Veefin Solutions Ltd (BSE: 543931) Q2 2025 Earnings Call dated Oct. 28, 2024
Corporate Participants:
Raja Debnath — Chairman and Managing Director
Payal Maisheri — Chief Financial Officer
Gautam Udani — Chief Operating Officer and Whole-Time Director
Analysts:
Laksh Jain — Analyst
Akshay Kaila — Analyst
Shyam — Analyst
Srinivasu K — Analyst
Prateek Chaudhary — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Veefin Solutions Limited H1 FY ’25 Earnings Conference Call. From the management team of Veefin Solutions Limited, Mr. Raja Debnath, Chairman and Managing Director; Mr. Gautam Udani, Chief Operating Officer and Whole-Time Director; Ms. Payal Maisheri, Chief Financial Officer; and Ms. Urja Thakkar, Company Secretary and Compliance Officer are attending the earnings call.
As a reminder, all participants are in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
Please note this conference call may contain forward-looking statements about the Company, which are based on the beliefs, opinions and expectations of the Company. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
I now hand the conference over to Mr. Raja Debnath. Thank you, and over to you, sir.
Raja Debnath — Chairman and Managing Director
Thanks a lot. Thanks for all of you who have joined in for today’s earnings call. There are three things that we’ll cover, three sections: recent past, performance review and what’s next. You’ve seen a lot of news of Veefin in the recent past. I thought there’s a good opportunity of taking you all through what Veefin is going through right now.
If you remember the last earnings call, Veefin at that point in time was one company, which was Veefin Solutions Limited, which was in the supply chain financing and the digital lending space.
This is a very busy slide. I know this is very busy and I have color-coded them also. So, there are three colors that you see here. There are three solutions that we are offering or three types of solutions. One is a solution only to financial institutions, which are banks. Second are solutions which we are offering to corporates. And third are solutions that we are offering to banks and corporates.
So these names that you see here, Veefin Solutions, Veefin Capital, Infini System, GlobeTF, Estorifi, these are all companies. So Veefin Solutions is the parent company. We have four subsidiaries, Veefin Capital, Infini System, GlobeTF and Estorifi Solutions. I will take you through each one of these in a while.
Now, Veefin Capital is our NBFC arm, it’s an NBFC factoring company. This is what we have applied a license for. This is the arm which will do securitization of trade receivables. And this is a very big market in India, potential, not actually right now. And we expect to actually create the trade securitization market in India.
What trade secretion means for all of you is, you have large corporates with account receivables. If we take those receivables, we put them into a special purpose vehicles, do some credit enhancement on top of it and then go and sell them to investors in the market, investors could be mutual funds, HNIs, banks themselves, that is a trade securitization deal. And that’s what we believe is a large market, which will unlock working capital for SMEs in India. That is the first subsidiary that we have.
The second subsidiary, let me go to the right-top corner, is GlobeTF. GlobeTF is a subsidiary which is going to focus exactly the way Veefin Solutions focused on supply chain financing. This will focus on transaction banking, which is on building out a cash management and a trade finance product. That’s where it will go. And we have already started work on both of these products. There’s a dedicated team which is working on this, and we expect to get the MVPs of these products out early next year.
If you come down here, then it’s Infini System, this is the third subsidiary. Infini System is a subsidiary which is focusing on fraud and risk. India has hundreds of API providers. We are bringing all of that together. Because — if Veefin Solutions itself is the platform which is providing the underwriting solution, and the underwriting solution is the one which is going and connecting to these various API providers, our thought process is why should we not own right system ourselves. So that’s the API gateway and the fraud and risk services that Infini System will provide.
Under Infini System, there’s another company that we have acquired, which you all know of, which is Nityo Tech. Nityo Tech is a company which is the Indian arm of Nityo Technologies, a global company. This company’s role is of working with banks on digital transformation and custom solutions. That’s what they do.
If you move on to the right, you have Estorifi Solutions, which is again a subsidiary of Veefin. This houses the PSB Xchange program. We are all familiar with people who have invested in Veefin, they would be familiar with this. PSB Xchange is where we are creating the world’s largest supply chain finance ecosystem, okay? This platform is a bridge in India between the lenders on one hand and your banks on the other. So, envisage that you will have hundreds of lenders on one side with one single connection to this platform, getting access to fintechs, marketplaces, e-invoicing players, logistics marketplaces on the other side.
