the call? Yeah. So we have crossed that 20 limit. We just. We can start. We’ll just wait for one more minute because while logging in it takes some time to register. So just that one minute. I can. I think we can have the. The first slide of the presentation. So we’ll be starting. We’ll be starting after this. So like once you finish, this is the holding slide for the main session. Once you go ahead, we’ll switch it onto your video. Sure. 31 already I think. 31. 331. We can. We can. We can start now. We can start.
operator
Yeah. Good afternoon everyone. A very warm welcome to the Earnings Zoom webinar of Digispice Technologies Limited for Q4 and FY25. We have with us Mr. Dilip Modi, Chairman of Digispice Technologies Limited Mr. Sunil Kapoor, full time Director and Chief Financial Officer, Spice Money Limited and Ms. Astha Garg, Head Investor Relations, Spice Money Limited. Before we begin, I would like to state that some of the statements made in today’s discussion may be forward looking in nature. The actual results may vary as they are dependent on several external factors. A statement in this regard has been included in the result presentation uploaded on the exchange earlier.
We will commence the call with the management taking you through the operational and financial performance for the period under review. Following which we will have an interactive Q and A session. I would now like to invite Mr. Dilip Modi to commence the presentation thank you. Over to you, sir.
Dilip Modi — Chairman
Thank you. Thank you, Amit. Good afternoon, everyone. Am I audible, Amit?
operator
Yes, sir.
Dilip Modi — Chairman
Yes. Good afternoon, everyone. Thank you for joining us on this investor call. This is our first call in the. New financial year and it’s a pleasure to connect with all of you. Today we get an opportunity to present to you the results for financial year 2425, as well as talk about some. Of the key areas that we are. Focusing on as a company. So welcome to this call and I look forward to your active participation and an active Q and A session. So let me begin by talking to you about some of the core elements of our strategy. Before I start, let me also recap that as you know, our main business now at Digispice Technologies is our rural fintech business, Spice Money. It is our only business now at Digispice Technologies and we are going through a process of merger of Spice Money into Digispice. So eventually Digispice will become Spice Money, which will be a pure fintech business.
We are going through the process of approvals from regulatory authorities to complete the merger. So obviously our focus on the business is around Spice Money. We have been updating the market and all our investors over the last several quarters now over the last three years, you know, on the progress of Spice Money and I’m very glad that we get this opportunity again to talk to you about the business. So let me start by going to the first slide. Viral. Can we go to the first slide please? So you know, just to. Just for those who are hearing us.
For the first time, I would like. To share with you what all we are building at Spice Money and at Digispice. So effectively we are a fintech focused on small towns in India. There are three core parts of our business that building. The first is our Spice Money agent app, which is the large of BEC agents that we have enabled on our platform across the country. We operate across 19,000 pin codes and we have over 1.5 million agents referred to as Spicemani Adhikaris, who operate on our platform. Today we are India’s largest APS transaction app in the market. Effectively, if you look at aps, which is Aadhaar enabled payment system, this has become a key enabler for driving digital financial inclusion in small.
operator
I think Dilip is facing some Internet issues. We’ll just please stay connected. We’ll see to it that the technology gets rectified. The LIP is just joining again. Thank you for your patience. Please stay connected.
Dilip Modi — Chairman
Hello. Am I audible?
operator
Yeah, perfectly all right, sir.
Dilip Modi — Chairman
Yeah. My apologies for the disconnect. Can we put up the slide again, please? Yes. As I was saying, Spice Money is today India’s number one APS transaction app. The Aadhar enabled payment system is a very important bridge in rural India to enable multiple services. So millions of customers who have got their bank accounts across multiple banks are looking for convenience points where they can go and withdraw cash, deposit cash, as well as open bank accounts. All of these services are today being enabled on the Aadhaar Bridge. And today’s Spice Money agents are spread across India enabling financial services for rural Bharat.
So we are an agent led distribution stack. The second core component of our strategy is around customer led transactions. We have launched Spicepay, which is our. Customer app for all of you Dino. Who have seen the growth of UPI in the country. We have about 360 million UPI customers across the country. The challenge is where will the next 200 million.
operator
Seems we are facing some difficulty with this Internet connectivity. Please bear with us. Please stay connected. Astha, it seems we are facing some difficulty with the connectivity of the lab. Request you to take over and take us through the presentation, please.
