Xelpmoc Design and Tech Ltd (NSE: XELPMOC) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Srinivas Koora — Whole-time Director and Chief Financial Officer
Sandipan Chattopadhyay — Managing Director and Chief Executive Officer
Jaison Jose — Whole-Time Director
Analysts:
Unidentified Participant
Ravi Udeshi — Analyst
Mehul — Analyst
Rohan Choksi — Analyst
Abhishek Agrawal — Analyst
Raj — Analyst
Mukesh Patel — Analyst
Presentation:
operator
Sam it Ladies and gentlemen, good day and welcome to the Zelmog Design and Tech Limited Q4 and FR25 earnings conference call. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ravi Udeshi. Thank you and over to you sir.
Ravi Udeshi — Analyst
Thank you Sejal. Good evening to all of you and welcome you to the Q4 and FY25 earnings conference call of Zelpmock Design and Tech Ltd. We have sent you the press release and the investor presentation and the same also has been uploaded on the ZELP mock website as well as on the stock exchange. In case anyone does not have a copy of the same, please do write to us to discuss the results and the outlook for the future going forward. We have with us today the top management of Zevmo represented by Mr. Sandeep Chattopadhya, Managing Director and CEO, Mr.
Srinivas Kura, full time Director and CFO and Ms. Jason Jones, full time Director. Before we start the call, I would just like to remind you that the safe harbor clause applies. With that said, I now hand over the call to Mr. Srinivas Kura. Over to you sir.
Srinivas Koora — Whole-time Director and Chief Financial Officer
Thank you Ravi. Good evening everyone and welcome to Zelpmox earning call for Q4 and FY25. I hope you and your family are doing well. We are still seeing challenges in the startup due to volatility in funding within the emerging technology sector. As mentioned in our previous call, we are maintaining our focus on corporate segment. Our consolidated operating revenue for the quarter was recorded 7.1 million for Q4FY25 as compared to 9.1 million in Q4FY24 and 8.3 million in Q3FY25. The revenue decrease on the year on year basis on account of the transition from a startup segment to corporate segment, we are seeing interest from corporates for our services.
However, the conversion is expected to take some time. Hence, we expect our revenues to gradually start getting traction over the next few quarters. Operating EBITDA adjusted for the quarter was negative 15.3 million as compared to negative 49.2 million in Q4FY24 and negative NR 19.8 million for Q3FY25. I would like to give some context to this EBITDA loss in Q4FY25 though our operating expenses have reduced, however, the decrease in revenue was due to the Fed losses. We expected our operating cost to be stable from here on. Net loss for the quarter was INR 18.4 million partially due to 0.1 million of ESOP expenditures.
This in comparison to a net loss of about 60.4 million in Q4FY24 and net loss of 20.9 million in Q3FY25. Regarding the change in revenue, we would like to state that our revenue was diversified within startups, corporates and government forming 15%, 24% and 1% respectively for FY25 revenues. We expect focus on corporate segment going forward. More focus on data science will enable us to increase our revenue. Our team size is about 50 including employees, interns, consultants as compared to 49 in Q3FY25. Till date we have served 64 clients and our sustained infraction is the foundation for our performance on a standalone basis.
Revenue for Q4FY25 was INR 9.1 million compared to INR 8.3 million in Q3FY25, an increase of 9.1% due to increase in services delivered to corporate in Q4FY25. The operating EBITDA for the quarter narrowed from negative 17.2 million in Q3FY25 to negative 14.5 million in Q4FY25 due to revenue increase coupled with the decrease in certain overheads. Net loss for the quarter was INR 15.9 million. The company has restricted the consolidation of its subsidiaries Zelpmont Design and Tech UK limited and its shutdown subsidiary Soltrax Studios Private Limited in accordance with the applicable accounting standards. As a result, the income as well as expenses recognized from these entities in earlier quarters have been reversed in Q4 FY25 leading to differences between the standalone and consolidated financials for the quarter.
