Wednesday, May 22, 2019

Spice Mobility Transforms its Corporate Identity to DiGiSPICE Tech, Forays into the Larger Digital Tech and Fintech-Ecosystem

Spice Mobility Limited, in its Board meeting held today, announced its consolidated Financial  results  for  the  quarter  and  year  ended  31st  March  2019,  posting  a  Revenue  of  Rs 376.68 Cr as against the previous year revenue of  Rs 280.52 Cr,  a growth of 34 % year on year and also  reported  a  Profit  after  tax  of  Rs 9.08 Cr  as  against  a  Loss  of  Rs 44.70 Cr in the previous year.

The Board of Directors also recommended a dividend of 15% of the paid-up equity capital of the Company for the year ended 31st March 2019, subject to shareholders’ approval.

The Company launched its digital initiatives in the last 12 months under the ‘’DiGiSPICE‘‘ brand and has seen notable success in developing countries like Indonesia, Bangladesh, Kenya and other countries in Sub-Saharan Africa apart from India. The Company also launched its Digital Financial Technology services business through its subsidiary company. Branded “Spice Money”, the digital platform offers financial services in semi urban and rural India.

Announcing the above developments, Mr. Dilip Modi, Chairman of the Company said: “There are two megatrends that we, at DiGiSPICE, are very excited about. The first megatrend that we are seeing is that worldwide Telcos, enterprises and governments are aggressively working on their digital transformation blueprints. DiGiSPICE Technologies, with a pedigree of digital, aims to work closely as partners with telcos and enterprises across developing and developed markets in enabling their digital transformation journey.

The second megatrend that we are witnessing is around ‘BHARAT’ going DIGITAL. Spice Money, a wholly owned subsidiary of DiGiSPICE Technologies, is working to financially empower a billion people in BHARAT using digital platforms. We, have, to date, on boarded over 200K next door kirana stores as our customer service partners on the Spice Money digital platform. More than 5 million customers are availing financial services at these Spice Money customer service points every month. We are committed towards building DiGiSPICE Technologies into a leading NextGen digital services and products company in the emerging new technologies space” added Mr. Modi.

As a part of its continuous effort to professionalize the management of the Company, the Board had recently appointed Ms. Preeti Das, as the CEO of Spice Mobility. She brings over three decades of global experience from multiple large organizations like Microsoft, Oracle, Birlasoft etc. in IT and Digital services. She will lead the Company’s Digital transformation journey with a view to create a leadership position for DiGiSPICE in offering Digital technology services to Telcos, Enterprises and Governments across the world.

The Company further announced completion of a demerger process through a Scheme of Arrangement, which has been duly approved by NCLT, Delhi. The Scheme paves the way for:

i) Consolidating all the technology services businesses under Spice Mobility, making Spice Mobility a Digital Technology Services Company.

ii) Creating a separate Digital Financial services company, as its wholly owned subsidiary.

In order to give a true representation of the nature of Company’s business, the Board of Directors also proposed:

a)       Change of name of ‘’Spice Mobility Limited’’ to ‘’DiGiSPICE Technologies Limited’’ and change of name of its subsidiary ‘’Spice Digital Limited ‘‘to‘’ Spice Money Limited’’, subject to necessary approvals. While ‘DiGiSPICE Technologies Limited ‘will focus on providing digital technologies services, ‘Spice Money Limited ‘will be the FINTECH subsidiary of the Company, focusing on driving digital financial services in India.

b)       An application to be made to the Stock Exchanges to reclassify Spice Mobility Limited (New name ‘DiGiSPICE Technologies Limited ‘) from the current Industry classification of ‘’Telecom -Telecommunication Equipment ‘‘to ‘’Information Technology -Software and Services -IT Consulting and Application software ‘’ sector. This will enable the Company to rightly position itself with customers, partners, investors and analysts and also enable investors to compare and analyze the performance of the Company with the right Industry benchmarks.

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