Under this, we have acquired two more companies. I know there’s a lot of acquisition companies, let me tie it all together after we finished this. Regime Tax Solutions, which was our first acquisition. This is a company which has products like PayInvoice and TaxGenie. This basically helps corporates in automating their account receivable and account payable process.
If you just imagine, large corporates have an accounts payable team, which receives invoices from their suppliers. Accounts payable team then matches their invoices with the purchase orders which have been sent out earlier. They do various checks before it goes to the checker. So, this entire piece of maker, the job of the maker in accounts payable process is digitized. So, we digitize the invoices, then we run hundreds of business rules on it, and then it goes, and it’s pushed into SAP. It’s an SAP certified product. It goes and sits within the SAP in SAP cockpit. That’s what this does.
It also solves for the problem of GST input tax reconciliation, a big pain most of us know in India, it solves for that pain. It also has something which is called a supplier portal which allows suppliers to send e-invoices at a click of a button to the corporate and are able to see the status of the approval process of the invoice in their supplier portal itself. So this is the PayInvoice solution.
The last company on this slide, the last company that we have recently acquired is ezee.ai. Now, ezee is a great product which has a no code business process management platform, on top of which we have built out a loan origination system and a collection management system. So this is the Veefin universe.
So, if you look at this, what is the story that comes out? The story is, Veefin is trying to play across right from when a supplier raises an invoice or receives the purchase order, right, from that stage, to following the supplier and the corporate across the entire journey where today that journey is completely outside the banking system. So we are capturing that entire journey. Once the supplier then comes into the banking fold, then using our expertise on the lending side, on the origination side, using the fraud and analytics to underwrite the customer, and then moving on to the loan management system on the supply chain side, if it’s a traditional loan, then a traditional loan management system, and then moving on to, if needed, the cash management side and the trade finance side.
So that is the entire end-to-end journey that we are trying to capture using this. More on the fact of these acquisitions a little later.
I am pulling out some numbers here. Now we have been five-plus years in existence, and we have jumped to 500-plus clients now. So, across the Group, we have 500-plus clients. And our team size, last year if you remember, we were under 200, and now as a Group we are 1,000-plus, and we are growing. And we will continue to grow thanks to the support from all of you.
We get a lot of awards, and this is something that we are extremely proud of. The team is working very hard. Some awards I want to share here. The most special ones are the ones at the top, which are the IBS intelligence award. So, as you will see, IBSi runs a sales league table, so the sales league table basically is a league table for all tech vendors globally across various products. So last two years, we have been ranked number one in wholesale transaction banking. And I think that speaks volumes to the kind of work that our teams are doing and the love that the clients are showing us. So, last two years, number one in wholesale transaction banking.
We have a clutch of other awards when it comes to the impact that we have, in terms of our implementations that we have. But being number one, that’s special. Some other awards which are very close to our heart are our HR awards, what we get on the Great Place to Work or recently that we got on The Economic Times Future-ready Organizations, or with the Businessworld Fintech award — Businessworld awards where we again got an award for HR.
And this is important because, happy to share that our attrition levels are next to zero. And that’s what — I am again repeating it. Our attrition levels are next to zero. And as a tech company, that’s something really proud — that we are very proud of that because the industry average is 24%. So against the industry average of 24% attrition, we are nearly zero. And it goes not just to these awards, awards are a reflection of what we are, but something that we work on a day in, day out basis, I think that is our single biggest differentiator when it comes to what we are vis-a-vis any other company — any other tech company in the industry right now.
Every single person in the company, and I say this, every single person in the company is on ESOPs. So we are one of those rare companies which are 100% on ESOPs. So what we are trying to do is we are trying to create not just an exciting place for people to work in, but a place where everybody has an opportunity to create wealth. And if you have noticed, in our job description, we usually put that this will be the last place that you will work. And that’s what our intention is that you come here, we hear a lot in the market nowadays in terms of stress, burnout, that’s a topic which is going on right now. But the team that we have, the culture that we have created, that’s the big differentiator for us.
