Zinka Logistics Solutions Ltd (NSE: BLACKBUCK) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Unidentified Speaker
Rajesh Yabaji — Chairman, Managing Director and Chief Executive Officer
Satyakam Naik — Chief Financial Officer
Analysts:
Unidentified Participant
Rishi Jhunjhunwala — Analyst
Sachin Dixit — Analyst
Abhisek Banerjee — Analyst
Gaurav Malhotra — Analyst
Arpit Shah — Analyst
Nilesh Jain — Analyst
Ankush Agrawal — Analyst
Dhaval Jain — Analyst
Sarang Sunil — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q1FY26 earnings conference call of Zynga Logistics Solutions Limited. 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. Please note that copy of disclosure is available on the investor relations section of the website as well as on the stock exchanges.
Anything said on this call which reflects the outlook towards the future or which could be construed as a forward looking statement must be reviewed in conjunction with the risk that the company faces. Please note that the audio of the earnings call is a corporate material of Zynca Logistics Solutions Ltd. And cannot be copied, rebroadcasted or attributed in the PR media without specific and return consent of the company. I now hand the conference over to Mr. Rishi Junjunwala from IIFL Capital. Thank you. And over to you.
Rishi Jhunjhunwala — Analyst
Yeah, thank you. Good morning everyone. On behalf of IFL Capital, I welcome you all to the Q1FY26 earnings call of BlabPak or Zynca Logistics Solutions Limited to give you an in depth understanding of the company and answer all your queries. We have from the management side today, Mr. Rajesh Kumar Naiduyavaji, CMD and CEO and Mr. Satyakam Naik, CFO. With this I would hand over the call to Rajesh. Over to you. Thank you.
Rajesh Yabaji — Chairman, Managing Director and Chief Executive Officer
Yeah, thanks Rishi. Am I audible?
operator
Yes, please go ahead.
Rajesh Yabaji — Chairman, Managing Director and Chief Executive Officer
Good. Good evening everybody. Welcomes to. Welcome to the first earnings call of FY26. We met a quarter back, a few months back, you know, we had a very good, you know, end to the last financial year and you know, very good beginning as well to the next financial year. This is our fourth earnings call. I think you know, a number of four from an earnings call perspective probably in public markets would also make it a year broadly old. So we’ve decided, as you’ve seen in the circulated material, you would have seen that we have really evolved our metrics to represent strengthening of the metrics because last year, first year into the IPO there were a lot of one offs which would keep coming every quarter.
I think now we are sort of behind that. So our ability to stick to only reporting and talking about largely like the hardcore metrics which I think are the holy grail I think is starting to happen from this quarter. So you would see we have evolved few metrics and wherever there are some changes, we will be narrating some of those. And here we go. So, so this is a snapshot of our first quarter. So on the overall income of the company, we made close to about 160 crores in total revenues which was a growth of about roughly 63%.
60 to 63% over the last year same quarter on an EBITDA basis. This is the real EBITDA number includes all the cost above ESOP cost above. Because our adjusted EBITDA number was only adjusting for ESOP. On that number we have done close to about 40 crores in the last quarter which is close to 4 to 5, 4 times growth over the last same quarter last year. On the pat we’ve done close to 34 crores. There is no comparable number last year because it had a lot of one offs. So we are not comparing it with last year.
So that’s the broad on the financial metrics performance. So it was a good quarter for us. And more importantly, because this is a true EBITDA number, important to note that in our business we generated an operating cash flow of approximately 63 crores in the last quarter because most of our revenues is what we collect up front in terms of subscription revenues from our customers and they get generally spread out over the year. So we collected like 63. We generated operating cash from 63 crores. And then obviously when you account for revenue and then the EBITDA it becomes a 40 crore number which you’re seeing.
Continuing our growth trajectory in terms of our operating metrics, we continue to deepen our market share in various different markets. So we have close to about now 783,000 transacting customers monthly transacting customers on the platform, which is roughly a growth of about 14% from a year on year basis. Because majority of our revenues and majority of our work of focus is largely in the intercity and bigger trucks dimension. There we are able to garner higher and higher market share and that growth continues on the metric where we demonstrate power users. And power users are the users who really love us and we hardly see any churn from those users.
Typically we have roughly close to about 3,86,000 of these users who use more than equal to two services, which is on that number we have grown about 25% GDP of payments, which determines largely the revenue from payments grew about close to 28% on a year on year basis and we did close to 6,800 crores. In payments flow through on the platform. So summarizing, as you can see broadly in the last four quarters of reporting, you’ve seen that we have consistently grown in strength to strength on the profitability numbers. So we’ve delivered continuously increasing profitability. And at the same time what’s important to note is that most of this profits delivered incorporates the cost of our newer experiments, cost of our newer investments we’re making in our new businesses.
So there I think after coming into the public markets and understanding really how you, you know, sort of, you know, what it takes to really run the company on this side. You know, having said that, like we are much more aggressive on our scale up of newer business areas, you know, over the last few quarters and we will continue to do so as we keep moving forward. That’s a snapshot of you know, Q1 26 before deep diving into, you know, further details like you know, many of, many of, many of you would be attending probably our earnings call, you know, for the first time we’ll take a minute and sort of, you know, revisit what we really are as a company building, right? As you understand, we are like we are a company with a dream in the long term to really disrupt and really organize the space of Indian trucking.
Right. Today, any one of us, if we walk into a transport nagar in the country, we will only come back with a realization that this industry would change. The only question is really about when would this change, but now, but not really whether will this change. So we believe that the systemic inefficiencies in terms of the idle days of a truck, in terms of the number of kilometers which a truck does in a month. Like when you compare all of this to the developed world, India is far behind in terms of the number of billable days which a truck does, which is broadly in the range of 17 to 18 days.
The remaining 12 days is nearly going empty to really find the next load or getting unloaded or getting loaded. All these inefficiencies are something which can really be addressed leveraging technology and to be able to build this. I think the first lever to solve for is really trying to solve for the truck operator. And that is what we’ve dedicated Blackbuck’s time, our time over the last five to eight years really solving for that. And from there is where we’ve been able to build really what Blackbuck today, you know, exemplifies a platform which really enables and empowers a truck operator, helping him manage his business and really expand his business.
What today Our business model and our strategy looks like is basically these three vectors. We continuously create offerings for our customers which are essentially the innovations for our customers. We have our platform on which our customers transact. This is nothing but our mobile app which our customers use to continuously day in and day out and a very unique low cost distribution and servicing engine which is like spread across almost every significant trucking village. What is really important to note is that the part of platform and distribution are something which basically took us a lot of time to build.
