KFin Technologies Ltd Management Discussions

Economic Overview

The world economy continued to demonstrate resilience in 2024, withstanding a series of disruptions led by heightened geo-political conflicts and elevated borrowing costs. Global GDP grew at a steady pace of 3.3% in 2024, driven by strong growth by the United States and emerging economies like India and China among others. Inflation continues to recede, amidst irregular trends, with core inflation seeing a rising trend late in the year. However, food and energy prices continue to show signs of easing. The year 2025 is expected to remain volatile for the global economy, impacted by rising trade frictions, persistent geopolitical and policy uncertainty, elevated market volatility and inflation divergence reshaping the global outlook. According to IMF, the global economy is expected to have a soft landing in 2025 with growth declining to 2.8%. Regional growth trends are expected to become more uneven, with developed economies showing signs of weakness and emerging markets showing varied resilience. Further softening of inflation, monetary easing in several economies, proactive fiscal measures and policy realignments could result in better-than-expected economic activity.

The Indian economy remained resilient in FY 2024-25 despite global uncertainties. With GDP growth at 6.5%, led by robust domestic demand for consumption and investment, a strong financial sector and the governments continued emphasis on capital expenditure to realise its ambitious plans for Viksit Bharat and promote the Made in India drive, the country witnessed a healthy growth momentum. Inflation (measured by consumer price index - CPl) during the financial year has moderated, especially during the second half, with CPI easing sharply to a 67-month low of 3.3% in March 2025 vs. 6.2% in October 2025 (vs. 4.8% in April 2024), led by reduction in food and energy prices. This has allowed the Reserve Bank of India (RBl) to reduce its policy repo rate by 50 bps to 6.0%, aiming to stimulate economic activity.

India is expected to emerge as the fastest growing economy in the world with an estimated GDP growth of 6.2% in 2025, supported by resilient services exports, steady public investment and robust private consumption. In addition, benign inflation, lower energy prices and accommodative monetary policy are likely to support growth. Indias robust democracy accelerated focus on digital transformation and reform-driven policy framework will continue to put the country in a bright spot, with global institutions and industry bodies expressing confidence in Indias growth prospects. However, geopolitical developments (in the form of tariff barriers and supply chain disruption led by regional conflicts) are likely to exert intermediate risk to the growth outlook.

Industry Overview

Global Asset Management Overview

The global asset management industry continued its strong growth trajectory in 2024, with assets under management (AUM) growing at 12% YoY to reach an all-time high of US$ 128 trillion, led by the increase in AUM seen across all regions. This increase came on the back of strong performance by global equity markets, with major indices such as S&P 500 and NASDAQ reporting YoY growth of 23% and 29% respectively. While the overall net flows were negative in 2024, all other regions except North America, reported positive net flows. Global fee for the industry grew by 7% YoY in 2024 to US$ 435 billion, with 70% of the growth linked to strong mark-to-market performance. The industry profit pool expanded by 22% YoY in 2024 in contrast to 8% YoY decline in 2023.

As monetary easing progresses across developed and emerging economies, albeit with divergence in their pace and timing, the return structure of the global equity market is expected to broaden in 2025, providing motivation to asset managers and investors for diversification across equity markets. Looking ahead, the global asset management industry is poised for fundamental reinvention. Market rebound alone will not guarantee long-term resilience.

Firms must broaden their product mix, expanding into alternatives, private markets and ESG-aligned offerings to meet the rising demand for diversified and responsible investment solutions. Though investment performance will continue to matter, its role as a differentiator will also decline as exceptional distribution and relationship management combined with competitive performance will become a winning formula for asset managers.

As the industry navigates deep structural changes, including fee compression, shifting investor preferences and heightened competition across global markets, firms must balance scale with innovation. Outsourcing non-core functions like operations, achieving operational efficiency by avoiding dual run costs, especially in headcount, launching differentiated products and investing in technology and data-driven capabilities will be critical levers for long-term profitability. Technology will play an increasingly central role. Asset managers that successfully roll out generative artificial intelligence use cases, invest in advanced data and investment analytics and process automation will improve both client engagement and internal efficiency. At the same time, global diversification will remain critical, as firms seek to reduce concentration risks and tap into underpenetrated markets offering fresh growth potential, backed by strong macroeconomic fundamentals and sustainable growth drivers.

Global Alternative Investment Fund (AIF) Industry Overview

Global private markets and other alternatives continue to evolve and attract a broad base of investors seeking opportunities beyond traditional market exposures. The industry AUM grew to an all-time high of US$ 19.5 trillion in 2024, registering a growth of 10% YoY and growing by more than two-fold since 2018. The worldwide growth of private markets was one of the major growth drivers, aided by easing of inflation and monetary cycle, and expansion of private market platforms helping to raise equity and debt for private companies. Alternative assets, now generate more than half of overall revenue of the global asset management industry, while they account for merely 15% of the industry global AUM (up from 12% in 2018).

For AIF managers, growth and profitability will need operating models that are technology-first, scalable and can adapt to diversification of products and strategies, addition of new clients and integration with wealth managers and FinTechs. According to a recent survey conducted by a leading global management consultancy firm, where over 400 global large alternative asset managers participated, achieving operating model scalability is one of the key strategic priorities for global fund managers. Current technology and data infrastructures does not provide flexibility, scalability and efficiency, as desired by the managers, with over 70% of the global alternative industry still relying on archaic, fragmented and legacy manual systems. Data management and integration also remain key concerns as they fail to provide real-time information, integration with back-office support functions, support to investment decisions or for the front-office platform for client engagement.

