Zaggle Prepaid Ocean Services Ltd (NSE: ZAGGLE) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Rohan Mandora — Moderator
Raj P Narayanam — Executive Chairman
Avinash Godkhindi — Chief Executive Officer and Managing Director
Raj P Narayanam — Executive Chairman
Raj P Narayanam — Executive Chairman
Aditya Kumar GV — Chief Financial Officer
Analysts:
Unidentified Participant
Parikshit Kabra — Analyst
Maitri Shah — Analyst
Rajit Aggarwal — Analyst
Ankush Agrawal — Analyst
Ashish Soni — Analyst
Manishankar Mandal — Analyst
Akshay Kaila — Analyst
Presentation:
operator
Conference is now being recorded. It. It. It. It. Ladies and gentlemen, good day and welcome to this Bagel Prepaid Ocean Services Limited Q1 FY26 Earnings Conference Call hosted by Aquarius Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on attachment form. Please note that this conference is being recorded. Kindly note that this conference call will contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I will hand the conference over to Mr. Rohan Vandora from Equidius Securities. Thank you. And over to you sir.
Rohan Mandora — Moderator
Thanks Muskan. Good evening everyone. Thank you for joining the call. I extend a warm welcome to all of you on behalf of iCurus. I welcome the management of Zaggle Prepaid Ocean Services Limited to give a brief update on 1Q FY26 results and address investor queries. We have with us from the management Dr. Raj Narayanam, founder and executive chairman Mr. Avinash Gorkindi and Mr. Aditya Kumar, CFO. We will now begin with the brief opening remarks from the management post which we’ll have Q and A. Thank you. And over to you sir.
Raj P Narayanam — Executive Chairman
Thank you so much. Chairohan. Good evening to everyone. Thank you for joining the earnings call for Bridal Prepaid Ocean Services Limited for the first quarter of fiscal year 2026. On behalf of the company I extend a very warm welcome to all of you. On this call we are joined by Mr. Avinash Gokindi, Managing Director and CEO Mr. Avita Kumar, our CFO and SGA our Investor Relation advisors. The financial results, press release and investor presentations are uploaded on the stock exchanges and on the company website. I hope everybody has had a chance to look at it.
Now I would like to take you through the braggle business update talking about our quarterly performance comparing Q1FY26 to Q1FY25. The company reported a healthy growth in revenues of 331 crores which is our. First. Best of our quarter of Q1 at around and the growth has been around 31%. Our adjusted EBITDA increased to INR 43 crores growing at around 28%. The PAT surged to INR 26 crore growing significantly at around 55%. We are off to a promising start in 2026 as we continue to drive sustainable growth and strong returns through relentless product innovation, strategic collaborations and the momentum from our recent and proposed acquisition. Now I would like to take you through our investments and acquisitions. I want to give you a further overview of what we have done over the last six months or maybe a little bit more than six months.
We have pursued the investment or acquisition of six companies, successfully completing two and are progressing with four more. Once finalized, this would add roughly about. 600 to 700 people to our current workforce and this would actually in fact call for a change the way we have run the business. We need to evolve our structure to suit the business needs now that the total workforce probably would be more than double of what we are today. To align with this growth, some of the changes we aim to bring in are as follows. We plan to consolidate the technology and engineering teams across this company and create technology as a central function. We plan to unify the finance function under our group CFO so that finances of all the companies can be centralized or centralized to an extent.
We plan on centralizing the HR function enabling best practices to enhance efficiency, effectiveness and cross utilization of services. With these changes we envisage savings of around 25 crores over the next one year and those savings in my opinion should only increase as efficiently speaking as you will all understand that the acquisitions are easy but integrations are tough and there is where a lot of management bandwidth and effort would go in ensuring that the integration is of highest class. Our existing acquisition and investments are performing extremely well. Mobileware has generated a profit before tax of INR 2 crores in Q1.26 surpassing its entire FY25 PBT on tax and marquee customers.
