Veefin Solutions

Veefin Solutions reported a strong Q3 FY26, with consolidated revenue reaching ₹104 crores for the quarter and ₹214 crores for the nine-month period. The company highlighted robust execution across its core platforms and increasing traction in non-supply chain finance (non-SCF) products. Standalone core product business maintained healthy EBITDA margins of 52% and PAT margins of 27% on a year-to-date basis, reflecting strong operational efficiency.

The company's qualified deal pipeline stands at USD 61 million across 50 enterprise opportunities, with a significant 78% originating from non-SCF products such as cash management, trade finance, and internet banking. This diversification reflects Veefin's growing acceptance as a full-stack digital banking technology partner, moving beyond its single-product origins. The pipeline is geographically diversified, with 42% from India/South Asia and 36% from Southeast Asia, reinforcing international growth ambitions.

The PSB Xchange platform has transitioned from an onboarding-led initiative to a live operating marketplace, demonstrating meaningful transaction activity. It currently has three lender integrations and five sourcing partner integrations live, with more in progress. The platform has seen 80 corporate deals initiated, requesting ₹12,000 crores in limits, of which ₹4,000 crores have already been approved across 19 anchor corporates, indicating growing adoption and trust.

While standalone core product margins remain strong (52% EBITDA), consolidated margins are lower (19.95% EBITDA, 7.75% PAT) due to the inclusion of lower-margin service businesses and new products in their growth and monetization phases. New products like cash management and trade finance currently have an EBITDA margin of 43.4% (YTD) but are expected to reach 40-45% in a steady state, similar to SCF, as they scale and mature.

The company confirmed receiving the full amount from its preferential round approved in 2025. The funds are strategically allocated: ₹10 crores for international expansion, ₹49.33 crores for product development, ₹12 crores for sales and marketing, and ₹23 crores for general corporate purposes. This deployment supports the company's long-term international growth ambitions and continuous product innovation.

The merger plan is progressing, with BSE approval received and SEBI approval expected within the next week to 10 days, followed by NCLT. Management acknowledged that some subsidiaries, particularly those housing PSB Xchange and other new transaction banking products, are currently loss-making as they are in the investment and product build-out phase. However, they are performing well against expectations for this stage, focusing on product development and market acceptance, with future bottom-line improvement linked to their monetization.