It took us like the last seven, eight years to really invest in these and build these platform. And a lot of investment in these areas are largely completed maybe about 18 months to 24 months back. And most of the investments today are in the area of innovating newer offerings. And the reason I’m explaining this is because it becomes very easier to understand our financials if you understand the fact that the platform investments, platform and distribution investments are really enabling us to today to be able to launch a newer offering on the platform at a very incrementally zero cost.
And newer offerings are able to achieve critical scale because of these two sort of capabilities of ours where we are not really spending any incremental costs. So articulating our strategy very clearly, offerings, as I always explain, we keep iterating, keep building newer value props services, newer innovations for our customers with which their lives can improve. These are always launched on the platform. Our mobile app which is really continuously being used more and more deeper by our customers and our ever scaling distribution workforce where largely it’s a variableized workforce. So basically if at all sales don’t really happen in a seasonal months or quarters, you would see the costs also essentially shrinking automatically.
Because these are really not fixed costs, they are really variable cost which are in the nature of sales. Right. So that’s the whole, I would say revenue delivery cycle or a growth cycle for the whole company. Now taking you straight into really what the financials are for us. So this is the P and L overview for the company. First line item, which is the total income, total income of the company. In the last quarter we have done close to about 160 crores, which is a growth of roughly about 62% on a year, on year basis and on rolling quarter basis roughly 17%.
If we remove the largely the interest income, we get the number on revenue from operations which is roughly about close to 144 crores. 144 crores is a growth of roughly 56% on a year on year basis, growing from 92 crores in the last year, same quarter to 144 crores. Now if we split this into two segments, core businesses are largely we’ve defined as all the existing capabilities. Typically let’s say earlier in earlier reporting under telematics when we used to typically do gps we would report into core and we would report the fuel sensor vertical in the growth businesses.
But then for these businesses the costs are shared, the capabilities are shared. So we’ve decided to reclassify that and put that as payments and telematics as our core business where we have done close to 120 crores in the recent quarter. Over the last year we’ve done close to 86 crores. That’s a 41% growth. Even if we would have used the previous definition, the growth number would have come close to 39%. So largely this reclassification is done more to enhance the quality of reporting but not to really look at numbers differently. Next is the growth business which is interesting because Superload’s business, which is basically the evolution of a classifieds business into a transaction marketplace is kicked in and that’s where we are seeing good level of growth.
So we’ve started reporting those business revenues from this quarter onwards because of the unlock we’ve had in that particular business where we’ve done close to about 23 crores in revenues which is a growth of roughly about, you know, in the overall growth business, superloads plus multiple other businesses we’ve done close to 23 crores which is roughly a growth about you know, 3 to 4x over the last year where roughly we did 6 and a half crores in the previous year. Now we have done close to 24 crores. That’s growth business. Important point to note is that Superloads business in an accounting terms happens to be at a gross level, right? So that’s why we’ve introduced a newer metric which is called as net revenues where we add to the revenue the operational revenues of the other businesses plus we add the gross margin of the super loads business is where we come to net revenues.
So we take off the gross impact of that business and start reporting so that it’s easier for you to understand the revenue reporting. So on the net revenues we’ve again had a very healthy growth rate. We’ve grown at about 43% on a year on year basis from a 92 crores in the same quarter last year to 132 crores on a sequential quarter basis. We’ve grown at roughly about 8% right. And coming to the cost line items, direct cost largely has grown in line with the growth in revenues, grown at about close to 45, 46%. And that’s why the whole contribution margin for the business largely is stable at about roughly 93%.
If you see last year the contribution margin was 92.8. This year the contribution is 92.6%. On the overall, on the total expenses roughly there is a small shrinkage of about 6%. But don’t expect this shrinkage to continue. We would be investing in growth as we move into the next quarters and for propelling growth and growing into new businesses. So removing all of this, we’ve generated roughly about close to 47 crores in the adjusted EBITDA on the adjusted EBITDA basis compared to 12 crores the same quarter last year, which is roughly a growth of about close to four times on a year on year basis.
Accounting for the ESOP expenses. Coming to the pure EBITDA line item, that’s roughly about 40 crores for this quarter compared to the previous year, same quarter about 8 crores, which is roughly about a 5 times growth from the previous year. Coming to the line item of PBT where there is basically growth of roughly about 41%. Last year, the same quarter we had an adjustment in the one off adjustment in the PBT numbers which was a reversal of the RTS charges right to subscription. We had instruments on right to subscription in the cap table, those were reversed.
So you would see a 32 crore which is because of a one off item which is really not the real PPT of that particular quarter. And this quarter we’ve delivered close to about 46 crores in the PPT on the pad basis, which is basically the true metric, we have done close to about 34 crores in the current quarter. So this is broadly, you can summarize most of these changes as really moving into the spirit of really accounting line numbers so that the needing to explain some of these would not be there as we keep moving forward.
Coming to some of the operational metrics, the key KPIs which we reported during going public, largely growth as expected across most of these metrics and we have covered most of the financial metrics in the previous slide already. Revenue from operations, we’ve covered net revenues, we have covered, adjusted EBITDA we have covered in the previous metric. So largely in line with as we discussed in the previous slides going forward, summarizing the three broad key areas on the overall revenue growth and as a company we’ve done close to 62% on a year on year basis. Core businesses compounding at close to 41%.
Largely leveraging the core operating model because the core operating model is built to leverage the tailwinds of the industry and a very strong execution excellence rhythm which we have as a company maintained over the many years. The growth businesses continue to lead the growth trajectory where we’ve grown by about roughly four times, three and a half to four times the last year, largely led by the launch of superloads business where the transition from classifieds to transactions is happening. And that’s a very high value prop for our customers and we would be able to really dramatically influence their deadheads, their running days and it’s a very powerful product and a powerful value prop for our customers.
Commenting onto the dimension on profitability, as you can see the strong operating leverage continues to be demonstrated in the core business. And while we continue to invest in new businesses, we continue to build on profitability. As we spoke, adjusted EBITDA grew roughly 4 times from 12 crores in the previous year, same quarter to 47 crores to this quarter which is roughly on a percentage points basis is 13% growth, 13% to a 36% of on a net revenue basis on a year on year basis. And all the core platform metrics continue to compound. As you can see, there is a growth of trucking operators roughly about 14% to close to 800K.