Signed including Bosch for Employee Wellness, Financial Wellness and Karma Life for tax Violence for their gig workers. Leveraging the ZAGL Unified Gig Workers Savings platform, we are expecting a further boost in and increase in the number of filings tax filings on account of extension of the deadline. Our proposed acquisition of Ikea Soft will strengthen our merchant servicing and payment processing along with dice, which I last time gave a very detailed explanation about why we are going ahead and acquiring dice, which is an enhanced suite of STEM management and AI capabilities. It’s a well classified. Our proposed acquisition of Green Edge, meanwhile would enhance our offering in loyalty and rewards space which will give a meaningful boost to our existing platform.
Our most interesting acquisition of rio.money marks a strategic entry into the consumer credit card segment, thereby allowing us to broaden our financial offerings to a much wider captive customer base of flagis. This move not only diversifies our portfolio but also leverages our strength in the UPI ecosystem, enabling seamless credit solutions for users. We continue to actively seek strategic MMA opportunities in the existing domains across both domestic and international markets, with the US and MENA regions being the key priority markets overseas. Building on the global strength of our existing acquisitions, we plan to further reinforce market entry, navigate regional dynamics effectively, and leverage well established partnerships through additional targeted acquisitions.
We are also on the verge of closing one more which is pretty decent. Fingers crossed. If we are able to do that that would be great. But again this isn’t coupled with deliver slips. Always we would want to be we would want to under promise and over. Deliver. But hoping for the best on that acquisition. I would like to give you the Industry and Zaggle Product Update. Take this opportunity to highlight other product developments which have happened. As said by Rick Smith of Google, the greatest breakthroughs won’t come from AI alone, but from those who learn to harness it. Keeping this in mind, I would like to highlight some of the initiatives which we are incorporating in Ravel on sales automation side for our flagship conversational AI platform for Zyntel, which enhances the multichannel customer engagement on customers onboard. We also want to launch our multilingual conversational AI tool in the upcoming months, maybe about three to four months when it should be fully ready.
We have launched an AI powered bill purchasing automation tool which is already deployed which has led to about 80% plus reduction in overall. We are also in the pilot stage of our AI driven claim validation and approval workflow, utilizing AI to as much as high extent as possible as we move forward with other integrating AI tools across our organization. Our priority is to chase high level it’s not to chase high level fashionable trends, but to delve deeply into specific enterprise challenges faced by our customers. With this I would also want to give a guidance that we remain extremely bullish on our growth trajectory driven by strong fundamentals strategic investments and expanding the global footprint.
With the most pipeline of opportunities and a clear execution roadmap, we are confident in our ability to deliver sustained value and capture new growth revenues. While I am tempted to give you a guidance which is probably higher than what we have earlier stated of 35 to 40%, but I would wait till Q2 to be able to give you especially keeping in mind the ongoing geopolitical uncertainties and macroeconomic volatility, but we are fairly, fairly confident that we should be able to up our guidance from here which was about 35 to 40%. Now with this I would hand over to our CEO, Mr.
Avinash Gop Singh.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Thank you Dr. Raj for your remarks. As mentioned by Dr. Raj, the start of FY26 has truly been a good one for ZAGL. The momentum we have built is not just encouraging, it’s indicative of the scalable, resilient and intervening platform we have created. ZAGL now serves over 3,500 customers across a wide spectrum of industries and sectors. Even more engaging is the fact that we continue to maintain a churn rate below 1.5%, a clear reflection of the trust our clients place in us and the reliable ongoing value our platform delivers. By leveraging AI at the core of our product strategy, we are unlocking new levels of scale and efficiency.
Our AI led approach positions us to stay well ahead of the curve, allowing us not just to respond to market trends but to help shape things. Today we are proud to report that we have around 3.4 million users using the ZYGL cards and software. During this quarter ZYGL platform fee contributed to about 10 crores, program fees contributed to about 145 crores and Propel points contributed to about 176 crores. During this period we also signed several market clients including Hindustan Pencil, Apollo Health, Moengage, Nozrance, dtdc, CKDLA and Tear in True Collar to provide a brief overview of one of our clients.
