Findi Ltd reports flat revenue and a 15% rise in EBITDA but swings to a $12.5 million net loss for FY2025, driven by strategic capital raises and refinancing in its Indian subsidiary.
- Revenue steady at $66.5 million for FY2025
- EBITDA up 15% to $31.4 million
- Net loss after tax of $12.5 million versus prior year profit
- Raised $40.8 million to support Indian subsidiary expansion
- New convertible debenture terms negotiated with Piramal Alternatives
Financial Performance Overview
Findi Ltd (ASX: FND) has released its preliminary financial results for the year ended 31 March 2025, revealing a mixed performance. While total revenue from ordinary activities remained essentially flat at $66.5 million, the company achieved a notable 15% increase in EBITDA to $31.4 million. However, this operational improvement was overshadowed by a significant net loss after tax of $12.5 million, a stark reversal from the $4 million profit recorded in the previous year.
Capital Raising and Strategic Refinancing
A key driver behind the loss was a one-off $17.2 million payment related to the refinancing of Transaction Solutions International (India) Pvt Ltd (TSI), Findi’s majority-owned Indian subsidiary. During the year, Findi successfully raised $40.8 million in capital to fund TSI’s expansion plans. TSI exercised its call option on previously issued compulsory convertible debentures (CCDs) held by Indian investment group Piramal Alternatives, opting to pay a committed internal rate of return of 18% to avoid shareholder dilution linked to the original $153 million valuation.
This transaction allowed TSI to renegotiate new CCD terms with Piramal, who reinvested A$36.3 million at a substantially higher post-money valuation of A$500 million ahead of TSI’s planned listing on the Bombay Stock Exchange in 2026. Notably, the new CCDs carry no coupon prior to November 2026, reflecting confidence in TSI’s growth trajectory.
Post-Year-End Capital Initiatives
Following the fiscal year-end, Findi raised an additional $5 million through a Share Purchase Plan and placement. These funds are earmarked for capital expenditure to deploy 2,293 new ATMs under a recent agreement with the State Bank of India, as well as to accelerate the rollout of White Label ATMs after the acquisition of TCPSL. This expansion underscores Findi’s commitment to scaling its ATM network and strengthening its footprint in the Indian market.
Balance Sheet and Liquidity Position
Findi’s balance sheet shows growth in net assets to $63.8 million from $36.9 million, supported by total assets rising to $313.9 million. The company’s cash position remains robust at $115.9 million, including restricted and long-term deposits. Borrowings increased to $85.6 million, reflecting financing activities to support growth initiatives. The net tangible asset per security slightly declined, reflecting the impact of capital raises and accumulated losses.
Looking Ahead
While the preliminary results are unaudited and include significant one-off items, Findi’s strategic moves position it for growth in the rapidly expanding Indian payments market. The success of TSI’s upcoming IPO and the execution of ATM deployment plans will be critical to reversing the current net loss trend and delivering shareholder value.
Bottom Line?
Findi’s FY2025 results highlight a pivotal year of investment and restructuring, setting the stage for growth but raising questions on near-term profitability.
Questions in the middle?
- How will the new convertible debenture terms impact shareholder dilution and future earnings?
- What is the timeline and likelihood of TSI’s planned IPO on the Bombay Stock Exchange?
- Can Findi successfully execute its ATM expansion plans to drive revenue growth?