Findi Seeks To Conquer India’s Potential

Small Caps | Jun 12 2025

Following Findi's broadly in-line FY25 results, management's focus turns to multiple growth options in India.

-FY25 results for Findi were broadly in line
-Growth options for ATM Solutions and FindiPay/BankIT
-Compoany's goal is to become a "one stop and full-service" provider
-Ord Minnett anticipates a transformational FY26

By Mark Woodruff 

The fiscal year ended 31 March delivered multiple milestones for ASX-listed fintech Findi ((FND)) including an award by the Reserve Bank of India of a provisional white label licence and the acquisition of digital financial product distribution business, BankIT.

FY25 revenue of $75m came in 9% ahead of the mid-point of management's guidance for between $68-70m, while reported earnings (EBITDA) reached the mid-point of $30-32m guidance.

Primarily focused on customers in rural and remote areas of India, Findi operates a network of ATMs providing both brown label (partner-branded) and white label (Findi-branded) ATM services. 

Broker MST Access highlights the company is one of the world's largest non-bank ATM operators in a large market, servicing more than 2.7m customers daily in India across at least 200,000 locations, involving both ATMs and merchants.

The Digital payments business, comprising FindiPay and BankIT, focuses on dynamic payments and digital banking by offering solutions including Domestic Money Transfer (DMT), the Aadhaar Enabled Payment System (AePS), and micro-ATM services.

A key element of management's strategy is to accelerate the white label business, which is capital-light, and leverage the intersection between ATMs and digital payments to become a "one stop and full-service" provider in the longer-term.

When commencing research coverage in January, broker Morgans was attracted to Findi's established brown label ATM operations, which provide a solid foothold in the sizeable Indian ATM/payments market.

The ATM business is capitalising on India's ongoing reliance on cash, noted the broker, with the national ATM network expanding at 3.5% per annum.

Meanwhile, the digital segment targets India's rapidly growing digital payments sector, which expanded by 43% in transaction value from FY23 to FY24.

Expansion opportunities

Analysts at Ord Minnett highlight two major upcoming catalysts for Findi: the continued rollout of white-label ATMs and the expansion of BC Max centres, developed in partnership with the Central Bank of India.

According to Morgans, the white-label franchise model offers a significantly higher return on investment (ROI) and greater scalability, primarily because franchisees bear the capital expenditure costs in exchange for a portion of interchange fee revenues.

Meanwhile, the BC Max rollout represents a critical step in Findi's business-to-consumer (B2C) strategy. These centres serve as full-service banking outlets are strategically designed to deepen financial inclusion.

As Morgans notes, this initiative marks one of the foundational moves in Findi's ambitions to evolve into a "payments bank", signalling a shift toward broader financial services offerings.

The acquisition of BankIT and the bedding down of Tata Communications Payment Solutions (TPCS) will potentially accelerate a liquidity event for shareholders: the intended IPO of TSI India on the Bombay Stock Exchange. This listing is currently expected before the end of 2026.

In India's rapidly evolving digital banking landscape, FindiPay serves as a merchant-assisted payments platform, designed to facilitate seamless financial transactions and services for underbanked and rural populations. Complementing this, BankIT (a B2B2C fintech platform) delivers a broader suite of digital banking and financial services to the same demographic.

Findi provides the technology and regulatory framework to its business partners (the B2B component), who in turn serve end-consumers (B2C) in their local communities. These partners operate as BankIT agents, offering banking and financial services through point-of-sale (POS) terminals, mobile apps, or web portals.

More on FY25 results and the outlook

Morgans assesses a mixed overall result. While the headline numbers fared well versus guidance parameters, they were assisted by higher "other income.

MST Access believes time taken to replace brown label ATMs with new ATMs under new contracts with partners including State Bank of India likely impacted underlying growth.

Positively, Findi delivered robust operating cash flow (OCF) in FY25, in Morgans' view, rising by 5% on the prior year.

The balance sheet is also described as robust, including a net cash position of $30m as of May 30.

Underlying profit (NPBT) and operating cash flow (OCF) of $6m and $27.5m beat Ord Minnett's forecasts for $2.8m and $22.9m, respectively.

This broker anticipates a transformative FY26, forecasting circa 160% revenue growth primarily driven by the acquisitions of TCPS and BankIT, as well as recent contract wins with major Indian banks such as Central Bank of India, Union Bank of India, and State Bank of India.

ATM Solutions

Findi has a majority stake in Transactional Solutions International India (TSI), which in November last year signed a binding share purchase agreement to acquire 100% of Tata Communications Payment Solutions from Tata Communications for -$59.1m.

Completion of the acquisition delivered Findi control of TCPS's Indicash white-label ATM network, white-label licence, and payments switch, significantly expanding the company's ATM footprint and capabilities in India.

White Label ATMs are operated by non-bank entities, licensed by the Reserve Bank of India, which allow customers of any bank to perform basic banking transactions.