The time spent of the users has grown to about 43 minutes. The GTV in payments which is one of the largest used services also has continued to compound. Now explaining again reiterating again on the operating leverage story, as we’ve always maintained, most of the revenues are platform led, like subscription led revenues, commission led revenues. So hence if you see on the right hand side, the revenues are largely recurring in nature, so we don’t have to really go every quarter and win these revenues. Like 90% of these revenues probably would be coming in from what we’ve already done in the past quarters.
Most of the revenue has high gross margin profile, so. So as you can see on a net revenue basis, if you see our contribution margin profile continues to be steady at 93% gross margin, which talks about the quality of revenues. And we always have had very strong user retention. And to create these revenues there is no real strong asset creation or money invested in deploying into an asset. Right? And that is the reason why continuously we have delivered in any quarter you pick up anywhere in the range of 70, 75% to like as close to 90, 95% of operating leverage we’ve delivered.
Talking about this quarter, if you see on a year on year basis there’s a change in revenue of close to 40 crores and there’s a change in adjusted EBITDA of close to 35 crores, that’s a delivery of 88% of operating leverage. On a sequential quarter basis, there’s a growth in revenue of 10 crores. There’s a growth in adjusted EBITDA of 8 crores. That’s a delivery of 84% of operating leverage. So we probably, with a reasonable confidence probably believe that this operating leverage will continue to play out as we keep building the growth trajectory of the company moving forward.
Just giving you a snapshot of profitability. This is the adjusted EBITDA metric because the past numbers on pure EBITDA would move around a bit. For right Comparison, it’s adjusted EBITDA, as you can see, Q1 24 two years back we did negative 10 crores, negative 11 crores of adjusted EBITDA. Change from the last reporting is that we’ve removed the other income bit from all of these numbers. So you would see the negative being a little bit more higher. So It’s a negative 18% on Q1 24 two years back. And as we report today, that number has grown to 47 crores, which is close to about 36% in the recent quarter of Q1 26.
And as you can see, there is probably no quarter in which our profitability has not consistently grown in line with delivering operating leverage. And this is what I typically talk about when people ask me to share my experience on the journey of going public, that if the business model really delivers your results, really the whole rhythm of doing quarter on quarter results really is not really burdensome because your operating model delivers results. You don’t really work on this quarter for this quarter. You typically work in this quarter for probably your next five years. A growth trajectory and solving really the hard problems which you really have to still solve.
And that keeps really, that keeps us as a company really focused on right objectives for the long term, which is really important even for the shareholders. Just putting here together because there is some change in numbers. So that all of you can refer to this particular chart, the way we have started reporting numbers this quarter, you can find the reporting of these numbers for the last eight quarters so that you can compare and contrast if you have any doubts in terms of how some of these numbers have trended in the past relevant to this definition.
So you can find sort of the glossary over here, summarizing the broad takeaways of those two year numbers is that there is a 2.5x growth revenue growth over the last year, know, eight quarters, you know, by the, from the time broadly many of you would have started interacting with us, you know, and knowing us like it was Q1 of, you know, 24 numbers is Q1 to Q4 of 24 numbers is what we were taking with you and talking. So from that the first number you’ve seen like there’s broadly a 2.5x growth, there’s a massive turnaround in profitability, roughly a 53 percentage points turnaround in profitability from a negative of minus earning percent in Q1 24 to a positive of 35% which we talked about in this particular quarter.
As I mentioned, like, you know, almost every quarter you would find numbers of quarter on quarter. If you look at every quarter, if you look at year on year operating leverage, the numbers would vary between 95, 98, 85. Like lowest is 70. So I think 70% plus is, you know, something which I think, you know, we’ve delivered very, very, very, very consistently in the last two years. And as you would have seen in this particular quarter, we are moving into this financial year with a very strong momentum in creating newer and very high quality revenue streams which are not only high quality from a PNL perspective but also the value proposition of those business verticals is very, very, very high and solves very critical pain points of our customers and you know, helps us more become a part of their revenue generation.
Like and because today we really help him optimize his costs, help him run his business well, have control, you know, which basically is very good and they really love us. But I think the really shift into really partnering with them and really expanding their revenues and make more, I think, you know, is a, is a very, very stronger and integrated, you know, partnership level with our customers than where we are today. So yeah. With that we’ll open the floor to questions. Thank you so much for listening to us.
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 the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take a question from the line of Sachin Dixit from JM Financial. Please go ahead.
Sachin Dixit
Hi Rajesh, hope you’re well. And quarter results obviously were brilliant. So building on to some of the things that you mentioned, there are three questions that I had. The first one was on the super load side. So this is the first quarter where you have come up with the numbers on that piece. And if we do some math around that looks like we did roughly GTV of close to 1213 crore there which effectively is implying and let me know if my math is wrong which effectively is giving close to like a 20 to 25 freight transactions a day.
Is that math right? How do we look to ramp up that number? Do you have any visibility on the plans ahead on this piece?
Rajesh Yabaji
Yeah. So Sachin, I won’t be able to comment on your numbers because as a principle as we have always kept out that we will probably keep the disclosures of new businesses fairly limited and we will probably till the time they become a little bit more mature, you know, or probably 20, 30% of the overall revenues we would not be disclosing probably in greater details. The second part of your question was around like the first part was on the numbers and second part, Sachin, can you repeat your question?
Sachin Dixit
Visibility on how you are looking to ramp this up? Where do you stand, where you plan to go?
Rajesh Yabaji
Yeah. So basically as I had maintained before, I think the business is in a very like nascent, very creation zone. You know, obviously you know, we’ve started reporting it, you know now. Right. So it’s still live in you know, four hubs across the country. Hyperscaling into the other two hubs are largely for, you know, reverse hall synergies. The business has taken a very strong shape in this particular quarter if you’re asking me. We are still largely focused on heavily ramping up in only 2 cities from 1 earlier now only 2 cities largely to really complete the whole playbook creation.
But I think we have. But what I would like to also add is that I think really I think the business is more entering into a phase where we are also trying to more understand how a mature piano of this business should look like. How would a very like let’s say a playbook of launch of a market from let’s say scale zero to a maturity. What would that look like? How would the expansion strategy look like? I think those deliberations have already started. So the broad guidance I would sort of say is that it’ll probably be another three to four quarters before a very exponential growth to come into this particular business.
