Veefin Solutions H1 Revenue Up 116% YoY

The company generates revenue through three engagement models: complete banking applications, technology platforms, or individual capabilities.
Fees are categorized as one-time (implementation, certain licenses) or recurring (recurring licenses, subscriptions, annual maintenance, support).
For H1 FY27, recurring fees constituted 82.1% of standalone revenue.
In Q2 FY27, this share increased to 89.8%.
Existing customers contributed 73.9% of H1 revenue and 69.9% of Q2 revenue, with new customers contributing the remainder.

Days Sales Outstanding (DSO) improved to 88 days in H1 FY27 (calculated using annualized revenues).
This represents an 11-day improvement from the FY26 level of 99 days and a significant improvement from 149 days in FY24.

The open opportunity pipeline stands at approximately ₹920 crores.
Approximately ₹240 crores of new opportunities were added during Q2.
Approximately ₹46 crores was contracted out of the pipeline in Q2.
The pipeline is diversified: 35% Supply Chain Finance, 23% Digital Lending, 18% Trade and Cash, 16% Digital Banking, and the remainder in Fraud and Risk.
65% of the pipeline value is from products beyond the core Supply Chain Finance.
The pipeline consists of 77 opportunities, with 38 involving more than one product.
75% of the pipeline is fully qualified, with 11% under negotiation.
Geographically, 16% of the pipeline is in India, and 84% is international (Southeast Asia, Middle East, Africa).

The company invested ₹58 crores at the group level (₹35 crores standalone) in product development during H1.
Unveiled the Veefin AI Operating System (AIOS), a custom-built system for transaction banking and digital lending.
The AIOS has a foundation of shared business context, operating rules, and evidence, topped with an employee factory, governance, and a runtime command center.
More than 1000 skills have been built and are organized into defined jobs for AI employees.
The AIOS is being applied internally across three factories:
Implementation Factory: Supports preparation and delivery work.
Support Factory: Focuses on issue investigation and resolution.
Testing Factory: Supports test preparation and execution.
The AIOS can be offered integrated with existing Veefin products or as a standalone overlay for a bank's existing systems.

The expanded product portfolio includes:

Transaction Banking: Supply Chain Finance, Trade Finance, Cash Management, Liquidity Management.
Digital Lending: Origination, Loan Management, Collections.
Financing Infrastructure (PSB Xchange): Guarantees, Lending Portfolio, Trades Technology.
Capabilities like workflow, reporting, and analytics sit across products, with AIOS embedded throughout.

Pavan (Chief Delivery Officer): Joined from Tech Mahindra with 25 years of experience. Focuses on delivery execution and operational excellence.
Akash Munjal (Chief Customer Officer): Moved from another internal role with 24 years of banking experience. Focuses on customer outcomes, retention, expansion, and product adoption.

Received in-principle approval from BSE for a mainboard migration; application is with NSE.
Voluntarily adopted Ind AS accounting standards in preparation for the mainboard migration.
An NCLT hearing for an amalgamation matter was held on October 22, 2026; a final hearing is expected in November or December 2026.
A DRHP for the listing of subsidiary White Rivers Media (WRM) is expected to be filed in January.

Revenue Drivers: Growth is expected from a mix of existing clients, new client wins, and new product lines, with the geographical spread remaining consistent.
Employee Costs: Product development expenses were ₹56-57 Cr in H1 FY27, down from ₹65 Cr in H1 FY26. Most development costs will flow through the P&L from next year.
Cost of Revenue Increase: The increase is variable and linked to project-based expenses in the services business. The full consolidation of White Rivers Media for 6 months (vs. 3 months last year) also contributed.
Negative Operating Cash Flow: Attributed to payment of liabilities, unbilled revenue, and prepaid expenses—a temporary working capital gap expected to reverse in H2 with larger billings.
Liquidity: The company has undrawn working capital lines from banks and manages liquidity expecting timely customer payments.
PSB Xchange: On track with dealers onboarded, anchor approvals in place, and AUM building. Specific revenue metrics are not disclosed for competitive reasons.
Debt & Fundraising: No plans to raise additional debt or equity. A previous funding round of ₹88 Cr was raised at the Veefin level in December 2025, and ₹166 Cr was raised at the subsidiary level in September 2024.

Management outlined three key priorities for the coming period:

1. Commercial conversion of the substantial opportunity pipeline.

2. Focus on delivery execution and customer outcomes.

3. Improving cash conversion as the business grows.