Veefin Solutions
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Jun 2023 – 26 Jun 2023
- Listing date
- 05 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹82 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹46.73 Cr
- Market cap at offer price
- ₹174 Cr
- Promoter holding
- 56.26% → 39.84% pre-issue → post-issue
- ISIN
- INE0Q0M01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- Off No-601, 602 & 603, Neelkanth Corporate IT Park, Kirol Road, Vidhyavihar (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 2,88,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹82
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,31,200 |
| S-HNI (min) | 2 | 3,200 | ₹2,62,400 |
| S-HNI (max) | 7 | 11,200 | ₹9,18,400 |
| B-HNI (min) | 8 | 12,800 | ₹10,49,600 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 0.48 | — |
| P/E (×) | 170.83 | — |
| Market cap | — | ₹174 Cr |
Key performance indicators
- Return on net worth
- 7.57%
- ROCE
- 11.32%
- Debt / equity
- 0.01
- PAT margin
- 4.67%
- NAV per share
- ₹6.11
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Veefin Solutions
Veefin Solutions Limited, incorporated as a private limited company in October 2020 and converted to a public limited company in May 2023, is a Mumbai-based technology company operating in the IT (SaaS) industry. The company develops and delivers digital lending and supply chain finance technology product solutions designed with a user-led approach, data and analytics, and built by experienced bankers for bankers. Supply chain finance is a financial tool used to help businesses manage cash flow and improve working capital. The company provides its products to a wide range of clients globally, including Banks, Non-Banking Financial Institutions, FinTech, Marketplaces, and Corporates. For the period ended January 31, 2023, the company generated total revenue of ₹1,176.27 Lakhs (standalone) with a profit after tax of ₹330.42 Lakhs. The company has subsidiaries in Bangladesh (Veefin Solutions Limited, Dhaka) and UAE (Veefin Solutions-FZCO, Dubai), and operates in markets including UAE, USA, Kenya, Cambodia, and Vietnam.
Company Analysis
from RHPVeefin Solutions Limited is a Digital Lending and Supply Chain Finance technology product solutions company that provides SaaS-based software products to banks, non-banking financial institutions, fintechs, marketplaces, and corporates globally.
Veefin Solutions Limited, incorporated as a private limited company in October 2020 and converted to a public limited company in May 2023, is a Mumbai-based technology company operating in the IT (SaaS) industry. The company develops and delivers digital lending and supply chain finance technology product solutions designed with a user-led approach, data and analytics, and built by experienced bankers for bankers. Supply chain finance is a financial tool used to help businesses manage cash flow and improve working capital. The company provides its products to a wide range of clients globally, including Banks, Non-Banking Financial Institutions, FinTech, Marketplaces, and Corporates. For the period ended January 31, 2023, the company generated total revenue of ₹1,176.27 Lakhs (standalone) with a profit after tax of ₹330.42 Lakhs. The company has subsidiaries in Bangladesh (Veefin Solutions Limited, Dhaka) and UAE (Veefin Solutions-FZCO, Dubai), and operates in markets including UAE, USA, Kenya, Cambodia, and Vietnam.
Objects of the Issue
- Global – sales and marketing expenditure ₹480.00 Lakhs p.21
- Developing new products or enhancement and maintenance, upgrading or updating existing products ₹1,550.00 Lakhs p.21
- General Corporate Purpose ₹253.57 Lakhs p.21
- Global sales and marketing expenditure ₹480.00 Lakhs p.98
- Developing new products or enhancement and maintenance, upgrading or updating existing products ₹1,550.00 Lakhs p.98
- General corporate purposes ₹253.57 Lakhs p.101
- Fresh Offer of Equity Shares ₹2,336.67 Lakhs p.282
- Offer for Sale by Selling Shareholders ₹2,336.67 Lakhs p.282
Issue Structure
- Total Issue
- ₹4,673.34 Lakhs
- Fresh Issue
- ₹2,336.67 Lakhs (28,49,600 Equity Shares)
- Offer for Sale
- ₹2,336.67 Lakhs (28,49,600 Equity Shares)
- Price Band
- ₹82/- per Equity Share
- Lot Size
- 1,600 Equity Shares
- Face Value
- ₹10/- per Equity Share
Business Model
The company generates revenue from the sale of digital lending and supply chain finance software products to banks, NBFCs, fintechs, marketplaces, and corporates. Revenue is recognized upon transfer of control of software products to customers in accordance with applicable accounting standards. The company operates on both time-and-material and fixed-price contract arrangements. For the period ended January 31, 2023, revenue from exports aggregated to ₹746.25 Lakhs, representing 65.95% of total revenue from operations.