Sachin Dixit
Just touching on to the thing that you mentioned that the couple of us are doing quite well. So when I think of like you ramping up to newer hubs. Like what does it take? How much effort? Time, time, capital, whatever. I mean I understand capital requirement might be minimal, but otherwise how much effort does it take for you to ramp up new ups?
Rajesh Yabaji
Yeah, so very good question. See basically in this business, right, the whole aspect is that this business is already running live offline business, right? So India does like close to $200 billion of freight, right? Freight volumes in a year. In that if we really remove the specialized execution, like the part truckload businesses, the E Com businesses, the cold chains, the customized trucks, etc. Right? So if you remove all of that, a 40% of the market goes away, 60% of the market, which is $120 billion typically gets executed in the full truckload in an open market loads kind of a basis.
Right. Now this business largely happens through multiple layers of intermediaries. As we’ve always discussed, there are two layers of intermediaries and in the industry there are like roughly two and a half lakh brokers who do basically this business. Our business is nothing but a shift of this business from an offline industry to an online industry. Now, in any marketplace there are two critical factors. There is a demand side and there is a supply side. As you would be aware in our history of the business, we initially had gone into the enterprise business and one of the biggest reasons that we did not pursue that business later on was our inability to build direct supply.
And supply side costs are very high costs in this business, right? Which you have also articulated that the cost may be minimal, right? The reason they are minimal is because we’ve created our whole go to market in this industry by really delivering payment solutions and telematic solutions. And with that we really gain a very high market share of long distance traveling truck operators, right? So large part of our truck operators do intercity right now to switch on a newer market. Remember that in every market in the country, any market you pick up, we have of the long distance truck operators of market share between anywhere in the 15, 20% to as high as 70% market share of these long range long distance truck operators, right? So now I have largely supply already incubated number one and number two, supply is already activated on the classifieds platform.
So truck owners know that there is loads over here right now, this classifieds platform which already has loads which are posted by the offline, other brokers and transporters, we typically convert them into our own first party load where the customer can really see that this is a super load. This is Executed by Blackbuck full stack, end to end. Blackbuck will essentially be paying me the money. So it’s a much more stronger payment assured load. So essentially to turn on a market we basically need to get to the market, probably deploy a branch, hire a few people who can essentially conduct fulfillment, conduct price negotiations.
So it’s a very thin wafer thin effort because demand side always the shippers have unfulfilled demand because fulfillment by local brokers and transporters is very minimal. Now they always are always in search of a newer transporter who can enable them. Right. A newer company which can enable them. So Superloads essentially becomes a very easy partner for people on the shipper side because the cost there is minimal There again we do on ground activation with the customers to get onboarded. The supply side is largely like 95% plus plus dependent on the platform to get truckers who can come and take the transaction marketplace oriented loads.
So really activating the market is a lead time of 15 days to 20 days to activate a newer market and start like you know, the business.
Sachin Dixit
Understood. My second question is on the insurance license press release that you put out. What’s the plan there? Are you planning to like put in proper people dedicated to trying to ramp up insurance or this will just be a product plug on the app?
Rajesh Yabaji
Yeah. So the. In the, in the history of insurance license we already had this insurance license before. This was actually the renewal of the insurance license. Right. That’s point number one. Point number two is that today already like let’s say, you know, we have few like attached rates on insurance basis. Some of the services we sell, we obviously are using third party players to you know, get those procured. And our margins are basically a little lesser with this. Basically the same, you know, with the same insurance what we are selling it will go through via our own corporate agency license where our margins essentially will a little bit expand which will help us deliver better contribution profits number one.
And number two is that in terms of explaining, as you rightly said, it’s largely a small plugin, nothing really material. Because we are not very directly in the business of only selling insurance to truckers. We basically use this as an attach rate for any of our products and then cross sell it over that particular product rather than really get into really the insurance business of selling.
Sachin Dixit
Just one final question which is on the growth piece, right. So when you release the average monthly transaction truck operator data there seems to have been a growth downtrend. Obviously that is also understandable considering the size you are at. But Is it normal? Is it likely to again pick up? Or do you see like over a period of time this will start to inch slightly downwards? That’s my last question.
Rajesh Yabaji
In our business, Q1 and Q2, I had also narrated this in our first earnings call. Q1 and Q2 typically are always the seasonal months, right? Addition of truck operators. And you would not be seeing this reflection of revenue because our revenue is a compounded revenue. Right? Addition of truck operators, the whole movement of trucks, all of those typically hit the lowest numbers in Q1 and Q2. Right. Most of the growth typically comes in Q3 and Q4. So if you typically see even our movement in numbers, let’s say for example, mostly, let’s say the numbers on mostly the profitability etc as well, typically you would see heavy moves in Q3 and Q4 because that’s where the whole operating leverage extends not only onto the contribution to EBITDA, but also extends into the sales leverage also.
So Q1 and Q2 I would say will be a bit muted, but at the same time I, I would not like to guide that. Those numbers will be like, let’s say really path breaking. There’ll be a, maybe an op, like probably an optimal correction to that, but not really a seesaw change. You know, a very big lift in that as you move into the next quarters.
Sachin Dixit
Yeah, understood. Thanks, Rajesh. And all the best for the coming year.
Rajesh Yabaji
Thank you.
operator
Thank you. We’ll take our next question from the line of Rishi Junwala from IIFL Capital. Please go ahead.
Rishi Jhunjhunwala
Yes, thank you. Can you hear me?
Rajesh Yabaji
Yes, Rishi, we can hear you.
Rishi Jhunjhunwala
All right, great. So just a couple of questions. Firstly, you know, again, on that loads business, while, you know, the revenue opportunity is quite clear, just wanted to understand how would you approach it from a, you know, acquisition or cost of acquisition perspective, do you think? Both on the cost line as well as in the balance sheet, you could use some investments that are being done there because you in the past Talked about like 6 to 8% kind of, you know, take rate or commission on that. But can your initial bit of revenues actually be lower in order to acquire customers? Just wanted to understand how would you play that economics.
Rajesh Yabaji
Basically I would break this in two phases, Rishi. One is basically the whole playbook development phase. I think in the playbook development phase, if we really reduce the bar to really create numbers, what happens is that the ability to differentiate between the real muscle which is being built out versus really the calorie growth, because the calorie growth may appear as a strong Growth and you really would be able to mistake that with a muscle. And then there the quality of business development essentially goes down. Right. So as you rightly said, what I would like to say that, you know, in this business, because on both sides though, the truck operator, like let’s say, is a more retail, like let’s say the Persona is a more retail customer, but the end of the day is a very strong businessman.
