Network People Services Technologies Ltd

Dear Fellow Shareholders,

Last year, I shared my enthusiasm and optimism for NPST's future. Today, that optimism is only stronger As one of the few profitable, listed fintech companies, NPST is driving India's digital economy forward. Our mission is to build the digital railroad that enables banks, financial institutions, and FinTechs of all sizes to seamlessly access new-age payment technologies. My optimism is rooted in the solid business fundamentals we have established and the incredible opportunities that lie ahead.

Fiscal 2024 marked another year of strong performance, with NPST generating record revenue growth for the third consecutive year. We surpassed the significant milestone of INR 1,000 million in annual revenue, reaching an impressive INR 1,300 million.

As we think about FY 2024, it's essential to reflect on our growth within the broader context of the past three years.2024 marked a significant turning point for NPST as we raised capital through our SME IPO, aimed at fulfilling our vision of providing digital technology solutions to all entities in the financial value chain.

The funds raised from the IPO catalyzed our first phase of growth. We focused on enhancing our technological capabilities and broadening our market reach, leading to consistent performances in subsequent years.

In FY 2024 we delivered 210% organic year-on-year revenue growth. NPST delivered on the expectations we set in FY 2023, exceeding our guidance on revenue growth, adjusted operating margin, and adjusted earnings per share.For financial details, refer to Page 7

Our banking segment grew through new client relationships and we were able to double the number of banks. Additionally, we significantly expanded our Payments Platform As a Service line of business, integrating Payment Aggregators (PAs) and Payment Gateways (PGs), broadening our service offerings and growing our market share.

We also invested strategically in new product innovations. We were the first in the market to launch Online Dispute Resolution and Instant Merchant Refund on UPI to help banks and payment aggregators address customer disputes swiftly and strengthen regulatory compliance.

The largest volumes of transactions are still processed instore. Recognizing the growing demand for contactless in-store payment methods, NPST ventured into offline payments with the introduction of Qynx. This solution integrates QR and SoundBox, offering a capital-light tool to merchants for payment acceptance. Through our bank customers, Qynx has enabled medium and small merchants in 500 locations across India to adopt payment solutions, supporting their growth and digital inclusion.

In our business, enhancing customer service and support capabilities is just as crucial as the technological solutions we provide. I am proud to share that our dedication to excellence in integration has been recognized by our valued customers. Karnataka Gramin Bank and Kerala Gramin Bank have both recognized our expertise in manageing complex integrations while upgrading CBS

Our performance now positions us as a key player in India's dynamic digital payments landscape. We aim to empower our customers across the financial value chain with technology to disrupt rather than be disrupted, in a competitive environment. As we continue to innovate, NPST stands ready to significantly impact the Indian payments market, making us a company to watch in the coming years.

In my annual letter, I've tried to give shareholders deeper insights into our company's direction, the businesses we're pursuing, and our future opportunities.

The market opportunity ahead is enormous. Payments are foundational to every economy, and in India, their growth is interlinked with its rise among the world's top five economies. As India aims to become a $5 trillion economy by 2027, with positive GDP forecasts exceeding 5%, digital payment technologies that facilitate instant, real-time commerce and money movement are pivotal accelerators of this growth. Private consumption, driving 50% of GDP, is another indicator of our evolving spending patterns and economic dynamism.

Yet, for the remarkable digital leap India has made in recent years, the digital revolution is still in its early innings. As financial and payment technology becomes increasingly embedded in nearly everything we do, NPST has an opportunity to bring its technology to more industries, more geographies, more market segments, and more customers.

The growth in digital payments has been monumental. We have seen retail digital payments in India growing from 16.2 billion transactions in FY2012-13 to over 1,472.6 billion transactions in 2023-24 (till February 2024) i.e., an approximately 90-fold increase over 12 years,

The flagship of India's payment systems, Unified Payment Interface (UPI), has become the most talked about fast payment system not only in India but across the world. It is the biggest contributor to the growth of digital payments in India. At a macro level, the volume of UPI transactions increased from 430 million in CY-2017 to 11.7 billion in CY-2023. Apart from being a user- friendly interface and facilitating QR code-based payments, By 2028, UPI transactions will record 3X growth.

UPI has evolved from a simple mechanism for account-to-account fund transfer to a services ecosystem supporting a range of payment instruments and channels, addressing the diverse needs of consumers. Innovations such as cross-border payments, Cash on UPI, CBDC, Credit on UPI, and IOT payments are being introduced in the marketplace.

Anther exciting trend we're observing is the rising popularity of Banking SuperApps, which merge banking and payments into a seamless, unified service experience. We are seeing growing traction from medium-sized and regional rural banks for Banking SuperApp as it helps them compete with the digital and mobile banking experience offered by larger banks. As the NPST Banking SuperApp supports an open architecture, it can work with any core banking platform - significantly expanding our addressable market.

The marketplace continues to be fundamentally reshaped by structural changes in how consumers and organizations access, pay for, and use financial technology. Increasingly UPI payments are being embedded within a range of across a wide variety of industries and market sectors. The most common example today is paying for a ride through an app without needing cash or cards.

Last year, NPST launched the UPI Plugin, a significant step towards empowering merchants to complete transactions directly within the app without the need for redirection, Building on this success, we are expanding our reach by exploring partnerships with merchants and OEMs in other verticals

Combining its market-leading capabilities with deep industry expertise across the financial value chain, NPST is uniquely positioned to help customers take advantage of these powerful possibilities and drive digital payments transformation for its customers, who increasingly see payments as a value creation centre for their businesses.

The market opportunity in front of us is massive. For all the remarkable digital leap India has made in recent years, the digital revolution is still in its early innings.

For NPST, this is an opportunity to move forward. As an organization, we are focused on listening to our customers, making wise capital allocation decisions, and ensuring our team executes with speed, quality, and efficiency.

And I am proud to announce the launch of NPST 2.0, a significant step to help us leapfrog from a mid-sized company to a large enterprise.Anchored around three core pillars: Innovate, Transform and Grow.NPST 2.0 will drive our performance and expand our market share in the years ahead.

Under the umbrella of NPST 2.0, we will focus on three key priorities. One, lead through product innovation; two, expand into new market segments, and three foster an organizational cultural transformation with a focus on customer needs and future growthFor more details, please refer to page 6

Looking ahead to 2025, I could not be more optimistic about our prospects. My colleagues at NPST are focused on executing our strategy to drive continued growth and shareholder returns. NPST has a strong foundation to build on. We have a highly differentiated business model, a powerful portfolio, and a clear strategy for growth. Our clients are increasingly entrusting us with strategic, technology projects that help them seize growth opportunities and realize their business goals. Together with them, NPST is doing its bit to advance the future of the digital- first payments economy.

Thank you for your confidence in NPST. We have entered 2025 with business fundamentals that have never been stronger or more resilient. We will continue our focus on strengthening your trust and improving our returns to you. I look forward to reporting on our continued progress on NPST 2.0 in 2025.

CEO