As per Preqin estimates, the global AUM will surge past US$ 30 trillion by 2030, triggered by democratisation of private markets and customised solutions, ease of regulation around the world (allowing 401k plans in the US to invest in AIF and similar changes in Europe), enhanced access to individual investors through growing private wealth channels and digital platforms, and growing demand for portfolio diversification for institutional investors. At the same time, the industry is also expanding due to emergence of new managers and active firms. There are now more than 17,000 private market firms active globally, an increase of more than 2.4 times over the last one decade. The number of active firms increased every year over the last decade, across all asset classes and geographies, pushing general partners (GPs) to grow their capital pool to stay competitive. Technology like blockchain and tokenisation will act as a catalyst, reducing friction, enhancing transparency and giving rise to programmable and fractional products, integrating alternatives into mainstream financial vehicles. Managers will have to reassess priorities and invest in generative Al to gain competitive advantage in its core function of investment management and marketing while outsourcing non-core functions to take advantage of innovation, scale and flexibility.

Growth by AIF Asset Class (%)

Asset Class	CAGR 2029
Private Equity	12.8
Hedge Funds	4.0
Venture Capital	11.7
Real Estate	8.7
Private Debt	9.9
Infrastructure	10.8
Natural Resources	4.1

Global Fund Administration Overview

As the global asset management industry continues to adapt and innovate to serve its stakeholders, the fund service providers will need to meet such changes - by investing in operational efficiencies, expanding services and geographical presence, and new technologies - to enable value chain partners to build scale, deliver better performance and realise their overall ambitions. Global fund administration industry continued to demonstrate resilience and adaptation in 2024, led by 12% YoY increase in the global assets under administration (AUA), growing allocations to alternative assets and increasing demand for third party administrators. The alternative fund administration market, pegged at US$ 11-13 billion and growing at 12-15% CAGR, is undergoing a transformative change for the past decade, marked by increased regulatory requirements and operational complexities, heightened investor demands for transparency and hyper-customisation and static or declining fund management fees amidst rising cost pressures.

Flows of committed capital, proportion of outsourced assets in each vintage and fee charged are the core determinants of growth for private fund administrators. As institutional investors are falling short of obligations and aiming for outperformance of private funds as a solution, leading to higher private fund allocations, committed capital across all asset classes is on the rise. Fundraisers are looking beyond closed-end channels to raise capital in new vehicles, such as evergreen funds. Dealmakers and operators are moving away from traditional financial engineering to focus on sustained operational transformation and limited partners (LPs) are moving from being passive allocators to investing in GPs themselves. This will lead to rise in number of new managers and increased intensity of new fund launches by the existing managers. Funds complexity, increasing LP risk management scrutiny, growing regulatory requirements, and the need for technology transformation will push the case for outsourcing as a cost effective and scalable measure. Recent developments, such as Financial Crimes Enforcement Networks (FinCEN) final rule requires robust AML/

CFT platform, establishment of independent audit protocols and designate compliance teams, demanding sophisticated infrastructure and heavy investments. Not many in-house fund management operation teams have such expertise. Demand for customisation and inflation will put upward pressure on administrator pricing (basis point on capital), led by investments in innovation, technology, risk management, and security.

Pure play administrators have accelerated their growth in the past decade, as the preferred choice for private asset managers, given their ability to provide tailor made solutions, offer higher quality services, cross-border expertise, willingness to partner with GPs, and more entrepreneurial style of working, in comparison to bank-owned or diversified financial service providers. Shift to such third-party administrators is helping asset managers to leverage scalable and robust technologies and a team of seasoned professionals without making investments for in-house developments and processes. This allows more flexibility and release of bandwidth to focus on core functions like investment management and fund mobilisation.

The industry is also witnessing an accelerated level of M&A activity with nearly 120 transactions in the last decade, including 15 transactions in 2024.

Both financial sponsors (private equity and venture capital funds) and strategic acquirers have active interests in pure play administrators. Sponsor interests are driven by strong secular tailwinds in the form of rapidly growing alternative asset end market, proliferating trends in outsourcing, sticky revenue and high operating leverage, gaining scale through consolidation and strong understanding of value proposition as asset managers. Strategic acquirer interests are driven by speed and scale, breadth of expertise, brand reputation and service capabilities in terms of customisation, technology and customer relationship as key buying factors.

Looking ahead, the industry is poised for secular growth, driven by strong sectoral tailwinds and evolving needs of outsourcing. Industry players bringing in fresh investments into geographic outreach and technologies like artificial intelligence, machine learning and cloud-based platforms will continue to gain competitive strengths and have considerable table stakes in winning new deals. Also, as regulation restrictions ease out, digital assets will continue to gain momentum as a mainstream play and administrators building capabilities to support such asset classes will gain advantage. Global private market infrastructure opportunity is estimated as large as US$ 16-18 billion in 2025 and expected to touch US$ 30 billion by 2030, growing at CAGR of 11-13%, according to one of the global management consulting firms. Administrators adopting tech-as- a-service models and building platform solutions for front office, middle office, or back-offices can witness faster growth.

