Unicommerce Esolutions Limited (UNIECOM) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Unicommerce eSolutions Ltd. Q4 and F526 Earnings Contents Call. This contents call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risk and uncertainty that are difficult to predict. As a reminder, all participant lines will be in the listening mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on a touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kapil Makheeta, Managing Director and CEO of Unicommerce eSolutions Ltd. Thank you and over to you, Mr. Makheeta.

Thanks. Good morning, everyone, and thank you for joining us for the FY26 and Quarter 4 Earnings Call. I am joined today by Anurag Mittal, our Chief Financial Officer, along with our Investor Relations Advisor, Strategic Growth Advisor. I'd like to begin a little differently today and share a perspective that goes beyond this quarter and beyond this year. Think about the last time you placed an online order. You click buy now and you're done. But behind that click, a complex chain kicks in. Inventory, warehousing, shipping, delivery, all working together to get that order to you. In minutes, hours, or days. Behind every order sits an invisible engine. And over the last five years, that engine has been completely transformed. That engine is our business. And its transformation is the story of Unicommerce. Let me give you one data point. In FY21, our revenue was 40 crores. In Fi26, we crossed 204 crores. That's 5x growth in 5 years. Here is another data point. This year, we delivered 43.9 crores of adjusted EBITDA. That's higher than our entire revenue 5 years ago. Over the past five years, we have consistently met the rule of 40, a key benchmark for SaaS companies where our sum of revenue growth percentage and adjusted EBITDA margin percentage exceeds 40%, reflecting a balanced focus on growth and financial discipline. These numbers reflect not only our growth, but also how the world we operate in has changed fundamentally. Five years ago, a typical e-commerce business operated across three to four sales channels. Today, it is common to see eight to twelve channels, marketplaces, own brand websites, quick commerce platforms, B2B models, and general trade. Five years ago, typical e-commerce warehouses processed around 5,000 orders a day, with one order being processed at a time. Today, warehouses on our platform have the capacity to handle 3 to 5 lakh orders daily. Shipping was measured in days. Today, it is measured in minutes. The Unicommerce platform reflects this shift. Five years ago, we supported around 100 integrations, the digital pipes connecting ecosystems. Today, we support nearly 350 integrations across Univare, Shipway and Convertway. Peak single-day volume has scaled from 12 lakh units to 55 lakh units. Five years ago, 100 clients had more than 50 users on our platform. Today, we serve clients with up to 1,000 registered users running machine-critical operations on our systems. Put simply, even a moderately sized brand today operating across multiple channels, SKUs, warehouses, and partners cannot function on fragmented tools or manual coordination. The complexity demands a tightly integrated technology backbone. Without it, accuracy drops, speed slows, and customer experience deteriorates. Thus, this structural shift has redefined our role. We are no longer just a software provider. We are the operating system for e-commerce operations. And with deep integration into client workflows, we have become the system of record for machine critical operations. Against this backdrop, Fi26 marks the completion of a transformative phase and the beginning of a significantly larger opportunity. FI26 was our first full year as a multi-platform e-commerce enablement SaaS company transitioning from a single product business. Our three platforms, ConvertWay, UniWare, and ShipWay, span customer engagement, transaction processing, and order fulfillment layers of the e-commerce value chain. This creates a structural advantage. And now, with AI, the next shift is underway. Software is moving from execution to decision-making. For our clients, we are their system of record. Because we sit at the core of operations, we see rich, granular data. Through AI, we are enabling our clients to convert this data into real decisions. UniWare's UniBot is reducing time to ship and maintaining and minimizing missed shipments. ShipSense AI is optimizing cost versus speed while reducing returns. Catalyst AI ConvertWave's VoiceBot is driving higher conversion through contextual engagement and timely customer conversation. This is already live, by the way, not theoretical. We are now an AI-first company. Platform that enables faster, better decisions will capture disproportionate value, and we are building for that. Now to financial performance. FI26 was strong. Revenue grew 51.6% to 204.3 crores. Adjusted EBITDA grew 54.5% to 43.9 crores. Cash more than doubled from 35.3 crores to 81.3 crores, driven by 47 crores of cash flow from operations. And importantly, we have rebuilt our cash position to pre-shifted acquisition levels within just 5 quarters, while continuing to invest in growth. On the business side, despite a relatively subdued demand environment during part of the year, we executed consistently on long-term priorities. We onboarded 450-plus enterprise clients, our strongest year ever. These include several well-known names such as Unida, Kentstar, Accentesa, Nayaka, Ajanta Choose. Leher Footwear, Himalaya Wellness, Rupa, Lacoste, Super U, True Native, Vedantu, and Allen, a good mix of established traditional retailers and new age digital-first brands across categories. Adoption is building. Our newer modules are also showing strong early traction. 40-45% of our UniWare Enterprise customers are now using QuickCommerce and B2B modules, 5-6% have adopted UniReco within three quarters of launch, and 1-2% have taken up UniCapture within a quarter of its launch. Our international UniWare business turned profitable this year and is now growing faster than our India business. Univare delivered 11.7% growth in Q4 in line with our guidance during our last earnings call and is on track to deliver double-digit growth in subsequent quarters as well. Shifve grew faster at 17.7% year-on-year growth in Q4. Looking ahead, we see the opportunity to replicate the growth achieved over the last five years. Our strategy for FY27 and beyond is anchored on four priorities. 1. Build more AI-led products and expand the use cases of existing ones to unlock new revenue streams. 2. Accelerate growth across platforms. We expect UniWare to sustain double-digit growth. 3. Looking at selective acquisitions aligned with our existing platform. Profitable or have a clear path to profitability, AI relevant and available at a reasonable valuation. 4. Staying disciplined on costs, demonstrating operating leverage, even as we invest for growth. Our capital allocation is evolving accordingly. We have stepped up investments starting Q4FI26, focused on sales and marketing expansion, AI-led product development, strengthening mid-to-senior leadership, and embedding advanced AI tools across product and GTM. And these investments will happen across both UniWare and Chippet. You will see the near-term financial impact of these investments in the form of lower adjusted EBITDA and FAD over the next two quarters. However, we remain confident of delivering higher full-year operational profitability in FY27 compared to FY26. To summarize, we enter FY27 with stronger products, a broader platform, and clear visibility on scale. E-commerce complexity in India will only increase. Every layer of complexity, strengthens are relevant. These are powerful tailwinds and we intend to capitalize on them with both discipline and ambition. With that, I will now hand over to Anurag to walk you through the financials in detail.

