We missed this earlier

Payments company ItzCash has reported revenues of Rs 250 crores for the financial year 2016-17 (FY17), a growth of 40% year on year (from approximately Rs 180 crore), and more importantly, turned profitable, the company said in a statement. This is on the back of a total payments volume of Rs 14,000 for the financial year. Remember that last year, Naveen Surya, MD of Itz Cash, had said that it expected to hit revenues of Rs 270 crores in FY17. In FY16, it had reported utility bill payment transactions worth Rs 6000 crore. The company hasn’t disclosed utility bill payment numbers for FY17.

It is now seeing around 6.5 lakh transactions a day. Note that last financial year, it saw recorded a payments volume of Rs 14,000 crore. The number of transactions in prepaid instruments (wallets + PPI Cards) increased by 62.07 million in March 2017, recovering from a decline February 2017. Total amount transacted went up by Rs 1049 crore.

ItzCash is among the oldest payments cards companies, beginning in 2006 as a prepaid card and wallet service. It also expanded into a domestic remittance service business with franchise operations as ItzCash World: the company says that it has around 75,000 outlets in more than 3000 Tier 1 and II cities and towns.

Diversification into financial services

Bhavik Vasa, Chief Growth Officer at Itz Cash said in a statement that the company is now diversifying into financial services and corporate products: “We will also be looking at multiple partnerships which will include investments, joint ventures especially in blockchain technology, and acquisitions and investments in areas such as credit and insurance to accelerate our growth momentum going forward.”

Some of the new businesses started by ItzCash include:

– Cross-border remittance: It partnered with Prabhu Money Transfer, a remittance company in Nepal, allowing Nepali migrants in India to send money back home.

Third party POS terminals: The company said in April that it will deploy 100,000 POS terminals targeting small businesses and shopkeepers in the year. It had started the POS business in early December 2016 and so far has deployed 30,000 terminals. This is a new segment for ItzCash, and is a space that already has competition from Mswipe, Ezetap, Oxigen and PayU.

– Invested in Finly: In February, ItzCash made an undisclosed equity investment in Bangalore-based expense management company Finly which works in the corporate expense management space.

–  BBPOU: In July 2016, it got an approval from the RBI to launch a Bharat Bill Payments Operating Unit (BBPOU). The National Payments Corporation of India (NPCI) set up the Bharat Bill Payment System (BBPS), a centralized interoperable bill payment system. BBPOUs are units which can create an agent network and will be responsible for on-boarding billers and aggregators. Other non-bank entities who have received a licence from the RBI include Spice Digital, Oxigen, PayU, TechProcess Payment Services, Euronet and Paytm.