Again, another recognition, last year, December ’23, first-time ever, there was a evaluation of tech vendors in the supply chain finance space globally and Veefin first time — in first time itself, we came out as one of the top two leaders in the industry. This is again something which our clients are very proud of when they are choosing us.
Moving on to some numbers, and happy to share that our numbers have kept pace with all the awards, because getting awards is one thing, but then they have to translate into numbers also. So as you will see on like-to-like basis compared to last year, our revenues have grown more than 100%, our EBITDAs have more than grown by 200%, and same on the PAT side. So the numbers have look — the numbers are looking very good.
Same on the EBITDA margin, the EBITDA margins have gone up. Our PAT percentage has gone up. So these numbers I leave with you. These numbers will already have been uploaded on the website.
You can see the deal wins. We have won 13 deals in the first half of the year. These are on a standalone basis. These are not consolidated, because right now, as we speak, we are still doing the entire consolidation of the operations. So right now, I am sharing with you just the deal wins on an individual Veefin basis, 13 on the Veefin and nine go-lives. Go-lives is also again important. As a SaaS company, we start making revenue once we go live.
And this one is something which is very, very heartening, the love that we are seeing in the market and the leads that we are getting. So, if you look at the number of pursuits that we had at the beginning of this year, it was 92, and we added 130 new pursuits in this year. That’s a telling number. There are companies in this space who do these numbers of pursuits maybe in 10 years. We have been able to get this level of deal flow in the first six months of this year itself.
We are just coming back from some events. We do a lot of events, as you all know. People who follow us on the social media know that. We are getting a deluge of leads coming in from all shapes and sizes, and from all quarters. Our website itself is a huge source for deals where we get a lot of incoming deals at any point in time.
So, as of 1st October 2024, the team was working on 184 pursuits. 184 pursuits, let that sink in. 184 pursuits is what we are working on. So what this means is, either today or tomorrow, a bulk of these deals will get converted. So even if 50% of the deals get converted, we are talking of — based on deals that we are sitting on, 90 deals that we will close. These are the kind of numbers that are there.
I will — so, there’s one slide which is there on the financial numbers, so maybe Payal, you can take that slide, and I will then comment on the last piece then.
Payal Maisheri — Chief Financial Officer
Yeah. Hello. Am I audible?
Raja Debnath — Chairman and Managing Director
Yes.
Payal Maisheri — Chief Financial Officer
Thank you, Raja. So, yes, good evening all the shareholders, investors. We are proud to present our results for half year ’25 — H1 ’25. We see good revenue growth of 111%, to be very precise. Like Raja just mentioned, the revenue growth is primarily through the new client deals that we have signed, 13 deals, plus the go-live clients. Also, I would like to add that here is one more factor that is added to our numbers.
It’s also our — a few consolidations from our recent acquisitions. So with these recent acquisitions, basically we are better positioned than ever to accelerate our growth trajectory. So basically, these are companies with great founders, great expertise, great products, and they have great potential growth. They reach a threshold and wherein Veefin can drive their success and can drive their business models. So these are some strategic acquisitions that we have done.
And I think Raja will explain later, our future or what is next. But yes, being successfully — successful in acquiring these companies and they have added to the consolidated revenue figures for H1 2025.
Apart from that, I would want to proudly announce that we are a 100% ESOP company. This initiative mainly aligns with the interests of the team members with the company for the long-term success. So while this commitment does have a slight impact on our PAT, our EBITDA margins, but it strengthens our culture of ownership and collaboration, which we believe will drive the future success.
So — yeah. So as mentioned rightly by Raja, our EBITDA margins have also increased to 18% and PAT margins to 14%.
Yeah. Over to you, Raja.
Raja Debnath — Chairman and Managing Director
Thanks. So the question [Foreign Speech] what next? What next for Veefin? Veefin is doing a lot, but what next? So, let me assure all the investors that Veefin is very focused on three things. We are focused on IP — product IP, we are focused on revenue, and we are focused on profit. So these are three things which we are focused on.