Thank you, Kapil, and good morning, everyone. Let me walk you through the financial performance. Starting with FI26, our revenue for the year stood at 204.3 crores compared to 134.8 crores in FI25, a year-on-year growth of 51.6%. Adjusted EBITDA for the year was 43.9 crores. Up from 28.4 crore, a growth of 54.5%. Margin stood at 21.5%, holding steady versus FI25, despite the full year consolidation of shipage, which operates at different margin structure. I want to highlight one important point here that the underlying Univare business actually expended its stand-alone adjusted EBITDA margin from 25% in FI25 to 37.5% in FI26, reflecting the operating leverage Kapil referred to earlier. The business continues to demonstrate strong cash generation. Cash flow from operations for FI26 was 47 crores compared to 28 crores in FI25. Profit after tech for the year stood at 20.5 crores up from 17.6 crores in FI25, a growth of 16.1% YOY. Stood at 81.3 crore as of 31st March 2026, compared to 35.3 crore. This is similar to a cash position prior to shipping acquisition. EPS increased from INR 1.58 rupees in FA25 to INR 1.78 rupees in FA26. The quarterly performance for Q4 F26, our revenue stood at 51.6 crores compared to 45.3 crores in Q4 F25, a year-on-year growth of 14%. On a sequential basis, revenue was lower than Q3, and I want to spend a moment on why this pattern repeats every year. Water 3. is a peak demand quarter for the Indian e-commerce industry. It is supported by extended festive activity, Diwali, Christmas, and the holiday season, which drives higher consumption across gifting, fashion, and home categories as people buy new clothes and new things for their homes. Layered on top is the incremental winter-led demand in the northern markets. Together, these factors keep order volumes elevated through the water. Water 4, in contrast, is characterized by shorter event-driven spikes such as end-of-season sales and public day sales, largely discount-led and inventory clearance in nature. As a result, overall volumes naturally normalize and come in lower than water 3. The same trend played out last year on standard. Profit after tax stood at 9.6 crore, compared to 8.9 crore in quarter core FI 25, a year-on-year growth of 7.8%. Profit after tax for the quarter stood at 3.4 crore, compared to 3.3 crore in quarter core FI 25, a year-on-year growth of 1.6%. Thank you. The impact for the quarter reflects the planned growth investment we have initiated for Shippe during the period as Kapil outlined earlier. Strengthening our sales and marketing, adding product and engineering talent focused on AI implementation, and bringing on hope more experienced mid-senior team members. In software and in AI2 to implement the related technologies in both our products and our go-to-market. Reflects a combination of steady revenue growth, improving profitability, and strong cash generation. In addition to the financial update, I would also like to share an important update. We are currently evaluating the initiation of a merger process between Unicommerce eSolutions Ltd. and Shipway Technology Private Limited. The objective of this proposed merger is to improve operational efficiency, simplify our corporate structure and reduce compliance requirements and overheads. It will also enable stronger go-to-market alignment across teams, better crop selling across our combined customer base with lower contractual and compliance friction and make it easier to bring joint offerings to our customers. We will keep you informed as this progress, as this process progresses. We will maintain cost discipline while supporting growth across all three platforms. Even as we continue to invest for growth, we are confident of delivering higher full-year profitability in FI27 compared to FI26. Through difficult execution. Over the last five years, we have built the infrastructure, the product, and the team that the next phase of Indian e-commerce needs. We have three complementary platforms, the strongest enterprise customer base in our history, and AI capabilities that are already moving from promise into production. We are debt-free, cash-generative, and profitable. We are investing for that future with discipline and see the opportunity to replicate the growth achieved over the last five years. With that, we will now open the floor for questions. Thank you.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants, you are requested to use handsets while asking a question.

Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all, you may press star and 1 to ask a question. We will take the first question from the line of Sumit Jain from CLSA.

Please go ahead.

Yeah, hi. Thanks for the opportunity, and congrats, Kapil Anurag, for a good top-line growth this quarter. I think it was very heartening to see a double-digit growth in the standalone business after almost a gap of four, five quarters. So it seems like you have turned around the corner there. So can you give us some glimpse into how you are looking at the growth? In S527, for the standalone business closer to mid-teens or the kind of growth rate we have seen this quarter at least.

Hi, Samir. Thanks for the question. As we had mentioned before that we are confident of delivering a double-digit growth in Univir, which is coming at the back of strong client acquisition. As we demonstrated in quarter four, we've had one of the highest ever client acquisition, which will translate into better revenue growth in the coming year, along with improved adoption of our new products. Because of that, we continue to be confident of delivering double-digit growth. I think it will be difficult for me to give a specific guidance, but we are confident on continuing with the double-digit growth trajectory for the standalone business.

That's helpful. And on the investments, I think you mentioned for how many quarters it will continue. I think you have guided for a better profitability in FY27. But just to, you know, from the modeling standpoint for a quarter-to-quarter basis, how should one look at these increased investments?

So, as we mentioned earlier in the discussion today that we will invest in the next two quarters. The investments have started from quarter four FY26 success. Because of which we anticipate that the distributant patch will be lower compared to the previous quarters, but we are also confident that we will deliver a full year profitability higher than FY26 and FY27.

Okay, so that implies in the second half, your profitability will be far better than, in a way, the first half as well as in F526, right?

Exactly, yeah. We anticipate that the operating leverage will kick in from F527 when we start seeing higher, from the second half of F527, when we see the result of our initiatives and investments that we're putting in these three quarters.

Got it. And also, you can highlight, I mean, what is the impact of AI on your business? How are you infusing maybe the latest AI models into your business solutions? What kind of go-to-market strategy are you devising on the ground to make sure that your enterprise customers are actually able to utilize these AI offerings from you? So maybe some more highlight you can please.

Sure. So, as I mentioned, we've become an AI-first company. Not only are we launching AI-native products, but we are also embedding AI across our go-to-market functions, including marketing, sales, onboarding, support, and technology. And we have seen a phenomenal improvement in the metrics and the benefits we pass on to our customers in terms of faster onboarding, a better pipe creation in marketing, and also a faster development of products. All of this has demonstrated improvements in productivity, accelerated feature launches, and we expect more of that to happen as we continue to incorporate AI into more and more functions as well as more and more products. You will see us launching newer products as well as newer use cases, which are AI-first, so that we can benefit the entire ecosystem. We have already launched... AI-native products across the three domains, Catalyst in ConvertWay, Unibot in Univare, and ShipSense in ShipWay. You will continue to hear more of such launches and more use cases being catered leveraging AI.

Will it be right to assume that the increase in your employee benefit expense is largely around sales and marketing team, while your R&D team or the software development team might not be increasing at the same pace because of the AI-led productivity?

See the investments that we're doing are leveraging AI to be able to do better R&D. So there are some investments that we're doing in terms of talent in R&D as well. There are obviously investments in sales and marketing, as you rightly pointed out. Third, we're also using more and more tools. So there is some investment towards AI tools to be able to get better productivity. And we are also strengthening some mid-to-senior talent capacity across both Univer and Shifted, so investments are largely in these four buckets, using AI for R&D, more sales and marketing, getting some mid-to-senior talent, and fourth is using more and more AI tools to improve our productivity.

Got it, got it. Now, that's very helpful, and all the best, team.

Thank you.

We will take the next question from the line of Siva from iThought BMS. Please go ahead.

Hi, sir. Thank you for the opportunity. So my first question is regarding our standalone business. So if you look at our growth, we've been growing at around 40-50% rate during FI 22-23 and kind of slowed down to 15% in FI 24 and then we went to 10% and now we're at 5% in FI 26. If I kind of break it down further, our client additions have been growing at a whole day 20% bigger, but our ARPA is what I think is eating up our entire growth. So, and again, ARPA is a function of both the pricing that we charge with our clients and the volume that is processed by our clients. And I also recall that we had a price escalation clause with our new clients. So despite having all that, our ARPA fell by 11% in FY26, slightly higher than FY25. So I want to understand what is actually pushing this down and what are the measures we will be taking to increase this ARPA going forward.