They were managing the Pan India Incentive plan involving over 60,000 retailers. They faced significant challenges in tracking individual performance and the dispersion of rewards which ultimately of retailers leading to a drop in the market share itself. We addressed these issues by deploying the proper platform which streamlined the revention process and automated the incentivization plan offering more than 125 options for redemption. For another one of our clients we were managing all non capex purchases including services related purchasing in an entirely manual manner. This led to further issues on invoice reconciliation thereby increasing cost of processing. The client also faced the challenge of maintaining separate systems for travel and expense which further added to the reconciliation rules.
We addressed all these issues by deploying the Save and Zoya platforms which gave them a unified platform across not only managing all their non capex and service purchases but also gave them a complete visibility on their travel and other expenses in a seamless manner. As we move forward to our platform based strategy we anticipate rapid expansion supported by a robust influx of new clients and the ongoing success of our cross selling efforts. In Q1 26 we built on our cross selling momentum with successes on large clients large number of clients including White Oak Capital, dollarcram, Apollo Health and Manipal truetest.
I’d like to take this opportunity to elaborate a little further by giving a couple of examples. MyPal TrueTest is an existing customer for the sales solution. We recognized the potential for further collaboration and successfully plugged in our Drone Solution branch Recurring Operating monthly expensive solution for the diagnostic and pathology centers to streamline the petty cash expenses by automating the process of budgeting, usage and reconciliation. Similarly, wipo Capital has been an existing customer for our Sage Solutions. We identified an opportunity to strengthen our partnership with them by implementing our Zoya solution to drive greater efficiency in the procurement processes and overall vendor payouts.
Next, I would like to share some strategic alliances and collaborations that are enhancing our market presence. We are entering into channel partnership agreement with Grant Bottom and this partnership Grant Thoughtam will promote and offer our spend management solutions to an extensive network of corporate and enterprise clients and grant fortune. Leveraging BT’s strong market presence and trusted relationships, this collaboration significantly broadens our reach by granting us access to a vast and fresh pool of potential customers. We also further strengthened our relationship with MasterCard by signing a seven year customer business agreement for MasterCard Premium Foreign Currency Co branded Prepaid cards which offers both launch and spend link incentives to us.
Building on the capabilities of our innovative employee benefit solutions, the Smart employee purchase program smart E2P we have expanded our ecosystem by onboarding Tata Capital as a leading partner and one assist as an insurance partner. Lastly, I’m very proud and humbled to share with you that DRAGL was awarded the title of the FinTech Brand of the Year at the 5th edition of the BusinessWeek Business World FinTech Awards 2025. Additionally, we were awarded the Great Indian B2B FinTech Band at the 3rd edition of the Great Indian Corporate Communication Leaders Summit and Awards 2025 at Transformers and we also received the pioneering FinTech Innovation in Spend Management Award at the EP Excellence Telangana 2025.
Further underscoring our commitment to industry. I’ll now hand over to our CFO Aditya to take you through the financial updates. Thank you.
Aditya Kumar GV — Chief Financial Officer
Thank you Avinash. I’m pleased to share that K Ratings has assigned Zagyl a credit rating of a table for availing credit facilities from banks. This rating underscores our strong financial discipline and shuns up our well established business model. In Q1FY26 we delivered robust revenue growth of 31.4% virus reaching to 331 crore. All of our three revenue streams contributed to this performance with the propelled platform surging 50.6% on Weibo Y basis and SaaS fee increasing 19.8% on Vivo Y. Our adjusted EBITDA rose to 27.9% year on year reaching to 33 crore this quarter versus 26 crore in Q1 last year reflecting strong operational leverage.
As Dr. Raj and Abhinash highlighted, product development and AI remain strategic priorities for Dragil and we continue to invest heavily in this area. Consequently, our intangible asset space have been expanding. As a result, depreciation and amortization expenses for the quarter stood at 7 crore compared to 2 crore in Q1FY25. Our PAT increased to INR 26 crore from INR 17 crores in Q1FY25 with 54.8%. Yorby growth on cash pad which includes net profit along with depreciation and ease of expenses saw an 57.6% increase on RHY basis totaling to 35 crore. Furthermore, our PAC rose by 54.8% from the previous year reaching to INR 26 crore.