I will now speak about the full revenue Full year financials Consolidated revenue from the operation was INR 39 million in FY25 compared to 64.7 million in FY24. Operating EBITDA for the year was negative 73.2 million as compared to negative 149.1 million in FY24. Net loss for the year was 80.7 million compared to 138.9 million in FY24. Standalone revenue from operation was 39 million in FY25. Operating EBITDA was negative 63.1 million and a net loss was 86.2 million. The difference between standalone and consolidated financials are due to certain intercompany transactions between the group. During FY25, the fair value of our investment in portfolio Companies stood approximately 631.8 million as of 31 March 2025 as compared to 546.3 million as of 31 March 2024.
We achieved a milestone recently in our journey as a listed company as the board approved the proposal for a part sale of our stake in NEHU aggregating to total consideration of 100 million. This transaction reaffirms our strategy of partnering with startup and exiting post our 7 years target. Now I will discuss about our portfolio companies in detail. First let me start with mihop mihope our cutting edge conversation AI platform designed to provide real time assistance and analytics on customer agent interactions. New future safety on based voice to stacks engine that delivers industry leading accuracy along with pre built AI models tailored to multiple industries.
Its hybrid architecture combining edge and cloud technology ensuring secure and real time data processing enabling total workflow automation and mixed language understanding. It recorded a revenue of approximately 18 million in FY25 and currently has an ARR of 25 million. It counts Tata Motors Canada Bank, HSBC, Angel Breakon among the top clients. It has dedicated team size of about 65 employees coming to our next startup Movely Ova operates across two dynamic business verticals. First it has video commerce marketplace dedicated to lifestyle products and second it has a SaaS offering Live2AI which provides interactive shoppable videos and live commerce solutions.
Live2AI has two core products, the shoppable social world and a social media publishing and reporting. Currently Live2AI is aching an impressive 2.4 million in terms of USD as its current ARR with 280 brands utilizing the platform and operating at an EBITDA of a positive status. It has notable enterprise clients which are industry leaders such as Henkel, L’ Oreal, Samsonite, Titan Group, Decathlon etc. With many more global brands in the pipeline. Now coming to our next portfolio which is Snap Hunt. Snap Hunt is a remote talent marketplace that matches employers with best talent across geographies. Snap Hunt is an innovative recruitment solution company.
They recently launched AgentZen AI as a comprehensive digital recruiter product alongside with their fully managed recruiting services for SMBs and startups. Snaphire which in 2022 in 2024 they saw a remarkable 1.5x growth in Quail customers driven by the removal of a premium plan and a new pricing strategy that enhances product led conversations. Revenue for January to December 2024 it reached USD 425,000 with the projection for 2025 set, an impressive 1 million USD. Currently they have 7.2 million job seekers and 10,000 employees on their platform, positioning them as a leader in the recruitment space. Coming to our other portfolio Pencil Pencil a Mumbai based startup that has been at the forefront of the creator economy since it established in 2007.
Pencil is dedicated to empowering writers by providing innovative tools that enables them to create enhance monetize their stories. Recently they launched AI Generated Audio supported by a grant from Google India which is now live. Additionally, Pensil has produced samples of age generated books in multiple languages including English, Marathi, Hindi and many more with impressive intellectual property monetization. They sold 38,713 units in Q4FY25 and reported a revenue of INR 81 lakhs during the set period, reflecting a 25% growth over previous quarter. Our next startups Star in Me and Innovative Learning as a service platform dedicated to driving organizational excellence for individuals of all genders.
Recently TSIM has set new clients including Oregon and achieved impressive gross revenue of INR 2.35 crores for FY25. The company has also enhanced its platform by introducing new features designed to elevate the coach partner experience and improve the clientele discovery process. Notably, TSIM was honored with a Gold award in the Startup of the Year category at the ET Human Capital Annual Awards 2025 reflecting its commitment to excellence in the industry. Kickstrap A unique discovery platform designed to support parents throughout their parenting journey from concepts to age 16. With the help of ZelPM, KSP has developed a machine learning platform that analyzes over 100 data points from its users.
The primary target audience consists of first time parents aged 25 to 34 who make up 75% of the platform’s traffic with 45% accessing its iOS. KSP has successfully monetized its content through brand partnership and subscription revenue and has been improved monetization thanks to long term brands collaboration that extended its reach into tire pro cities across the nation. Coming to our new startup Biom Biome is a venture studio, the business of investing and mentoring its startup. It recently raised 20 crores from various sources. Its startup investment includes Zoop Money, a white label learn platform for home buyers in partnership with real estate developers and financial institutions.