Thanks, Seva, for the question. As we mentioned in the earlier calls as well, our growth is a function of growth of existing customers, addition of new clients. Since FY21 to about FY25, these are the two main factors driving the growth for us. While in FY21-22, we had seen the market, e-commerce market, continuing to grow fairly fast, and because of which, the plus-plus that we were adding on top of the market growth was coming through new plant acquisition, and we were able to grow the business at 45-50%. In FY24-25, as we mentioned before, we've seen the overall market not growing as fast as it grew during the pandemic, and that is when we started to invest in new products. While the overall year growth is about 5.5%, but if you look at the last second half of the year, you can see that we delivered about 8% growth in the quarter 3, and now back to double-digit growth in quarter 4 of FY26. That is on the back of not only faster client acquisition, but also addition of new products. So now the three factors of our growth are market growth, new customer acquisition, and adoption of new products amongst our existing customer base. Because of this, we've delivered a double-digit growth in quarter four and has given us the confidence that we'll continue to deliver this double-digit growth as far as the ARCA is concerned. See, when we acquire a client, a lot of clients end up taking our software in the early phase of their journey, and they continue to grow subsequently. In the earlier years, the growth of the market which ensured growth of our existing customers continue to be strong, which has softened a bit over the last few years. We have launched new products so that as these new products continue to get adopted, we will continue to see a faster growth in our business going forward, and that's why we are confident that we will be able to deliver our double-digit growth in the business.

Understood, sir. So, we could also automatically, because we are adding so much clients every year, ARPA is not able to go up. Is that a right understanding?

Yes, exactly. So, like we've had the highest quarter, highest number of client acquisition in the last quarter, 149, and highest ever in the year 450 plus. So, as these clients mature, we will see a faster growth kicking in, and that's why we're guiding for a double-digit growth in the subsequent quarters, while we've only delivered an early single-digit in the first half of the year.

Yeah, understood. And my second question is for Shipwish. What was the total shipment number that we saw for FY26, and what was the EBITDA margin that we made for the whole year, and what do you think would be the steady state margin for this business?

See, from a shipment perspective, we had mentioned that we've crossed a billion-plus transactions, and honestly, as a metric, while we continue to be larger than that, as a metric, it was a metric that we had put in place to demonstrate that we are capable of handling a higher scale. The three metrics that really matter for our business is growth of our existing customers. We are now no longer publishing the number of transactions or shipments that are getting processed to our platform because it does not necessarily give the true picture of the business as the mix of the transactions has become fairly heterogeneous over the last few quarters. When we went public, we were only catering to B2C transactions, but now we have B2B quick commerce transactions. We have newer products, which also add into the transaction mix. Because of that, that is a metric we are no longer publishing, but we continue to be north of the billion-plus transactions and continue to see a strong growth in the transactions. Sorry, what was the second part of this question for you?

So, I was asking about the margin that we did for the whole year, and what could be a steady state margin?

So, on the margins perspective, we've continued to stay consistent. We had mentioned that our standalone business continues to be nearly 80% cross-margin, and shipware demonstrates close to 20% cross-margin. We've stayed in the similar ballpark in these businesses, and we will continue to be in the similar ballpark going forward as well. We have not seen any structural change in the nature of the business, so we are confident of continuing to maintain this cross-margin profile.

Sorry, sir. I was talking with regards to EBITDA Merchant for Shipway business. Are we EBITDA Merchant for Shipway?

So, as we mentioned in the last earnings call, and I've called out this quarter as well, that we continue to invest in Shipway. We invest in sales and marketing, and we invested in AI development in Shipway, as it's a challenger, and we wanted to grow faster to be able to capture the large market. So, in this quarter, we are not a beta positive in Shipway, because those are the investments we are doing to drive growth. At the same time, in the standalone business, we have seen our adjusted EBITDA improve from 25% to 37.5% for the full year.

Yeah, that helps. And one last thing. Sorry to interrupt, Siva.

Sorry to interrupt, Siva. I would request you to kindly rejoin the queue again for more questions.

Sorry, I will get back in the queue.

Thank you.

We will take the next question from the line of Vinod Krishna from Evendor's Wealth. Please go ahead.

Sir, am I audible, sir? Yeah, you are audible, Vinod. Well, post-COVID, we got a huge tailwind in terms of people, all businesses are supposed to take on the e-commerce bandwagon. And you said in your commentary that we would like to repeat our kind of growth high-x in five years. Okay, I'm not expecting that kind of growth, but at least to maintain a north of 20-25% growth, given our profile of our company, and given the slowdown that we have in the last one and a half, two years, do you think you can maintain that kind of growth rates, and what are the factors contributing to, why are you so confident that you will get the, if not the similar, at least if not five times in five years, three to four times in five years? So if you can, a little bit more elaborate, because we had a huge tailwind post-COVID, are you seeing something or you are dependent on acquisitions or you are confident that you will increase your market share or dropship percentage will increase? What are the drivers of that kind of growth over the next five years? That's my first question, sir.

