Ladies and gentlemen, good day, and welcome to Zaggle Prepaid Ocean Services Limited Q3 FY 2024 earnings conference call, hosted by Equirus Securities. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and you will get an opportunity for you to ask questions after the presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rohan from Equirus Securities. Thank you, and over to you, Mr. Rohan. Thanks, Manav. Good evening, everyone, and thank you for joining the call. To give a brief update on the Q3 FY 2024 results and address investor queries, we have with us from the management of Zaggle Prepaid Ocean Services Limited, Mr. Raj Narayanam, Founder and Executive Chairman, Mr. Avinash Godkhindi, MD and CEO, and Mr. Aditya Kumar, CFO. We would request the management to start with the opening comments, post which we can open the floor for Q&A. Thank you, and over to you, sir. Yeah, thank you so much, Rohan. Good evening, everyone. This is Raj. I am the Executive Chairman of Zaggle. Thank you so much for joining us for the Q3 FY 2024 earnings call today. On behalf of the company, I extend a very warm welcome to everyone who are on this call, and we are joined by Mr. Avinash, Managing Director and CEO of Zaggle, and Mr. Aditya Kumar, who is our CFO, and SGA, who is our Investor Relations Advisor, along with Equirus Securities. The results and the presentations are uploaded on the stock exchange and the company website. I hope everybody has had a chance to look at it. So, you know, before I start, on the other aspect, I would also would like to highlight on the Fintech ecosystem. You know, Fintechs, as you would know, are at an inflection point, you know, where there is a perfect concoction brewing between the increasing digital adoption, ever-improving digital infrastructure, and proactive regulations to create a lasting and sustainable ecosystem. To share a highlight from the latest budget, there is a strong preference for digital transactions for government schemes, translating into benefits totaling over INR 270,000 crore for the government. This presents exciting opportunities for players in the Fintech space, such as your company. This trend will further drive growth and value for the Fintech sector. For Fintech companies like us, it... sustainability relies heavy... Very, very happy and excited to share that in the last- Sorry to interrupt, sir. Your voice got disconnected in between. Okay. So where, so should I- Just, 20-30 seconds back. Okay, sure. So, for Fintech companies like us, achieving growth, expansion, and long-term sustainability relies heavily on scaling operations within the realms of regulatory framework. I am happy to share that in the last 12 years, Zaggle, the only profitable listed Fintech company in India, has established a robust business model within this framework, creating sustainable growth. I would now want to highlight, you know, how our operations for the last quarter and 9 months has been. You know, our quarter and 9 months performance ending December 2023 has been extremely strong. Revenues grew at a healthy 35.1% on a Y-O-Y basis this quarter, and respectively, with the growth in adjusted EBITDA at about 56.4%. Overall, if you look at the nine-month performance, our total revenues are at INR 502 crores, versus INR 366 crores last year, showcasing a 37% growth, and our EBITDA is at INR 58.4 crores versus INR 37.6 crores, showcasing a 55.3% growth in the number. We are constantly upgrading and innovating our products, which provides us with a competitive advantage, allowing us to offer better solutions to our clients and onboarding new clients every quarter. In Q3 of FY 2024, we added 105 new clients, taking our current total number of customers to 2,837. The active users on our platform stand at about 2.56 million as on December 31, 2023. In addition to that, you know, which we have in our previous two analyst call, we had, you know, informed, that we have, launched our accounts payable solution, Zoyer, you know, which we launched last year, and it has started clocking revenues in this, financial year. Over the last nine months, we have received extremely encouraging response from our customers. The positive momentum we have seen in the first half of the year is continuing into Q3 and will further go into Q4, and we are committed to sustain this progress... Another very big, you know, contract which we won, which we had uploaded on the, you know, on the website as well as on the, exchanges, is about the Torrent Gas opportunity. I'm very excited to share a significant milestone for the company, that is our entry into fleet loyalty card program through Torrent Gas. The order has the potential to have substantial volume and margin opportunities, driven by our end-to-end closed loop system, with 500 fleet onboarded and 260 outlets ready to accept our cards to start with. This is a huge space globally, and our endeavor is to onboard many more clients in this space. You know, the total fleet spend market is roughly about, estimated to be about INR 73,000 crore in India, and, you know, we have just started nibbling at it. Globally, this is a multi-billion-dollar established business, especially companies like WEX and FleetCor are leaders with, you know, multi-billion dollars in revenue. In principle, our proprietary