Indian Investment Management Industry Overview

The Indian investment management industry has undergone a notable transformation over the last decade, characterised by several positives including a robust trend of structural macroeconomic growth, rising income levels and financial literacy, better return expectation, evolving retail participation and technological advancements with evolution of digital-first platforms. Equity investments have steadily gained traction as a preferred choice of investment for Indian households. In addition, the tectonic shift in demographic profile of retail participants in stock market has become the bedrock for increased level of penetration, both in the form of direct equity investments as well as investment through the mutual fund route. Household wealth in Indian equities, through both direct holdings and via mutual fund route, has risen by over 545 trillion between FY 2020-21 and FY 2024-25, with more than 525 trillion added in the last two financial years. As of March 2025, nearly 5.8% of total household assets in India was invested in equities, a significant rise from 1.9% seen by the end of March 2015. Despite three-fold growth over the last decade, India is far behind the developed markets like the U.S., where equity investments account for 35% of household assets, and offers massive growth for the coming decades. In addition, the recent surge in artificial intelligence and machine learning usage in financial markets will act as a catalyst and enable participation by further democratising the journey of investments for retail participants. Regulators renewed focus on balancing market dynamism with regulatory oversight is underscoring the apex bodys intent to promote sustainable growth and balance market efficiency with investor protection. These shifts are not only changing the style and choice of investments by Indian households but also fostering a cultural change by investing an increasing proportion of household savings into market-linked financial instruments and acting as a powerful engine for Indias economic growth.

Mutual Fund Industry Overview

The Indian mutual fund industry continued to show resilience in FY 2024-25, led by strong and consistent growth in net flows and robust mark-to-market (MTM) performance, supported by buoyant equity and debt markets. The industrys average assets under management (AAUM) reached an all-time high of

567.44 trillion in the last quarter of FY 2024-25, growing by 24.6% YoY. On a five-year basis, the industry AAUM has grown at a CAGR of 20.0% between FY 2019-20 and FY 2024-25, making mutual funds an integral part of the Indian investment ecosystem. Net flows during the year increased to 58.15 trillion, a rise of 1.30 times over the previous year, with equity-oriented mutual funds, including hybrid schemes, witnessing a record inflow of 55.36 trillion, a rise of 64.2% YoY. This, combined with valuation gains, propelled the equity AAUM to grow by 27.6% YoY to 538.34 trillion, thereby improving the equity mix in the overall AAUM by 133 bps (bps) to 56.9%. MTM gains have been positive in FY 2024-25, with the equity market delivering a positive return of 6.7%, measured by NIFTY 50 total return index, and debt markets contributing positively too to the MTM gains, supported by favourable yield movements. SIPs have emerged as a stable and robust retail inflow mechanism, driving net flows growth and acting as a saviour during sharp market declines. Annual SIP contributions, in FY 2024-25 increased to 52.89 trillion, growing by 45.2% YoY, with monthly SIP inflows touching a fresh high of nearly 52.60 billion by the end of FY 2024-25. While SIP flows exhibit sensitivity to equity market cycles, showing reversals during market decline, they have largely remained strong and unaffected during sharp downturns, underscoring the shift from opportunistic investment to prioritising disciplined, long-term allocation despite short-term market swings. SIP AUM grew by 24.6% YoY and increased to 513.35 trillion by end of March 2025 and accounts for 20.0% of the overall AUM. The surge in equity inflows was also supported by successful launch of 70 new fund offers (NFOs), mobilising 5852.44 billion during FY 2024-25 in comparison to 58 NFOs mobilising 539.30 billion in the previous year. The number of folios grew to 234.51 million by the end of March 2025, an increase of 31.9% YoY and nearly 2.6x since March 2020, driven primarily by the retail and HNI segments. Retail and HNI folios account for nearly 91.7% and 7.8% of the total folio count by end of March 2025.

Indias mutual fund AUM-to-GDP ratio at 18.1% in FY 2024-25 continues to fall behind major economies like the US (69.4%), the UK (52.7%), China (23.1%) and Japan (43.0%). The gap suggests ample headroom for expansion, on the back of rising formal employment, growing disposable income levels, improving financial literacy and increased penetration beyond top 30 cities of the country. The AUM expansion, in excess of MTM gains, further underlines the structural deepening of mutual fund penetration, rather than a mere reflection of market performance. Equity AUM will continue to gain preference among investors, particularly the retail investor base, given unattractive returns in debt mutual fund and weak understanding of the debt market by retail participants. In addition, lower returns in bank fixed deposits will continue to influence preference towards equity-oriented funds. Launch of bite-sized or micro-SIPs, is a further attempt by SEBI to enable financial inclusion and democratise mutual fund industry in India by attracting first time investors and improve penetration. Though institutional investors continue to dominate in value terms, broadening of the investor base has been led by strong retail participation, evidenced by rise in SIP accounts, which now anchor consistent rise in monthly flows and reduce the cyclicality of fund flows.

Issuer Solutions Sector Overview

Indias capital markets witnessed remarkable growth in FY 2024-25, with the market capitalisation crossing US$ 5 trillion milestone for the first-time ever during the first half of the financial year, underpinned by rising retail investor activity, resilient domestic institutional participation, and increased digitisation across investment channels. Despite global uncertainties and volatile foreign inflows, especially during the second half of FY 2024-25, domestic investors continued to show confidence in equities, contributing to the markets depth and stability. The period also marked a record-breaking year for Indias primary market (initial public offers - IPOs). A total of 317 companies, comprising 81 mainline and 236 SME issuers raised an aggregate of 51.82 trillion, a figure that exceeds the combined total raised in FY 2023-24 and FY 2022-23. The mainline segment alone contributed over 51.80 trillion, a clear indicator of growing maturity and depth in capital markets. Notably, the SME segment also witnessed a sharp rise in both volume and value, pointing to increased participation by emerging enterprises. The resurgence in primary market activity reflects renewed corporate confidence, favourable market sentiment, and deepening investor interest.