As you all know, zelpmoq typically engages with startup at the incorporation stage, pre seed funding stage or a pre revenue stage. Most of our startups have just begun generating revenue and are still in a cash burning phase. However, few of our startups such as Miho, Google and Pencil are performing well while others are still working to secure their next round of funding. Consequently, they are concentrating on improving revenue and maintaining a conservative cost structure. As stated earlier, this year, the startup ecosystem experiences significant challenges and we are focusing on scaling up wealth’s own products and services, including elder tech.
Our emphasis is on revenue generation within the corporate sectors, particularly in data science, artificial intelligence and machine learning. As we aim to develop our own in house products. We are committed to achieving EBITDA profitability as soon as possible, although it may take several quarters for this to materialize given the current market conditions affecting both startups. With this now, I request to open the floor for question and answers.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assemble. Participants who wish to ask a question may press Star and one. Now ladies and gentlemen, you may press Star and one to ask a question. The first question is from the line of Mehul from 40 cents.
Please go ahead.
Mehul
Thank you so much sir for the opportunity. I joined in a little bit, little late so I am just. I would like to know, and I’m new to the company, I would like to know the business model. Like I said, does Zelpmo provide the initial capital for startups or the ideas are incubated in zelpmov itself.
Srinivas Koora
Sandipal. So basically as far as Zelp mock is concerned, Zelpmark, we don’t invest as money into this companies unless and until we really see that some sort of a thing. But basically what we do is we build technology for those startups and at the same time what we do is we help them in terms of product ideation, mentorship and all the other corporate services. Right.
Mehul
Since you mentioned that you helped build technology now I. What I understand from the earlier commentary is that only a team of 50 people.
Srinivas Koora
Is that right? Yeah, about 50 people.
Mehul
So myself, my question is that because you know, I was hearing the commentary and there are about seven startups or seven mentors. So I.
Mehul
Are you saying that this team of 50 people is providing technology guidance to all these seven companies?
Srinivas Koora
No, no, no, no, no no no. See basically what happens is every year we used to partner with two or three Startups and each startup engagement is different. Maybe with few startups we had engagement of 2 years, 3 years, etc. So what happens is till the time your product is developed, you have done your beta, alpha, market test, etc, everything would be taken care by Zelp mock and again there would be an agreed management rate and agreed number of hours accordingly that would be translated into equity or accordingly that would be translating to the amount that the startup has to pay to help in case.
If you look at ZelPM, ZelPMox has a history of close to about nine years. So every year we have startups and initial agreement was for the two years or three years once they raised fund they, once they have grown up, they have, they have their own tech team and what happens is in case if they face any challenges at that time, we jump in and we try to help them.
Mehul
Right? So sir, over the period of last 9 years how many startups have been having worked, have you worked with?
Srinivas Koora
So basically we must have worked with close to about 16 to 17 startups out of which few startups have not worked. As you know that the success rate of startups is hardly about 10% to 12%. But still in case our case, if you look at it that few have already reached about series B level, few are at a series A level and most of the companies have already raised funds from either private equity players or family offices. Right?
Mehul
Which are those companies out of this listed on the presentation, which of these companies have got capital from private equity or the family office?
Srinivas Koora
So basically Mihop has raised funds from private equities and also some mark you investors and even Worley has raised funds from private equity and some market investors. Pencil has raised funds, Snap Hunt has raised funds.
Mehul
So when can we find the detail of the.
Srinivas Koora
Basically in case, if you can go through our deck, it has all like what they do etc. And even if you look at our annual report it carries like who are the investors in these companies now for example, as I discussed earlier in my opening remarks, Biome. Biome has recently closed close to our raise of about 20 crores again from friends and families.
Mehul
Okay, so how do you spell Biome? B. Okay. And sir. B. Yeah. Sir, is it possible to have a detailed discussion because you know this call is for other people as well. So is it possible to.
Srinivas Koora
You reach out, you reach out to our IR person Ravi, he will help you.
Mehul
And sir, where are you? Where is the management for the company based out of?
Srinivas Koora
We are based out of Hyderabad and Bangalore.