So, therefore, we will continue our acquisition spree. So we will continue [Foreign Speech] there are quite a few more which are already line up. And we will continue acquiring companies for all these three. We will continue acquiring companies for IP. We will continue acquiring companies for revenue. We will continue acquiring companies for profit. [Foreign Speech]
If I just give you a forward-looking view, March ’25, our expectation is that we will end at close to INR120 crores top line, that’s what we are looking at. So from INR19 crore, INR20 crore top line right now that you are seeing, March ’25 is going to be crossing INR120 crores at least. And March ’26, we will cross INR300 crores. And these are all planned out. So whatever numbers we are telling you, these are based on our growth, our inorganic and organic growth trajectory, which is there. So these are the kind of numbers that we are looking at.
And therefore, the future seems pretty bright to us. We will continue acquiring clients, we will continue acquiring companies, and we will continue acquiring people. So, I think that’s it from me.
And I think we will be open to Q&A now.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We’ll take our first question from the line of Laksh Jain, an individual investor. Please go ahead.
Laksh Jain
Hello. Hello. Yes. Am I audible, sir?
Operator
Yes, Mr. Jain. Please go ahead. Yes, you are. Please go ahead.
Laksh Jain
Yeah. Sir, my question is, we have been doing lots of acquisitions, which is very great. I have just seen in the cash flow that we have raised approximately INR270 crores of funding in our subsidiaries. So, sir, after these fundraise in our subsidiaries, let us take…
Raja Debnath
Sorry. Is the number right, Payal?
Payal Maisheri
I will explain. I will explain. No, there are two things here. The INR270 crores includes two numbers. We have acquired two companies, so INR140 crores — INR170 crores is for that acquisition, and the balance INR110 crores, INR120 crores is for the raise of money that we have done. So, the INR140 crores is the acquisition.
Laksh Jain
So, INR120 crores [Foreign Speech] is the amount we have raised in subsidiary?
Raja Debnath
Correct.
Payal Maisheri
Yeah.
Raja Debnath
Correct. INR120 crores.
Laksh Jain
Okay.
Payal Maisheri
[Foreign Speech]
Laksh Jain
Yes, got it. So, sir, after doing all these things, are we — something we are very specific, are we anywhere like planning to keep stakes at least at 51%? Or we are ready to dilute below 51% also, sir? This is my only question.
Raja Debnath
In which, the subsidiaries?
Laksh Jain
Yes. Are we like — are you very particular that, no, we are going to keep at least 51% in our all the subsidiaries, or we are like okay to dilute for like — for growing growth or anything? Even in the future, sir, like are…
Raja Debnath
Sure. We could dilute less than 50%. We could go less than 51% also, because the aim that we have…
Laksh Jain
Okay. We are open for going less 51%…
Raja Debnath
Our aim is to grow the size of the pie.
Laksh Jain
Okay.
Raja Debnath
Absolutely. Our aim is to grow the size of the pie.
Laksh Jain
Got it, sir. Sir, that was my only question, sir. My concern was like whether we are going to go below 50%, are we comfortable at that level as well then that’s fine. That’s great, sir. Okay. That’s my only question, sir.
And other things are just phenomenal. I just wish all the very best to the Veefin Group.
Gautam Udani
Yeah. I would just want to add one point to that question where we might go below 51% in terms of equity. In terms of management control, we will always stay 51% or above, because we will be responsible to run those companies.
Laksh Jain
Yes. Got it. Got it, sir. Thank you. All the very best, sir. Thank you.
Raja Debnath
Thank you.
Operator
Thank you. We’ll take one text question. We have a question from Pradeep Allamsetty, an individual investor. Great to have calls like these. As there are a lot of happening in many products, etc., my request is, can we get quarterly results and earnings calls which will give better understanding? Few SMEs does.
Raja Debnath
Let me answer that. We are getting prepared for it, very honestly. As an organization, we have grown at a very fast pace. To be able to come out with quarterly results and having earnings call very frequently, you will start seeing that from next financial year.
Operator
Thank you. We’ll take a live question from the line of Akshay from C D Integrated Services. Please go ahead.
Akshay Kaila
Hello, sir. Am I audible?
Payal Maisheri
Hello, Akshay. Yeah.
Operator
Yes, please go ahead.
Akshay Kaila
Yes. Sir, you have said that we will close our year, what figure you have given, INR120 crores?
Raja Debnath
Yes.
Akshay Kaila
So in the first half, we have done about INR19 crores, so can you say that we will do close to INR100 crores in the second half of the year?