The rise in market capitalisation and growing number of primary issuances reflect investor confidence, increasing liquidity and an expanding pool of listed companies. Resident individual demat accounts in India have seen meteoric rise in the past five years with the overall count increasing to 192 million by March 2025, registering approximately 27.2% growth over March 2024 and nearly five-fold increase since March 2020. One obvious reason for such growth is the evolution of mobile-first broking platforms and seamless digital connectivity, with a large number of digital savvy young-age investors driving the growth. Investors in the less-than 30-years age group form the most dominant investor profile. The share of less- than 30 years age group in the registered investor base has grown to approximately 40% in FY 2024-25, increasing from approximately 23% in FY 2019-20. The median age of individual investors has reduced to 32 years in FY 2024-25, from 38 years in FY 2019-20. Equity ownership by retail investors remained stable at 9.5% in FY 2024-25. It underscores the maturity and depth of Indias capital markets and its growing influence on the global investment landscape. Despite tremendous growth, India has a long way to cover, with merely 13% retail participation, it still lags global peers like the US (40%), China (28%), and Japan (31%), measured in terms of demat accounts relative to the population. Expansion of investor base, increase in number of listed companies, and evolving regulatory landscape will offer issuer solution providers an opportunity to invest in innovation, process excellence and customer experience to drive secular growth and operational efficiency.

Alternative Investment Funds (AIF), Portfolio Management Services (PMS) and Private Wealth Management (PWM): Industry Overview

The AIF, PMS and PWM sectors have grown steadily over the past decade, led by managers ability to generate better returns than broader market return on investments, greater investor awareness and influx of digital platforms enabling alternate investment options. These segments are now playing an increasingly important role in addressing the evolving needs of high- net worth individual (HNl) and ultra HNI investors.

Alternative Investment Funds (AIFs) are expected to remain one of the fastest growing categories of managed products over the next few years as HNIs and ultra HNIs seek differentiated products to get higher than benchmark returns on their investments. As of March 2025, the number of registered AIFs reached 1,524, up by 18.7% over March 2024 and 2.35 times over March 2020. Total commitments raised stood at 513.49 trillion, up by 18.9% over March 2024 and 3.65 times over March 2020, clocking a CAGR of 29.5% in the past five years. As per CRISIL-Oister Report titled No ifs about AIFs 2.0, equity AIF benchmarks have consistently generated alpha vis-a-vis public market equivalent as on March 2024, the growth and late-stage funds benchmark has outperformed BSE200 total return index (TRl) by generating an alpha of 5.9%, while early-stage funds benchmark has beaten the BSE250 Smallcap TRl by 4.3%. AIFs are acting as catalysts in the Indian capital market by providing capital to early-to-growth stage startups and companies that find it difficult to secure financing through traditional channels. A thriving AIF market fosters an inclusive environment attracting global investors, further bolstering Indias robust financial ecosystem. Indias thriving start-up culture, worlds third largest startup ecosystem, has given rise to massive investment opportunities for fund managers to build their AIF portfolios. Factors like evolving start-up ecosystems, adoption of digital technology, supportive policies, and ability to generate alpha by the fund managers are set to boost Indias private market and investors are expected to show their affinity to such differentiated products with higher allocations.

The portfolio management services (PMS) funds have attracted the attention of affluent investors who prefer a tailored investment approach. The adoption of digital tools and an increased focus on transparency and reporting have strengthened investor confidence in this segment. While the growth in mutual fund AUM has been led by broad-based retail inclusion, the growth in discretionary PMS segment reflects growing prominence and depth at the upper end of the investment spectrum. AUM has grown to 537.80 trillion as on March 31, 2025, up by 13.9% YoY, registering a 5-yr

CAGR of 15.8%, with the number of investors increasing from 166,548 to 199,379 at 3.7% CAGR over the same period. PMS remains overwhelmingly individual driven but concentrated by value. The rising investor base in PMS despite increase in minimum investment threshold limit reflects HNI and ultra-HNIs appetite for financial sophistication and a structural shift in investment behaviour from physical assets and self- monitored investments to strategic and advisory-led long-term allocations managed by SEBI-registered portfolio managers.

The demand for private wealth management (PWM) services in India is set to more than double from 5107.62 trillion as on March 31, 2025, to 5226.58 trillion by end of March 31, 2030, registering a CAGR of 16.6%, according to one of the leading global management consulting firms. The country has added over 33,000 new millionaires in 2024, as per the World Wealth Report 2025 by Capgemini Research Institute, positioning India among the fastest-growing wealth markets globally. Factors like shifting macroeconomic trends, strong equity market, rising income levels, entrepreneurship, changing investment behaviour across customer segments, and rising inheritance trends are acting as real growth drivers. The rising contributions from cities beyond top 30 cities reflect opportunities beyond HNIs and ultra HNIs consumers. Rising affluence and shifting preferences are likely to drive unprecedented growth for wealth management firms in India. But this will also intensify competitive pressure requiring wealth management companies to take a different approach. It will require investment in technology across advisory platforms to offer differentiated client experiences and improve

National Pension Scheme (NPS) Overview

The National Pension System (NPS), regulated by the Pension Fund Regulatory and Development Authority (PFRDA), continues to evolve as a vital component of Indias retirement security ecosystem. FY 2024-25 has emerged as another strong year in strengthening pension coverage, led by strong growth in subscribers participation. The total subscriber base increased to 19.86 million, registering a YoY growth of 10.05% and the industry AUM grew by 23.0% YoY to 513.99 trillion, as on March 31, 2025. The surge in AUM is driven by consistent contributions, strong market-linked returns, underlying tax benefits, and enhanced engagement across various subscriber categories. The upward accessibility and scalability to serve mass affluent and younger investors. Digital enablement will help wealth managers to offer tailor-made solutions by knowing their customers better while keeping an eye on regulatory compliances and data security. trend reflects both policy stability and growing trust in the systems long-term financial performance.