Mehul
Hyderabad and Bangalore. Okay. Okay sir, thank you so much. I’ll come back in a few.
operator
Thank you.
Srinivas Koora
Thanks. Thank you very much. Thank you.
operator
The next question is from the line of Rohan Choksi from RAS Capital. Please go ahead. Sir.
Rohan Choksi
Good evening and thank you for the opportunity to ask the question.
operator
Sorry to interrupt, sir. I would request you to please use your hand, sir.
Rohan Choksi
Hello? Yes. Am I audible?
operator
Yes, sir, you are. Thank you.
Rohan Choksi
Yeah, yeah, thank you for the. Okay. Okay, great. My question was with regards to the products that are built in house, what’s their useful life and are they patented and do you get annual maintenance service for them? The products.
Srinivas Koora
The products, whatever we are building right now at a very initial stage right now, none of the products, these are got patented and mostly these are into in the field of aiml, which can be used especially in the fintech industry, insurance, etc. Sandipan, you can add more in detail with respect to these products.
Rohan Choksi
Yeah, so essentially these are. You’re highlighting all sorts of ML code and all and making applications for mostly, as of now, three industries. We’re targeting real estate, BFSI and legal tech, where there’s a lot of documentation. These are document processing things which essentially tells if a document is of particular type, if there are certain errors that can be corrected, whatever was being done as a menial job before, as proof, correction or checking, and all that is being automated.
Sandipan Chattopadhyay
Right. Okay, so I have gone through your initial presentations and so it’s gone.
Srinivas Koora
Yeah. Jason, you can also include what we are doing in Elitech.
Jaison Jose
Okay. Yes, in the last. The last. Yes, please go on. Yes. So in the last year we’ve looked at an emerging theme and industry that’s moving rapidly with the pace of graying in India. So as we call it elder tech, or htec as we call it, is a focus area for us. It’s one of the only few additions that we’ve made in the last nine years of our journey. And our first SaaS offering in this space has now been launched. We are currently talking to multiple senior living operators in the country and it’s an end to end suite for operators in this space who could be either real estate companies that have entered the senior living space or senior living operators that independently operate.
So we’re looking at how tech can help them improve efficiencies of operations, streamline service offerings, as well as give best experience to their residents. It is one of the first products from that company, from that entity, and we hope to have recurring revenues coming from that product in the next couple of quarters. So we just about launched it and next quarter on we hope to bag. A couple of deals.
Rohan Choksi
Understood. Thank you for the explanation and I have been through your investor presentations and the con calls before but I thought I would still ask. So I wanted to get a bit more understanding on who uses the product among the corporates and you have mentioned on the industry but if you can go a bit deeper on the use case of these products from from the client’s point of view, like who will need these products on tomorrow, who will need zenfox help to scale if it’s a startup, corporate or a government.
Srinivas Koora
So in terms of corporates it can be used for legal companies and in case of bfsi it, it can be used in insurance sector, even in real estate sector it can be used. So we have built a couple of robust models which we are seeing that there are certain use cases in this particular industries especially.
Rohan Choksi
Understood sir. And are you able to give a bit more information on who your top 10 companies would be or which companies you are hiring in the next one year or so as your potential clients?
Sandipan Chattopadhyay
As I said, the sectors that we are looking at is legal and BFSI and real estate. So a large trust of legal process outsourcing companies already, you know, as our customer we are trying to go to more such people who need that. Just to give an example of a use case, for example, let’s say contract is being framed and it has a number of clauses. So today what happens is a paralegal person goes to those clauses and tries to determine if there are risk factors or something has been missed or something is pertinent to the domicile the contract is being framed on.
These sort of things have been automated. So what probably would have taken two, three days before from a paralegal perspective probably can be shrunk down to four, five minutes of inspection. Afterwards the paralegal is sort of triggered to say okay, this is the thing that’s missing. And it works in a kind of an age to the paralegal to make his job much, much more succinct. That’s the kind of use case. So anyone who’s in a similar industry and has such an overhead for the people who are working, it’s an applicable solution. In the same way it’s any forms that have been filled up, any paperwork that’s been done where there’s manual inspection that can be automated to a large extent and aided for the person doing it.