Raja Debnath
Yes, because this is at a Group level. So, many of the consolidations that we have, the company that we have acquired also, you are not seeing those numbers here in the first half.
Akshay Kaila
Okay. Okay. So that will be reflected in the second half of the year?
Raja Debnath
Correct.
Akshay Kaila
Okay. And sir, I just want to understand one technical thing. Large banks like ICICI Banks and HDFC Banks, and all these banks have their own supply chain and working capital finance solution platforms, like ICICI have Unicore [Phonetic], Marvel, Infinity. So, small banks and NBFCs do use our — this platform, Veefin’s SCF platform and all these things. So, is my understanding right that big banks do have their own platforms and small banks do purchase from us?
Raja Debnath
[Foreign Speech] that 99% of the banks in the world use some tech vendors’ platform, okay? [Foreign Speech] Everything will come up for replacement. When it comes up for replacement, there will be people like us who will go and replace them.
Akshay Kaila
Okay. Okay. Okay. So, any bank platform which they use [Foreign Speech]
Raja Debnath
[Foreign Speech]
Akshay Kaila
Okay, sir. Okay. And sir, last question [Foreign Speech]
Raja Debnath
Yes, obviously. [Foreign Speech]
Akshay Kaila
Okay, sir. Okay. Thank you so much and all the best for the future.
Raja Debnath
Thank you.
Operator
Thank you. We’ll take one text question from Ashish Kacholia from Everest Finance. Congratulations for a great set of numbers. Could you please share your vision for where we anticipate our enterprise value to be in the next three years?
Raja Debnath
Gautam, would you want to take this question? This is your favorite question.
Gautam Udani
No, I don’t think we are supposed to be answering this question.
Raja Debnath
But anyway, I think, to Ashish, what I would say, the growth that we are charting out and the growth that we have had in the past, and therefore the multiples that we are seeing, I think we will continue seeing such kind of multiples, because the growth trajectory — and we gave you a sense of the numbers that we are looking at for — ending this year and ending next year.
So I think right now if you look at it from that point of view in terms of even the enterprise value, if you look at what Veefin has, what are the — what the subsidiaries are doing, the amount of funding that we have raised in the subsidiaries, the valuation, so even right now, we are far undervalued from an enterprise number itself.
Operator
Thank you.
Raja Debnath
Yeah, we can go to the next question.
Operator
Yes, just a moment please. We have a question from Paras Chheda from Purpleone Vertex Ventures LLP. Why have other expenses shot up dramatically compared to the previous quarter and previous year comparable, both?
Payal Maisheri
Yeah, so I’ll explain. So our other expenses include two companies, majorly sales and marketing expenses. Like we had also mentioned in our previous earnings call, we are set to address our vision and mission of going globally, we do sponsor a lot of events, and we do a lot of other marketing and sales expenses. So the major portion in the other expenses that have shot up is, firstly, the sales and marketing expenses. And apart from this, yeah, the legal and professional services growing as a company and acquiring different companies, plus the consolidation effect that we get on the expense side, also from these companies, are the two reasons why there is a rise in this expense.
Operator
We have one more text question from him. What is your PAT projection for FY ’25 and FY ’26?
Payal Maisheri
Okay. So currently, this year, we closed — or we had a PAT — so expect a percentage of 15% and — 18%, sorry. So, yeah, with the acquisitions that we are doing, and we will expect a slight maybe impact on our PAT margins wherein we might spend a little more on innovations, on sales and marketing, on brand building. Apart from that, our fixed cost still remains the same, so we definitely expect a good jump or rise in our PAT on March ’24 and going forward. I hope that answers the question.
Operator
Thank you. We’ll take one audio question from the line of Shyam [Phonetic], an individual investor. Please go ahead.
Shyam
Yeah. So, hi, everyone, thank you for the, like, the growth we have achieved. And just wanted to understand — like I do understand you’ve just mentioned that the top line will be INR125 crore. So like, how much it will be coming from the standalone and what will be the breakup like with the consolidated? And like how do we plan to achieve like — you can just give us a high level breakup from the acquisition that you have done till date.
Payal Maisheri
So out of the total of INR120 crores that Raja has said, we expect totally the standalone to come to around INR45 crores, INR50 crores, which we were expecting at the start of the year also, as mentioned in the previous earnings call. And we stick to that and we are on track with the same. So apart from that, balance we do expect — from the acquisitions that we have placed.