Indias rising per capita income and changing demographic pattern will drive allocation to pension plans by making it one of the key vehicles for achieving independent retirement income. Only 6% of private sector employees in India are exposed to pension schemes and increase of threshold for NPS contribution by employer from 10% to 14% is a strong step by the government to attract private sector employees by making NPS a lucrative savings instrument. Introduction of NPS Vatsalya, a pioneering scheme targeting minors under the guardianship of parents, will widen NPS coverage to over 430 million minors, making NPS a more inclusive lifecycle saving tool from an early stage.

Company Overview

About the company

KFin Technologies Limited (KFintech or Our Company) is a leading technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem including asset managers and corporate issuers across asset classes in India. We have grown our international footprint by providing comprehensive investor solutions including fund administration, transfer agency and other tailormade digital solutions for alternate investments, mutual funds, unit trusts, insurance investments, trustee, private wealth and private retirement schemes to global asset managers in Malaysia, Philippines, Singapore, Plong Kong, Thailand, Canada, Middle East and Gift City (India). As on March 31, 2025, we are the largest investor solutions provider to mutual funds in India, based on number of operational AMCs serviced, the largest issuer solutions provider based on number of clients serviced, the largest fund administrator based on number of AIFs serviced, and the second largest central record keeping agency (CRA) for the National Pension System in India. Our clientele consists of corporate issuers and global asset managers.

KFintech brings transparency to the world of investment accounting, investor servicing and analytics with an innovative, reliable and secure multitenant technology platform. Our portfolio of software products and rapidly deployable software-enabled services allows clients to automate and integrate front-office, middle-office and back-office functions in a seamless manner. We help clients to replace legacy systems with modern cloud-native applications.

Our cloud-native solutions allow clients to radically optimise their investment operations, enabling them to focus on core functions such as asset allocation and investment selection strategies. Our expertise in servicing different asset classes and all kind of investment managers across different geographies enables us to offer a unique digital platform, delivering excellence in hyperscale transaction management, big data solutions, transformative platform development and highly specialised and secure technical services. Our solutions are equipped with multi-asset, multi-currency, multi-jurisdiction and multi-lingual functionalities. Most of our solutions are pioneering within the industry and are designed to be versatile across sectors, ensuring agility, scale and efficiency for our customers. Our proven track record of delivering scalable and innovative solutions for global asset managers over the past four decades has made KFintech a trusted technology partner for global financial service providers.

To support our growth trajectory, we evaluate and execute complementary and synergistic acquisitions that provide market access, widen our product or services suite and consolidate market share. Our Company has a history of successfully integrating and scaling the acquired businesses by leveraging the power of synergy and combined effect.

Acquired Business	Acquisition Date	Rationale
Captive unit of registrar and transfer agency (RTA) business from one of the large German banks	2016	Entry into international fund services business with access to clients in Malaysia and Philippines
RTA business of Sundaram BNP Fund Services	August 2019	Acquired two RTA customers and 20 AIFs customers
Hexagram Fintech Private Limited (Hexagram)	February 2022	Added platform expertise in fund accounting and reconciliation
WebileApps (India) Private Limited (WebileApp)	April 2023	Added deep expertise in building mobility solutions and other UI/UX solutions for players in the BFSI sector and beyond
Ascent Fund Services (Singapore) Pte. Ltd. (Ascent)	April 2025 (pending regulatory approval)	Extended KFintechs fund administration capability to global alternative asset managers across 18 jurisdictions

Our Products and Services

At KFintech, we offer a comprehensive suite of products and services tailored to meet the diverse needs of global asset managers and corporate issuers. Our solutions span the entire investor lifecycle backed by robust technology platforms that enhance operational efficiency, improve investor experience, and ensure regulatory compliance. Our diverse solutions have the ability to weather adverse conditions by compensating for market and business volatility, resulting in stable and sustainable performance.

	Investor solutions Domestic mutual fund	International asset managers	Global Alternatives, Wealth management, and Portfolio management solutions	Pension services	Issuer solutions
Front-End	Account Setup, Transaction Origination, Channel Management, Customer Communication Management	Fund Setup, Transaction Origination, Investor Digital Onboarding	Account Setup, Transaction Origination	Fund Setup, Investor Digital Onboarding, Wealth Management Platform for Relationship Managers	Folio Creation and Maintenance
Middle Office	Fund Administration Fund Accounting Transaction Processing Unit, Allocation KYC, Redemption Brokerage, Calculations Payment Processing, Fund Accounting Reconciliation	Fund Administration Fund Accounting Transaction Processing Unit, Allocation KYC Redemption Brokerage Calculations Payment Processing	Transaction Processing Unit, Allocation, Redemption, Reconciliation	Fund Administration, Fund Accounting, Order Management, Transaction Processing, Unit Allocation, Redemption, Brokerage Calculations, Reconciliation	Transaction Processing for IPO, FPO, etc. Corporate Action Processing Folio updates Dividend/lnterest Processing
Back Office	Compliance/ Regulatory Reporting, Recordkeeping, MIS/ Decision Support	Compliance/ Regulatory Reporting, Recordkeeping, MIS/ Decision Support	Compliance/ Regulatory Reporting, Recordkeeping	Compliance/ Regulatory Reporting, Recordkeeping, Wealth Management Operations	Compliance/ Regulatory Reporting Recordkeeping MIS/ Decision Support
Value Added Solutions (VAS)	Virtual Branch, Distributor Platform, Investor Platform, IT Infra and Web Hosting, Data Analytics, Data Lake, AML/PML Check	Online Tx Platforms, Website and Apps, Other Platform Solutions, Data Analytics, Data Lake, AML/PML Check		Digital Onboarding, Revenue Assurance, Data Analytics, Data Lake, AML/PML Check, IT Infra and Web Hosting, Performance Attribution Analysis	e-AGM, e-Voting, e-Vault, Guardian Insider Trading Platform, InPro AML/ PML check, Other Platform Solutions