With that I would like to conclude my update and we are happy to open the floor for questions. Thank you.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question by press Star in one on the Touchstone telephone. If you wish to remove yourself from question Q you may Press Star in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Parishit Kabra from PK Day. Please go ahead.
Parikshit Kabra — Analyst
Hi, thank you for the opportunity. My question was regarding. The first question is regarding the program fees. The revenue has increased by about 15%. I think last call we had the guidance was that we will be growing this by 30% from this quarter going forward and it was wouldn’t be backloaded. Any commentary on that?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Hi Parikshit. Thank you for your question. So if you look at it, the overall guidance for growth for the year is 35 to 40% and we are staying true to that and likely to increase that in the next quarter depending on how things progress.
Q1 traditionally has been a slow quarter for us because of the seasonality in the business. Also if you look at how we have tried to focus more on the PAC and PAC growth and the incentives. If you look at the incentives growth incentives as a percentage of the program, both these line items correspond one to one to each other. That is 65, 66% this quarter versus 71% last year. So there’s efficiency that is being built into the business, not just focusing on growth. That has been our mantra for this quarter and this year.
Parikshit Kabra — Analyst
Then let me just ask this way, Avinash.
Should we assume that program fees this year will be at 15% growth? I know that you’re saying that you’ve given a guidance of 35% at a company level, but at a program fees level, what is the guidance here for
Avinash Godkhindi — Chief Executive Officer and Managing Director
overall for the year, the program fees guidance would also be in the range of 35 to 40%. Correction. It’s just the first quarter that it has been a little tempered. This is seasonality as well as the fact that some of the travel got impacted because of the geopolitical situation through the quarter and the first quarter generally is a little tippet.
But we’re seeing already spend pick up reasonably well for us. And this was a little bit across the industry as well.
Parikshit Kabra — Analyst
Got it. Perfect. Thank you so much. The second question was on other expenses. We have seen a sharp decline in other expenses. Any commentary around that, Avinash?
Avinash Godkhindi — Chief Executive Officer and Managing Director
As I mentioned, Parishit, we are focusing on efficiency, trying to increase our margins and profitability and other expenses reduction is a reflection in that we hopefully continue to work behind the scenes on this and we’ll try and deliver even better results in the coming quarters.
Parikshit Kabra — Analyst
Perfect. Thank you so much. I’ll join by the queue.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Maitri from Sophia Capital. Please go ahead.
Maitri Shah — Analyst
Hello, good evening. Am I audible?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Yes, yes, you are audible.
Maitri Shah — Analyst
Yeah. Firstly, congratulations on the result. Just two, three questions I have. Firstly, on the growth guidance guided for 35 to 30 on the standalone basis, what sort of incremental growth do we see happening from our inorganic acquisitions for this year? Could you quantify revenue for that?
Avinash Godkhindi — Chief Executive Officer and Managing Director
It’s a little early for us because some of these acquisitions are still getting closed, while we Hope to close one or two by end of September 30th. But you would appreciate that sometimes these processes take a little while longer. So a little hard for us to quantify that and say. But suffice to say, as we mentioned, the mobileware performance. Mobileware is not an acquisition but an investment. But there we have seen fabulous results already. 17 crores of revenue against just first quarter, against a full year, 33 crores for the last full year. And you know, the PAT also has exceeded the last year’s full year number just in one quarter.
So we hope to deliver great results with our other investments and acquisitions as well.
Maitri Shah — Analyst
Okay, my second question is. We mentioned in the last quarter that we’ll be increasing our expo margin 100 basis points every year for the next three years incrementally. Do we still stand at that guidance?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Yes, we are working towards that. That’s what the guidance is.
Maitri Shah — Analyst
And could you please give us some drivers for this growth happening in our EBITDA margin?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Efficiency, operating leverage. As we mentioned about the other expenses, reduction in incentive costs. This business is a tech first business. And with AI coming in in a big way and we leveraging it, we see a lot of exponential efficiencies kicking in. It’s truly amazing what AI can actually do if you strip out the froth. There is a lot of value to be extracted using AI and AI tools.