Shyam
Okay. Okay. Yeah. And just one more question like how are we different from the off business of the world, like who are also in the supply chain financing?
Raja Debnath
Off business — I will take that question. Off business is not a technology player. Off business is more of a fintech. They are a platform on which they are facilitating currency. If you remember what I explained on PSB Xchange, off business is a platform which will connect to PSB Xchange. So banks will use — so we are the financial infrastructure [Foreign Speech] not on off business. Off business is just the front end.
Shyam
Okay. More of a similar to what NBFC does for the UPI, how the technology for the UPI, they work with banks, okay. Okay. Thank you for the answers. Thank you.
Raja Debnath
Thank you.
Operator
Thank you. We’ll take a text question from Suruchi Parmar from NX Wealth Management. Which will be our major growth driver product, SCF, loan origination, or any other new product? SCF, many players are doing it with banks, what Veefin is doing which is differentiating and has right to win? Missed your FY ’26 revenue and PAT target.
Raja Debnath
Multiple questions. So, let me try answering if I remember all of them right. First is many players are doing SCF what are we doing different. Many players who are doing SCF, they are all fintechs. That means they are going out in the market, talking with corporates or platforms, and trying to get credit lines made available to them from various banks. That’s what they are doing. But after they take it to the bank, the bank needs a system to run that supply chain finance business. That is where Veefin comes in. So, we don’t run around in the market trying to get that business, to answer your question.
Second, where are our growth numbers going to come from, whether SCF or LOS? All over. As I just started from the first, we are no longer of single product company. Yes, we were supply chain financing, then we were working capital, now we are moving beyond. We are saying that wherever bank requires products and services, we will be able to do that because of the horizontal breath that we have.
I think all of us that who are here and who have been following Veefin will understand that this is the start of something brand new. We are not comparing ourselves to any fintech or any tech company, an old tech company. We are in a different league of our own where we are bringing in products and services to be consumed by banks through one single channel, Veefin is the channel. So, Veefin is creating itself as a platform which will provide various products and services, with working capital being at the front for these banks and services. That’s not only our growth driver, but it’s also a big differentiator for us.
You missed the FY ’26 numbers. The FY ’26, we said our top line should be around INR300 crores. We will cross INR300 cores in terms of top line. And Payal, if you may want — is there anything else you want to share in terms of — I think he said some PAT estimate if I remember right?
Payal Maisheri
Yes, Raja. So our current PAT percentage is 18%. So what I estimated was we expect to grow at the same percentage with the acquisitions and with the gross margin ratios. So, yeah, we can expect the same.
Operator
Thank you. We’ll move on to an audio question from Srinivasu K from TIA. Please go ahead.
Srinivasu K
Hi, Raja. Congratulations for the numbers.
Raja Debnath
Thank you.
Srinivasu K
So, recently you have done acquisitions like TaxGenie — am I audible? Hello.
Raja Debnath
Yes. I think your voice is cracking a little. Your voice is cracking. Can you speak a little slower?
Operator
Sir, can you use your handset mode please? Mr. Srinivasu?
Srinivasu K
Hello. Am I audible now?
Operator
Yes, please go ahead.
Srinivasu K
Yeah. You have — recently, you’ve done three acquisitions, right? So, TaxGenie, Nityo Infotech and EPIKInDiFi. Can you explain the rationale behind this? Because some of the products are common between them and Veefin.
Raja Debnath
Correct. Absolutely right. So, let me go to the first one where it is common. So, EpikInDiFi, yes, they have a common product which was on the LOS side and on the collection side. But when we saw the product, we thought that if our product is a nine out of 10, their product is a 9.5 out of 10 and we like their product. So that’s the reason we took them on. But I think even bigger reason than that was that the co-founders who came along with the product, the three co-founders, between then they had run a team of more than 2,500 people at Infosys. That’s the kind of experience that they get in with 20-plus years of experience for each one of them.
So the pace at which we are growing, having that level of people come into the Veefin family adds value not just to EpikInDiFi as a part of Veefin, but across the entire Veefin Group. So this was the rational. Plus, they are coming with a whole new set of clients who we can cross-sell our products to. So that’s the rationale behind it.