So that’s the broad industry now, each industry has its own lenses and all. That’s the reason we are sticking to this three verticals where we are putting specialized knowledge, but the core competent, competent competency of the text parsing and all that is more or less generic. You have to specifically train it for the particular field that you are trying to attract.
Rohan Choksi
Right, understood. So I just have one last question and you spoke about the profitability as soon as possible and I understand the industry itself is facing its challenges. But correct me if I’m wrong, I think you’ve gone from having 100 employees to 50 now. So maybe from the cost cutting point of view you might have, you might be over it. But from the revenue, from the growth point of view, like what’s the next step that you have to take to reach profitability or at least EBITDA positive.
Sandipan Chattopadhyay
Sorry, you can go ahead.
Srinivas Koora
Yeah, yeah. So as far as this part is concerned, maybe you are seeing that key number of employees were 100 or even at times 110,120x. You understand that earlier we have taken a couple of projects which are more towards helping government, etc. But we have seen that those transactions are not helping us to grow. And at the same time we were burning cash. That’s one of the key reason why you have seen that there is a drop in revenues and also there is a drop in expenditure.
operator
So does this answer your question?
Jaison Jose
Yes. Thank you so much. Thank you.
operator
Before we take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Abhishek Agrabal from James Quest. Please go ahead.
Abhishek Agrawal
Yeah, hi. Thank you for taking my question. My question is with respect to our business model and you know, we’ve been invested since past five years now and then I’ve seen company do several things and you know, close down a few and then we had so much of potential, we were doing so much of things together and you know, so many industries that we could have catered to and you know, we’re already in AI ML and all of these stuff and with so much of opportunities in AI, you know, so many companies doing and trying out things and you know, developing product and so what is our vision, what are we trying to do and what is not working for us that we’re not being able to scale our products and attract customers or get clients towards using our products as solutions.
Sandipan Chattopadhyay
So we were in the same field of AI ML and all, but our manifestation was mostly through the startup industry. That change of focus that we have done is what has been the main reason why we are right now starting Almost at an avenue share level for entering into the commercial space and corporates to get the business. So yes, we were in the same field but our focus was not towards making the products and doing services for corporates. That’s a change we have taken let’s say about four quarters back and now those things are happening currently.
We also started building our own products around that time. Because of the experience we had in the several startups and all we did, we could do it at a fast. Instead of the initial period that every company takes place for two, three years we have been able to go to market with some product offerings in one year. That is the transition that you are seeing and that was previously notified that there is a painful switch that we have to do on that part. At the same time, we have not been encouraging startups because of our own viability in terms of commercials and money factors.
But if you look at our track record in terms of the success of the startups, that has been quite significant. If we had enough part and we had gone that way, that would have been a different pathway. But there was a funding winter, there is a startup shakeout that’s happening and we thought it couldn’t not to go that way. Especially since we are listed entity. Sure.
Abhishek Agrawal
So just an extension to that then if you can just you know, in little bit of detail explain us what are we trying to do exactly as of now and what is the potential that we see with respect to revenues on profitability, you know, a one year, two year down the any roadmap that we have or you know, anything that we’re targeting in terms of revenues.
Sandipan Chattopadhyay
Yeah, just the previous question we did explain as to what we are doing from the product and all. If you have queries we can revisit that part once you’re there. But from a outlook of revenues and all the numbers that are being talked of, that forward looking part we really can’t get into at this point of time till the stabilization happens and we have a fresh outlook on that. What we have disclosed about the improvement. I get you.
Abhishek Agrawal
What I’m trying to understand is say for a product or two that we’re developing, what kind of customers can we get with respect to revenues? I mean what kind of revenue potential can that product per client, you know, per year have from, you know, from services or products that we have to.
Sandipan Chattopadhyay
Offer, it is not fixed because the number of customer, I mean the agents that we are replacing and always change from company to company. It’s better to go with the sector and think of what that sector can offer. As of now, the potential market size for each of the sectors of legal technology and all is pretty high. If you think of it that if we are looking at market potential it’s about in many ways that you can think of it as the mid tier employable people. About 6 to 7% of their cost is what can be the total market size for that, how much we are able to capture and all that we get clarity as we get the rollouts done.