solutions have multitude of use cases, which help us to enhance our offerings for our customers, and our fleet loyalty card program is just one of the examples. As we have spoken about Zoyer again and again, which is, you know, our accounts payable model. The spend management space is essential for every business, irrespective of the industry. It helps to streamline expenses, bring in transparency and accountability, resulting in cost savings, something that every company wants. At Zaggle, we firmly believe in collaborating with a strong player in the ecosystem. Further, our partnership with marquee banks enhances our access to a large corporate clientele, elevating our reach and influence within the industry. Our customers are our influencers, and we benefit a lot from a positive word of mouth. Our constant endeavor is customer delight. As you know, we have always been, you know, looking at how to grow faster and, you know, at a healthy pace. We are constantly scanning, you know, opportunities. So some of the opportunities which we have looked at, is to see that how do we capitalize on our cross-selling. Our cross-selling, you know, that means where one solution is already present, you know, in that particular company, how can we cross-sell or, you know, upsell, you know, one more, business solution to them? And that has been our constant endeavor, to see if we can increase it from 15% over to roughly in the range of 17%-18%, to make sure that our product portfolio is in every corporate. Okay? It also creates a, you know, entry barrier for other, other, companies in this space. Your company's topmost priority as- is to increase shareholders' value and is exploring multiple growth levers. We recently participated in SaaSBoomi Kafila 2024 event, wherein about 45 SaaS companies from India were invited to Dubai to be part of a three-day exclusive event to unlock key regional market insights, make connections, and explore business opportunities in the Gulf Cooperation Council, which is the GCC region. We were able to garner significant learnings on ground, meet big business houses in the UAE region, and have insightful meetings. These are initial steps taken towards our larger goal of going international. We are scanning the market for further growth opportunities, and we will keep this group updated on, on, you know, what is happening next. In terms of, you know, our guidance, we continue to hold our guidance of achieving 40%-50% revenue growth and the EBITDA margins of 11%-13%, and the performance in Q3 is in line with, you know, what we had, projected. Now, I would want to hand over, to our MD and CEO, Avinash, to take you through some business updates. Thank you. Thank you, Raj. Good evening, everyone. Before I talk about Zaggle's quarterly performance, I'd like to update you that recently we won the Excellence in Innovation Business Spend Management Software India 2023 award, presented by the Global Banking and Finance Review. This accolade stands as testament of Zaggle's exceptional commitment to providing innovative and efficient spend management solutions to businesses, and the market's recognition of the quality of our software. This quarter has been a phenomenal quarter for us, both in terms of performance on revenue and other profitability metrics. This quarter, we had a massive growth in program fees due to the increase in prepaid and credit card spends. Nearly 44% of our total revenue came from program fees, which includes interchange fees that we earn on every transaction executed using prepaid and credit cards across our three products. The growth in adjusted EBITDA continues at a healthy pace as well. We are seeing growth in our corporate and purchase card offerings, along with an encouraging traction in our accounts payable platform, Zoyer. This quarter, we had spends of over INR 2,000 crore on our Zoyer platform, which is bundled with our commercial credit. Our nine-month FY 2024 top line grew at 37%, and we expect to grow at 40%+ rate in the coming financial year as well. We have onboarded quite a few big clients this quarter and have visibility to sign some marquee names in the coming months. Banking partnerships are a pillar of our growth. We are in advanced discussions with some marquee banks and to onboard them as our banking partners in the coming quarters. Consistent demand for digitization, transparency, tracking, and budgeting of spends gave birth to most of Zaggle's products. Today, with our three powerful products, Propel, Save, and Zoyer, with multiple use cases, Zaggle has a unique value proposition to offer to its customers. Our products seamlessly manage the intricate process of tracking, scrutinizing, and optimizing an organization's spends. We offer a comprehensive suite of products under a single roof, coupled with competitive rates and stringent data security standards like GDPR compliance, and we provide businesses with tools they need to adapt and thrive in today's dynamic landscape. With a churn rate less than 2% per year, our tailor-made solutions continue to resonate with our clients, empowering them to navigate complexities with confidence and efficiency. Further, our well-diversified business monetization model and partnerships with multiple marquee banks and networks allow us to mitigate our risks efficiently. I've