Maitri Shah — Analyst
And any guidance on what the incentive cost will be compared to the program fees? Are we targeting any percentage over there for the next two, three years? Currently, I assume it’s 65%, is that correct?
Avinash Godkhindi — Chief Executive Officer and Managing Director
At steady state, we would be somewhere in the range of 50 to 60% depending on the nature of business. Right. That is that these businesses, Zoya would be on the higher side. Other businesses would be on the lower side. But that is where these numbers should land in the next three years.
Maitri Shah — Analyst
Okay, and just last question. So sorry, just the ESOP cost For next year, 527, if you could guide on that.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Little too early because we are making these acquisitions and there could be some SOP costs that come in as part of those acquisition structures as well. But a little too early for us to be able to guide for the next year in terms of the support.
Maitri Shah — Analyst
Hello. We are guiding for about two to three acquisitions for this year, Is that correct? Right.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Already we have spoken of the acquisitions that we have announced and we are doing. There could be one more large acquisition that we will do this year which we’ll announce in due course.
Maitri Shah — Analyst
That is it. To my side. Thank you. All the best.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. The next question is from the line of Dajit Agarwal from Nilgiri Investment Managers. Please go ahead.
Rajit Aggarwal — Analyst
Good evening, sir. And congratulations on a good set of results. I have some thank you to three questions, if you may please. One is on the collaboration that we do with the likes of Grandfather and Kotak Bank. So any customer onboarded through these collaborations, the margins for that customer would be a little lower than what you would have achieved as a direct. If we had approached the customer direct. Is that understanding correct?
Avinash Godkhindi — Chief Executive Officer and Managing Director
See, when we get a Customer from a partner bank. Banks are not allowed to make money on non banking services like software sales. So basically it’s an introduction done by the bank to us and we then convert the customer. The bank’s expectation is that the service quality is very high and the experience is great. But banks don’t make money on that. In the case of gt they, they bundle GT and company like gt they typically bundle other services that they’re able to offer like implementation services as a part of the contract. And that is something that they would charge the customer directly.
So our margins are by and large, you know, the same.
Rajit Aggarwal — Analyst
So GTA is not deriving any benefit from us. I mean, is that correct?
Avinash Godkhindi — Chief Executive Officer and Managing Director
So let me clarify, right, so there’s the sale of the software services of the SaaS business, right? Which is our income and then GP is able to monetize on the implementation services that they are able to bundle.
Rajit Aggarwal — Analyst
All right, okay, okay, understood sir. Second question is on the global footprint that was mentioned during the initial part of the call, can you throw some more light on how we are trying to achieve that? And a related observation is that we did invest in some funds. So is that part of that strategy and do we plan to invest more amount in those funds or any other funds?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Yes. So see global footprint, we want to be very calibrated and very wise. We try to be as wise as we can as to how we enter into those markets with maximum impact, with minimum investment. So keeping that in mind, one of course is a strategy where we take our solution to markets where there’s greater profit pools like the midweek and willingness to pay for SaaS software, although it’s increased a lot in India today. But markets like the US and Middle east, that is higher of course. Some of the markets are very dynamic. Things are changing on a very frequent basis.
So in those markets we tend to. Also do a little bit of wait and watch. The other strategy is to make small ticket investments through VC funds. We go ahead and deploy this capital and early stage tax companies in markets like the States. That gives us tremendous insight as to how the market responds. We get direct access to the founders and their thought process, potential partnerships, some of them potential acquisition opportunities depending on how those companies are performing and how they fit into our overall scheme of things. So basically we are getting exposures, an understanding of what’s happening in those markets without actually being present in those markets physically and spending a lot of money in setting up a branch office or you know, office in these markets.
Rajit Aggarwal — Analyst
Right. So have we earmarked a Certain amount. That we will invest through these or. Is this something which we case by case basis.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Relatively small amounts?
