MDR
Frontier Land Group
stock NYSE

Its not entirely true.
Yes in gift n prepaid market they hold 80%market share as of now- have relations with many airlines
Whats more interesting is the affordability segment( no cost emi ecosystems) they mediate between upto 400brands n 40 banks issuers. This is a strong moat- it took them years to build this relationship and newcomers can’t scale quickly.
They are also shifting away from POS letting the merchants buy the machines themselves n they will plug their software later. This reduces the capex n depreciation. Also shifted to refurbished machines already which is curbing the depreciation n finance costs.
Its capex heavy relative to a pure play tech. But think of it like customer acquisition cost. Once the merchant onboards their software- they can cross sell value added services which is the main operating leverage. Its already improving from 21% to ~30% in last yr, the remaining 70% they can scale with minimum to no incremental cost which management proved by direct flow of 50-60/100 incremental cost into ebidta.
The competition your talking about is with low margin small merchants & online aggregator like paytm/razorpay/payu. Its low margin coz the MDR cost is zero- so its sees many competitors. Pinelabs too has converted from pureplay hardware to qr codes and has online aggregator segment to enable online payments for already existing big enterprises.
So basically what this creates is a locked in customer who can scale on both online n offline where pinelabs helps to combine both payment infras easily/ flows through same middleman! This is beneficiary for the customer.
And create a sticky behaviour.
RBI just gave permission for mobikquik to build out physical payment aggregator merchant infra..
This may cause near term competition. But I think this just cements the future- its real. Merchant ecosystem will exit - and regulators approval for competitors drives this conversion n builds out the ecosystem even faster.
The real question to ask - is can they gain dominant market share n defend their moats from being commoditised ? They have to scale their value products deep into merchants ecosystem and successfully establish themselves as an efficient operating system.
So its all a execution story from here ! The business is legit n the ecosystem just got a boost.
They r sitting on huge cash-which will help outrun competitors. Near term issues are real- but the long term successful os transformation could give them subscription saas model/ financial lending leverage/ data monetisation/invoicing… basically they need to widen this moat.
Its possible- u can cross analyse Toast and Adyen. They r generating huge free cash flows— scaling is much easier for pinelabs but deepening merchant value depends on their execution.
Everything boils down to how much value you can bring to merchants and customers & how efficiently u can do that so you also protect ur margins. Adyen succeeded here. Pinelabs has all the ingredients- just have to cook smtg delicious.

>Nach Recherchen von MDR INVESTIGATIV und rbb24 Recherche ermittelt die Staatsanwaltschaft zu seiner Vergangenheit und der seiner Unternehmen.
Wird der Artikel hier gepostet, weil Finanzkriminaliät im Raum steht? 

Its not entirely true.
Yes in gift n prepaid market they hold 80%market share as of now- have relations with many airlines
Whats more interesting is the affordability segment( no cost emi ecosystems) they mediate between upto 400brands n 40 banks issuers. This is a strong moat- it took them years to build this relationship and newcomers can’t scale quickly.
They are also shifting away from POS letting the merchants buy the machines themselves n they will plug their software later. This reduces the capex n depreciation. Also shifted to refurbished machines already which is curbing the depreciation n finance costs.
Its capex heavy relative to a pure play tech. But think of it like customer acquisition cost. Once the merchant onboards their software- they can cross sell value added services which is the main operating leverage. Its already improving from 21% to ~30% in last yr, the remaining 70% they can scale with minimum to no incremental cost which management proved by direct flow of 50-60/100 incremental cost into ebidta.
The competition your talking about is with low margin small merchants & online aggregator like paytm/razorpay/payu. Its low margin coz the MDR cost is zero- so its sees many competitors. Pinelabs too has converted from pureplay hardware to qr codes and has online aggregator segment to enable online payments for already existing big enterprises.
So basically what this creates is a locked in customer who can scale on both online n offline where pinelabs helps to combine both payment infras easily/ flows through same middleman! This is beneficiary for the customer.
And create a sticky behaviour.
RBI just gave permission for mobikquik to build out physical payment aggregator merchant infra..
This may cause near term competition. But I think this just cements the future- its real. Merchant ecosystem will exit - and regulators approval for competitors drives this conversion n builds out the ecosystem even faster.
The real question to ask - is can they gain dominant market share n defend their moats from being commoditised ? They have to scale their value products deep into merchants ecosystem and successfully establish themselves as an efficient operating system.
So its all a execution story from here ! The business is legit n the ecosystem just got a boost.
They r sitting on huge cash-which will help outrun competitors. Near term issues are real- but the long term successful os transformation could give them subscription saas model/ financial lending leverage/ data monetisation/invoicing… basically they need to widen this moat.
Its possible- u can cross analyse Toast and Adyen. They r generating huge free cash flows— scaling is much easier for pinelabs but deepening merchant value depends on their execution.
Everything boils down to how much value you can bring to merchants and customers & how efficiently u can do that so you also protect ur margins. Adyen succeeded here. Pinelabs has all the ingredients- just have to cook smtg delicious.

>Nach Recherchen von MDR INVESTIGATIV und rbb24 Recherche ermittelt die Staatsanwaltschaft zu seiner Vergangenheit und der seiner Unternehmen.
Wird der Artikel hier gepostet, weil Finanzkriminaliät im Raum steht?