often said that as a profit-focused company, Zaggle is frugal, nimble, and humble. This, at the core, is our value, our values, and this has led to not just sustain, but thrive and prosper in a rather competitive environment. Allow me to throw some light on the monetization of our three various products, along with revenue contributions in the last quarter. Program fees, which is primarily our interchange earnings and transactions, amounted to INR 88.2 crores, which is about 44% of our top line. The SaaS fees was about INR 8.2 crores, contributing to around 4% of our top line. This includes the fees for our proprietary software, which couples with our products. This includes fixed monthly subscription fees paid by customers on a per user basis. Software continues to be the very foundation of our product solutions. Propel Points revenue stood at INR 103 crore, constituting about 52% of our total revenue. We anticipate robust growth across all our three revenue streams going forward. We continue to implement our growth strategies, and we remain confident in our ability to effectively leverage our inherent strengths, ensuring growth with margin expansion in the coming quarters. Now, I hand over to Aditya, our CFO, for financial highlights. Thank you. Thank you, Avinash. Good evening, all. Let me walk you through our quarterly financial performance. In the past quarter, we registered an impressive 35.1% year-over-year growth and 8.3% sequential growth in our top line. Also, this quarter revenue is our highest ever. As explained in previous quarters, for our Propel Points, revenue recognition is based on gross basis. As per program fee, revenue is recognized on net basis. As a result, our gross profit and gross margins vary considerably depending on the product mix, which we do in specific quarter. During this quarter, the gross margin is 51%, compared to 38% in Q2, which is on account of increase in program fee contribution in revenue mix. Having said that, our cost structures across product categories are well-maintained for ensuring better EBITDA margins. During this quarter, the employee costs rationalized from INR 112 million in Q2 FY 2024 to INR 86.8 million in Q3 FY 2024. The uptick in previous quarter was due to salary hikes and annual bonus disbursements. Our adjusted EBITDA for the quarter has grown by over 56.4% on Y-o-Y basis, and 5.1% sequentially to INR 228.6 million. Following the IPO, the company has successfully prepaid INR 168 million in borrowings, for which the finance cost reduction benefit is being observed in Q3 FY 2024, with 27% lower cost compared to Q3 FY 2024. Our Cash PAT, which includes net profit along with depreciation and ESOP expenses, has surged by an impressive 92.7% on Y-o-Y basis. During FY 2024, we expect to record total ESOP expenses close to INR 180 million-INR 200 million. For nine months FY 2024, our revenues have soared by 37% on year-over-year basis to INR 5,502.3 million. Our adjusted EBITDA has experienced a substantial growth of 55.3% to INR 584 million. Notably, our cash PAT has surged by an impressive 78.4%. As on thirty-first December, our net debt is around INR 655.2 million. As seen in this quarter, we expect the inherent seasonality of our business to continue, and for the fourth quarter to have surge in transaction volumes and increasing spends, driven by users seeking to maximize their card balances before the end of the financial year. On that note, now I'll request moderator to open the floor for Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use a handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Prakhar Jain from Lucky Investments. Please go ahead. Hello, sir, thank you for the opportunity. Can you elaborate a bit more on the Fleet Loyalty Card Program that we have started? How we will earn from that, and what can be the size of the opportunity in this space? Thank you, thank you, Prakhar, for your question. The space is an extremely large space. The government data for last year shows the fleet spends to be about INR 73,000 crore. And this is just fleet spends on fuel. Globally, also, this is a very large space. These are our first steps in this space. But if you look at how fleet owners struggle today with managing their cash, because they need to pay the drivers upfront, for a trip, which could be 30 days. Putting this money onto a prepaid card and giving it to the driver and loading this money on a periodic basis, a daily basis, helps fleet owners manage their cash flow much better and gets partners like Torrent Gas and others assured sales. So we see tremendous growth here, and growth revenue lines are both in terms of a percentage spend on the fleet program, as well as overall, you know, there are other lines in terms of fees, et cetera, that come into play. Okay. So, we plan to give the company, who in turn will give the drivers a prepaid card or something, or a credit card? It's a prepaid closed loop program. We work with partners like Torrent Gas, and these cards would be issued to fleet owners. Fleet owners would in turn pass it on to the drivers, right? And the fleet owner and the Torrent Gas would have a dashboard on which they can monitor how the spends are happening on the card, on a you know real-time basis. And they can block cards, unblock cards, load