Rajit Aggarwal — Analyst
Okay, okay, okay. And the last question is on the acquisition of Dice. Now there was a reference to DICE in the initial part where it was said that, you know, there was a detailed discussion on it and an explanation on why and how the DICE acquisition made a lot of sense for us. So was this part of the Q4 call or was there a separate call? I seem to have missed that
Avinash Godkhindi — Chief Executive Officer and Managing Director
Q4 call.
Rajit Aggarwal — Analyst
Okay, fair enough. So I guess I’ll revisit the transcript. But coming to the consideration that is paid for Dice, I don’t think that was discussed in Q4 call because it happened in June.
I think so. I mean though we understand you would have some basis for it, but can you objectively take us through some bit of rationale on the amount that we paid for it? Because it looks like a very small company and it’s not, I think five or six years old company only.
Avinash Godkhindi — Chief Executive Officer and Managing Director
It’s a great company in terms of the capabilities that they have built in terms of AI and technology, especially in the spend management space. This year revenue should be in the range of 20 to 22 crores. Right? So it’s a fixed time multiple there or thereabouts to the forward looking revenues. Also if you look at it, the great opportunity that we have on table is to bundle our payment capabilities to that 2022 core software sales per day. Because the revenues that they generate is pure software SaaS revenue. Right. And just to give you a sense, last year our SaaS revenues was about 35 crores.
So now you can see the opportunity that we have when we bundle our payment capabilities and offer it to their customers. There’s a lot of value that can be extracted.
Rajit Aggarwal — Analyst
Right. Understood sir. Thanks a lot for your time and wish you good luck.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. A reminder to all the participants you have pressed star and one to ask question. The next question is from the line of Aditya Kosh from Investment Insights Private Limited. Please go ahead.
Unidentified Participant
Am I audible?
operator
Yes sir.
Unidentified Participant
Many of my question are already covered. But I Want to ask one question. Was expected to accelerate international operation plan for FY26. Can you provide an update on specific market you are entering and expected revenue contribution terms timeline?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Yeah. So the market that we are looking at is mena. So that’s the Middle east region largely and the US US at the right time. And these are the times that we are looking to take the solution. Little early for us to talk of revenue contributions there but that’s what we are looking at in terms of target markets.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Ankush Azarwal from Search Capital. Please go ahead.
Ankush Agrawal — Analyst
Yeah, hi. Thank you for taking my question. So just one clarification on this dice. So like as you mentioned that DICE currently monetizes only through SAS fee and not the payments flow. So would it be possible for you to give a sense of what kind of say payments transaction would be flowing through dice’s platform currently and the kind of take rate would it be similar to what we are generating on our platform from in terms of the payments that are going to our platform?
Avinash Godkhindi — Chief Executive Officer and Managing Director
The take rates would be similar. Right? Because the payment instruments and the use cases are on the travel and expense side and the procure to pay side very similar. The overall volumes of spend would be hard to quantify because they are happening in third party platforms there. Right. Third party instruments, payment instruments or any of the rtgs. So that, but it’s, it’s very significant is what I can tell you.
Ankush Agrawal — Analyst
Okay. And how fast would it be possible for you to get, get those payments flow to our platform? Would it be immediate or like it would be like a couple of quarters down the line.
Avinash Godkhindi — Chief Executive Officer and Managing Director
It would take some time.
Ankush Agrawal — Analyst
That was it. Thank you.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. A reminder to all the participants, you may press tab and one to ask questions. The next question is from the line of Ashish Soni from Family Office. Please go ahead.
Ashish Soni — Analyst
We keep on hearing about agency in your morning primary software and service model. So in that what threats and opportunity we are seeing compared because we are from Microsoft chief also about this thing. So what are the threats and what are the important things you’re adopting for your business?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Our objective with agentic AI or any of these capabilities is how can we bring more efficiency and value to our customers. The use cases that some of the larger organizations like Microsoft and others are building are in a very different way, in a different space. Our usage is to create very custom capabilities for travel and expense, for rewards, for source to settle or procure to pay for our Brom solution. And those capabilities are what ultimately our customer really doesn’t care whether a lot of AI is used or AI is not used. They want their reconciliation, their processes to be extremely efficient and for them to save time and money and have a reduced manpower in doing these mundane tasks.