Aastha Garg — Head Investor Relations
Sure, sure. So as Dilip was mentioning, we already have a network agent of network of almost 15 million agents who are already coming on our platform which is the agent app. And we are enabling financial services for these through these agents for the rural Bharat. And now what we are trying to build is on the sides of Spicepay and the lending business first. Starting with Spicepay, this is a customer app that we are trying to build for the rural Bharat where this will be a PPI based UPI app where the rural customers will be able to come and they will be able to do transactions digitally through an assisted mode in the rural areas.
So this will enable another leg of the transaction, financial transactions in the rural Bharat for our for the customers and will help more enablement of financial services in the rural parts of the country. So this is the app that is in build stage right now. And a lot of work has gone into this building this app in the last one year and in the next in the coming year. We are also wanting to build specific products into this app so that when we launch it for Pan India, we’ll come with a product suit which will help the customers in rural India do a lot of transactions on this app.
And we will also be able to help the customers through through our assisted mode through our app where our agents will help these customers in the rural India to Do these transactions then coming to Dilipsa. Are you here? You want to continue?
Dilip Modi — Chairman
Yes, I’m here. Astha. Am I audible?
Aastha Garg — Head Investor Relations
Yeah, yeah, yeah.
Dilip Modi — Chairman
My sincere apologies to all. So as Astha was sharing with you, we have two apps. One in a scale mode which is our Spice Money agent app, and second in a build mode which is our Spice Pay customer app. On the back of both these digital platforms we are looking to build out our lending business wherein effectively we are looking at lending to small merchants and consumers in small towns, being able to give them access to affordable credit. So overall our goal at Spice Money is to build a trusted financial services platform for bat. So with this vision, can I move on to the next slide please? Can we move to the next slide please? So you know we are on a journey and our journey is that of digital led financial inclusion.
So if you look at it, we’ve started our journey by building one of the largest ATM and collections network in rural India. We today have one of rural India’s largest assisted ATM network which runs both on the back of Aadhaar based cash withdrawals as well as micro ATM based cash withdrawals. We are very excited with the opportunity. Of also launching a cash deposit using the Aadhaar Bridge. We today have been one of the first few players who have who have scaled on the back of cash deposit. And as we see more banks enabling this, we believe that we want to drive convenience for customers in rural India to not only be able to go. To their Kirana store and their close by merchant to withdraw cash, but also to be able to deposit cash.
And I think this being able to digitize cash at scale is something that we are looking forward to working with banks to help them to grow on the liability side of their books, to be able to make it easy for. People to put money in the bank as as we’ve made it easy for. People to withdraw money from the bank. We are very excited to look at the the second use case on Aadhaar enabled payment system which is that of. Cash deposit on collections. You know, on the back of our ATM network we’ve also, we also function as Bharat’s largest rural cash collections network, work very closely with NBFCs and MFIs. Ensure that their agents going to small towns and villages to collect cash do not need to go back to their branches in big cities to deposit the cash. They can actually deposit the cash in the village and in the small town itself, saving them the time cost of carrying cash. And therefore the whole idea is to reduce the cost and time to collections going forward.
We are very excited to look at Bharat Bill Payment system, you know, led UPI and utility collections. This is again a very critical platform that we are very excited about. We have a BBPS OUU license and there are millions of customers today using the Bharat Bill payment system platform to pay their bills. We are looking at, you know, leveraging our rural cash collections network to also drive BBPS led EMI and utility collections. On the back of both these ATM and collections platforms we believe that we have a great opportunity to build Bharat’s deepest financial distribution grid.
Here we refer to being able to distribute formal financial products whether it’s account opening, mutual fund, product distribution loans using our agent network in deep Bharat. And we are looking to partner with financial institutions across the board who would integrate through APIs onto our tech stack to be able to enable them in a cost effective way to reach millions of small merchants and consumers to drive adoption of financial products. Spicepay, as I said is one of Bharat’s first assisted PPI wallet based UPI app. Our goal here is to onboard the next 100 million users in cash first markets and then work to drive cross sell on these platforms starting with digitization of payments followed by other financial products that we can layer on top of it.
And then finally our goal is to ensure that we can drive income growth in small towns and that will be driven through responsible lending products. And we are looking at empowering Bharat with accessible and convenient credit. This is an area that we take with a lot of responsibility and we want to make sure that, you know, today lots of small merchants who are not able to get access to formal credit due to lack of collateral. We are able to engage with them because we both have, we have access to their digital data because they are transacting on our platform.
