### **Overview** **AGS Transact Technologies Limited**, established in 2002 and listed on BSE (543451) and NSE (AGSTRA), is one of India’s **largest integrated omni-channel payment solutions providers**. The company offers a comprehensive suite of **digital and cash-based payment services** to banks, financial institutions, and corporate clients across banking, retail, petroleum, public transit, toll, and fintech sectors. With a strong national footprint and growing international presence, AGS has evolved into a key enabler of India’s digital and formal financial infrastructure. The company operates through **three core business segments**: 1. **Payment Solutions** (87% of revenue) 2. **Banking Automation Solutions** (17% of revenue) 3. **Other Automation Solutions** (2% of revenue) AGS leverages in-house technology platforms and subsidiaries to deliver end-to-end services across the payment value chain. Its proprietary **Ongo digital payments ecosystem** and **Securevalue India Limited (SVIL)** for cash management are central to its strategic focus on scalable, recurring, and high-margin revenue streams. --- ### **Business Segments & Offerings** #### **1. Payment Solutions (87% of Revenue)** This is the **core revenue driver**, contributing nearly 9 out of 10 rupees earned by AGS. It is further split into: - **Cash Payment Solutions**: **67% of total revenue** - ATM and **Cash Recycling Machine (CRM)** outsourcing - Cash management services - Operates on **fixed-fee and transaction-based models**, ensuring **recurring income** - Manages over **70,000 ATMs/CRMs** as of Sep 2024 - Subsidiary: **Securevalue India Limited (SVIL)** — India's **second-largest cash management company** by revenue and ATMs replenished - **Digital Payment Solutions**: **~14–20% of total revenue** - Powered by **Ongo**, a non-bank **Prepaid Payment Instrument (PPI)** platform launched in 2015 - Includes **merchant acquiring, prepaid card issuance, transaction switching**, and **mobile wallets** - Focus areas: **Transit, fuel, retail, and smart mobility** - Key platforms: **Ongo Ride, Ongo Fuelling, co-branded PPI cards** - Processes millions of switching transactions annually via its in-house switching platform --- #### **2. Banking Automation Solutions (17% of Revenue)** - Supplies, installs, and maintains **ATMs, CRMs, currency counters, and self-service kiosks** - Offers **annual maintenance contracts (AMCs), upgrades, and spare parts** - Serves over **50 banks**, including public, private, and cooperative institutions - Assembles ATMs at its facility in **Daman** with partnerships with global firms like Diebold Nixdorf and ACI Worldwide - Major contracts secured from **State Bank of India (SBI)** for supply and managed deployment --- #### **3. Other Automation Solutions (2% of Revenue)** - Provides automation tech for **retail, petroleum (OMCs), and colour industries** - Offers **POS terminals, cash billing systems, RFID-based fueling, digital signage**, and **store peripherals** - Key innovation: **Integrated Payment Solution (IPS)** linking POS with fuel automation to reduce leakage and fraud --- ### **Key Subsidiaries & International Presence** 1. **Securevalue India Limited (SVIL)** - Wholly owned subsidiary; 2nd largest cash management firm in India - Manages 36,000+ ATMs (Mar 2024), operates **463+ vaults/spoke locations**, supported by **2,370+ secure cash vans** - Daily cash movement: **₹21.3 billion (Q1 FY25)** - Compliant with RBI and MHA regulations, including **cassette swapping** 2. **India Transact Services Limited (ITSL)** - Owns and operates the **Ongo PPI platform** under RBI license - Generates revenue from interchange, float, and issuing fees - EBITDA margin ~9–10%, expected to expand with scale 3. **Global Transact Services Pte. Ltd. (GTSL)** - Singapore-based subsidiary managing international operations 4. **Novus Technologies Pte. Ltd.