“There are our onboarding and decisioning (decision-making) capabilities being used in HR and ecommerce industries…These (adjacent industries) can be very significant (opportunity), provided we focus on them,” Goswami told ET.
The software-as-a-service startup has been chalking out plans to enter the US and European markets next year.
According to Goswami, almost 10% of the firm’s revenue can come from these adjacent industries in the next two to three years.
Perfios recently raised $229 million in secondary and primary capital in a round led by Kedaara Capital.
Earlier, Perfios was largely used by financial institutions to fetch customer data and for its data aggregation platform. The company gradually diversified its product offerings to insulate itself from new regulatory frameworks, such as those governing account aggregators (AAs).
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Licensed AA entities are platforms that help in secure exchange of data between consumers and financial institutions. Perfios has a regulatory approval to operate as an AA now. In recent times, Perfios has doubled down on new products, and even entered newer segments such as insurance and capital markets.
As the 2008-incorporated fintech firm eyes expansion, it is looking to grow its earnings before interest, taxes, depreciation, and amortisation (EBITDA) profits by 18% year-on-year, said Goswami.
The company has also said that it is working towards a domestic listing in the coming 18-24 months.
“We are looking to expand into the West, including the US and Europe, while strengthening our existing core markets,” Goswami told ET. “Internally, there is a lot of work happening in terms of identifying opportunities and what products we will be taking to these markets.”
Goswami said the company is looking to double its revenue from international operations in the next 12-14 months, and that he expects it to be 20-25% of the topline over time.
Perfios is present in 18 markets across Southeast Asia and the Middle East and North Africa (MENA) region.
Getting into adjacent industries
Even as Perfios sees adoption of its onboarding and decisioning product stacks in ecommerce and HR industries, the banking, financial services and insurance (BFSI) segment will continue to be a mainstay for the fintech firm in terms of revenues.
“We believe in two strategies–depth and breadth. However, banking and financial services industries still haven’t reached their peak from an evolutionary standpoint, and there are enough unfulfilled needs that remain in this segment,” Goswami said.
From a product standpoint, Perfios is looking to go deeper into its existing product line and double down on fraud detection and forensic tools for its BFSI (banking, financial services and insurance) clients.
IPO and profitability
In FY23, Perfios saw its operating revenue grow three-times to Rs 407 crore, and clocked profit of Rs 7.8 crore, after being in the red.
“We were always operationally profitable, except for Covid years. We will continue to be profitable,” Goswami said. “We look to grow 18% on EBITDA profitability. And SaaS companies are all about EBITDA – if that is growing, PAT (profit after tax) will take care of itself.”
On Perfios’ initial public offering (IPO) plans, Goswami said, “People are one of the core pillars. We are strengthening the leadership as we aim for the public markets, and there might be more additions (to the senior leadership).”
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