At the same time we have physical access to them. So through our digital model we want to enable institutions, lending institutions to be able to lend to MSME in Bharat using our platform. So we want to do it in a responsible way. We want to ensure that small merchants can get access to credit which can help them grow income. And Deno is also available at affordable prices. So if you really look at it on an overall level, we are building on agencies on the back of the significant distribution network that we’ve built out in Bharat.
And the idea is to drive digital led financial inclusion. I’ll just share with you now in the next couple of slides how we’ve grown in the last five years with Respect to agents, transaction value and net income. And then we can do a deep dive on each of our products. Can we go to the next slide please? So if you look at it, over the last five years we have significantly grown our Spice Money BCGEN network referred to as Spice Money Adhikaris from about 241,000 agents on our platform in FY 2020 we have closed FY25 at close to 1.5 million agents which is about an 11% year on year growth compared to last year and a 45% CAGR over the last five years.
On the right hand side you see the graph of the country. This is showing that as Spice Money we are present across India, like I mentioned, about 93, 19,000 pin coats. The darker shades are more where we have deeper presence which is more north, central east and the south and west is where we are now deepening our presence. We are present across 2.5 lakh villages and close to 6,500 blocks which is most of small towns in India. On the back of this growing agent network, we’ve grown our gross transaction values on our platform. If we can go to the next slide please.
If you look at our the last five years in terms of growing gross transaction value, this is the cumulative value of all the transactions that happen on our platform. If you see we’ve closed FY24 25 at close to one 15,000 crores worth of gross transaction values that have happened on our platform. This is up from 22,000 crores in FY 2020. So we’ve significantly grown over the years. Of course in the first three years we had a steeper climb and then in the last three years we’ve seen that because of the, you know, challenges in the AAD enabled payment system of US industry, our growth, you know, tapered off on the Kiko side which is the cash in cash out business compensated by the growth in the collections gtv.
However, if you look at on a quarter on quarter basis on the right hand side graph at the bottom you can see that we have begun to see even on the cash in cash out, which is effectively the ATM business, a growth in GTV. So from 16,311 crores in quarter three, FY25 we grew to 16,612 crores in quarter four FY25 collections has been a big part of our GTV growth as you can see both year on year as well as on a quarter on quarter basis. And you know, as we continue to deepen our network of agents we expect this to translate into growth in gross transaction value.
The only other data point I’d like to call out here is our APS office market share which has steadily grown over the years. So from 11.8% in FY20 we’ve closed quarter four FY25 at close to 18% market share. So within an industry of APS offers today, when we refer to ourselves as the number one APS transactions platform, we have a market share closing March 2025 of close to 18%. On the back of this growth in GTV we’ve seen growth in our gross margin which is effectively our net income. Can we go to the next please? So if you see the the trend in our gross margin numbers, we have closed FY 2025 at close to 178 crores in gross margin. This is up from 44 crores in FY20. And effectively if you see on a quarter, on quarter basis we closed quarter four FY25 at a gross margin of 49 crores which was up from 44 crores in quarter three FY25.
We’ll walk through in detail on the building blocks of each of these numbers. But effectively as you see, as we’ve seen the APS numbers taper off a bit in terms of gross margin contribution. It’s basically been collections that have come in to add to the gross margin as well as other product lines. As we grow our agent network, our goal is to grow more products as I mentioned on our roadmap slide of new financial products that will be distributed through our agents which will all add to the gross margin numbers. And as we drive more agents, more products per agents we expect it to drive in terms of growing gross margin. And we are seeing some of that already on a quarter on quarter basis. With that I’ll hand over to Asta who will walk us through the shift in the gross margin mix as well as some of the key services update and then I look forward to the Q and A session.
Over to you Asta.
Aastha Garg — Head Investor Relations
Thank you Dilip. Good afternoon everyone. So I’ll be starting with how our gross margins have contributed in the financial year 25. Can we move to the next slide please? So looking at the contribution mix of major products, APS and micro ATM being our biggest footfall driver contributes approximately 53% of our overall GM in the Q4 FY25, approximately 20% of our gross margin today have started coming from the collections business. And the subscription packs is a line that we introduced in the last one one and a half year to create Adhikari stickiness and loyalty on our platform and this service line has started growing and almost doubled from what contribution to a gross margin it had in the last year and has moved from 7% gross margin contribution in FY24 Q4 to 13% contribution in Q4 FY25.