Business Segments
SWOT Analysis
- • Digital Lending and Supply Chain Finance technology product solutions with user-led approach, data and analytics, built by experienced bankers(p.21)
- • Revenue growth trajectory with 93% YoY increase from FY2021 to Jan 31, 2023 reporting period(p.22)
- • Diversified global client base across multiple jurisdictions including UAE, USA, Kenya, Cambodia, Vietnam and Bangladesh(p.39)
- • Flexibility in fund deployment with Board discretion(p.48)
- • No independent monitoring agency required for fund utilization(p.49)
- • Audit Committee oversight of fund deployment(p.49)
- • 100% underwriting by Lead Manager(p.69)
- • Compulsory Market Making for three years post-listing(p.69)
- • Comprehensive, low-code/no-code supply chain finance and digital lending technology platform tailored for global BFSI clients(p.128)
- • High recurring revenue model with 86.5% customer retention rate and rapidly growing ARR from Rs. 184.25 Cr to Rs. 542.89 Cr(p.130)
- • Strong profitability with 40.04% EBITDA margin and 28.84% PAT margin in FY23(p.130)
- • Experienced management team with combined 32+ years of experience in digital technology, banking, and fintech sectors(p.138)
- • SaaS-based flexible pricing model reducing customer implementation burden and fostering long-term partnerships(p.138)
- • Export-focused business model with 61.48% revenue from exports, positioning company to capture global SCF and digital lending market opportunity(p.130)
- • Deployment-agnostic platform compatible with cloud, on-premises, and hybrid models, meeting diverse regulatory requirements(p.138)
- • Experienced and stable management team with long tenure at group companies(p.166)
- • Low management attrition relative to industry standards(p.168)
- • Strong promoter commitment and alignment with company success(p.198)
- • Qualified and experienced senior management team across all functions(p.166)
- • High customer concentration risk with top 10 clients representing 93-100% of revenue(p.36)
- • Significant employee costs representing 55.75% of total expenses in Jan 31, 2023 period, with high attrition risks(p.32)
- • Negative operating cash flows of ₹201.37 Lakhs in Jan 31, 2023 period despite profitability(p.40)
- • Company logo not registered with Registrar of Trademark, creating IP vulnerability(p.37)
- • Multiple instances of past statutory non-compliance including delayed filings and incorrect form submissions(p.41)
- • Registered office on lease basis, not owned; risk of loss if arrangements cannot be renewed on favorable terms(p.40)
- • Unsecured loans from directors and relatives repayable on demand, creating liquidity risk(p.45)
- • No insurance coverage for assets or employees against material hazards(p.45)
- • No alternate financing arrangements for capital requirements(p.49)
- • Promoters' acquisition cost significantly lower than Offer Price(p.49)
- • Restriction on dividend payments(p.49)
- • Dependence on fund deployment timing for business impact(p.49)
- • Fund deployment based on unverified internal estimates(p.48)
- • Limited presence in India with only 31.75% of revenue from domestic market, creating dependence on export markets(p.130)
- • Small employee base of 161 employees (145 on payroll) limiting operational scalability and capacity(p.141)
- • No material intellectual property rights or patents disclosed, potentially limiting competitive moat(p.141)
- • Heavy dependence on a few large customers including Yes Bank, IndusInd Bank, and Citi Bank for substantial portion of revenue(p.131)
- • High dependence on key management personnel with no formal succession plan disclosed(p.165)
- • Significant outstanding unsecured loans to promoters and related parties(p.199)
- • No formal dividend policy in place(p.175)
- • Recent changes in senior management roles (within last 3 years of filing)(p.168)
- • Expansion of product portfolio through development of new products and enhancement of existing offerings(p.21)
- • Growing global demand for digital lending and supply chain finance solutions in BFSI sector(p.32)
- • Expansion into new geographic markets and emerging markets with high growth potential(p.35)
- • Growing adoption of cloud computing, mobility, social media and platform-as-a-service technologies(p.33)
- • Global expansion via sales and marketing investment(p.48)
- • Product development and enhancement in BFSI sector(p.100)
- • New product launches (DTSCF and Dynamic Discounting)(p.100)