The rationale behind bringing on TaxGenie, I had explained some time back, is what TaxGenie does. The fact that we are now able to get visibility of the entire supply chain, right from purchase order to the advanced shipping notice, to the GRN, then to invoice approval, this level of visibility of an invoice is unheard of in the industry. So if I have that visibility and then we are able to bring in financing at various legs, that’s what makes supply chain for the SMEs that much more interesting. So that was the rationale behind ezee.
The rationale behind Nityo is that they are digital transformation and custom design of software house. And we have a lot of requirements from our clients, our banking clients, for these kind of services. So this made complete sense for us to bring these three companies into our fold.
Srinivasu K
Okay. Thank you. And my next question is about the PSB X, why is this alliance is getting delayed, any reason?
Raja Debnath
You know how public sector banks work. So it’s not in a bad way. It’s just that when you have 12 large public sector banks, and having to navigate the agreements between all of them, getting all of them on the same page, those things are things which take time. But having said that, the good news is that we have been able to close out or get all of them to agree on a single agreement that they will all sign. But this is very, very welcome news for all of us. We have also been able to get all of them to agree on the pricing matrix that they will pay PSB alliance. So that’s again a second win.
So we should now see a go-live of the platform very soon. Two of the largest hurdles have been crossed.
Gautam Udani
Correct. Technically, the platform is ready. We are just waiting for these administrative items to get over to be able to make it live.
Srinivasu K
Okay. And my final question is, in general, how do you see this opportunity size of supply chain finance in the next five years?
Raja Debnath
Sorry, I lost that, an opportunity?
Srinivasu K
Opportunity size of supply chain financing.
Gautam Udani
Opportunity size and what we can get from that.
Raja Debnath
So, I’ll tell you. Currently in India, annually, we have close to INR8 lakh crores to INR9 lakh crores worth of disbursement which happens. INR8 lakh crores to INR9 lakh crores of disbursement of supply chain finance business happens currently. Our estimate of the market as we stand is INR80 lakh crore, so we are 110th the market right now as we speak.
So now you can understand what the opportunity is. More and more players like us — and we want more players to come into the market, we are happy with the competition. More and more players come, more innovation happens in the market and expands the market.
Srinivasu K
Thank you. That’s all from my side.
Raja Debnath
Thank you.
Operator
Thank you. [Operator Instructions] Give me a moment while I read the next question. There’s a question from Rupesh K from Calpond [Phonetic] Capital. Hi, can you help me understand some of the changes in your balance sheet? Huge increase in cash and current liabilities. What is the reason for increase in trade receivables from INR9.7 crore to INR28.4 crore? Your balance sheet itself has increased substantially from March ’24, depressing your return ratios. Please comment on this.
Payal Maisheri
Hi. Okay, I’ll explain. So first question, increase in current liabilities. So the increase in current liabilities is because, again, due to the acquisition that we have done. We had acquired a company, there was a payable to that company, which is already — so the acquisition happened as on 27th of September ’24, and the payment happened in October first week. So, because of which there is a higher number of payables shown in the current libraries, first.
Second, increase in cash and bank balance is because we closed our funding round, and because of which we had — there was an increase in the cash and the bank equivalent balances.
The third question, the trade receivables. So there was a rise in the trade receivables, I will just explain. In case of Veefin, in the SaaS-based revenue model, our debtors turnover cycle is 30 days to 45 days. We did have a few high value invoices from the licensees, from the AMCs, from the customizations which got realized at the end of the half year. Apart from this, there were — because we acquired the two companies and there was a consolidation effect on our receivables where there were previous outstanding receivables which got consolidated.
So these are the three major reasons for the increase in the trade receivables. Also, I would like to point out that out of the entire trade receivables of INR28.54 crores, 50% of the trade receivables is outstanding for less than 60 days, and more than 80% is outstanding for less than 180 days. So, yeah, it’s just rolling. It is the credit period.
Operator
Thank you. We’ll take…
Payal Maisheri
One more point with respect to the increase in the balance sheet figure. So, yes, so that also again because of the two acquisitions. So we acquired Nityo which is a INR150 crores company, and we acquired TaxGenie. So because of — and EpikInDiFi is not yet consolidated. But because of these, there was a significant increase in the net worth of the company, plus the funding rounds that we raised for the subsidiaries. So, these are the two major factors for the increase in the balance sheet also. Thank you.