So that has scaled almost 2x in the last one year. Banking and credit are the two service lines which are still in the build mode but have started contributing to our GMs now. So almost 5 to to 5.5% of GMs have started coming from these two product lines now. So basically our goal is here to diversify our portfolio more and be able to serve the customers with a lot more product lines that we used to have initially. Can we go to the next slide please? Now coming to the key services update we be starting with aps so on APS over the last few years as Dilip also mentioned there have been a lot of industry regulations and shifts in this this industry and there are shifts like daily two factor authentication coming in, transactional two factor authentication changes and multiple regulatory limits being placed by the issuer banks.
So because of that this industry we see quarter on quarter has declined by 1.6%. But we have kept our focus on this product and introduced subscription packs here which has helped us grow our market share and to 18% approximately. And where the industry declined 1.6% quarter on quarter we have grown our GTV 3.1%. Looking at the year on year trends also the industry grew by 7.3% while Spice Money GTV grew up by 10.9% and hence in the last one year our market share has moved from approximately 17.35% to almost 18% now. Now what are the reasons for this growth in the product? They there are a couple of things that we have done in this product.
One looking at the transaction the kind of transactions that are happening on our platform. If we look at the success ratio of the transactions last year financial year 24 if we refer the second table we were having a success ratio of approximately 64% while that has improved to almost 69% in financial year 25 when we ended the year so so our platform transaction success ratio stability has improved. Another reason for this has been subscription pack introduction. So if we look at the last table there are about 1 lakh SMAs as at end of financial year 25 that have activated subscription packs in the last one year and there’s a 3.2x growth in this number since the last one last year, FY24.
So this has led to a lot of stickiness on our platform, engage more engagement and more attention and driving higher throughput. Now coming to the next big opportunity in the payment space. APS Cash Deposit is the product that we think will drive the numbers in the coming years for us in the payment space. If we look at the numbers of GTV that we have done in the last one year, we’ve delivered approximately 884 crores of GTV in financial year 25 as compared to 315 crores in financial year 24 which is approximately a 3x 2.8x growth.
And the SMEs who are active on this product have also grown 2.5x YoY. So this is one opportunity that we are wanting to drive in the next coming financial year. Can we move to the next slide please? So coming to the Cash Management Services over the past four years, if you see the graph on the right hand, left hand side, we have built a steady and a strong foundation in the Cash Management services, continuously evolving and scaling our GTPS. So our GTV in financial year 25 has touched 43,000 crores with a quarterly run rate of approximately 13,000 crores now, which is a sharp price from a GTV of 411 crores that we used to do in FY21.
So we have grown at a CAGR of approximately 220% in the last five years on this product. So one of the CAGR key focus areas for us in this product has been strengthening our large CMS agent space which contribute approximately 90% of our total CMS GTDs. Additionally, if you look at the large CMS counters, they’ve expanded significantly, almost scaling up by 80% as compared to the previous financial year. So this has been one of the growth drivers for us and another one being the focus of adding new partnerships with large enterprises who are requiring these CMS solutions.
We have consistently grown the enterprises that we are working with and almost added approximately one enterprise every month in the last financial year and today we have active partnerships with approximately 74 clients including big NBFCs and MFIs. So this has been a major growth driver for CMS. And the next leg that we’re trying to drive on the back of CMS is Bharat Bill Payment System growing digital payments growing in the digital payment space. So can we move to the next slide please? So coming to the Bharat Bill Payment System, this is another key focus area for us that we are wanting to drive Growth into and we’re centered into driving growth into the transaction volumes for both EMI as well as utility payments over the last five years.
We can see the graph on the right hand side. We have grown at a cagr of approximately 89% reaching GTVs approximately 5300 crores in FY25 as compared to a 400 crores GTV in FY21. In the quarter. On quarter numbers we saw a slight dip due to majorly seasonality reasons while we have maintained approximately 10% PIO wire growth. So here the key focus area that we drive is the repeat customer base and the average ticket size that these customers come on our platform and do repeatedly. So if we see both the matrix, the repeat customer base and the average ticket size that have continued to strengthen and our repeat customer growth base grew by approximately 6.5% in FY25 as compared to the last year and our average ticket size also grew approximately by 22% driving the growth in our BBPS numbers.