So the key pillars for the growth that we are working towards in the business is one, building more AI-led products and getting new use cases. Two is accelerate these growth platforms through product improvements, new client acquisitions, and execution rigor. Obviously, inorganic acquisitions continue to be a core part of our strategy, so we'll continue to evaluate selective M&A opportunities. And we want to stay disciplined on the cost. So in terms of driving the 5x growth, while COVID had, pandemic had helped drive faster e-commerce reduction, because of which we see, we have seen a market growth, which led to our growth as well. But at the same time, as I've mentioned over the last few quarters, we, honestly, we can't really control how fast the market grows, right? So in terms of things in our control, we are trying to do that well, which is one. Get more and more clients onto the ecosystem. Being the largest player in the ecosystem now generally tends to benefit sales businesses, so we are getting more and more clients added to our portfolio. Second thing in our control is to build new products, new use cases. AI is a big enabler for us. We are a system of record, so AI is a boon for us. We store so much information for our clients that we can provide rich insights and very A very important decision-making for the clients, which otherwise would have been very difficult to achieve in a pre-AI era. As a result of that, being able to add more and more clients aggressively and being able to enable new use cases in the post-AI era. Along with our ability to add new product capabilities through inorganic acquisitions, a combination of these three factors will help driving more growth. We have already demonstrated a faster growth in our standalone business. Shipway operates in a large market and is fairly a challenger in that market. A combination of these factors gives us the confidence that we will continue to drive high growth in the business.

Thank you. Second question is regarding the market share. Are we maintaining our market share in Univare? Are you seeing any, like most of our customers, they use their own Excels and all. Are they using this AA to write their own products? That kind of a threat, are you seeing these two questions there? One is market share on Univare and people write coding there because it's for small people instead of Excel. So adoption becomes more slower and longer for us to convert them into our products. Or am I thinking wrong there?

Yes, so for the first part of your question, see we continue to acquire more and more customers. So we, while the last portion continues to be on Excel, but amongst the customers who are looking for software, we continue to be a preferred choice. We are already a market leader, and as I mentioned in SaaS, we have typically seen the market leader tends to accelerate a lot more. So a lot of new clients are coming to us, so we continue to see an increasing market share in the business. In terms of... The businesses who are in Excel, can they leverage AI to build copies of media commerce? The answer is no. Because while AI can, one, these integrations are very difficult to build. There are beyond the core marketplaces. There are, like I mentioned, there are today a brand is selling on 8 to 12 different channels. So one is building those integrations. More importantly, it is about maintaining those integrations. That requires consistent investment, which is not. The core of the brand. The core for the brand is to build a product which is loved by the customers, think about the brand position, and not build this tech in-house. More importantly, beyond the technical capabilities, I think the few defensibilities that we have is one, we build deep relationships across various ecosystem players, which is marketplaces, logistics partners. While AI can write the code, it is very hard to replicate these relationships. So much so that many of these large players today sit across the table and build the product roadmap jointly. It's extremely hard for now a platform or a marketplace to do this with thousands of brands, and that's why they prefer an aggregator like us, where they can jointly talk about things that can benefit the overall ecosystem. Second, there's a complexity in the ecosystem. Go ahead, sir. Sorry. Just a second. Second point is that the complexity of the e-commerce ecosystem is increasing. The need for a system of record is extremely high. They need a stable and scalable system which they can trust with their data because that is being used to make important decisions. While they can make basic use cases through AI, building a scalable and very stable system that they can trust with their business is going to be extremely hard to replicate. And because of that, it is extremely hard for a brand to build this on their own. It's not their DNA. Plus, they need a trusted and scalable system to be able to do that.

So, you're confident on the growth, sir, for next year, like 20-25% growth at least when you say double digit.

We're not giving a growth guidance for the FI27, but what I'm confident of is a double-digit growth and the fact that we are looking, the ambition is to replicate the success we've demonstrated in the last five years, to replicate that in a similar timeframe in the coming years as well.

Thank you, sir, and all the best. Thank you, sir.

Thank you. We will take the next question from the line of Majid Ehman from Pinpoint X Capital. Please go ahead.

I'm an article, sir. Yeah, you're an article. Yes, sir. Thank you for the opportunity. Sir, my first question that I have is, what's the current NRR, sir, like I used to mention every metric for this year?

Yeah, so... NRR for the year was above 100%. So we have maintained that our NRR continues to go above 100%. In FY26 as well, our NRR is above 100%, excluding the churn of this we saw in the top 10 buckets. We had mentioned about that in the last earnings call as well. The NRR continues to be subdued, as I had mentioned, because it reflects the broader e-commerce ecosystem growth. And like I mentioned, that's not in our control, so we continue to add new products and continue to add new clients to be able to drive growth in the business. But at the same time, we have also seen that, as I mentioned, the new client acquisitions continue to be strong for us. So the contribution of new clients to our revenue continues to be in the similar ballpark of 78% like we had mentioned in the earlier call as well.

And, sir, this quarter we had more sales and marketing spend, as you said, that had dragged over a bit. So, what's our exact incremental sales and marketing spend for this quarter, sir?