cards. So that is the whole value proposition in this case. Okay. Sir, my next question is that your revenue from the Propel of the gift card revenue that has not been growing so much, and this I believe is a higher margin revenue for us. So if you can explain this, please. No, overall, it has grown, if you look at it in the on a nine-month basis, Prakhar. It's just that last quarter we wanted to, you know, allow some of our corporate customers to be able to open up the spends on prepaid cards, and because this was a festive season. So as a one-time activity, we allowed some of those spends to come on to Propel Points spends to come onto the network cards. So you see the uptake in the program fees, that is basically some of it is coming through on because on account of this. Prakhar, just to add to what Avinash said, you know, the gross margin on a network card is, you know, much, much higher, you know, than on a gift points or, you know, on a gift voucher. So there is a lot of difference between, you know. And we are constantly trying to, you know, grow our gross margin. And if you see, because of that, you know, this quarter's gross margin is at about 55%. Okay. And sir, if you can also tell us the revenue contribution from Zoyer for this nine-month period. So you know, Zoyer, I would be able to, you know, give you that overall number on the credit card on the Zoyer credit card, you have it handy? Yeah, it's about INR 30 crore in the Program Fees. Okay. For the nine-month period, right? Yeah. No, for the— For the nine months, exact number is about INR 45 crore. Okay. Thank you, sir. Those are my questions. Thank you, sir. We have our next question from the line of Kunal Jethani from Vivriti AMC. Please go ahead. Hi. Good evening. Thank you so much for the opportunity. My question was on the revenue growth that we are seeing quarter on quarter sequentially. I think as of your previous answer, you mentioned that some of the growth that we are seeing on the program fee is on account of perhaps the gift card volumes being routed through the card network. But also trying to understand on account of our newer product, the Zoyer, there would be some bit of gift card related GTV that would also being which would also being booked, right? So how is that growth coming along, and how do you see that outlook in future quarters as well? Yeah, thank you for that. See, if you look at the Zoyer, growth, as I mentioned, last quarter, we had more than INR 2,000 crore worth of spends, in Zoyer, and, we are seeing, you know, good reads in terms of both, you know, the interchange income and the revenues, as well as spends. We anticipate that in the coming quarters we'll see much stronger, you know, numbers and much, greater growth, in Zoyer. Got it. Thank you. And also on the sale of Propel Points, over there, if we look at the Q2 numbers, we did about INR 128 crore, over there, against which the cost of redemption was about 114 odd, right? So, the margin on that line of business was a good 10-11% odd. Versus if I look at the numbers for Q3, I'm looking at about INR 103 crore of revenue, against which cost of redemption is about INR 97, right? So which is about 6% kind of margin. So is that how we should be looking at it? And if that's how it is, then why are we seeing those numbers, perhaps, margins being, you know, coming thinner for the Propel Points business? ... So, you know, if you really look at this quarter, this particular quarter is a season, you know, it is a gifting season business. And you know, what happens is that, there is huge demand, you know, for the gift vouchers, and that's why you see a little bit compression in the margins. Okay? And it is, you know, and we will be able to go back to probably 11%, 12%, 13% in the current quarter. Okay, and the idea is that, you know, even though we, you know, make 11, 12% in this, but the whole, if you look at against the sales, the cost of goods sold is something like about 98%, about 88%, 89% on an overall basis. Okay, so that is something, you know, which we are really not wanting to expand too much. We want to focus, you know, on our, on our program fees, because and SaaS fees, because on the program fees, our margins, net margins are about, you know, gross margins are at about 95%-96%. Understood. Got it. Also, on the SaaS fee as well, because you mentioned, while there is a program fee that's coming in on, through the Zoyer, offering, and that's showing up on the program fee. When do we start seeing SaaS fee also? Because we've been sort of in that INR 7 crore-INR 8 crore region, for 2-3 quarters now. SaaS fee coming from Zoyer product, and corporates willing to pay more for the service offering, when do we see those revenues start to, come up as well? You know, generally, if you just look at, you know, in the terms of SaaS fees, in Q3 FY 2023, we had INR 5.7 crores. In Q3 FY 2024, we have, like, INR 8.2 crores. So if you see, we have grown by about 43%. And in terms of, you know, when the fees will start coming from Zoyer, we should. We have already started seeing it. Okay, in the coming year, couple of years, that will really get ramped up as more and more intelligence is put into the software and more analytics are thrown at the, you know, customers, they would start paying more and more fees on it. So