So this is the product that will continue to scale and and will want to drive more to enable digital payments and grow in this digital payment space. Can we move to the next slide? So coming to the CASA product, this product is now live with almost 60,000 plus agents and to date we’ve almost opened more than 10 lakhs current plus saving accounts and over 6.5 lakhs accounts we have opened with NSDL Payments bank alone. If we look at the float balances, there’s almost 185 crores of float that is maintained now with the two banks that we’re doing business with which is Axis and NSDL bank and with this balance we are able to generate a recurring float income every month.
Additionally if we see There are approximately 30,000 agents now who are actively driving adoption with each opening more than five accounts for U.S. and helping us grow in this CASA space. So the average healthy balances that are maintained in the accounts are also increasing month on month and we are now wanting to go for more cross sell on the customers who have opened these accounts with us and scaling up our business on cross sell products. Now can we move to the next slide? Now coming to credit distribution. So here in credit distribution in the last one year our focus has more been on the side of scaling the secured credit distribution product which has been which has been majorly gold loans and the other commercial vehicle and secured loans with a couple of partners that we’ve engaged with in the last one year.
If we see the growth on the number side we can see that We’ve scaled approximately 2.8x in Q4FY25 against Q4FY24 and in the last against the last quarter. Also there’s been more than 40% growth that we’ve seen in the secured in the overall GTVs of this product. And the major contributor of this growth has been gold loans which has accounted approximately 72% of the total secured loan distribution in Q4FY25. And our focus will continue to be on secured lending growth in GTVs in the next financial year. Also we’ll be looking to grow the unsecured lending pie as we go and we engage with in partnerships with other other partners on both secured and unsecured loans.
Now I would like to hand over to Mr. Sunil to take us to the financial updates. Thank you.
Sunil Kapoor — Whole-time Director and Chief Financial Officer
Hello good evening everyone. Consolidated Financial highlights and if you see on the customer GTV side that we have grown 7% year on year though in quarter on quarter from the previous quarter it’s a flat but resulting in the Gross margin increase of 12 quarter on quarter. So that’s a throughput or we can say that we have an operational efficiency in the gross margin with respect to improvement quarter on quarter and also there is a improvement of 6% growth in the gross margin on platform side on the new engine side. That’s what it represents is that new engines is a spice pay and the credit LSP model where we want to we are investing in the last two years and hopefully in the couple of quarters they will be throwing some revenues and the gross margin contributing to the overall growth of the company and the gross margin.
And if we see on the indirect cost side we have a growth of almost 15% year on year. This is due to the reason that we have announced all already the merger that the listed company operational cost and merger cost has increased this cost significantly with respect to comparison. But some of the costs are kind of one time because merger operations and some takedown cost has been built in this and if we see on the EBITDA side that’s for this quarter on the platform we have generated a 4 crores EBITDA against the last quarter a bit of almost 30 lakh rupees only.
So and if we see on the EBIT side on the platform which is the correct indicator of our business performance and we have a quarter 9 crores rupees a bit on the platform side which is almost 61% higher on from the previous quarter. So considering this run rate of this quarter of 9 crores on the platform side we are we expect to maintain this and grow this run rate and of course on the cost side we want to have being we want to be operationally efficient and hopefully we will contain the indirect cost in the coming financial year and improve our gross margin and thus improving all the overall a bit on the platform side.
And we will be continuing to invest in the next two years on these two new engines where Spice Pay which is a B2C play and also the credit that will be that will enable us to own the customer and do a cross sell and upsell a lot of and a lot of products including all the financial products and which may result in the the coming three to five years and can contribute at least 15 to 20% gross margin on the overall gross margin table. And if you see that on the pat continued business and discontinued business.
This is the first quarter we have a 1.5 crores quarter four path for considering overall discontinued and continued business. And if you see that discontinued business which was earlier in the last financial year was 38.3 8.1 crores negative now have come down in this financial year by 6.3 crores. And if you see on the quarter four 1.1 crores. So it is on the run rate of almost 3.524 crores and hopefully this will be phased out in this financial year. So we can say that our performance will be on the platform side which we will we intend to scale up and from the new engines we will continue to invest.