- • Strategic flexibility for acquisitions and partnerships(p.101)
- • Market visibility and brand enhancement via listing(p.97)
- • Global SaaS market valued at USD 165.9 billion in 2021 expected to expand at 11% CAGR through 2028(p.126)
- • Indian SaaS sector at USD 12-13 billion ARR in 2022 expected to reach USD 35 billion in ARR by 2027 with 8% global market capture(p.127)
- • Deep-tier supply chain finance (DTSCF) market opportunity to extend financing to multiple tiers of SME suppliers(p.134)
- • Global digital lending market expansion driven by cloud adoption and work-from-home trends accelerating SaaS adoption(p.126)
- • Indian IT industry expected to grow to USD 19.93 billion by 2025 with increasing government focus on fintech and digital infrastructure(p.125)
- • Significant demand for SCF solutions to address working capital needs of SMEs across emerging markets and supply chain segments(p.128)
- • Potential for business expansion within group companies and affiliate entities(p.174)
- • Capacity to scale operations through investment in technology and talent(p.188)
- • International expansion potential through existing foreign subsidiaries and partnerships(p.174)
- • BFSI sector dependency creates vulnerability to macroeconomic downturns and sector-specific challenges(p.32)
- • Intense competition from large global consulting firms, offshore IT services providers and in-house IT departments(p.38)
- • Ongoing COVID-19 pandemic impacts with uncertain duration and severity(p.33)
- • Foreign exchange rate fluctuations in USD and other currencies affecting reported results and competitiveness(p.41)
- • Regulatory changes and compliance risks across multiple jurisdictions including RBI regulations on lending(p.41)
- • Rising wage costs for IT professionals in India reducing competitive advantage and profit margins(p.46)
- • Data security and cyber attack risks including phishing, hacking, data theft and advanced persistent threats(p.44)
- • Rapid technological changes and evolving industry standards requiring continuous product innovation and adaptation(p.33)
- • Clients' ability to in-source or switch to competing providers, with no non-compete agreements in place(p.37)
- • Regulatory compliance burden on fund utilization variation(p.50)
- • Share price volatility and market liquidity risks(p.50)
- • Delays in listing and trading commencement(p.50)
- • Changes in Indian tax law and policy(p.53)
- • Global economic conditions and foreign investment constraints(p.53)
- • Natural calamities and external security threats(p.53)
- • Global economic slowdown with growth projected to fall from 3.4% in 2022 to 2.9% in 2023, impacting BFSI IT spending(p.115)
- • Data security and privacy concerns related to cloud computing presenting market headwinds for SaaS adoption(p.126)
- • Intense global competition from established fintech product providers including HPD Lendscape, Demica, Premium Technologies, Fin2B, and Intellect Design(p.141)
- • Rapid shifts in regulatory environment and central bank policies affecting BFSI sector lending practices and technology requirements(p.115)
- • Geopolitical risks including Russia-Ukraine war causing supply chain disruptions and economic sanctions affecting global markets(p.122)
- • Rising global inflation expected to remain above pre-pandemic levels (4.3% in 2024 vs. 3.5% pre-pandemic) impacting operational costs(p.115)
- • Dependence on a limited group of customers for revenue generation(p.195)
- • Concentration of intangible assets creates vulnerability if asset valuation declines(p.181)
- • Conflicts of interest may arise from overlapping directorships in group companies(p.174)
- • Significant deferred tax liability due to asset valuation differences(p.196)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Raja Debnath | Promoter Selling Shareholder | 47.32% | — |
| Mr. Gautam Vijay Udani | Promoter Selling Shareholder | 8.94% | — |
| Mr. Raja Debnath | Promoter and Chairman and Managing Director | 47.32% | 33.51% |
| Mr. Gautam Vijay Udani | Promoter and Wholetime Director | 8.94% | 6.33% |
| Raja Debnath | Promoter, Chairman and Managing Director | 47.32% | — |
| Gautam Vijay Udani | Promoter, Wholetime Director | 8.94% | — |
| Raja Debnath | Promoter | 47.32% | — |
| Gautam Vijay Udani | Promoter | 8.94% | — |
| Raja Debnath | Promoter | — | — |
| Raja Debnath | Promoter Selling Shareholder | — | — |
| Gautam Vijay Udani | Promoter Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.