it is, you know, just the product, product adoption has to happen. So as Avinash rightly said, that INR 2,000 crore of spends we did last month, what we are looking at is that how we are able to increase the spends, then put the fees on SaaS fee, and slowly, slowly start increasing the SaaS fee on Zoyer as well. But to give you an answer, maybe, you know, next four quarters is what we would be able to, you know, then tell you how it is shaping up. Thank you. One last question on how are we doing on Trade Receivables? You know, I couldn't find that number on the presentation. If you could just help on what that number is looking like, as a- Sure. More or less in the same range as last quarter, about, you know, INR 130 crore-INR 135 crore is what is the trade receivable. Got it. Noted. Thank you so much for answering me. Bye-bye. Thank you, sir. A reminder to all participants, you may press Star and One to ask questions. We have our next question from the line of Darshan Gangar from Sameeksha Capital. Please go ahead. Mr. Darshan? Yeah. So my question is on the side of- Sorry to interrupt, but we can't hear you. Can you please come closer to the device? Hello. Yes. My question is on the side of for cost of acquisition of customer. Like, there is a significant increase in the cost of acquisition per customer between FY 2021 and FY 2023. So wanted to know your guidance on that. So I think you're referring to our cash backs and incentives that we give. So look, as the business grows and as the revenues grow and new product lines require more investment, so initially we have historic investment that needs to be made to you know increase the uptake or you know usage of these products. But over time, we've been successfully able to you know rationalize these expenses and investments, both for our previous two products, Save and Propel. And we anticipate that to be the case with Zoyer as well. Okay. So my question is on side of trade receivables, like they have increased far, from INR 22.6 crore in FY 2021 to, like, INR 120 crore in till the September quarter. So, like, what are the terms of the contract with the companies you deal? So what is the reason of that? Aditya here. So our TR comprises of three parameters. One is on the SaaS fee, which is related to corporate clientele, where the credit period is around 55-60 days. And second is on the program fee, which we generally bill to bankers, and there the credit period is again anywhere ranging between 45-60 days. And the Propel Points, where we queue the Propel Points is on the gross basis, where that takes anywhere between 30-35 days. If you look at the combination of all this put together, the days comes around at an average of around 40-45 days, which is in line. As the business is increasing, the trade receivables will get elevated on the quarterly basis, but it is in line with the business growth. As a percentage, it remains the same. It remains the same. ... Okay. And my last question is, like, are you planning to expand in other countries? And what are your strategies, and in which countries you are going to expand? So, Darshan, you know, see, our software is made, our product is already ready. You know, it has been deployed in hundreds of companies. So in India, it is doing very, very well. Now, the thought was that, you know, if the same software has to be deployed anywhere else, it really does not require too much of customization. So we just wanted, you know, for the next two, three, four years growth, you know, we need to start planning today. Okay, so there is like, you know, very, very large market in India, but you know, the amount of SaaS fees which they pay, you know, for the per user fees, way too less than what, you know, internationally companies pay for. So what we are looking at is that, is there a market outside India where they could pay us, you know, a much larger differential on the SaaS fee. And that is why we went to SaaSBoomi Kafila, you know, to look at, you know, how the GCC market, you know, would look at us. And, in the near future, or maybe let's take 18-24 months, we definitely, you know, look forward to go international. In which countries? So right now we have looked at the U.S. and the GCC market, and at the right time, we will be able to update you as to which geography have we chosen. Okay, thank you for the opportunity. Thank you. A reminder to all participants, you may press star and one to ask questions. We have our next question from the line of Grishma Shah from Envision Capital. Please go ahead. Yeah. Hi, good evening. Thank you for taking my question. Sir, I want to understand this Torrent Gas loyalty program a little better. I mean, when will the fees start accruing to us, and who is ultimately going to pay? Is it through the bank that we would earn like, you know, we earn for our program fees? You know, how will this entire thing work, if you could help me understand a little better? Yeah, sure. Thank you for your question, Grishma. So basically, the whole concept is that you have a partner, in this case, Torrent Gas, and Torrent Gas is, you know, ultimately benefiting in terms of sales. So they pay us a percentage of the spend that they get, you know, or the percentage of business that they get. We also earn from fees from the fleet owners. The