Abhishek Agrawal
Okay, sure, sure. And anything else that we’re trying to do or develop or you know, get into in the future or with or anything that is on the drawing board. Drawing board. For us.
Sandipan Chattopadhyay
Mentioned previously, the elder tech piece, the first SAS offering for the LTECH care. That’s something that we are taking to market right now.
Abhishek Agrawal
Okay sir, thank you so much and all the best. Thank you. Thank you.
Srinivas Koora
Thank you.
operator
A reminder to all the participants that you may press Star and one to ask a question. The next follow up question is from the line of Mehul from 40 cents please give us up.
Mehul
Thank you so much for the follow up Sir. I’m a bit confused about the company’s operation. So while I my earlier questions I got some insights about the ventures which you are which you have like me staring etc and then in the following questions I heard about that you are developing some products which are catering to real estate, legal tech and bfsi. So I the question is that these products which are you mentioned about to some extent are these products driven by the wealth mock team itself or these are also with some third party, you know are these startups which you are encouraging or supporting?
Sandipan Chattopadhyay
No. So what you heard was the previous portfolios that we have built and our interaction with them in terms of day to day operations or development is not existing as of now. This is our history. What you’re hearing is the work that we are doing and this is not through any startups or ventures that we have gone. It is independent development that we are happening through that brand of Zentma.
Mehul
Okay, so these are. These are independent ventures, Real estate, legal tech and bfsi.
Sandipan Chattopadhyay
Correct. These are in our product lines. This is Zentmark product lines. Yes.
Mehul
So when you. When you say the other others are mystery. So you are not doing any more work with startups, is that correct understanding or it’s completely wrong?
Sandipan Chattopadhyay
Because they are matured, we hold equity in them and we have exposure to them. So whenever the wealth gain happens very tax to our holdings. But also there are time to time when there is an innovation needed. We have contracts from them. But there is no regular revenue, income flow or cost incurred on behalf of those portfolio companies.
Mehul
Oh, there’s no, not a single penny which you are spending on these startups now anymore.
Sandipan Chattopadhyay
Not anymore. See, we have done the investment before. We are now looking at shipping the benefits and that strategy that we had previously through which we have done this book building, that is not being pursued for the moment.
Mehul
Right. That’s where my next. Thank you sir. One another question about the startup is that in the slides which we have received as an investor presentation there are names of the people who are mentioned as team, you know, like Tapan Burman and Venkat J and Mahua Mukherjee. So all these guys are leading these startups.
Sandipan Chattopadhyay
They are the entrepreneurs. They are the entrepreneurs. They are the key guys. We hold equity in those companies run by them.
Mehul
Okay. Okay. And so my next question is on one of the slide which talks about existing ventures and prospective engagements. So prospective engagements, I can see you mentioned that that is happening in the South African continent. African continent. So can you please elaborate on what kind of prospective engagements are we doing for the. In the, in that, in that area of the geography. I mean that geography.
Sandipan Chattopadhyay
Srini, you want to take that.
Srinivas Koora
That was done earlier, not the current one because that was one of the services that rendered earlier.
Mehul
So then there is nothing right now which we are doing in terms of South Africa?
Srinivas Koora
No, nothing. We are doing some work in us and some bits and pieces, but mainly in us we are doing some work and one of the portfolio is there from us which is a catalyst and one portfolio is there which is from Singapore which is Snap and I pointed.
Mehul
In Singapore and it is the one in Psych.
Sandipan Chattopadhyay
Catalyst.
Mehul
Catalyst.
Srinivas Koora
Yeah.
Sandipan Chattopadhyay
Yes.
Mehul
Okay. And sir, anything in Europe?
Srinivas Koora
No, we don’t have any services which.
Sandipan Chattopadhyay
We have done but at the moment nothing now.
Mehul
Nothing at the moment. This MFME major in European market. Can you elaborate a little bit on that?
Srinivas Koora
So basically these are the services which we have render earlier, helping them in terms of R D, building a product, etc. Right.
Mehul
With the kind of, you know, as you mentioned that there’s a shakeup in the startup world. So what kind of hiring plan do you have for the next two years?
Sandipan Chattopadhyay
We have not done any hiring plans because as of now we are adequately manned. And once the products and all have kind of show the expansions and all, at that point we’ll restuff. Okay.
