DIGISPICE TECHNOLOGIES LIMITED — Investor Presentation 2021

Jul 31, 2021

July 31, 2021

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400 001 Scrip Code: 517214

National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block Bandra – Kurla Complex, Bandra (E) Mumbai – 400 051 Scrip Code: DIGISPICE

Sub: Results Presentation

Dear Sir/Madam,

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith the Results Presentation on the Financial Results of the Company for the quarter ended 30th June, 2021:

These may be used by the Company for potential meetings with analysts and investor community and will also be available on the website of the Company i.e. www.digispice.com.

You are requested to kindly take the above on record and oblige.

Thanking you.

Yours faithfully, for DiGiSPICE Technologies Limited (formerly Spice Mobility Limited)

MEGHRAJ BOTHRA d948a50c7d2b1ff9f20, o=Personal, cn=MEGHRAJ BOTHRA,

(M. R. Bothra) Vice President - Corporate Affairs & Company Secretary

Encl.: as above

DiGiSPICE Technologies Ltd.

Q1FY22 Results Presentation July 31, 2021

Disclaimer

This presentation has been prepared by DiGiSPICE Technologies Limited (the "Company") solely for your information and may not be distributed, reproduced, or redistributed or passed on directly or indirectly to any other person, whether within or outside your organization or firm, or published in whole or in part, for any purpose by recipients directly or indirectly to any other person. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any persons of such change or changes This presentation may contain certain forward-looking statements based on the currently held beliefs and assumptions of the management of the Company which are expressed in good faith and in their opinion, reasonable. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guaranteeing of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. Many factors could cause the actual results, performances, or achievements of the Company to be materially different from any future results, performances, or achievements. Significant factors that could make a difference to the Company's operations include, but are not reasonable to, domestic and international economic conditions, changes in government regulations, tax regime and other statutes. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company. This presentation contains certain supplemental measures of performance and liquidity that are not required by or presented in accordance with Indian GAAP, and should not be considered an alternative to profit, operating revenue or any other performance measures derived in accordance with Indian GAAP or an alternative to cash flow from operations as a measure of liquidity of the Company. In no event shall the Company be responsible to any person or entity for any loss or damage, whether direct, indirect, incidental, consequential or otherwise, arising out of access or use or dissemination of information contained in this presentation, including, but not limited to, loss of profits. No representation, warranty, guarantee or undertaking (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein and, accordingly, none of the Company, its advisors and representative and any of its or their affiliates, officers, directors, employees or agents, and anyone acting on behalf of such persons accepts any responsibility or liability whatsoever, in negligence or otherwise, arising directly or indirectly from this presentation or its contents or otherwise arising in connection therewith. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent analysis as you may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of future results. By attending this presentation, you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business. This presentation and its contents are not and should not be construed as a prospectus or an offer document, including as defined under the Companies Act, 2013, to the extent notified and in force) or an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. This presentation is not for publication or distribution or release in any country where such distribution may lead to a breach of any law or regulatory requirement. The information contained herein does not constitute or form part of an offer, or solicitation of an offer to purchase or subscribe, for securities for sale. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. None of the Company's securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. By accessing this presentation, you accept that this disclaimer and any claims arising out of the use of the information from this presentation shall be governed by the laws of India and only the courts in Delhi, and no other courts, shall have jurisdiction over the same.

Agenda

• About Us
• Financial Technology Services Spice Money
• Digital Technology Services
• Digital Enterprise – Korero Platforms
• Digital Telco
• Consolidated Financials

About Us

About us

We are a Digital Platforms and Solutions Company focused on the following business segments

Business segments:

• Financial Technology Services , Spice Money India's leading rural FinTech platform
• Digital Technology Services, DigiSpice Provides digital platform and solutions for Telco, BFSI and other Enterprises across Asia and Africa

Building Digital Platforms

Building Digital Platforms

India's leading Rural Fintech Platform

Solving the last mile banking infra problem in Rural India

Number of bank account holders has significantly grown in India driven by a massive government push and direct benefit transfer program. However, Bank Branch and Bank ATM infrastructure has not kept pace especially in semi urban and rural India.

Spice Money Adhikari App Aadhaar Biometric Device +

Enabling Customers to avail ATM and banking services using Aadhaar Enabled Payment System at their next door kirana store.

