BLS E-Services IPO

BLS E-Services Limited is a technology enabled digital service provider, providing (i) Business Correspondents, (ii) Assisted Eservices; and (iii) E-Governance Services at grass root levels in India. A key stakeholder in each of its business segments are merchants, for delivery of its products and services to the citizens.

The Company acts as Business Correspondents to provide banking products and services on behalf of major banks in India. Further, the company provides assisted e-services through retailers and digital stores. The Company also facilitates delivery of various e-governance initiatives of the State Governments in India by providing various information communication technology enabled citizen centric services.

BLS E-Services IPO Strengths

• The company operates on an asset-light business model.
• It contributes to social and financial inclusion in India.
• The company also has multiple cross-selling and up-selling opportunities, network effect and wide reach for customer acquisition.
• Its customer acquisition and retention costs are very low.
• The company’s business model has diverse sources of revenue.
• It has a successful track record of acquisitions.
• Experienced Management Team.

BLS E-Services IPO Risks

• A big portion of revenues comes from subsidiaries, ZMPL and Starfin.
• Deterioration in the performance of Subsidiaries can impact the business.
• A substantial portion of revenue from a single customer which is one of the largest PSU Bank.
• The services are offered only in Punjab, Uttar Pradesh and West Bengal.
• The company is dependent on the application programming interface, technology and server of banks and government agencies to provide business correspondent services and G2C services.
• High working capital requirements.