fleet owners also benefit in terms of transparency, being able to manage their cash flows better, et cetera. And hence, we earn from a fee from the fleet owners. And then there are some other incidental lines of income. Okay, so where will this get reflected in our PNL? Is it in the program fees or is it in that, I mean, which line item will it get reflected, and when will it start? See, a part of it would be in the SaaS fees, right? Okay. Because it is a recurring nature, and that is how it would reflect. Okay. Somewhere I read the opportunity is some INR 200 crore, is what you had mentioned. Is that the number that we are working for, for a year one, fees that we will earn? See, this is the volume that we anticipate as of now on a conservative basis with one program, the first program that we're doing with Torrent Gas. The opportunity in the market, as we mentioned, is much larger. Obviously, we need to start with one, you know, dependable, reliable partner, and that partner we have found in Torrent Gas. So all the folks who come with your card at Torrent Gas outlets to refuel or put fuel in their system, once they swipe the card, is when you earn the fee, or once the fleet owner loads an amount, you earn the fee? What is it? It's a both combination. When we invoice Torrent Gas, that is when we earn, when the spends happen. And overall, when the card is issued to the fleet owners, there's a fee there as well for you know, issuing the card. Initially, there would be a lot of money, which you would earn because the cards are issued. See, it is a, it's a question of the program, getting traction. Initially, you know, we will obviously, go step by step and offer it to different fleet owners. Torrent Gas is also growing, and you know, there are multiple such, use cases in the, oil and gas industry, and there are multiple players, with whom we potentially partner in the coming, quarters and years. Okay. The revenue will start accruing from quarter four or first quarter of FY 2022? Sorry to interrupt, ma'am. I would request you to rejoin the queue for more questions as there are several- This is the last question. I will rejoin. Thank you. Yeah, revenue would... So we are yet to go live with the program per se, so we anticipate that, you know, revenues will start coming in the subsequent quarters. Okay, thank you so much, and best of luck. ...Thank you. We have our next question from the line of Pranav Gupta from Aionios Alpha. Please go ahead. Mr. Pranav? Mr. Pranav? Hello. Yes, please go ahead. Yeah, hi. Am I audible now? Yes, you are audible. Hi, good evening. Just a couple of questions. So, one is on one of the previous comments that you made, that you know, we are moving towards you know, moving more clients away from Propel Points and more towards spending on the card, given that it's a higher gross margin business. Is that understanding correct? Moving, you know, so moving away from the gift vouchers business, okay, where Propel Points- Right. are used to, you know, buy gift vouchers, we are moving that business to, you know, using Propel Points to buy, you know, more gift cards. From gift vouchers, we are moving to more network cards, is the right word to use. So to go more and more on the platform, it gives us, you know, and, it's, it also has a much, much higher gross margin profile. This would effectively then feed into the overall Propel business that you would do anyways, by issuing prepaid cards directly, right? So instead of issuing those cards directly, you're pushing more and more customers to redeem those points against gift cards versus gift vouchers. Is that understanding right? Yeah. Network cards, net gift cards, is how you can put it. Understood. Understood. The second question is on the incentive payouts this quarter. If I look at it as a percentage of program fees, which is essentially what the money that we make on cards, that has actually shot up. And if I sort of adjust at least part of those program fees for the you know, money earned on the INR 2,000 crore of card spends that happened through Zoyer, this number seems to be significantly high. How should one look at that for this quarter and then over the medium term? Aditya here, Pranav. So, Zoyer has been kickstarted in this year, right? So if you compare the product-wide, Save and Propel, those are in line with whatever we are paying in previous quarters. There is no incremental on this. Zoyer, because last Q2 and Q3, and Q3 being ramped up business, we have to give a little bit higher, incentive cost towards it. And over a period of time, of course, like what we did for Save and Propel, how we reduced it, we'll focus and reduce for the incentives on Zoyer as well. That's why you see this quarter as an elevated percentage. But on an overall level, if you compare and see total, incentives divided by on the program fee, whatever, so that will be at a relatively only 5%, increase. Okay. Maybe, maybe there's a gap in my understanding, so you can correct me if I'm wrong. Typically, incentive fees would be paid out on spends that would happen on the prepaid cards, right? And if I, you know, my memory serves me right, the Zoyer product is tailored around the credit card offering. In that case, just wanted to understand, what are the incentive payouts on these credit cards, if