Findi’s India Rollout Faces Payback Pressure Despite Strong IRR Forecast
Findi Limited has completed a successful pilot of its BC Max Centres with Central Bank of India and launched a national rollout starting with 76 locations, aiming to transform digital banking access across India.
- Pilot program with Central Bank of India successfully completed
- National rollout initiated with 76 BC Max Centres, targeting 500+ in two years
- Minimum guaranteed revenue of A$3.13 million and EBITDA of A$1.45 million over three years
- Projected payback period of 2.85 years and IRR exceeding 32% over six years
- Potential expansion with other major Indian banks beyond Central Bank of India
Findi’s Strategic Leap in Indian Digital Banking
Findi Limited (ASX, FND) has marked a pivotal milestone in its growth trajectory with the successful completion of a pilot program for its BC Max Centres in partnership with the Central Bank of India (CBI). This pilot, which tested the concept across 25 sites, has now paved the way for a national rollout, beginning with 76 new locations and an ambitious plan to expand to over 500 centres within the next two years.
The BC Max Centres represent a hybrid banking model combining physical branch-like services with digital payment solutions, designed to enhance financial inclusion in both urban and underserved rural regions. Staffed by CBI personnel and supported by Findi’s ATM network, these centres offer customers extended-hours access to a comprehensive suite of banking and merchant services under the FindiPay platform.
Financial Outlook and Growth Potential
From a financial perspective, the rollout promises a robust revenue stream, with minimum guaranteed revenue forecasted at approximately A$3.13 million and EBITDA around A$1.45 million over three years. The initiative is projected to achieve a payback period of just under three years and an internal rate of return exceeding 32% over six years, underscoring the commercial viability of the model.
Findi’s Executive Chairman, Nicholas Smedley, highlighted the strategic importance of this development, framing it as a critical step toward the company’s aspiration to become a payments bank and establish a national banking footprint in India. The integration of FindiPay’s digital infrastructure with CBI’s banking products aims to drive transaction volumes and create a sustainable, high-margin revenue model.
Broader Implications and Future Opportunities
Beyond the immediate rollout with Central Bank of India, Findi sees significant upside potential in replicating the BC Max Centre model with other major Indian banks. This could accelerate the company’s expansion and diversification within India’s vast banking ecosystem, leveraging its extensive physical and digital presence.
As India continues to embrace digital financial services, Findi’s phygital approach, blending physical access points with digital technology, positions it well to capitalize on the country’s evolving banking landscape. The company’s commitment to enhancing financial inclusion through technology and partnerships could prove transformative for millions of underserved customers.
Investors will be watching closely as Findi progresses with its rollout, keen to see how transaction volumes and revenue streams develop against the company’s optimistic forecasts.
Bottom Line?
Findi’s BC Max rollout is a promising start, but scaling and transaction growth will be key to unlocking its full potential.
Questions in the middle?
- How quickly will Findi scale beyond the initial 76 BC Max Centres?
- What are the prospects and timelines for partnerships with other major Indian banks?
- How will actual transaction volumes compare to minimum guaranteed revenue forecasts?