So our investments have not only happened in sales and marketing. As I mentioned, we've also gotten more talent to be able to leverage AI to improve our productivity. We have gotten AI tools emitted across various business functions and also technology to be able to build faster. And we've also made to senior talent to be able to build execution depth. A combination of these core factors have resulted in the investment because of which we have Our EBITDA growth in quarter 4 is slightly subdued, but these are investments where another factor is that in the last few quarters, we have seen as we made these investments, we have seen the business turn around and deliver higher growth. The intent is to drive higher growth in the business, and that's why we want to invest in quarter 4 and the next two quarters to be able to drive a consistent growth in the business and unlock value for our shareholders.

Sir, for Shipway, I am seeing the pace of sales growth is slightly moderated. So, going forward, how are we looking to improve the growth there in the Shipway segment?

The sequential decline in Shipway is largely because of feasibility. As Anurag mentioned, that quarter three includes tea festivals like Diwali and Christmas, where people buy cross-categories, they buy new clothes, new things for their homes, and there are a lot of gift purchases. There is also a winter seasonality, because of which there is poor buying at the beginning of the season. Buying Quarter 4 sales are largely event-driven, like end-of-season sales or Republic Day sales, which are mostly discount-led and for inventory clearance. In general, we have seen Q3 demand is higher than Quarter 4. The same trend was there last year as well. So, the sequential drop in shipwaves last year on account of seasonality. We continue to be confident of Shipway continue to drive growth because it's a very large market and Shipway is still a challenger in that market. So, seasonality aside, the investments we have put in place for sales and marketing and for AI-led product development, we are confident of being able to deliver higher growth in the business.

Sir, finally, just want to know regarding the international market expansion and how are we going around that? Sir, how do you see your contribution by 527 in the international market?

So, international market, as you mentioned, became profitable in this year and continues to grow stronger than the domestic business. The relative contribution is smaller. It used to be 4% to 5%. It has improved to about 6% to 7% in this year. Going forward, it's difficult to give a specific guidance for business-sensitive reasons on what the contribution will be, but we continue to see a faster growth in the business going forward as well, and the intent is to grow deeper within the geographies that we are operating in. We are operating in seven geographies outside of India, across Middle East and Southeast Asia. The idea is to grow deeper, and within these seven geographies, the three geographies that are most prominent for us are Dubai, Philippines, and Malaysia. The idea is to grow deeper in these geographies.

Thank you, sir. All the very best. Thank you.

Thank you. We will take the next question from the line of Pratik Bhantia from Fermi T325 Investment Advisors. Please go ahead.

Hi. Congrats on a good set of numbers. Also, great to see the fashion brand success story. We have been able to leverage all three of our platforms. For revenue growth shows how deep of an impact we can have on a brand's success. I just wanted to understand what kind of segments are we looking at for acquisitions? What would be the ticket size over there and how many deals are we looking for potential deals?

As I mentioned, Inorganic is an important growth lever for us. So, we continue to look at product capabilities that are making sense to our existing customers. They should be a natural extension and should make sense. From a ticket size perspective, we are not looking at a very large business. It's difficult to quantify our ticket size, but we are not looking at a very large business. The ideal fit for us is a business which adds a good product capability. So it should be a good product, good team, should be available at a reasonable valuation, should be either profitable or have a path to profitability, and it has to have an alignment for the existing business. So those are the factors that we use to evaluate the businesses. As we speak, there are many, many businesses that we continue to be in touch with. Many of these discussions are at an initial stage, so difficult for us to talk about a specific stage or specific players that we are considering. Just to give you an example, if you look at the pre-purchase journey, so today ConvertWay is our entry into the pre-purchase journey. We have largely been a post-purchase pair. So that's a wide space that's open. So that could be an interesting space to look at solutions which are operating in the pre-purchase journey. Similarly, on the post-purchase side, it could be on analytics, it could be on loyalty or any other area. This is not indicative of spaces that we actively consider, but just to give you a flavor of potential spaces that are complementary to what we offer today.

Okay. Another question I had was, can you share any cross-sell rate, you know, of existing UniWare clients who adopted Shipway and Convertway?

So for us, as I had mentioned, the overlap when we had acquired Shipway was less than 5%. We are already at a 10% plus cross-sell rate, but I also want to call out that beyond Univare, there is a large market for Shipway, which consists of Instagram sellers, D2C brands, dropshakers, who may not require Univare platform. And this large attestable market is why we continue to invest in sales and marketing to accelerate growth. So, as both of the bases are growing, Univare client base is growing, shape-based client base is growing, from a percentage basis we continue to say 10% plus and it will look static, but we continue to see a stronger overlap on both the businesses.

Okay, and... Another question was, the share-based payment has jumped quite a bit compared to last year. I just wanted to get a sense, see what kind of dilution can we model into our, you know, financials going ahead? Just a basic bookkeeping question, I think.

