Dreamfolks services limited( DFS)

Very interesting interaction from the Concall transcript

Moderator: Thank you. The next question is from the line of Tarbir Shahapuri from Nidara Capital.
Please go ahead.

Tarbir Shahapuri: Hi. Thanks a lot for taking the question. You guys have emphasized a lot on the technology that you have developed. I am struggling to kind of understand what exactly is the
technological edge and if you can just help me with how much money you have spent to
develop these? The technology, the platform over time that would be really helpful.

Balaji Srinivasan: The way to think about it is that banks basically use this as a way to administer the benefitsthat have been given to the end consumers, and this is the main platform on which all the
usage, the spend, and everything is getting tracked. So, there are two elements to this. One
is the interfacing with the client such as a bank or a network and on the other end is the
access mechanisms that is deployed at let’s say a lounge or a golf course or spa outlet or
any of these locations. So, it is an end-to-end platform that gives the banks the ability to
manage a card program. So that is the layer one of it and as we mentioned in this call as
well earlier, banks are using this technology to also drive a lot of their spend based models
and the usage-based models. So, they are able to carve out or identify segments of users that
are profitable for them or consumers that are not good for them, etc., etc., and do a
differentiated benefit in practical terms. So, the idea is that this becomes a long-term
solution for them where they are able to also launch new products in this tech bit. So that is
our core strength, but from an end consumer point of view also what is interesting is that the
access mechanism such as for example banks are taking our technology integrating this into
the bank apps and that also then has a consumer side to it, but the consumer does not really
realize this is our tech because it is probably branded as somebody else’s tech. To give an
example, if you go to any large metros today there would be some or the other mechanism
to do a kiosk check in for a lounge. It may or may not have a DreamFolks branding on it,
but that tech is actually given by us. So, we do end-to-end tech service for both banks, so
everyone in the ecosystem we are giving them a solution.
Tarbir Shahapuri: And if you can help me with what is the total cost that you have spent to develop this
software or platform you call it.

Giya Diwaan: We have actually developed it over a period last four to five years. We started way back in 2017-2018 and slowly and gradually new capabilities/stacks get built in. If I just put a
number to so far what we have invested probably somewhere around Rs. 5.5 Crores is what
we have spent in last five years to develop this.

Tarbir Shahapuri: Understood, okay that is really helpful. Great. Thank you so much