On the shipper side, SMBs and the, you know, transportation companies are also like, you know, businessmen. Right. So we are in a, like a sort of a B2B kind of an industry. Right. So any kind of an interplay on short term, like really, you know, trying to grab market share, typically we’ve seen that has not really been a very sustainable strategy in terms of growth and development. Right. So that’s, that’s like point number two. Point number three is that, you know, as you are aware that ability, the cost of building supply is the highest, but the cost of building demand is actually smaller.
But hence, by leveraging the platform, we have this unique opportunity like compared to anybody else in the market who’s even trying to do this, to be able to blitzscale in this particular area. So what I would say is that availability of a, first of all inorganic opportunities are abysmal. Availability of ability to really induce capital till the time the playbook doesn’t get built out, probably I would not really advise, but what I would like to guide you towards is that in the long term, if at all, you would see from a perspective of investment, only the margin of this business may get fully reinvested.
But probably we will not break anything beyond that is how probably we are thinking even in the blitzscale phase of this particular business.
Rishi Jhunjhunwala
Got it. Secondly, you know, with the PPI license, does any kind of dynamics change for us in any of the businesses, including tooling, how do you intend to leverage on that in the longer term?
Rajesh Yabaji
Yeah, so rightly asked question last time we gave you an update that we’ve got the in principle approval that in principle approval on this July 2nd, we got a full approval of our PPI license. That’s point number one. Point number two, as we’ve always maintained, the context of getting a PPI license was to really deliver a stronger customer experience and also at the same time it enables a little bit of margin expansion as well. Number three, our strategy with partners will continue to be largely same. We will continue to work with our partners in part partial part of the business and in the remaining part of the business.
And at this point in time, really, there is no thought process of really leveraging the PPI license on any part of the other parts of the business. I think largely in the mainstream trolling business, we may end up probably creating some innovative products, but then that’s pretty much a few quarters down the line. But at this point in time, you can assume this to be as a customer experience enhancing tool and in a very longer term, margin enhancing tool and in a very longer term, new product additive tool. But not in the near future.
Rishi Jhunjhunwala
This doesn’t disintermediate banks or your banking partners in the long run for you?
Rajesh Yabaji
Not fully, let’s say, I mean, basically with some of the principal partners we’ve been working for long, like I think we would be working with them for a long period of time. We would not basically be fully disintermediating.
Rishi Jhunjhunwala
Understood. Thank you. All the best.
operator
Thank you. We’ll take our next question from the line of Abhishek Banerjee from ICSA Securities. Please go ahead.
Abhisek Banerjee
Hey. Hi. Hi, Rajesh. Thanks for the opportunity. Great set of numbers this quarter. The first question I have is on the loads marketplace business. So you mentioned of a blitz phase. Right. So is it right that you alluded to it will be say 3, 4/4 down the line, the blitz phase when we see exponential growth here?
Rajesh Yabaji
Yes. I mean, let me put it in this way. New businesses are always like, let’s say hard to build. They take time to build. We are in the playbook building phase. But I’ve always maintained this, that four to six quarters down the line is where you can see significant movement in some of these businesses, not in the immediate future.
Abhisek Banerjee
Understood. Now coming to this business. Well, I understand it might not be feasible to give out absolute numbers, but you know, some indicators with regards to things like loads posted on the platform or I mean, at least the growth rates of how many loads are getting posted. Is that possible to share? So that, see, there are some things which are kind of indicators of future performance. Right. So if we get a handle on that, it becomes a little easier to kind of model it.
Rajesh Yabaji
Yeah, See, that’s what. So I mean, I mean we have like few, few sort of, you know, philosophies we have, we have taken is that new businesses like, you know, till the time they don’t add to 20% plus plus of the overall revenue, we would be limiting the disclosures. And. But then as you rightly said, I think as we keep moving forward, looking at how these businesses scale up, we will start disclosing, you Know, a few fewer more things for adding clarity.
Abhisek Banerjee
Sure. Now one very interesting thing in Delivery’s presentation this quarter, I don’t know if you’ve seen that, is that they’re again talking about you know, building Orion which is their FTL business and it is somewhat similar to your loads marketplace and there is also another out there in the private side of the, of the market. So any thought on competitive intensity in this space and should one really be worried worried about competitive intensity at such a nascent stage or would you really think that it’s better for the growth of the overall market?
Rajesh Yabaji
I mean basically if you have to draw a parallel, probably it would be like a 2019 or 2020 of quick commerce where there’s literally nobody doing anything in this space. That’s point number one. Point number two is that the biggest competition in this market today is the market itself because it’s a hard market to crack. We’ve been in this space for the last 10 years and ability to build supply is very hard because of the demography of the customers and the places and the regions they need to really go into to build supply. And it’s very costly.
Most of the money we’ve invested is basically into building supply. Prior to going public all our loss making years were largely about building supply on the platform. Now talking about whatever little like let’s say we are aware is that our business largely does not cater to enterprise customers. I think the business which you are mentioning may be the business which they cater to enterprise customers. Our business caters to SMBs and three PL transporters. To basically put in perspective, delivery is basically our customer today in this business. So basically hence it’s basically a classifieds platform, closed looping into transactions and making a take rate and then basically getting the whole marketplace getting woven around it.
So I would say that at this point in time really, you know, a formidable direct competition or really worrying about competition is too nascent at this point in time for this business because the market opportunity is very, very huge.
Abhisek Banerjee
Understood. Now if we talk on a per transaction basis, what are the key things that you try to improve to improve customer experience with regards to the loads marketplace.
Rajesh Yabaji
And when you say customer experience you’re talking about the shipper or the trucker.
Abhisek Banerjee
The shipper, yeah.
Rajesh Yabaji
Basically in this business the, you know, if you look at it, let’s say a shipper who’s typically, you know, as I mentioned, shippers are two types. One are SMBs who are trying to ship goods themselves. They are the owners of the goods. They are Basically selling it to somebody. Second type of customers are like three PLs and transporters who are shipping goods on behalf of their customers, their end customers. And they have contracts with the end parties, right? And then they have price contracts, end parties and they try to take a truck on a market higher basis from us, right? They’re two types of customers.