you're paying out higher on the Zoyer product since the new launch? See, the Zoyer product, when you talk of this line, expense line, there are, of course, certain cost of funds that are, you know, important for issuance of a credit card, because somebody has to bear the cost of the free credit. There is that aspect, and for the uptake of the platform, we've had to give some cashback and incentives to the users and the corporates, to be able to push this platform, and we've seen great reads there. Okay. So these incentives would essentially not be on individual cards, but to the corporate clients as a whole, to push them to spend through cards on the Zoyer platform? Yes. which has led to the INR 2,000 crore spend that you mentioned in this quarter, through Zoyer. Yes, and, and we are seeing great reads in Q4 as well. Sure, sure. I have more questions, but I'll join back to you. Thank you so much. Thank you. Thank you, sir. A reminder to all participants, you may press star and one to ask questions. We have our next question from the line of Darshan Zaveri from Crown Capital. Please go ahead. Hi. Good evening, sir. Thank you so much for taking my question. Firstly, congratulations on a great set of numbers. So I just wanted to... I joined the call a bit late. I just wanted to catch you on our ESOP costs. So currently, our ESOP cost is around INR 24 crore, so that will trend more down, right, as we go forward? How would that be? It's INR 2.47 crore, Darshan. Oh. It's already gone down from last quarter, which was INR 7.2 crores. Yes, you know, that number is now going down further. Oh, okay. Sorry, sir. That was it. And sir, in terms of our guidance, we'll be able to maintain our 40% growth rate, and as we go ahead, our margins should ideally move towards the upper end of the range, towards 13%. Would that be a fair assumption? ...So guidance wise, yes, on the growth, we, we are in the range of 40%-50%, and in terms of adjusted EBITDA, our guidance is 11%-13%, and we'll fall in that range. I was asking for FY 2025, sir. If you FY 2025, we would definitely be, you know, there are too many tailwinds for us. So we should definitely be able to again do a 40+ kind of growth is what, you know, we would say. With the introduction of a new product, our margins would get impacted in a positive way or negative way? How would that work out for us, sir? It will be much, much more positive way. Oh, thank you. Thank you so much, sir. That helps me a lot, sir. And sir, just wanted to ask, like, sir, any kind of speed bump or risk that we see going, like, anything that comes to our mind that, you know, that can, you know, maybe dampen a bit of our speed or everything, what would you say, any micro, macro variable? See, I think it's focus on execution. It's staying true to being nimble, humble and frugal. Those are the core values, and I think if we stay true to that, whatever happens on the macro side, sir, look, that happens to everybody in the economy, and we are no different. But you know, keeping that aside, I think we don't see any specific you know, headwinds for our business. We see more and more confidence growing with corporate customers and banks to work with us as a profitable listed entity. So just to give you a very small example, you know, with Paytm fiasco happening, so we are, we are looking at adding, roughly about, you know, 200+ clients over, you know, next 2-3 quarters just from Paytm. Okay, so if, you know, some of these things happen, you know, God forbid, should not happen, you know, to some of the, companies out there, Fintech companies, we will gain to, you know, we'll definitely stand to gain a lot. Yeah. So just wanted to ask, like in relation to Paytm, we would not face any kind of similar issue, right? Sorry, my expertise are not in this field, maybe, but then just a broad base, like we don't see any some kind of regulatory challenge to us, right? No, and the reason being that we today work overall with 10 banks, and we that way have three networks. So we have, you know, very significantly de-risked ourselves. Of course, if all the kind of banks that we work with, the ICICI, the Kotak, the SBI Cards, the Bank of Baroda, IndusInd, yes, if, you know, something happens to all banks, we will get affected, but- Oh, yeah. That is really highly unlikely. Yeah. Okay, perfect. Perfect, sir. That... Thank you so much. That helps me a lot, sir. Again, sir, congratulations on a great result. Looking forward to the next quarter. Thank you. Thank you. Thank you, sir. We have our next question from the line of Grishma Shah from Envision Capital. Please go ahead. Thanks, again, for giving me a chance. Sir, I wanted to know what's happening with our association with Kotak Credit Card and also the Visa order or the association that we had signed last quarter. If you could help us understand that. Yes, so the Kotak co-brand is in the works on the prepaid side, and that's something which we are working on with Kotak to bundle the Kotak corporate salary account along with launching a Kotak Zaggle co-brand prepaid card. This is a bundled offering that we are taking to the market, where you know, Kotak as well as Zaggle sell the offering, both the salary account and the prepaid card, along with our expense management and employee benefit software, right? So, that