Entrepreneurs/Kirana Stores in Rural India use Spice Money Digital platform to serve consumers

Building Blocks Access and engagement Access and engagement with millions of entrepreneurs and consumers Proprietary Data Enabling credit profiling and personalized product recommendations Open API Architecture Enabling multiple product partners to provide customized services to rural entrepreneurs & consumers

Q1FY22 Update

Gross Transaction Value during the quarter grew to INR 31K Cr (growth of 35% q-o-q and 65% y-o-y)

Transactions based revenue during the quarter grew from INR 155 Cr to INR 199 Cr (growth of 29% q-o-q and 56% y-o-y)

AePS market share increased to 15.9% in the quarter compared to 13.7% in FY21

Repeat Customers transacted on AePS increased to 21Mn from 17Mn in the previous quarter

The growth in the quarter was primarily driven by the significant growth in Adhikari base in Q4FY21. Growth in Adhikari base has been driven by zero investment marketing campaign which aimed at reducing the entry barriers (entry fee, device cost etc) for new Adhikaris joining the platform and removing engagement barriers for existing Adhikaris to grow business.

Our coverage improved from 140 dense districts to 186 dense districts q-o-q, with total reach in 708 districts

Key Metrics

*Dense District = A district where there is at least 1 Adhikari per 1,000 rural population.

*AePS off-us value market share

Creating a strong repeat end consumer franchise

While focusing on adding new customers through increase in reach, Spice Money is also building a strong repeat customer franchise.

*Repeat customers transacted during the quarter means returning customers who have transacted in earlier periods.

Investing behind Accelerated Transactions Growth

• Positive unit economics business model
• Operating leverage to be driven by transactions growth

Launching new Products for Bharat

mATM

• mATM allows customer to transact using Debit Card (in addition to Aadhaar via AePS). Adhikari needs a small pinpad device, which works with our app to enable these transactions.
• Launched in Jan 2019 and attained market leadership
• 78K SMAs equipped with mATM devices as of Mar21
• Driving device affordability to penetrate the market.
• 3x growth in FY21. We continue to drive this as a high growth product

NEW LAUNCH

Enterprise Cash Management

• Problem Statement Enterprises (eg Microfinance NBFCs, Logistics companies, etc) collect cash in rural through their representatives who need to go back to their urban branches end of the day to deposit cash. Branch manager then deposits cash in a Bank branch. Cash management risk and hassles. Limited by banking hours.
• Solution Such representatives now deposit cash at nearby Spice Money Adhikari in the village. Enterprises get near real time credit. Adhikari uses this cash to serve customers with cash withdrawal services.

• Focus growth product for FY22.

Building a Phygital Super App for Bharat

Growth Levers

• Expanding geographical reach
• Deepening presence in key clusters

Spice Money Accelerating Growth of Entrepreneurs Network (Spice Money Adhikaris)

Expanding Service Portfolio

Enhancing Brand Visibility

• Strengthen core banking and payments use cases with new products
• Enable delivery of financial services (savings, insurance, credit) and digital services (travel, healthcare, government services, etc)

• Aspire to emerge as the most trusted FinTech brand in rural India
• Entered into strategic partnership with Sonu Sood to design new initiatives and products that will bridge the divide between rural and urban India

Financials (Spice Money)

27% q-o-q growth in Q1FY22 is driven by the campaign during Q4FY21, which translated into revenues in the current quarter.

Revenue profile

• Service fee revenue Commission income from transactions
• Airtime sale revenue Revenue on airtime top-ups transactions. The transaction value is accounted as revenue
• Acquisition and device revenue Revenue on sale of devices (mATM, biometric etc. ) and revenue from entry fee charged

Focused on driving transactions revenue

* EBITDA is before other income and exceptional items

Sequentially, the EBITDA improved from INR (-)1.6cr to INR 3.8cr because of increase in revenue this quarter, and additional expenses towards zero fee campaign in Q4FY21, part of which did not continue in Q1FY22.

Compared to Q1FY21 the EBITDA moved from INR 9.9cr to INR 3.8cr primarily because of the tailwind in Q1FY21 driven by the pandemic related subsidies granted by the Government. EBITDA in that quarter reflected a significant jump due to this.

Post that, the focus has been on investing behind growth (removing entry and engagement barriers and focusing on transactions-based growth) and organization capacity and capability.

COVREG : A drive for Rural Vaccination

Challenges in Rural India

• Lack of awareness on vaccine registration
• Skepticism to the vaccine
• Need for community influence to drive action
• Lack of assisted registration platform

11000+ Volunteers across India in 4 weeks

Building Digital Platforms

Growth in Adoption of Digital Channels & Automation Platforms

Communication Platform as a Service

estimated \$7 billion in 2020.

▪ The total value of the CPaaS market is expected to reach \$25 billion in 2025; rising from an ▪ Over 95% of CPaaS revenue will be attributable to SMS in 2020 owing to the ubiquity of SMS USD 7 Bn USD 25 Bn

amongst mobile subscribers. However, as alternative rich media messaging solutions gain traction, by 2025, SMS will drop to 70% of revenue.