And if we see on the notional gain loss on investment this is kind of one time what we had recognized on the basis of the market value of our 1 of the investment that has resulted in almost 38 crores gain in the last financial year which has reversed in this financial year. If we ignore this then fat continued and discontinued have to be considered. And I think from that perspective we are on the positive not from here on and hopeful. Hopefully we will have a better and positive results going forward. Thanks. Thanks to all and I will forward this hand over this to Amit for further question and answers.
Questions and Answers:
operator
Thank you Sunil. With this now we will open the floor for the Q and a session request to all participants in order to ask a question you may please raise your hand or write the question in the chat box. I repeat to ask a question you may please raise your hand or ask a question in the chat box. We’ll wait for a while till the question queue assembles. A reminder to participants in order to ask a question. You may please Raise your hand or type the question in the chat box. Participants request you to raise your hand or type a question in the chat box.
To ask a question, please Console, is the chat box working?
Unidentified Speaker
Yes, it is working.
operator
One request to all the participants. Please. Ask question by raising your hand or typing the question in the chat box. It. We have a question from Path Patel. Were there any notable technological upgrades or security enhancements implemented during Q4 to support increasing volume of digital transactions?
Dilip Modi
Hello, Am I audible?
operator
Yes sir, you may. Please go ahead.
Dilip Modi
No, thank you, Dino. As far as technology and security is concerned as a transactions platform, for us security is very important and as we are launching our own customer transactions platform, information security is of paramount importance. So we have invested significantly in terms of infosec and as you’re aware, we also have the upcoming Data Personal Data Protection act for which we need to comply. So for us we continue to invest in tools which ensure that we have proper secure databases as well as access to data is restricted and at the same time it’s made optional only through proper framework.
Technology is something that we continue to invest in open APIs to be able to work with multiple partners to be able to integrate their services onto our platform. As a leading transactions platform, our goal is to enable multiple partners to integrate their products. So our technology is more around ease of integration as well as on the customer journey, both on our merchant product, our agent product and our customer product. So we continue to focus on that. As we go forward. I think in the area of technology we will look at how to drive further automation to drive efficiency and productivity and we continue to explore areas around voice and vernacular to be able to drive adoption of both our agent app as well as our customer app. So technology and security are two hallmarks of business and we’ll continue to invest behind them.
operator
Next question comes from Sagar Shah. Are there any concrete plans to expand into adjacent verticals like wealth management, digital insurance distribution or AI LED credit credit scoring platforms?
Dilip Modi
Yeah. Thank you. Thank you Sagar. You know, yes, as we said, we. Want to build one of Bharat’s deepest financial grid platform. And all these areas of wealth, insurance and credit are part of formal financial services that we want to drive penetration for in small towns. So we’re going to be working on. Each of these areas over the next couple of years. Credit is something that we’ve already started with as Asta presented. We’ve already started scaling our credit distribution products specifically around secured credit because as I said, we want to be a responsible credit distribution platform. I think AI is going to play. A big role when it comes to credit assessment in terms of looking at alternate data and this itself we’re going to run a couple of experiments around AI credit led credit wealth and insurance.
Are two big themes where product manufacturers. Are looking in Tier 3 and beyond and we will be working with partners. As we go forward on co creating relevant products for distribution in small towns. So Sagar to your question, this year is going to be very much focused around secured credit distribution as well as we will be running pilots around other formal financial products and we will share. More as we go along.
operator
We move on to the next question. One request to participants in order to ask a question you may please raise your hand or type the question in the chat box. The next question is from Parth. Please elaborate on any significant regulatory changes that we might have faced and their impact on the operations. Also as to how the company has responded and adapted to these changes.
Dilip Modi
So part on on on regulation. You know we are basically our network operates as transaction in partnership with acquiring banks so effectively we are regulated not as directly as a BC platform. We work with banks who are related entities on the regulations. They are regulated on our PPI wallet business as well as on our Bharat Bill Payments operating unit business. On these businesses we see that the regulators looking to see an active participation of BPI licenses to drive adoption of digital payments in Bharat and India and. As well as on bbps it it is effectively becoming a collections platform at scale. Looking forward to contributing, playing our role in contributing to the goals of the regulator and the ecosystem and to drive customer convenience and adoption for both digital payments and digital collections.