The first biggest need for both of them is a fulfillment index. Which means if they are able to come to a platform, right. Can they get basically a truck, right? So that’s, you know, one metric. Because of availability of large amount of supply on our platform compared to a traditional small broker who in a day is able to process two to four transactions on a daily basis, our fulfillment rates are fairly high. That’s point number one. Point number two. Compared to an offline broker where offline brokers typically specialize on only one lane or a one route, let’s say a Delhi to Vijayawada and Andhra region would be one broker, right? So there’ll be brokers who will be only operating in those lanes, right? So as a customer I have to go for that load to that particular broker, right? And then basically then because of that I need to go to multiple brokers, right? With blackbug, because of the scale advantage like in the hubs we are operating, we are operating across mostly, you know, most of the regional lanes, right? So we’ve taken a strategy to do go regional first.
We’re operating across most of the regional lanes so we are able to cater to most of the demand. What these guys really need to, or let’s say for a large chunk of demand, they’re able to come to us. Number third, they are able to track the vehicle in transit. So they’re able to see where their vehicle is, has it left the city, how many kilometers has it done, where is it? So we give live tracking on the product directly. So these are basically three, I would say big value props today. And on top of this, most importantly, the existing brokers do not have a very professional method of handling, be it in terms of accounts, in terms of reports, be it in terms of relationship management, et cetera.
I think with us all of that comfort becomes much more higher, our ability to deliver a very strong quality of a truck. So let’s say our strengths on the truck side also represents on the demand side because we know the trucker, we know the village, we have onboarded him, we have a KYC verified verification of this particular guy, we understand the truck much more deeply. So I think all of this translates in a Very strong in transit experience for the customer. So basically put like four or five strong value props, availability of a truck at a lane level of high availability, multiple lanes at one particular place like in transit tracking.
Ability to know where the truck is and being able to update their own end customer. Ability to deal with a very professionally created setup so that it’s more predictable. You know, a very strong from an experience perspective and in transit experience perspective in terms of any exigency issues, we are able to handle it much more effectively than an offline partner.
Abhisek Banerjee
Got it. Does moving to a transaction model open you up to payment risk?
Rajesh Yabaji
The answer is basically this business is largely cash and carry. By that I mean roughly close to 90% of the payment is collected upfront from the shippers. Right. Let’s say anybody who’s trying to ship, they need to pay 90% of the money in advance. So that basically removes largest part of the risk. So intrinsically there is really no working capital in this business. That’s point number one. Point number two is that the remaining balance upon the truck reaching the particular place on the receptor of the proof of delivery, the remaining balance gets paid. Right. So if you were to argue the risk probably will be only to the tune of the sort of remaining balance.
But then like it’s a like after having operated this business, you know, the last quarter a bit deeply, I think our ability to really deliver is close to like zero risk like on collections is there today.
Abhisek Banerjee
Super. And just one last bookkeeping question. There’s a large tax outgrow in this quarter. So how do I mean, you would have, you know, accumulated losses. Right. To write that off. And how should one look at the tax rate going forward?
Rajesh Yabaji
Yeah. Satya. Satya, our CFO will take that.
Satyakam Naik
Yeah. So quick one, on taxes, the current tax is the actual outgo. So that’s about 3.8 crores which is on other income. Right. Which is on treasury income, essentially. The other out of the total 12 crores. That’s 3.8 crores. 8 crores is deferred tax. That’s on accounting profits. It’s not an actual outflow. But in the previous quarter you would have seen that we have created defer tax asset because current quarter we had accounting profits, we’ve accounted for that defer tax. So you could think of tax outgo per se only from a Treasury income point of view, at least for a few quarters from now.
Abhisek Banerjee
So your cash path is definitely higher, more in the range of 42,41. 42 crores. Right?
Satyakam Naik
Yes. Cash profit will Be higher. Should be in the zone of cash. Cash from operations like Rajesh mentioned should be in the zone of 60 crores. For the, for the quarter, for this quarter.
Abhisek Banerjee
Thank you so much for the detailed answer.
operator
Thank you. We’ll take our next question from the line of Gaurav Malhotra from Access Securities. Please go ahead.
Gaurav Malhotra
Yeah. Hi, good evening everyone and congrats on a good set of numbers. I just had a few questions, Rajesh. If, if I see the, the payments business, the payment, you know, someone alluded that the trucker numbers growth has been little bit soft which you alluded to seasonality and the GTV of payments also is roughly around 28, 29% but the incumbent business growth is closer to 40 and you know, the payments is the sort of larger part of that, of that pie. So is there like did the take rate or something increase during this quarter? How should we sort of think about the difference in the growth rates in the payments as well as underlying revenues?
Rajesh Yabaji
Basically, as you rightly said, the GTV of payments, which is the little bit of a proxy to growth in the revenue of payments corresponds to that there is obviously higher uptake of value added services which has pushed the growth rate above the growth rate of the pure play payments volume per se. That’s point number one. Point number two is that as we have mentioned under telematics today there are three growth vectors. Right. First, growth vector is basically the basic GPS device which basically is used by a trucker to manage the driver location, share the location with the end customer, manage his harsh acceleration, harsh braking, manage to also remotely switch off the ignition if at all.
He feels that there’s danger to the truck and he doesn’t want the truck to be in transit at this point in time. So the basic GPS device has more like let’s say you can assume that that particular business is more growing, you know, at that 20, 25% kind of a growth rate from a year on year perspective. Right. Second biggest thing is that in India, across multiple states, GPS is getting mandated for purposes of basically either, you know, getting the passing renewed or for the purposes of entering regulatory areas like mining etc. Right. So in multiple states these mandations are taking off.
Now in our understanding roughly about seven to eight states across the country have largely mandated this. If you go back one and a half to two years, this number was only four to five states. So these mandations are increasing. So we’re seeing a very strong growth in the AIs based kind of a GPS device which basically is leading to a stronger growth. The third part is that by the launch of the fuel sensor product where basically we are premiumizing the whole offering because the, the revenue of the fuel sensor product is at a very higher price point compared to the basic GPS device and it is in the early phases of growth and has grown very strongly also over the last quarter.
All of this on a compounded basis, payments and telematics, let’s say, has been able to reach the growth rate of that close to 40% plus plus.
Gaurav Malhotra
Understood. Now in your superload business, just trying to get a sense on what kind of contribution margin is that business would be because your other businesses contribution margin is very healthy, right? It can be like 75 to 90, 95% plus loads, super loads. Would it be the same ballpark or would it be on the lower side?