** - Powers **RCBC’s ‘ATM Go’** in the Philippines — Asia’s largest bank-agnostic **mobile ATM network** - Achieved: - **>113% increase in deployed terminals (Aug 2023–Aug 2024)** - **>31% rise in GTV YoY** (surpassing $132M) - Serves rural and underserved communities — **60% of users are rural women** AGS has expanded to: - **Sri Lanka, Cambodia, Philippines, Indonesia, Singapore** - Joint ventures in Indonesia with BCA Bank subsidiary and BP-AKR - Over 10 million families served in the Philippines under ATM Go --- ### **Growth Levers & Strategic Initiatives (2024–2025)** #### **Digital Payments Expansion** - **Ongo Ecosystem Focus**: Transition from *“Payments-as-a-Service”* to *“Payments-as-a-Convenience”* - Key launches: - **Ongo Ride**: Instant, **no-KYC National Common Mobility Card (NCMC)** - Launched at **Chennai Metro (13 stations)**, now expanded to **Bangalore Metro** (in partnership with RBL Bank) - Supports **multi-modal transit, tolls, parking, retail, fuel** - **Ongo Fuelling**: Open-loop, **contactless fuel payment via PPI and app** - Piloted at **60+ IOC/OMC outlets in Mumbai** - Onboards **2,000+ fleet vehicles**, targeting ₹1.6 lakh crore annual fleet fuelling market - AI-powered **voice-controlled fuelling** in pilot - **Co-Branded PPI Cards**: - With **Patanjali**, **major FMCG company**, and **oil marketing firms** - Enabled **ATM cash withdrawals** via Ongo cards on NPCI’s network (>2.6 lakh ATMs) - **UPI Integration**: - Launched **UPI-based cardless cash withdrawal** on >1,000 ATMs of a public sector bank - Supports RBI’s **Interoperable Cardless Cash Withdrawal (ICCW)** and **Digital Banking Units (DBUs)** --- #### **Cash & ATM Segment Growth** - **Strong order pipeline**: - **Over 21,000 ATM/CRM RFPs** in H1 FY25 - Potential **10,000 ATM outsourcing opportunity** from India’s largest public sector bank - Major contracts: - **₹1,100 crore, 7-year deal** with **SBI** to deploy **2,500+ ATMs** under managed services - **1,350 ATMs** supplied to SBI under capex model - Renewed contracts with **Indian Bank** (₹50 crore over 3 years) and private bank under **hybrid fee model** - **Route optimization & cost efficiency** initiatives improving margins in cash logistics - Shift to **hybrid (fixed + transaction) fee models** enhancing profitability --- ### **Financial Highlights & Revenue Mix** - **Revenue in FY2023–24**: ₹2,968 million (Digital Payment Solutions segment) - **Segmental Revenue Split (Q2 FY25 & FY24)**: - **Payment Solutions**: **87%** - Cash Payment Solutions: **67%** - Digital Payment Solutions: **14–20%** - **Banking Automation**: **17%** - **Other Automation**: **2%** - **Recurring Revenue**: **>90%** of revenue from service business (FY25) - **Long-term Contracts**: 7–10 years with leading public and private banks - **ATM Managed Services Market Share**: ~15%; **cash management**: 20% --- ### **Operational Reach & Infrastructure** - **Geographic Presence**: Operations in **~2,200 cities and towns** across India - **Customer Touchpoints**: **~486,400** (Sep 2024) - **Payment Terminals Deployed**: **>248,800** (Jun 2024) - **>41,777 at petroleum outlets** — among the **largest deployers in India** - **Branches & Facilities**: - 1 manufacturing plant (Daman), 33 offices, 35 branch offices - **14,000 sq. ft. cash vault in Bengaluru** (Jul 2024) - Data center in Navi Mumbai (scalable to handle **3X current transaction load**) - **Supporting Infrastructure**: - 24x7 control center, testing/repair lab, innovation center, customer call center (Airoli) --- ### **Innovation & Technology** - Proprietary platforms: **Ongo, Fastlane, and switching software** - Ongoing R&D with **Diebold Nixdorf (ATM tech)** and **ACI Worldwide (switching solutions)** - **AI & Voice Tech**: Piloting **AI-powered voice-controlled fuelling** via Ongo app - **Form-factor agnostic system**: Supports **cardless, QR, NCMC, contactless, wallet, magstripe, RFID** - Interoperable with **RuPay, Visa, Mastercard, Amex, JCB, Discover** - Processes **>625 million transactions** annually (FY24), serves **>50 banks** --- ### **Regulatory & Market Alignment** - Compliant with **RBI**, **MHA**, and **NPCI** guidelines - Supports national initiatives: - **One Nation, One Card (NCMC)** - **UPI integration** - **Digital Payments Incentives** (0.75% subsidy to OMCs for digital transactions) - **75 Digital Banking Units (DBUs)** - Pioneered **QR-based cardless ATM withdrawals** (2019) and **cassette swapping** implementation - Positioned to benefit from **rising cash in circulation (₹35.15 lakh crore)** and growth in CRMs --- ### **Key Achievements & Milestones** | **Initiative** | **Status** | |---------------|----------| | Ongo Ride (NCMC) | Live in Chennai & Bangalore Metro; no-KYC, multi-modal | | Ongo Fuelling | Pilot live in Mumbai; AI voice control in testing | | UPI at ATMs | Successfully implemented cardless withdrawals for PSU bank | | SBI ATM Contracts | 1,350 ATMs supplied; 2,500+ under 7-year managed services | | Securevalue Cash Vans | >270 deployed under ₹250 crore UBI/Canara Bank contract | | International ATM Go | 113% terminal growth; $132M+ GTV | ---