Mehul
Okay, thank you so much. Thank you.
operator
The next question is from the line of Raj from AJAV Partners. Please go ahead.
Raj
Hello, Am I audible yes sir. You. Just mentioned on the call that you. Are you, you are doing a change of business model. I wanted to understand what exactly is it? Is it like you are stopping to. Invest into startup companies and developing your. Own tech and going ahead? Is it so.
Sandipan Chattopadhyay
That’S correct.
Srinivas Koora
Yeah.
Sandipan Chattopadhyay
Two, three things you have done see.
Srinivas Koora
Yeah. So basically we are focusing more on developing in house products and rendering services to corporates as services. But yes, as far as the startups are concerned in case if there are any good lucrative startups reaching out to us in case if there is any potential in it, we are happy to look at those startups. But yes, earlier mainly was focused on startups, now we are looking at startups products and services both.
Raj
So the products which you are developing on your own, how much investment have. You made into them?
Srinivas Koora
So basically whatever burn that we are doing for last one year maybe you can assume that majority of it is going into those products. We are like talking to a few clients yet to come out with some green shoots, etc. But sounds very positive and maybe in next one or two quarters you will see some something on that side.
Raj
Okay, sure.
Srinivas Koora
Thank you. Thank you.
operator
The next follow up question is from the line of Rohan Chokshi from RAS Capital. Please go ahead.
Rohan Choksi
Yeah, thank you for the chance to ask again. So can I just understand.
operator
I would request you to please use your handset.
Rohan Choksi
Yes, I am on the handset. Hopefully I’m audible.
operator
Yes sir, please speak a little loud.
Sandipan Chattopadhyay
Muffled a bit but it’s okay, go ahead.
Rohan Choksi
Okay, yeah, I’ll speak louder. Sir, my question was with regard to the startups investment, the startups that you have in the Portsmouth, would you have any exit strategy at this point or you monitor on a year by year, a quarter by quarter.
Sandipan Chattopadhyay
We do it on an opportunity basis, not quarter by quarter or year by year. But as you heard our first exit from New Hope did happen and we did a partial sale to the effect over 10 crores.
Rohan Choksi
Got it sir, I’ll. I just wanted to understand the revenue split between domestic and international as well. You know between quarter three and quarter four there’s a huge 20% change in the international. Is that what affected the revenue? And is the international market going to drive the revenue going forward or am I reading it correct?
Sandipan Chattopadhyay
See the thing is many of These contracts are POCs we are doing, they do have an international appeal though. We are doing the PoCs in India. So how it will go, we are not fully clear on where the uptake will be higher. But I Mean for example, where the billing happens from Mexico international, but the execution could be in India or vice versa. Right. So that I think is that the sectors are what is going focus. For example, if there’s a legal process outsourcing company and the parent company is in uk, let’s say the revenue will work in uk, but actually the solution is being done for their center in India.
So it’s tough to say from the product perspective. Unlike startups where it was very clearly demarketed on domiciles, this is more of an accounting part of it. But I don’t think that should be a distinguishing factor.
Rohan Choksi
Understood. Now that the focus is going to be on the products that you need that have in house development, could you expand a bit on the UXP of them or what makes them different? Like the reasons why the client would choose your products going forward?
Sandipan Chattopadhyay
Obviously it’s because it serves the problems that they’re facing. And currently whatever tools and processes they have are not coming up to either the accuracy level of it or the speed of it. Right. That’s essentially what is driving and that’s the reason why a lot of the development has gone and we have focused on sectors, we have gained knowledge specific to that sector. And as with any AIML or you know, data science oriented project, the key is apart from the technology execution which is more understanding, there’s a minimum standard that you have to comply with.
The whole part of it is how well you’re able to train the data and how well you’re able to handle exceptions. And the amount of effort and skill you put into it is what differentiates you and makes you marketable. So what is our calling card on this part is the accuracy and the effectiveness in being able to assist with the focus. So there is a generic English language parser and there is a slightly different training that you need to give to make the specific English which is used in legal documents and that changes slightly again when you go to other sectors.
So that tweaking and making sure that those things are done properly and it’s giving accuracy is what the skill and the USP of what we are doing.