So that’s what we are working to deliver to our customers.
Ashish Soni — Analyst
In terms of pricing, we recently saw the news that JIO is coming with a very deceptive pricing for Tax filing which is a small part of your position business. Right. So if such sort of sets, how are you going to handle that?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Yeah, I think again there in taxpayer are use case has never been to approach it from a pure mass market perspective. What we offer in tax planner is very sophisticated services for people who require consulting on income that comes to them through say foreign income or other sources which are a little bit more complex. And that’s the value that we bring because a lot of people have diversified their income, young people, whether it’s income from foreign sources or mutual funds or rental income or some of them even invest in cryptos and earn income and the tax laws etc.
Are quite strict. So you need to be able to make sure that they are fully compliant. And that’s where we are approaching this through the corporates like we mentioned Bosch and we have other customers like HCL and Accenture etc. We are approaching it through the corporate to the employee.
Ashish Soni — Analyst
Last question regarding the upcoming acquisition for which are the target areas you are targeting? Like in terms of what are you targeting in the upcoming acquisitions? If you can throw some light on that I know it will be September from where next we are so if we can throw some light on that that we will also help.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Philip cement around this basic we had as a SaaS fintech in the States spend management space. But giving specifics beyond that in terms of adjacencies is a little hard because we are looking at a variety of companies. The thesis has been consistent and in the previous years we have shared what are thought processes that it has to be either EBITDA or product accretive and culturally it has to be a good fit. So those are the kind of things. That we are looking at.
operator
Thank you. The next question is from the line of Manish Shankar from Mandal from Albic Pharmaceutical Ltd. Please go ahead.
Manishankar Mandal — Analyst
Hi. Congratulations on the great set of numbers. My question, I have two questions actually. One is obviously there was a mention. Of a lot of AI initiative and development which are at different phases of deployment. Wanted to understand are these completely in. House or through a third party or. Some collaboration with some other companies as well? That is the first question. And second, how much of the how much of expenses are there intake or CAPEX intake especially in FY25.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Yes. So first question basically is this in house or is this through partnerships? This is largely in house but across our different acquisitions and Investing companies, as Dr. Raj mentioned, we are consolidating our tech and engineering teams bringing the capability together. So that’s the features, I didn’t catch the last part. In terms of
Manishankar Mandal — Analyst
what kind of capex. Are we incurring in specifically developing tech in house in FY25?
Avinash Godkhindi — Chief Executive Officer and Managing Director
In FY25 we invested close to 40. Crore
Manishankar Mandal — Analyst
just in developing tech. Right, okay, sure. Thank you.
operator
Thank you. The next question is from the line of Akshay from AK Investment. Please go ahead.
Akshay Kaila — Analyst
Yeah, thanks for the opportunity sir. So my first question is that I am to this company. So can you put some color on what are the products? And currently we have mainly three products. So what are the different use cases of all the three products and how. It. Add value to our customers and its employees?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Thank you. So the three products basically sir, cater to all the expenses that corporates incur outside of budgeted capex. So Propel caters to channel incentives, SEI caters to employees, all expenses related to employees, whether it’s their travel and other expenses of that kind or benefits. And Zoya is largely focused on all the vendor payouts and other payables that the companies have. So we try to digitize all of these, integrate deeply with the corporate CRP corporate HRMS systems. And the whole idea is that there is a lot of decisions or a lot of policies that need to be enforced before a payment or a payout happens.
As to who’s approving this, is this approved? Not approved. The person who’s approving it, does he or she have the authority limits? Does it require two, three levels of approvals? All of that gets configured, the policies get configured and implemented on our platform and then there’s a lot of analytics and lot insight that gets debated through the dashboard that we have. And that also is of lot of value to the corporate, to the user who’s typically an employee or a channel partner through the mobile app they get the ability to be able to seamlessly file their expenses, to be able to actually in real time see where their money is and how their money can be spent most effectively.