Rajesh Yabaji
Yeah. So at this point in time I think it’ll be very hard to really comment on this business. I think one data point which we’ve already given out is that we’ve added the gross margin of the superloads business into the net revenue which that’s the only visibility we’ll be able to provide at this point in time. Because all of these are very fast evolving at this point in time because some numbers which we believed last month probably would not hold good this month because it’s a very fast evolving situation. But you’re absolutely right that most of the businesses we are into today are, you know, very high contribution margin businesses.
We would expect this business to be a little probably on a lower side. But then, yeah, but then the jury is still out in terms of what the steady state margins of this business, of this business is going to be.
Gaurav Malhotra
And in terms of the employee cost, and I’m not looking specifically at cash employee expense which is net of esop. You know, that number has been like there has been very strong cost control over there but this quarter seems to be actually a decline of almost 4 crores. So how much more do you think is sort of can be squeezed out of the employee strength, employee base or you think that this cost will sort of move sort of in some shape or form along as the business goes?
Rajesh Yabaji
See As I mentioned, Q1, as I mentioned, first of all, if we spend, let’s say like you know, let’s say if you’re spending 100 rupees on the sales acquisition costs. Right. Sales acquisition costs are highly variableized in our business to be able to make the business, you know, very, very, very fungible. Right. To be able to sustain any vagaries in the, you know, external environment, we’ve really made it largely variableized. As I mentioned, Q1 and Q2 are seasonal quarters. Right. So you would see that some of these variableization efficiencies are kicking in. That’s point number one.
Point number two, the part of this cost which is largely, you know, the core people cost is people’s salaries, etc. They have actually been growing at an inflationary trend. Right. That’s point number two. Point number three is that as we step into the next quarters where really the growth picks up for us in this industry, you will see that we will be ending up spending more. Right. So that’s how, you know. And also the increments will be effective from 1st of July. So you’d see all of this basically effectively kicking in and giving that particular growth into the next quarters.
I would guide you to not assume any squeezing out of this. You should only assume inflationary growth of these particular expenses.
Gaurav Malhotra
And just last question for Sathya. Just a follow up on the tax rate. So I understand you mentioned that the current tax is essentially the, the cash tax outgo and the deferred relates to your prior year losses. But on an effective tax rate, would it be in the similar ballpark of 24, 25%? How should we sort of think about it? Yeah.
Satyakam Naik
So effective tax rate would be 24, 25. But that’s what. So when you’re thinking of cash outflow, think of it only with respect to treasury income. Deferred tax will be there on the accounting profit until we use out the past losses.
Gaurav Malhotra
Understood. So basically the cash tax should be based on your other income, but the effective tax rate would still come to around 24, 25% is the way to sort of think about it.
Satyakam Naik
That’s correct.
Gaurav Malhotra
Okay, thank you.
operator
Thank you. Ladies and gentlemen, in order to ensure management is able to answer queries from all participants, kindly restrict your question to one at a time. Take our next question from the line of Arpit Shah from Stallion Asset. Please go ahead.
Arpit Shah
Hi Rajeshi. Arpit. Am I audible? Yes.
operator
Please go ahead.
Arpit Shah
Hello. Yeah, I had a couple of questions. I just wanted to understand the super lord’s business. How should we look at the unit economics of this business going ahead or is it still evolving thing for you guys? Because if I just want to understand how the order flow is or how the money flow is in this business, just wonder if you can highlight on that, how are we getting customers? How are you getting shippers, truckers and everything? And how is the revenue moving to us in that sense. And have we by any chance started tracking market share and some of the key rules that we’re already operating in? What kind of market share you started capturing in those newer routes? And yeah, that was my first question.
Rajesh Yabaji
Some of your questions I’ve already repeated. So I’ll just add few things. Payment flow is fully through us. We pay the trucker, we get the payment from the shippers. The difference between what we get and what we pay is our basically take rate. Right. And when we hit, let’s say you know, in a, in a whole hub, when we hit like you know, close to 5% plus, plus kind of a market share. We’ll keep you posted.
Arpit Shah
Got it, got it. That’s fair. And how do…
operator
I request you to join back the queue please as we have other participants waiting for their turn. Thank you.
Arpit Shah
That was only one question.
operator
Ladies and gentlemen, we request you to restrict to one question at a time please. We’ll take our next question from the line of Nilesh chain from Astute Investment Management. Please go ahead.
Nilesh Jain
Hi. Thank you for the opportunity and congratulations on great set of numbers. My questions are on the financials. First thing is on the other expenses which has gone up and related to this is during the time of IPO we have raised funds for sales and marketing for around 200 crores. So how do we plan to use, you know, those funds?
Satyakam Naik
So on other expenses, what has gone up is essentially the gross cost of the superloads business. So that’s the reason for the other expenses going up primarily on deployment of capital for sales and marketing. We continue to deploy the sales and marketing cost that is raised from the ipo. You can see that as part of the monitoring agency report that is uploaded probably about a couple, couple of hours back. So you can track through that the deployment of IPO proceeds.
Nilesh Jain
Right. Right now? Yeah, I’ve checked that report. We’ve spent around 33 crores. I wanted to understand the journey in terms of, you know, how much we would be spending for this financial year and you know, coming years and in what areas. Yeah.
Satyakam Naik
So again the schedule for utilization of this has been provided in the RHP just for reference. Just giving you these details so that you can, you can find it there. So the schedule is provided in the rhp. Broadly it will be equal over three years. And most of our onboardings happen on the ground. So this sales and marketing would also be happening with people that we deploy to acquire for our offerings.
operator
Thank you.
Nilesh Jain
Thank you.
operator
Take our next question from the line of Ankush Agrawal from Surge Capital, please go ahead.
Ankush Agrawal
Yeah, hi, thank you for taking my question. So just one clarification. With the super loads, are we saying that we have stopped monetization of classified platform and now we’re only going to monetize the the platform by converting those leads into super loads or the classified monetization in terms of the substitution is still on?
Rajesh Yabaji
Yeah, classified monetization continues to go strongly. The the people who buy the classified subscription on the supply side get a 1 like 1% rebate in a cashback on the Superloads platform. So it is more two plus two is becoming eight but not really four or three because they are essentially in the mental state of customers. Two separate businesses. Customers who love to post a load and get interact with truckers directly and hire their own truck may get also access to any kind of cheaper truck or whatever. Xyz. So they are free to do that. At the same time, somebody who wants a full stack service asks to find a truck.