Rohan Choksi
Understood sir. Thank you so much. Thank you.
operator
Ladies and gentlemen, you may press Star and one to ask a question. The next question is from the line of Mukesh Patel who is an individual investor. Please go ahead.
Mukesh Patel
Recently it has been noticed that Franklin Templeton Mutual Fund which was holding 63,000 shares of our company since last three years has sold its entire stake last month. Is it not a very disturbing sign for investors.
Srinivas Koora
Sir, as far as shareholder holdings take when they buy, when they sold it is nothing is within the company or within this thing. It is their individual decision and individual choice whenever they want to buy and whenever they want want to sell it.
Mukesh Patel
That is true. But it makes a real sense to know that a good name like Franklin Temple Red Co. It shows very, very. It sends very disturbing science to make it.
Sandipan Chattopadhyay
I think sir, that is something that’s prerogative the extreme set. But what has to be considered as two factors. One is it was not a significant holding that they had. It was not even in one decimal place. I mean in single decimal places. The second aspect is they had held for three years and they have certain policies in certain market sizes that they have to exit. That I don’t see as a warning sign given the time period they have been in. It was not like a hasty retreat immediately after investing which would have been worrying.
And it is something that was not moving the needle too much for us because it was more of a check that they had put in in my opinion given the size of their fund and the amount they invested. So I don’t think I’ll read too much into it.
Mukesh Patel
Okay, thank you very much sir. Thank you.
operator
Ladies and gentlemen, you may press Star and one to ask a question. A reminder to all the participants that you may press Star and one to ask a question. The next follow up question is from the line of Mehul from 40 cents. Please go ahead sir.
Mehul
Thank you so much for the follow up opportunity. Sir, how much of how much percentage of equity are we holding in Neha.
Srinivas Koora
Now after exiting 2.2 close to 2.5% still will be having about 6.4 to 6.5% in the company.
Mehul
Okay. And the rest of the equity is held by.
Srinivas Koora
So there are other investors. Right.
Sandipan Chattopadhyay
The entrepreneurs hold some part. There are investors who have been there from before like Axel Idea Springs who are there and there have been new investors who have come who actually have. For example, our sale was partially due of the existing investors who wanted to not liquidate more onto that part. So our thing was bought by two existing investors. So the investor pool has more or less remained constant with addition of few people last the funding round and then some secondary tranches that happen which we took participate in.
Mehul
Which is a private equity firm which is holding near.
Sandipan Chattopadhyay
I think that’s something that you can look up at new hopes. But I’m not sure if legally it is allowed.
Srinivas Koora
Partners.
Sandipan Chattopadhyay
I see partner and idea strings both are A C C E L. Okay. Idea Springs idea springs here. Right.
Mehul
And sir, how much, how much percentage we have sold so far for new.
Sandipan Chattopadhyay
He just told 2.5%.
Mehul
What price point did you sell?
Srinivas Koora
We have exited at a valuation of about 402 crores.
Mehul
202 crores for the entire enterprise valuation.
Sandipan Chattopadhyay
Enterprise valuation.
Mehul
Sir, one last question sir. Since now we have moved to more of a no technology company who’s a cto.
Sandipan Chattopadhyay
I am holding that post de facto because I was a technical person anyway.
Mehul
And sir, yourself Mr. Sandipan.
Srinivas Koora
Right. And we also have other team members like Naushad Valley etc and who have been working with Sandipan for last 1015 years.
Jaison Jose
Right.
Mehul
So very helpful. Thank you so much And I will get in touch with your IR for a further discussion. Thank you so much. Thank you.
operator
Ladies and gentlemen, you may press Star and one to ask a question. A reminder to all the participants that you may press Star and one to ask a question. As there are no further questions from the participants I would now like to hand the conference over to the management for closing comments.
Srinivas Koora
Thank you. Thank you everyone for joining us. For today’s call please do write to us in case if you have any further follow up queries. In case if anybody wants to have one to one call please reach out to Ravi Udesi who will set up a call and and we can discuss further in detail. Thank you very much and take care. Thank you.
Sandipan Chattopadhyay
Thank you. Thank you.
operator
On behalf of Zelmog Design and Tech Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.