India's Resilience in a Shifting World
Customer base increased to over 4.8 million during the year, and total
app downloads crossed the 21-million mark
Dear Stakeholders,
I am delighted to share with you 5paisa Capital Limited's Annual Report
for the 2024-25 fiscal year.
The past year was a time of introspection, realignment, and
rejuvenation, not only for us but for the entire Indian capital markets. Against the
backdrop of global volatility, India remained stable and resilient. With real GDP growth
of 6.5% in FY25, we reaffirmed our position as the world's fastest- growing major economy.
Growth emanated from several encouraging trends, like rising domestic consumption,
record-high exports, stable macro fundamentals, and a significant drop in inflation to
levels not seen in recent years.
In addition to being widespread, the economic expansion was inclusive
in nature. A youthful and ambitious populace, the economy's ongoing formalization,
alongside the government's dedication to digitalization and infrastructure are forebearers
of continued and sustainable growth. These are not fleeting indicators; they point to a
structural shift. As a corollary, India's financial sector, particularly the capital
markets, continues to deepen, expand, and democratize at a rapid pace.
We saw yet another milestone in retail investor participation this
year, with the number of unique registered investors crossing 11.3 crore PANs. It's
because as a nation we are changing how we think about money. More people are opening
demat accounts, starting SIPs, and using digital investment platforms. The transition from
savers to investors is well under way.
MANAGING REGULATORY CHANGES WITH INTENTION
Despite this encouraging trend, FY25 also presented a number of
business imperatives fueled by regulatory changes. The changes introduced by SEBI in the
derivatives segment led to a moderation in volumes across the industry, particularly in
the F&O segment. These reforms while being wholesome and based on good principles, did
lead to revenue reduction across the industry. The intent is to instil greater discipline,
reduce excessive risk-taking, and build more sustainable market structures. We see these
changes as necessary adjustments, ones that will lead to healthier market participation in
the years ahead.
DELIVERING GROWTH, THE RIGHT WAY
Lower market volumes caused a 9% drop in our topline, but careful cost
control and a greater emphasis on customer quality allowed us to increase profitability.
Our net profit increased by 25% and our margins significantly expanded, rising from 14% in
FY24 to 19% in FY25. This resilience reflects the strength of our digital-led model, our
disciplined execution, and the trust of our growing customer base.
We are pleased to share that our customer base increased to over 4.8
million during the year, and total app downloads crossed the 21-million mark. These
reflect a broader transformation underway in Indian investing behavior. Users are keen to
adopt platforms that are inclusive, dependable, and easy to use.
They expect seamless access, relevant insights, and personalized
service. And, we are on it.
TECHNOLOGY THAT LISTENS, LEARNS AND LEADS
We continued to invest in building and enhancing our technology stack
across platforms. Our mobile app was upgraded to a new architecture, ensuring faster load
times and smoother navigation. We launched FnO 360, a powerful interface for derivative
traders, and IntraEdge, an AI-powered intraday trading recommendation tool, which is
currently in its pilot phase. We also streamlined SIP investments through UPI Autopay and
ENACH, making recurring investments simpler and faster. Behind the scenes, we achieved a
15-millisecond reduction in trade latency, seemingly small but impactful for traders who
rely on precision and speed.
Importantly, these enhancements are not just about keeping up with the
industry, they are about setting benchmarks. Every improvement, every rollout, and every
refinement is guided by one principle: how can we make it easier for our customers to
invest, understand, and growRs We are building an ecosystem of trust, simplicity, and
innovation.
BUILDING FORWARD, MINDFULLY
Looking ahead, we believe there continues to be a vast opportunity.
Financial inclusion is still in its nascency. Only a small percentage of the population
actively participates in capital markets today. As awareness grows and access widens,
especially in Tier 2 and Tier 3 cities, we see immense potential for responsible
expansion. Our approach will remain focused on three core principles: deepen engagement
with DIY investors, nurture partnerships within the fintech ecosystem, and remain agile
and sensitive to evolving needs.
We are equally mindful of our responsibilities beyond business growth.
Our governance model, compliance practices, and stakeholder relationships are central to
who we are. Throughout the year, we continued to maintain the highest standards of
transparency, fairness, and risk management. We remain committed to honoring the trust
placed in us by all our stakeholders.
WITH GRATITUDE AND CONVICTION
Lastly, I want to take a moment to thank everyone who's been part of
this journey. To our shareholders, partners, and team members, your support and trust are
crucial, as we continue moving forward.
I also wish to acknowledge the leadership team, whose hard work and
commitment have helped navigate this period of transition with confidence and care.
FY25 was a year of realignment that offered us valuable lessons. As we
move forward, our goal is clear - to build a platform that not only delivers strong
long-term value, but also fosters trust, empowers our users, and contributes meaningfully
to India's financial growth.
| Warm regards, |
| Dr. Archana Hingorani |
| Chairperson |