is something that we are hoping would go live sometime early next quarter. And you know, we are on track to taking that live. You can find that there is a lot of you know integration work that's in progress. Coming to the Forex card launch, we should, you know, be able to announce, you know, the partner with whom we would launch this in the coming quarter, and we should be going live in the next couple of quarters with that product as well. Okay. And, on the IPO proceeds, now, whatever money is remaining, that we raised through IPO would be appearing in the P&L line item, where we need to provide those incentives to nudge the users to come on our platform to spend, right? Yes, ma'am. So there will be a line item called, incentives and cashback- Yes. There will be business and advertisement, business promotion. You can notice all these expenses through those line items. Okay. But, uh- Thank you. Thank you. Thank you. Thank you. We have our next question from the line of Pallavi Deshpande from Sameeksha Capital. Please go ahead. Yes, sir. Thank you for taking my question. Just wanted to ask three questions, actually. Wanted to understand, if you could, this Propel versus, you know, the prepaid cards or the network cards, which you explained. When you say network, we are talking about those 300 brands also, with whom we have a partnership, and so we get a 10%-15% take rate on those?... Is that right way to look at it? Cards, basically, ma'am, thank you for your question. It's basically cards where there's a card association or card network involved, like a RuPay, Mastercard, or Visa. Typically issued in partnership with banks. So, that's what we are talking about here. So the Propel doesn't have the Visa in this, right? So that is more with the merchants, like a shop, like an Amazon and et cetera. Yes, those are different. Those are gift vouchers which are issued- Right. -by merchants. Right. So what I understood is like, you know, like, why would the corporate... Because you've got a higher margin here, I understand, on prepaid. But for the corporate also, you know, to shift to, from Propel to prepaid, there would be a cost involved? No, cost is not borne by the corporate or anybody. Basically, a corporate wants to give their users maximum choice, and along with, you know, these gift vouchers, which are issued by merchants, from time to time, we open up, you know, the catalog to include network cards, right? Yes. Which is issued, partner banks. Okay. -especially with, you know, Q3 having festivals like Diwali, there were, you know, requests from corporates to include the network cards in the catalog, in which we obliged, and we saw spends come in there as well. But consequently, the redemptions on the gift vouchers went down a little. Right. So this was due to Diwali, and so then are we saying that, you know, in the fourth quarter, it goes back to more, which shifts back to Propel versus the prepaid? We'll see. We anticipate to see that, you know, the numbers in Q4 for Propel Points also to be a good growth. Right. Right. Second question would be on this, the Kotak, you know, the salary account. So just wanted to understand on the regulatory side, would there not be a concern given that, you know, the, I mean, there was—this is an in, in, indirect way of giving an in, a bank, Kotak getting an indirect advantage over an ICICI or an HDFC Bank by this, you know, arrangement that you've fostered, and, would that, can that create problems? Or have you, you know— From a regulatory perspective, our understanding or our assessment is, the regulator is very happy to allow banks to, you know, cross-sell a salary account holder with a prepaid card of the same bank. The regulator has no objection for any of the banks to go ahead and offer to an existing salary account holder, a prepaid card or a credit card. And that's what exactly is happening here, where we are, along with the Kotak salary account, which comes with a Kotak debit card, we are offering a Kotak prepaid card, which is co-branded with Zaggle, where the employee benefits and the expense management and the reimbursement happens, right? Right. Like, management happens on the software, and the reimbursements get credited on the prepaid card. Right. And so lastly, on this, since you shared, you know, the spends on the Zoyer side, would it be possible just to share the similar spends for Propel, for the quarter? The spends have been quite healthy overall, right? And we've seen good growth in all the three lines, per se. Right. Would it be possible to share the users between Propel, Save, and Zoyer? Number of users. We can maybe take that offline. Yes. Yeah. Right. Thank you so much, sir. Thank you. That was the last question for today, and I would like to hand over to the management for the closing comments. You know, thank you everyone for giving us the, you know, opportunity- Very problem with your last name. Yes. Yeah. ... Sure. Thank you so much for giving us the opportunity and, you know, we will continue to, you know, grow with our guided, you know, numbers. We should try to outdo those numbers in the coming quarters. Thank you very much, you know, for patiently listening to us. Thank you. Thank you. On behalf of Zaggle Prepaid Ocean Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.