See, from a M&A perspective, we've been adding cash. We've now got our cash to pre-ship acquisition levels. So, our intent is to not look at dilution when we are requiring, but we need to look at the We have leveraged most of our cash to be able to do this. In terms of issuing ESOPs to talent, we have issued ESOPs to both existing talent as well as new incoming talent. I talked about investing to get some mid-to-senior talent. So we have also issued ESOPs to them. All of this is ensuring that the incentives for the leadership teams and the exhibition teams are aligned to the overall growth of the business. Because of that, we've seen an increase in the share-based expenses. But the intent is to ensure that we are able to unlock value for our shareholders by driving higher growth in the business.

Okay. And last question was, have you seen any slowdown in consumption since the beginning of March? So since, you know, the war has started, any signs of slowdown have you been able to stop or it's not there?

Yeah, so the bulk of our business is focused on India. We have rarely seen any disruption in our India business in terms of new client acquisition or existing business. In the Middle East business, which is a small contributor, even there, we have not seen any major impact or disruption in our business, in our existing business. We have seen small impact in the sales cycles. It became slightly longer in the last few weeks, but we are seeing that also coming back to normal as the overall situation normalizes in the region.

Thank you so much, and I'll do this.

Thank you. We will take the next question from the line of Vansh Gupta from Prescient Capital. Please go ahead.

Hi, sir. Thank you for the opportunity. Am I audible? Yeah, you are audible, Vansh. Thank you, sir. Yeah, Vansh, you are audible. Just a couple of questions for my answer. So, sir, top 10 customer revenue contributions. If you look at the absolute number, it's gone by about 3.5% since the last year. So, any specific reason for why the revenue from top 10 customers has been growing at a slower pace versus growth in the universe?

As I mentioned in the last call as well, the growth of top 10 customers is receptive of their overall business because any large customer or all customers for that matter manage 100% of their e-commerce dropship business on us, so it's not as if a part of the business is going somewhere else. They either maintain the full business on us or they don't maintain it at all. We have seen one of our large customer churn because of the change in their business model because of its multi-channel was no longer a use case for them because of its status continues. So combination of growth of the overall customers, the top-end customers, and the fact that this one of the top-end customers stopped using the platform because of the change of business use case is a result of what the numbers that you're talking about.

Well, sir, just to follow up on that, so I believe you had mentioned in the prior few quarters that there were some price escalations that were also filled into the, built into the contract that you had signed to the customers. So, both when you look at the 11-12% growth in the universe as well as the 3.5% growth of the top 10 customers, is the bulk of the revenue growth given by price growth or volume growth,

both for the top 10 customers as well as for the universe business? Sure. As I mentioned, price escalation, we have started to put it in the contract of new customers since last year. The benefit of that has started to already kick in. But most of our top 10 customers are our old customers. Having seen the success of price escalation being applied on the new customers, we now plan to incorporate this in our existing contracts as well. The impact or benefit of that will be demonstrated in the subsequent years. So it's safe to assume that the growth that you're seeing in the top 10 customers is largely the transaction growth. There is no price escalation yet based on the large customers because those are existing contracts, and we haven't yet started to implement the price escalation on our existing contracts.

All right, sir. And just one more follow-up, sir. So, we have also launched a couple of products, Unireco, and we also acquired Shafnay last year. So, in terms of cross-sell and up-selling opportunity, is there any specific reason for why Unireco has been adopted by just 5-6% of our client base? Or rather, its revenue contribution is just 5-6% of our revenue contribution. Are you seeing any momentum for the Unireco products before the products that we've launched in the past year?

Yeah, so see, in SaaS or in technical products, it's generally a gestation period for adoption. When we launched B2B QuickCommerce, it was in the single digits when we had initially launched, and over the course of time, we've seen now 40 to 45% of our enterprise customer base adopting B2B and QuickCommerce use cases. In Unireco, while we had launched with one of the use cases, which was payment reconciliation across marketplaces, we continue to get feedback about new use cases, about inventory reconciliation, about full order to cash cycle, etc. So we continue to incorporate this feedback, and that's also one of the investment areas for us to be able to make this even relevant for more and more customers within our ecosystem.

So far, within the first three quarters itself, we've seen a 5% to 6% adoption. As we incorporate this feedback and this becomes relevant for more and more time within our

customer base, you will see a higher adoption of Unireco coming forward.

And so in terms of competitors for the Unireco products, I believe Incraft is there, but I'm not sure if it offers a Unireco kind of a product. But are we seeing like any loss of customers to our competitors, to like competitors like Incraft in the standard-grown Unireco business as well as the Unireco product that we launched?

Very difficult to comment on a specific competitor, but safe to say that one, today there is no competitor which is as comprehensive a product offering that we have. Two, the churn of customers is largely on account of them shutting down or them stopping to sell online. We rarely see a brand, a large brand, transitioning to a different platform. Largely the churn happens to long-tail businesses, which is on account of either them shutting down or them deciding to stop selling online. Unireco is a unique and differentiated offering. We do have some smaller competitors who offer this as a service, but amongst the larger players and larger competitors, we don't see anybody offering a credible solution on the reconciliation space. And as I mentioned, we are also looking to make this fairly comprehensive to make this amenable to see a pose of large organizations to be able to get a better handle on their e-commerce business. The kind of depth that we are building in Unireco, that will be unparalleled and there will be nobody who will be able to offer that comprehensive solution within Unireco and overall product suite as well.