So that’s the benefit that the user gets, especially in terms of being able to file their expenses on the go is a big value add for them.
Akshay Kaila — Analyst
Okay, so basically our product is the large scale enterprise product like CRM which is solely focusing on spend management and vendor payment, right?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Yes. So 30 years ago sir, ERPs were relatively unknown. 20 years ago HRMs was unknown. 10 years ago CRM was a little unknown. We believe in 10 years time spend management would be a re established category and we hope to be the ones who are the top sparers of this category at least in India.
Akshay Kaila — Analyst
Okay, sir, okay. And my second question is how many currently, how many players are there in India that provides the same type of products? So spend management like us and what is the competitive intensity in the product that we are working in? And I have also seen that Razorpay and all these payment gateways do have some typical product line as ours. So can you put some light on that also?
Avinash Godkhindi — Chief Executive Officer and Managing Director
Yes, surely. So if you look at the spread of our solution, the horizontal spread of our solution or our platform rather, where we span across rewards, we span across accounts payable, we span across employee expenses and benefits. To the best of our knowledge, nobody does this at an enterprise grade level across all these three segments and then covering prepaid cards, corporate credit cards, UPI, etc. Which we do today. Regarding other companies, I wouldn’t want to comment specifically on any other company. The company that you mentioned is also a partner of ours solution to their customers as part of Razorpay X.
So I’ll leave it at that. Thank you.
Akshay Kaila — Analyst
Okay, sir, understood. And sir, my last question is we are doing significant extension in terms of inorganic growth and we have acquired many companies in the past one to two years. So what is the logic behind that? Is that for the cross selling of other products to our existing clients or is that for expanding our capabilities in terms of service offerings and consolidated top line?
Avinash Godkhindi — Chief Executive Officer and Managing Director
We believe this space is ripe for consolidation. There’s a lot of value that gets built through scale and operating efficiency and we are able to today attract a lot of opportunities given the position that we are in. And we are able to hopefully close those deals at very attractive valuations. So this is a mechanism that we are using to be able to scale up rapidly and consolidate our market leadership.
Akshay Kaila — Analyst
Okay, sir, thanks. Thank you so much for the elaborate answers and all the best for the future.
Avinash Godkhindi — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. The next question is from the line of Kushal Konka from Mangalikesh Financials. Please go ahead.
Unidentified Participant
Yeah, hi. Thank you so much for giving me this opportunity. So my question was how’s the cash flow looking for Q1 and what is the direction for the whole year? Like what percentage of EBITDA can we expect to convert? Because since the last four, five years I can see that cash flow conversion was one of the main issue. So if you can just let me know what are steps that we have taken for that and what can be the guidance on. Thank you.
Raj P Narayanam — Executive Chairman
Look at it in the ESY 25. Right. We just don’t. Positive. And obviously as in the growth phase, the cash flows operation taxes were negative in the last couple of years back to FY25. We turned paused in FY25 and we initiated the 50 year olds will continue the momentum and we will do that thing. So because we are in the growth rate of 50 to 60 percentage in the last two years, obviously investment has to go back to the operations that’s going to result in negative cash flow. Optimistically we will turn positive, we continue the momentum and we’ll be in the positive in the current year.
Unidentified Participant
Okay, but like any percentage we want to give in the range like how much EBITA can you convert.
Raj P Narayanam — Executive Chairman
Q1. So possibly we will give an update on the September next quarter.
Unidentified Participant
Thank you.
operator
Thank you ladies and gentlemen. Due to the time constraint we will take this as the last question. I would now hand the conference over to the management for the closing comments. Over to you sir.
Raj P Narayanam — Executive Chairman
Thank you all for sitting in today’s call. We hope we have addressed all your queries and provided valuable insights. We remain optimistic and focused on on the future growth of the company and we are excited about the opportunities ahead. For any further information we request you to get in touch with SGA or Investor Relations Advisor. Thank you and have a nice Independence Day in advance.
operator
Thank you on behalf of Equerry Securities. That concludes this conference. Thank you for joining us and you may now disconnect the alliance. Thank you.