2020 2025 Source : Juniper Research

Marketing Automation

• The global marketing automation market size is expected to grow from USD 3.3 billion in 2019 to USD 6.4 billion by 2024, at a CAGR of 13.9%.
• Enterprises are increasing focus on leveraging advanced technologies to automate the marketing process and enhance customer experience.

Korero Platforms : Our Digital Enterprise Offering

• Serving 3 out of top 5 in Fortune India 500 2020 list
• 60+ live clients across BFSI, Utilities and other industries across Large Enterprises and MSMEs
• Omni channel communications platform Telecom, OTT and IP channels. Higher growth expected from new, digital channels
• Channel orchestration for customized user journeys across life cycle
• Use of AI for contextual conversations and improved conversion rates
• Marketing automation Create, manage and maximize the impact of marketing campaigns through digital engagement channels

Q1FY22 - Industry update

• TRAI under the Telecom Commercial Communication Customer Preference Regulations (TCCCPR 2018) directed Telecom Service Providers to adopt Blockchain or Distributed Ledger Technology (DLT) on their networks to control Unsolicited Commercial Communication (SPAM messaging)
• Under the Guidelines, Enterprises willing to communicate with interested users have to confirm their identity through a header registered in their name and Access Providers to provide facility to digitally record and revoke consent of the subscribers
• DLT is being implemented in stages since last year. Enterprises were asked to whitelist SMS templates by April 01, 2021.
• The implementation has led to a sharp decline in number of SMS being sent by Enterprises, especially in Promotional SMS category. The impact is at Industry level. DigiSpice observed a 25% reduction in number of SMS delivered in Q1FY22 as compared to previous quarter.
• In sequential stage of DLT implementation, the user Consent Management is to be implemented by Enterprises starting Aug 2021.
• At Korero Platforms, we have built a DLT compliant platform to support Enterprises in their communication requirements.

Building Digital Platforms

Growth in Digital Content Consumption

High internet penetration is accelerating content demand, driven by personalized experience

• 4.72 billion globally used the internet in April 2021 that's > 60 % of the world's total population Source: DataReportal – April 2021
• The average global internet user spends almost 7 hours online each day. Source: DataReportal – April 2021
• Global Video On Demand (VoD) Market to reach US \$85 billion (out of total Digital Content Revenue of US \$300 billion) by 2025 Source: Adroit Market Research – May 2021
• 83% of consumers are willing to share their data to create a more a personalized experience Source: Forbes– Feb 2020

Digital Telco Business : Our offerings

• Digital Entertainment Products: Native Mobile Apps & Progressive Web Apps to deliver music, video, games, and other multimedia content over the Internet. The platform brings adaptive user experience, a state of art partner & content management system, and strong content delivery mechanism for rich digital experience to users. It also enables telecom operators to serve & monetize online content from various sources E.g., Local Content Provider, Major Labels, broadcasters and streaming services.
• Super App (DSA - Digital Service Aggregation): SuperApp or DSA is a platform developed for Global Telecom Operators & Enterprises to aggregate & offer their plethora of services under one umbrella. It enables to put together products and services that consumers expect in the market today. It supports multiple channels for driving engagement through discovery
• Self-Service Apps: A multi-channel smart mobility solution for telecom operators and enterprises helping them connect with their customers and offer them a DIY feature to access account information, handling services and requests, getting new products and services, connecting with customer care, etc. The solution reduces TCO, enhances revenue and ultimately results in improved CSAT.

Leveraging 25+ Telco client relationships across Asia, Africa and Middle East

Digital Entertainment Products

Aligning strategy & focus on videos and gaming, owing to greater revenue realization and associated interest

Financials (Digital Technology Services)

Revenue (INR cr)			EBITDA* (INR cr)
Revenue Profile • Enterprise Mobility Revenue • Digital Telco revenue • Others – Implementation of Enterprise Revenue 35	Primarily Telco Voice VAS DLT has resulted this quarter	in a reduction in	• Reduction in EBITDA this quarter is due to reduction Enterprise Revenue (DLT implementation) and increase input costs	in in
20	27	26
1	22	17
14	2	3 6
Q1FY21	4 Q4FY21	Q1FY22	(2) (2) (3)
Other Digital Telco Enterprise			Q1FY21 Q4FY21 Q1FY22

* EBITDA is before other income and exceptional items

Consolidated Financials

Consolidated Financials Overview (Quarter wise)

* Excludes Exceptional Items

** Before Discontinued Operations

Thank You

Digispice Technologies Limited

investor.relations@digispice.com

• Gavin Desa / Suraj Digawalekar / Kshitij Sharma
• CDR India
• +91 98206 37649 / +91 98211 94418 / +91 98331 98439
• gavin@cdr-india.com kshitij@cdr-india.com suraj@cdr-india.com