Our Revenue Model

Our Companys revenue model is designed to align with the value we create for our clients across multiple business segments. Our fee model is premised on inclusivity which allows us to model our revenue by linking it to clients performance. This structure is designed to yield high proportion of recurring revenue and provide high degree of certainty to our business model. Our diversified businesses allow us to maintain steady growth and leverage multiple streams within investor solutions, issuer services, alternative investments and pension administration.

Business Segment	Revenue Model
Domestic Mutual Fund Investor Solutions and International Investor Solutions	% of AUM; Fee for value-added services
Issuer Solutions	Number of folios; Fee for processing corporate actions; Fee for value-added services
AIF, PMS, and PWM	% of AUM; Platform fee for licensed sales; Fee for value-added services
Pension Services	Fixed account opening charges; Annual maintenance fees; Fee per transaction
Digital enabled solutions	Project basis; Annuity or subscription based

Business-wise overview

Our Company functions under the following diversified segments:

Domestic Mutual Fund Investor Solutions

We are Indias largest investor solutions provider for domestic mutual funds, serving 26 out of 51 asset management companies (AMCs) as of March 31, 2025. We operate as a registrar and transfer agent (RTA) to the mutual fund companies in India. In addition, we offer tailor-made innovative digital solutions to asset management companies, allowing them to enhance customer experience and reduce overall cost of operations. We continue to have the best track record in the industry, winning 17 of the last 30 new AMC entrants. Our clients continue to remain equity focused and among the fastest growing AMCs in India. Our clients overall AAUM market share was 32.4% and equity AAUM market share was 33.1%, with equity comprising 58.0% of their overall AAUM being managed. Their market share in SIP monthly inflows, the leading indicator of growth in equity AAUM market share, was stable at 39.4% in March 2025. Our digital solutions continue to gain prominence by finding new mandates from our AMC clients as well as clients of our market peers.

Issuer Solutions

We are Indias largest issuer solutions provider, servicing 7,987 corporate clients, including over 700 listed clients, as of March 31, 2025. Our suite of services includes registrar to issue of new securities, postissue services like folio creation and maintenance, corporate actions, e-AGMs, e-Voting, AML/PML compliance, insider trading compliance and services for unclaimed shares. We managed 164.25 million investor folios, as on March 31, 2025, and continue to maintain our leadership within the NSE500 companies based on the number of investor folios, number of clients and market capitalisation. In FY 2024-25, we managed 28 main board IPOs, representing a 34.6% market share by number and 53.4% by issue size.

International and Other Investor Solutions

International Investor Solutions

Our Company offers fund administration (fa) services including transfer agency (ta) and various other digital solutions to 76 clients, as on March 31, 2025, who are global asset managers across Malaysia,

Hong Kong, Singapore, Thailand, Canada, the Philippines, Middle East, and GIFT City (India), with 60 clients using TA solutions and 40 clients using FA solutions. This includes 12 clients to whom KFintech has sold FA platform on licensed basis. In FY 2024-25, we entered a landmark business tie-up agreement with Blackrocks Aladdin Provider Network to become its ninth exclusive global partner, giving KFintech an opportunity to expand into the fast growing global fund administration market, targeting over 100 large asset managers, being part of the network and managing over US$ 10 trillion AUM. Our recently announced acquisition of Ascent Fund Services (Singapore) Pte. Ltd (Ascent), on April 16, 2025, pending regulatory approvals, will help the Company to strengthen its geographic presence, product offerings and service capability.

Domestic AIF Investor Solutions

We are Indias largest investor solutions provider to AIFs, based on number of funds registered with SEBI. We also provide technology platform and services for portfolio managers (PMS) and private wealth managers (PWM). KFintech is one of the few companies in India to offer an extensive range of cloud-native and full integrated solutions for AIFs,

PMS and PWM clients. As on March 31, 2025, we have 569 AIF funds across 347 asset managers as clients, representing 36.8% market share, managing AUM of 51.45 trillion. In addition, we have 24 clients in India to whom we have licensed our fund accounting platform including six of the ten pension fund managers and eight AMCs in India, including five AMCs where KFintech is not the RTA. Our newly launched wealth platform mPowerWealth has also attracted six new marquee clients, including four clients being transitioned from competition, giving us a strong leap in a fast-growing private wealth management industry.

National Pension System (NPS) Services

KFintech is one of the three and the second largest CRAs of India. We deliver end-to-end services for permanent retirement account number issuance, record keeping, administration and investor support. We also offer differentiated and technologically integrated offerings to points of presence (POPs) to drive subscribers acquisition.

Our technology platform integrates the pension ecosystem participants on a single operational interface. We provide solutions for the all-India citizen model, corporates, the central government and the state governments. We have specific and targeted solutions for corporate employees, state governments and POPs. We are continuously gaining market share through the acquisition of new subscribers. As on March 31, 2025, we manage 1.62 million pension subscribers on our platform, which represents 9.8% market share based on the overall subscribers base.