As we shared in our presentation, BBPS is a very important platform for us to drive digital collections and we really look forward to that in the the coming year. As far as AAR payment system is concerned, we continue to work to introduce new products both around Cash Deposit and going forward around Harpe which is merchants and therefore.
operator
If Sunil or Asta can complete that answer please. Yeah we have the LIP active so we lost you in between. Oh screen is frozen it seems. Yeah. Any of the two if you can complete the answer.
Sunil Kapoor
I think the lip is back.
operator
Yeah, we have the lip so we lost you in between. If you can restart that answer please about Aadhaar enabled payment.
Dilip Modi
Yeah. Am I audible?
operator
Yes.
Dilip Modi
Yeah, no, sorry. What I was basically saying is that on Aadhaar enabled payment system we are looking forward to more new innovations around cash deposit and Aadhaar pay and these. Are areas that we will focus on. And As I said on bbps, PPI. Led UPI as well as aps. We will continue to work closely with. The spirit of the regulation and as. The regulatory guidelines evolve we will adapt with the same. Thank you.
operator
Before we go to the next question, request to participants in order to ask a question please raise your hand or type the question in the chat box. The next question is from Sagar Shah. The agent network expanded by CAGR of 45% now reaching 2.51 lakh villages. Key strategies that are being implemented to enhance agent productivity also drive deeper penetration into new geographies in FY26.
Aastha Garg
So I’ll take that one. So the key strategies Sagar for you know, enhancing the agent productivity what we’ve been trying to do is we’ve been trying to focus on agents who, who you know are doing multiple products with us and multiple they’re involved into high transacting values of big products that we are driving like cash management services and bill payments and aps. So all of these products when, when these agents help us drive together so this helps them create more value for them as they’re doing heavy transaction value volumes with us and they become stick sticky to our platform because they’re able to get more enhanced product suit that we’re trying to offer.
We are also trying to offer them with more products in the form of banking and secured credit. Getting more lenders on our platform so that they can get more lines of business in credit itself. For example secured loan distribution through gold loans and commercial vehicle loans and other personal loans etc. So all of this we are trying to enhance the you know, the kind of products that they can work with us on and hence they can, they can do more volumes with us and also for reaching out in other geographies which, where, where initially our base was not very strong for example southern and western regions in the last one year we’ve been trying to you know, increase our distribution strength in those areas by reaching out to better agents in this, in these areas who are big, big banking corresponding points who are doing this business for a very long time and who have a good knowledge about how to drive this business.
So there we’re trying to deepen this engagement by reaching out to the right people who are into this business and we’re trying to strengthen our distribution partners also in these areas who can help to, to you know, provide for cash, cash support to these agents in these areas so that they can, they can enable financial services in the deep rural and they can also, they can also provide these services With a larger cash support from the company and from the companies distributor part distributors and partners.
operator
Next question from Sagar is by when do we see the merger getting completed? Do we have to bear a loss of discontinued business in FY26?
Sunil Kapoor
So okay, so merger is expected to be completed by the calendar year end. And and with respect to the losses, discontinued business losses, you have seen that that has considerably come down but hopefully maybe by the calendar year end because we are trying to sell those companies. Because closure of those companies take its own time. And in every geography there is a different set of regulations and all that. So we are trying to close it as early as possible. But for this financial year of course there will be a cost but we will be what Whatever you are seeing the cost as of now even that will further reduced in this financial year.
operator
Next question comes from Path. What is the unit economics at Adhikari level? What is the unit economics at Adikari level?
Aastha Garg
So okay, so for Adhikari, for Adhikari, our major products and services they are able to earn a good margin. So for example they earn the best margin in the cash management product where because of the handling of cash they are able to make good ROIs as good as sometimes 20 to 30% in cash management business. While in the business like APS and which are more transaction volume based where their unit economics may not be very high but in volumes they earn a good number from the. By doing the best. By doing this business. Also coming to banking in the banking space the margin that the Adhikaris are earning is pretty good.
For even opening one account which is approximately a 100, 120 rupees account they earn around 40 rupees. And for a higher value account which is approximately a 500 rupees account they earn more than 100 rupees per account. So that’s a good number that they are able to earn while doing the business. While doing this business.
operator
Next question comes from Sagar. What percentage of revenue in Q4 was recurring which is subscription service or fees versus one time transactions. And how does this trend affect long term growth?