So is that like a focus area for the company's growth? Are you like trying to push Unireco as like a significant product and you expected to become a significant contributor to your overall revenue contribution?

Is that like a focus area for the company's growth? So our focus is to drive newer products. UniReco is just one of the new products. We have UniCapture and we have more products in the making. We will be talking about them as we launch. So the focus is definitely to drive adoption of newer products onto our customer base and to drive growth coming from the new products across the different products that we launch. That is one of the important goals we work for.

And the growth, are we focusing on domestic largely or international is also like a bigger focus for us? Do we expect the growth to come largely from domestic customers going forward or from international customers?

Both actually, so domestic is the largest part of our business, international still continues to be in single digits for us. So, the idea is to enable some of these new products for international geographies also, but the big focus of these new products is going to be get them adopted within the Indian ecosystem, and as they mature further, then we look at expanding them to international geographies as well.

So, incremental growth, we're focusing on domestic customers right now, and with some ancillary business going to international customers. Is that right?

Sorry, I couldn't understand that question.

I'm saying for the incremental growth that we're projecting for the next 1-2 years, we're focusing on domestic customers first, and then the international customers after that. Is that right?

So both are important focus areas for us. International businesses grow faster than our domestic business, coming at a smaller base though. So we want to grow both the businesses. The new product production will be largely focused for India, and as the new products mature, we will take them to international markets as well.

Sorry to interrupt once, I will request you to kindly rejoin the queue again for more questions. Thank you. We will take the next question from the line of Arvind Arora from A-Square Capital.

Please go ahead.

Hello. Thank you for the opportunity. So, Pabell, we are almost closing 1.1 billion transactions that we process every year. So, we have used data library now, and you have also mentioned that we will use this data to analyze and provide insight to customers. So what would be our revenue model on this, like, and how we can expect this solution to the customer, and are we planning to develop a separate tool for this, like, something like a dashboard type of things, or can you please throw some more light on that part, please?

So, as you rightly pointed out, we process a lot of transactions. We get access to very important data for a particular client. So, the idea is to build a separate product line to be able to drive richer insights for the business. This is still early stages. We are still building it out. So, I think it will be difficult to comment on the revenue model that will evolve as the product gets launched and as you get more feedback, but that... Product on these lines is in the making, and we'll be able to share more details once we are ready to launch this product.

Any timeline from this? Because we are moving, like, we are operating, like, it's, like, from IT enablers, we are focusing on business solution providers.

Sorry, I couldn't understand the last part of the question.

So, I'm saying any timeline that's in the mind?

So, in the AI era, things are moving at a lot faster pace. I think we're hopeful we should be able to share a more complete update in the next earnings call for you. The idea is to be able to get some feedback from some alpha customers and then do a full-fledged launch about the product.

Wonderful. And Kapil, we are talking in last two, three quarters about the inorganic growth. So which line of business we are thinking that we should go and acquire a business so that we can grow in IT, e-commerce?

See, as I mentioned before as well, the various factors that we look at acquiring our businesses and that it should be relevant to our existing customers. There should be significant AI relevance, and it should be available at a reasonable valuation. More importantly, it should be a good product, good team. The sales muscle is something that we have that we can grow the business. So, the idea is to look at adjacent white spaces, which add product capability and help us realize our vision of becoming a one-stop shop for e-commerce enablement. I talked about few example white spaces in terms of expanding into the pre-purchase journey and looking at few spaces in the post-purchase journey as well. So we will continue to, as we speak, we will continue to evaluate various white spaces and are in touch with number of players and evaluating whether they meet the criteria that I outlined. As and when we have a complete update on this particular aspect, we will be happy to share it with the market.

And Kapil, especially ground level, there are more SMEs that face issues in like GST repo and everything. So since we have so much good capability, so are we also planning to launch any tool on that part so that our like to add more tool to help those SMEs and then increase our revenue?

So, our focus is e-commerce. So, we want to first talk about and solve some problems related to e-commerce, which is to do with payment reconciliation, inventory reconciliation, returns, etc. I think that's our initial focus area, and that's what we're most focused about, and we're getting feedback on that. As the product matures and we get this use case from our customers to have this particular thing about GST Reco also embedded in the solution, that's when we can incorporate. Today, we are focused on solving the e-commerce pain points of our customer base.

Okay. Okay. All the best, Kapil. Thank you.

Thank you.

Thank you very much. Ladies and gentlemen, due to time constraint, we will take that as the last question for today. I now have the confidence back to the management for closing comments. Over to you, sir.

Thank you, everyone. We hope we have been able to answer all the questions and give you a meaningful update on the business. In case there are any further questions, please feel free to reach out to Strategy Growth Advisors or Industry Relations Advisors. Thank you and have a good day.

Thank you, members of the management. On behalf of Unicommerce eSolutions Ltd, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.