Financial Performance

FY 2024-25 marked another momentous year for KFintech. Our Company has crossed 510,000 million milestone in revenue. Our continuous focus on execution and delivery excellence led us to deliver strong performance, backed by strong deal wins, broad-based revenue growth, operational efficiency and profitability enhancement. We have grown across our diversified business segments and have several path-breaking moments which offer potential to redefine our market positioning.

Revenue Highlights (5 in million)

Consolidated Revenue Break up	FY 2024-25	FY 2023-24	% YoY
Domestic Mutual Fund Investor Solutions	7,799.86	5,864.97	32.99%
Issuer Solutions	1,548.62	1,274.12	21.54%
International & Others Investor Solutions	1,559.04	1,236.24	26.11%
International investor solutions	476.62	362.15	31.61%
AIF, PMS, PWM Solutions	580.57	394.15	47.30%
WebileApp	124.48	49.74	150.26%
NPS Solutions	110.11	81.90	34.44%
Global Business Solutions*	267.26	348.30	-23.27%
Revenue from operations	10,907.52	8,375.33	30.23%

* Global Business Solutions (GBS) is a non-core business for Our Company and will be considerably scaled down starting first quarter of FY 2025-26 onwards.

In FY 2024-25, our revenue from operations grew by 30.2% YoY to 510,907.52 million, driven by strong growth delivered across all business segments.

Domestic mutual fund investor solutions revenue grew by -33% YoY to 57,799.86 million, led by strong growth in overall assets under management and equity- oriented assets under management, managed by our clients, which grew by 38.2% YoY and 44.9% YoY respectively. Growth in equity-oriented funds was mainly attributed to strong MTM gains of 34.2% YoY and growth in net flows by 10.7% YoY. Growing retail participation through monthly SIP route has become an important driver of structural growth in net flows which continue to remain strong and positive for the last 72 consecutive months. Though MTM gains have been robust in the last five years, driven by structural improvement in Indias macroeconomic drivers, the uncertainty around geopolitical fragmentation influenced by tariff hikes and wars, are expected to influence MTM gains for the intermediate period. Pure AAUM-linked fee was 64.9% of the total revenue from operations, it grew by 32.9% YoY to 57,082.24 million, and revenue from mutual fund value-added- solutions (VAS) was 4.2% of total revenue from operations, growing by 60.7% YoY to 5455.18 million.

Our continuous investment in innovation and strong business development efforts continue to drive VAS revenue.

Issuer solutions grew by 21.5% YoY to 51,548.62 million, aided by strong growth across folios-based fee income, corporate actions fee income, and VAS revenue. Folio-based fee income grew by 32.7% YoY to 5685.52 million, corporate-actions fee income grew by 20.7% YoY to 5552.06 million, and VAS revenue grew by 27.3% YoY to 166.47 million. Indias robust equity market and strong corporate performance continues to drive the performance of this business segment. Indias demographic advantage, rise in income levels and higher allocation of household savings to direct equity is expected to drive investor folio growth. Indias primary market had its best-ever year in 2024, with over 51.70 trillion funds raised, second only to the United States. We continue to retain our market leadership by winning all large initial-public-offers.

International and other investor solutions revenue (excluding GBS), representing our young and fastgrowing businesses, grew by 45.5% YoY to 51,291.78 million, delivering a 5-Yr CAGR of 32.7%, led by strong growth across all sub-segments. International investor solutions revenue grew by 31.6% YoY to 5476.62 million, supported by strong momentum in new deal wins. During the year, we won 19 deals across Malaysia, Philippines, and Gift City (India) which is expected to support our growth in the coming years. In addition, we have successfully incorporated a wholly owned subsidiary in Thailand, post receipt of RBIs approval, which will help us to pursue the managed services business from the region. Currently, international investor solution revenue accounts for 4.4% of the overall revenue from operations and is poised for structural growth driven by a strong deal pipeline. In addition, our engagement with Blackrocks Aladdin

Provider Network and proposed acquisition of Ascent, will fuel the growth of our international business. It will help KFintech move faster towards its aspiration of achieving 25-30% of its overall revenue from the international investor solutions business over the next five years. AIF, PMS, PWM solutions revenue grew by 47.3% YoY to 5580.57 million, driven by strong deal wins. We continue to consolidate our market position by winning new deals, backed by our ability to develop the most comprehensive product solutions for AIFs, PMS and PWM managers, with a focus on delivery excellence aided by strong business development efforts. Our recently acquired business of development of digital assets (WebileApp) has shown encouraging signs of deal wins across asset management companies, healthcare, and education sectors with a focus on new technologies including artificial intelligence and machine learning. Revenue from this business grew by 150.3% YoY to 5124.48 million backed by strong order flows. NPS solutions business grew by 34.4% YoY to 5110.11 million, led by new subscriber addition. We are also growing nearly three times faster than the industry in terms of new subscriber addition and continuously expanding market share, which increased to 9.8% as on March 31, 2025, in comparison to 8.3% in March 2024.