Operator
Thank you. We’ll take audio question from the line of Prateek Chaudhary from Saamarthya Capital. Please go ahead.
Prateek Chaudhary
Good evening, sir. Am I audible?
Operator
Yes, please go ahead.
Raja Debnath
Yes, you are.
Prateek Chaudhary
Yeah. Sir, first question. Since we have been having a very good deal inflow over the last six months to 12 months, and a lot of that must be being recognized as the start of revenue booking as well, plus whatever we executed last year in H2 — FY ’24 H2, some more or large part of the recurring revenues would be — would ideally have flowed in H1 this year itself. So if I look at the standalone revenues, there is a decline from H2 FY ’24. So I mean, if you could — and the other — if you could tell the reasons for that decline.
And second, why do we have such a long payment cycle? Because we have almost six months of receivables, so anything booked in the starting of April also we are probably yet to receive the payments. When we are dealing with the high-profile clients in the BFSI space, why do we have such a high receivable, if you can answer?
Raja Debnath
I think Payal will answer all the questions, but I will just correct you on the last piece. The more high profile the client in India, the longer they take to pay. Okay. So there is nothing about BFSI being high profile and be paying on time. So that’s a separate piece. But Payal will take the other questions.
Payal Maisheri
Yes. So, the H2 March — we had pointed out this in March also, the figure involved — because there was a high receivable in H2 FY ’24 also, and that was mainly because there was one license deal, which wherein we had gone live, and which was a part of that revenue. Whereas the current revenue, the percentage of one-time versus recurring in H2 March ’24 was, let’s say, 60-40 or 50-50, and wherein currently in my H1 FY ’25, the recurring percentage is 75%.
So this is the difference basically. And because of this — so again to your question of why such high receivables, yes, definitely the receivables are high, but the collection will be also very high. So we had an opening high receivable, which was because we had gone live with a very major client of ours in Saudi Arabia. And that amount of that invoicing was huge, and that had happened like in January.
And like how Raja just explained, the more high profile these clients are, it does have its own repercussions and implications. So, yes, these license deals amount, because of the amount, there are certain delays. However, let me point out, our credit cycle is — for the SaaS-based revenue is 30 days to 45 days, because we charge monthly, and the clients pay us monthly.
Prateek Chaudhary
And you said that 75% of the H1 FY ’25 revenues were SaaS based?
Payal Maisheri
Correct.
Prateek Chaudhary
Okay. And just final one last question. The FY ’26 number that you have told, roughly INR300 crore top line at a Group level, would the standalone number be closer to INR110 crores which you had guided earlier? Or it would be significantly more than that?
Payal Maisheri
FY ’26, right?
Prateek Chaudhary
Yeah. FY ’26, yes.
Raja Debnath
FY ’26 will be around the similar numbers. It will not be…
Prateek Chaudhary
For standalone?
Raja Debnath
Yeah, on a standalone basis.
Prateek Chaudhary
Okay. Thank you, sir. Thanks a lot. All the best. And I’ll get back in the queue.
Raja Debnath
Thank you.
Operator
Thank you. We’ll take one text question from Praveen Pola, an individual investor. How will ULI positively impact us?
Raja Debnath
So ULI is — it expands the market. And as I was saying a little while back that the more competition, the better. ULI is a platform which allows various APIs to be available out there. And ULI will specifically be more favorable towards smaller lending institutions who do not have the wherewithal of going out and doing vendor evaluations, innovation.
So they can come to one single place and consume all the APIs. That’s what ULI is all about. So does it compete with us directly? No. But because of ULI, do we get value? Yes, we get value out of ULI because more people will do lending, and the more lending happens, the companies like us benefit, because we are the ones that the banks and the NBFCs will actually use to consume data from ULI and then use our LOS and our LMS and our supply chain for doing the business.
Operator
[Operator Closing Remarks]
Raja Debnath
Thanks, everyone. Thanks, everyone, for joining us.
Gautam Udani
Thank you, everyone.
Payal Maisheri
Thank you. Thank you.