Aastha Garg
So looking at the revenue which were recurring basically we can say that today we are at a recurring revenue of approximately 48 crores of a gross margin that we do for a quarter. So that’s the run rate that we are at. Obviously in some in quarters we have one times in that come and go. But majorly we are at. We are. We have closed the quarter at a 49 crores gross margin while we are at a Running run rate of approximately 16, 15 and a half 16 crores a month of a gross margin which is approximately 48 crores of gross margin in a recurring recurring sense.
operator
Okay, next question comes from Shubham Sangle. What are the growth targets for both top line and bottom line? With a network of very significant number of Adhikaris, do you think this is a great asset? If yes, then at peak capacities what is the average revenue are we targeting.
Sunil Kapoor
With respect to the growth targets for both top line and bottom line? And because this is a function of whatever the products we can put up on our platform and what we have explained that these two platforms one where Spice Money, the Curry app basically we intend to put more and more products like credit distribution, secured and unsecured credit and other financial products also. So this top line and bottom line depends upon what is our ability to put more and more products and which have a more earning capabilities for the Adhikaris and for us also.
And that will convert into the bottom line. And we consider that this significant number of Adhikaris is a great asset for us because we are building the B2C model also riding on this structure and the distribution channel and hopefully with the current customers what we are serving almost 25 million customers we are serving every month. And this customer base we want to capitalize on through our B2C play and the credit distribution and we intend to own those customers. Till now we are like a distribution of products but we intend to own that. That’s why we are investing into these new engines by which our top line and bottom line will be up through cross sell and upsell after we have ownership of the customer.
operator
Next question is from Shubham again with EMI payments driving BBPS growth and focus shifting from cms how do you see BBPS evolving as a revenue stream in FY26? Are there any new billers or services planned.
Sunil Kapoor
For BBPS? I think that’s a platform which NPCI is onboarding the billers on this platform and that’s a function of more and more billers coming on this. And this is having a significant growth in the past three to five years. But shifting of CMS to bbbs this is basically the agent based collection is shifting from agents to directly from the customers. I think that will helpful in the form of the agent will be able to do the direct deposition at our Adhikari outlet rather than going into their own branch and then aggregating that money and reconciling over there.
So it will be helpful and it will be helpful for the CMS enterprise also like these lenders and this will be operationally efficient for them and for us also. And this will give a more avenue because if you see the CMS Adhikaris who are doing as of now are very lesser in comparison to the overall APS adhikaris are doing so that will increase our base and we will be better utilize our base of Adhikaris if CMS is shifting from from direct agent model to DVPS.
operator
Next question comes from Path. Patel rupees 13.3 crore were invested in growth platforms like Spicepay and the credit LSP business. Could you share the expected monetization timeline and ROI outlook for these initiatives?
Sunil Kapoor
I think I have mentioned it out in my presentation and identified that this investment is for the future and owning the customers going forward and providing more and more products or the financial products to them. And by this we intend to have that in the next two years. This will be an investment phase and three to five years. We foresee that 15 to 20% of gross margin is coming from these investments.
operator
I think that was the last question. I would now like to hand over the call to Mr. Dip for his closing remarks. Over to you sir.
Dilip Modi
Thank you Amit. You know thank you everyone for joining this call. I just want to reemphasize that we are a a platform, a financial services platform committed to Bharat. We are focusing significantly on deepening our reach within Bharat through our agent network as well as steepening our reach in terms of number of financial products we can enable on our agent platform for consumers in Bharat. We believe that as we deepen further and as we onboard multiple products in the areas of credit, wealth, insurance, savings, you know we will be able to, you know enable product manufacturers to solve for unit economics and reach to be able to reach to tier three and beyond markets in Bharat.
At the same time we are committed to solving for the next 100 to 200 million UPI consumers coming from Bharat. So both with respect to agent led distribution as well as customer led transactions, we are focusing on becoming one of the largest digital transactions platform for Bharat on the financial side. At the same time on the back of digital data and access we want to drive credit led income growth for small merchants in Bharat. So effectively through agent led distribution, customer led transactions and credit led income growth we believe that we want to become one of the most trusted financial services platform for Bharat. So as we continue on this journey we look forward to your cooperation, your support, your inputs your guidance and we look forward to sharing our progress on this journey with you as we go forward.
Thank you once again for joining this call. Please do reach out to us in between if you have any further questions. Otherwise, thank you so much and we look forward to to even more exciting FY 2526. Thank you.
operator
Thank you everyone for being a part of this call. You may now disconnect the call.