Let’s say get the pricing done and get the whole execution done. Let’s say you will use the superloads. So everything. And remember that the real intense execution of super loads is only happening in two series. So the whole India is on the normal business itself. So there we continue to see strong momentum of the loads as well. Yeah, so that’s happening.
Ankush Agrawal
Okay, the monetization is on the supplier side. Right? The supplier of.
Rajesh Yabaji
Normal marketplace. The classifieds monetization on both the sites, shipper pays to post a load. Trucker pays for a. It’s a premium product for the base product. He doesn’t pay for a premium product. He pays money, let’s say for six months subscription. That’s how it works.
Ankush Agrawal
Okay, thank you, that was helpful.
operator
Thank you. Take our next question from the line of Dhaval Jain from Sequin Investments. Please go ahead.
Dhaval Jain
Hello.
operator
Yes Dhaval, please go ahead.
Dhaval Jain
Hello. So just on the part of unit quit thread, I just wanted to understand that. How do we calculate? I mean we have monthly users in our core business. So can you give me a split on how the payments are recognized as in terms of one time payments and the recurring payments?
Rajesh Yabaji
No, no. What is your question? Can you repeat again?
operator
Dhaval, can you use your handset mode please? Your audio is not very clear.
Dhaval Jain
Yeah, I’m audible right now.
Rajesh Yabaji
Yes, now you’re audible.
Dhaval Jain
Yeah. So I just wanted to understand, can you give me the unit metrics of how many monthly transacting users are just in our core business and how do we recognize the payments in Terms of one time payment and the recurring revenues from them.
Rajesh Yabaji
No, see, first of all, I mean like the second question I’m not able to follow but I’ll probably try to understand that and answer the first question is let’s say assuming roughly 7,90,000 users are coming on overall, right? Let’s say in this you take at least 80% plus plus 80, 90% would be, you know, largest majority will be the core business. Because see the whole cycle of development always is that there is a. The core business bought the all the users and we are now using them into the newer businesses. So hence there’ll always be large overlap there.
It’s a like, it’s a direct answer for us. Second question you have is how do we recognize payments? For example, if somebody is buying a telematics product from us, right? Let’s say start using gps, he becomes a monthly active and transacting customer. But then for example his revenue, assuming that I have collected from him, let’s say 4,000 rupees or 3,500 rupees, right? The revenue is basically amortized across the whole 12 months of the subscription time period. Because this is a subscription for 12 months. So revenue is amortized across 12 months. He’s counted as a transacting user in this month right now on payments.
Let’s say assuming he uses our tolling product he let’s say recharges on the platform, manages and everything. There is no revenue like let’s say directly getting accounted until the flow through happens of a stack. Whatever flow through happens of the month we recognize as revenue and if the flow through is happening is when we are recognizing as transacting customer. So both are co terminals as transactions. Did I answer your question?
Dhaval Jain
Actually I just wanted more specific on the part of. Do we have any ways that we can you know, track how much is the like the revenue per operator? Basically.
Rajesh Yabaji
I mean like revenue problem is number of operators if at all you want. It’s as simplistically like. See this is.
Dhaval Jain
Right, right.
Rajesh Yabaji
It’s very complicated in terms of.
Dhaval Jain
No, in terms of like one time payment. Like if we onboard, if we onboard someone so there will, there will be some one time payments that we collect while selling the product and then we have a subscription that is going to come.
Rajesh Yabaji
That is a very small part of the revenue. The largest part of the revenue is basically the recurring.
operator
Thank you. We’ll take our next question from the line of Sarang Sanil from Corso Park Advisors. Please go ahead.
Sarang Sunil
Hello. Hi, good evening sir. Thank you for the opportunity and congrats on good set of numbers. My question is with annual pass of fast tag now getting implemented for private vehicle owners if at all something like this is implemented on the commercial vehicle side, how is it going to impact your tolling business? Are you seeing this as a threat?
Rajesh Yabaji
Basically you know the whole, see first of all the largest part of revenue collection for the tolling networks. Right. The government road networks come from the commercial vehicles. Right. So the like it’s obviously you know a risk but then like you know the whole toll collection going down, India can’t build more roads. So I would only say that you know I see that risk as very minimal. But then yeah, I mean nothing on the commercial that typically has been really altered, you know by the, you know, by the government on this. Yeah. But then yeah, it’s left to speculation.
Sarang Sunil
Thank you.
operator
Thank you. We’ll take a last question from the line of Nilesh Jain from Astute Investment Management. Please go ahead.
Nilesh Jain
Thank you for the follow up question. So my question was on the what I understand based on the take rate we have on the tolling tooling business for this quarter, you know I think more than double to what we had reported in Q1 during even in RSP. While the telematics has grown at maybe you know, 11:12. What could be the reason? You know because the what I expected was telematics we would grow much faster.
Rajesh Yabaji
How are you interpreting Telematics has grown at 11:12. Sorry, like I think I’m not able to understand that you’re on your numbers or you’re referring to which numbers are you referring to?
Nilesh Jain
No, I’m referring to year on year numbers. Tolling and vehicle tracking 120crores what we have reported for this quarter and tolling GPS or tolling based revenue based on the tolling data what we get and on the market share we have I think it’s close to around 50. 50, 50 crores is what we have balances from the telematics and you know comparing with the last year base where we had reported 23 crores for the toting business.
Rajesh Yabaji
I mean sorry, we are not aware of the numbers you’re talking about because you’ve never given the split out. But, but I think directionally whatever you’re asking I think there may be an error because I think that was one of the question which was being asked during the call that in tolling because the overall GDP in payments has grown only by 2029% the growth will definitely not be 40. So is GPA is growing much faster. So I had already answered this question that as part of the tolling it’s definitely plus plus but then GPS is growing much faster.
That’s the reason why blended we are able to grow at 40%. So I think you can refer to that part of the question and you can probably maybe re look at your calculations.
operator
Thank you. As there are no further questions, I now hand over the conference to management for closing comments. Over to you sir.
Rajesh Yabaji
No, nothing much for me I think. Thank you so much for attending the call and yeah, I mean just we’ll head back to our execution zone and 80% of the you know management’s bandwidth is like towards really creating new products and services for our customers. And you know because most of the revenue is platform led I think that keeps us light from most of these reporting heavy lifting. I think we get pulled away probably one to two days in a quarter and we headed back into execution. So thank you so much and hope you all have a good week ahead.
operator
Thank you. On behalf of IIFL Capital and Zynga Logistics Solutions Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.