Operating Expenses (5 in million)

Expense Category	FY 2024-25	FY 2023-24	% YoY
Employee Benefits Expenses	4,032.90	3,196.64	26.2%
Other Operating Expenses	2,084.60	1,512.75	37.8%
Total Operating Expenses	6,117.50	4,709.39	29.9%

During the year, the operating expenses increased by 29.9% YoY to 56,117.50 million. Employee benefits expenses increased by 26.2% YoY to 54,032.90 million. Corresponding to the previous year, the increase was attributed to several factors including annual pay hike and bonuses, linked to respective staff performance, increase in share-based payments due to issue of fresh stock-option grants to high performers, addition of resources for servicing new clients across businesses, addition of resources in risk and compliance function, and higher replacement cost. We are cautious in our people strategy and continue to invest in technology to optimise manual

workstreams while being selective in adding domain expertise. The average headcount for FY 2024-25 was 6,135, in comparison to 5,494 employees for the corresponding period of FY 2023-24. The other operating expenses grew by 37.8% YoY to 52,084.60 million. The increase in expenses was mainly led by higher spend on IT support services, in terms of cloud charges, cyber security, data center and other IT ancillary costs. In addition, we also incurred a one-time spend of 5120.00 million during the second half of the financial year towards the evaluation of Ascent transaction.

Profitability and Margins (5 in million)

	FY 2024-25	FY 2023-24	% YoY
EBITDA	4,790.02	3,665.95	30.7%
EBITDA Margin	43.91%	43.77%	+14 bps
Profit After Tax	3,326.25	2,460.48	35.2%
PAT Margin	30.50%	29.38%	+112 bps

During the year, our EBITDA increased by 30.7% YoY and margins expanded by 14 bps, led by strong MTM gains in domestic mutual funds business and benefit of scale across other business segments. Depreciation, impairment and amortisation expenses increased by 21.6% YoY to 5644.51 million, led by full year impact of capital expenditure of 5839.79 million incurred during the previous financial year as well as impact of new capital expenditure of 5937.33 million incurred during FY 2024-25. The finance cost declined by 44.5%

YoY to 546.85 million in FY 2024-25, on account of a 100% buyback of redeemable preference shares worth 51,340.20 million in the previous financial year. The other income increased by 53.0% YoY to 5377.24, led by increase in treasury income. Our Company generates nearly 60% of EBITDA as free cash flows. Share of loss of associate, net of tax, reduced to Nil on account of divestment of entire stake of 20.9% in Fintech Products and Solutions (India) Private Limited on July 3, 2024. Tax expenses, during the financial year, increased by 41.4% YoY to 51,149.65 million, led by 36.7% YoY increase in profit before taxes to 54,475.90 million. Our standard income tax rate is 25.2%. However, on account of permanent and temporary differences, the effective tax rate for FY 2024-25 was 25.7%, while it declined to 24.8% during the previous financial year on account of conclusion of previous periods income tax assessment. Our profit after taxes (PAT) increased by 35.2% YoY and margins improved by 112 bps to 30.5%, driven by EBITDA growth, higher treasury income and decline in finance costs.

Significant Standalone Financial Ratios that registered more than 25% change during FY 2024-25

Ratio*	FY 2024-25	FY 2023-24	% YoY	Reason
Debt Service Coverage	28.32	2.00	+1,315%	Variance due to repayment of redeemable preference shares in the previous year

* For additional ratios, please refer schedule 45 of the standalone financial statements.

Business Outlook

We endeavour to build a globally diversified business model which is scalable, profitable and sustainable. We are well on track to execute our plan and position KFintech on the global map as the first company from India to become a global fund administrator for asset managers. We have progressed well to increase the share of international investor solutions business to 25-30% of our overall revenue mix over the next four-to-five years. Our success over the last 18 months has strengthened our capability to source large deals within the international business which is expected to help us grow this segment at a CAGR of 25-30% over the next three to five years. The recently announced acquisition of Ascent will change the business mix, making international investor solutions business account for 15-17% of the overall revenue in FY 2025-26, once we start consolidation. In India, we will continue to strengthen our market leadership position across businesses, thereby sustaining growth and profitability. Indias structural growth and increasing retail participation in direct equity as well as investment via SIP route in domestic mutual fund will continue to attract institutional as well as retail flows, acting as strong tailwinds to the capital market growth.

KFintechs focus on service delivery excellence, product innovation and strong sales efforts will continue to create competitive differentiation and drive growth in the domestic mutual fund and issuer solutions businesses at a CAGR of 15-17%. Our younger businesses AIF, PMS, PWM, digital mobility solutions and NPS CRA business will continue to outpace industry growth to deliver a CAGR of 25-30%, backed by structural industry drivers, KFintechs bespoke solutions, deep domain expertise and deal winning track record. We are continuously investing in product innovation and path-breaking initiatives to empower our team to up-sell and cross-sell value added solutions (VAS) to our clients as well as competition clients. Our goal is to grow the VAS business and make it 12-15% of the overall revenue. VAS revenue constituted 7.1% of the overall revenue, growing at 53.2% YoY to 5774.50 million. We are committed to maintaining an overall revenue CAGR of 18-20% and EBITDA margins in the tight range of 40-45%. As we scale our businesses, KFintech will continue to invest in diversification, market expansion, innovation, operational excellence, and strong governance to drive sustainable growth and deliver long-term value to all its stakeholders.

Risk and Mitigation

At KFintech, we believe that risk is inherent in all business activities and that effective risk management is critical to both immediate and long-term success. We have ensured that an enterprise level comprehensive risk management policy framework is actively implemented to ensure robustness of operation and have an effective system in place to identify, monitor, control and respond to risks. In FY 2024-25, we revised our risk management manual to align and implement our enterprise risk management policies in line with the principles, framework and governance as defined in the ISO 31000:2018. Our risk registers are continuously updated to include all the risks and empower our team to take proactive measures for mitigation. We have a well- defined risk mitigation strategy for each of the risk areas along with a clear plan of action. FY 2024-25 marks the second consecutive year in our domestic mutual fund operation with no incidence of warning letter from the regulators inspection and offsite alerts. During the year, we have implemented Know Your Risk Indicator analytics tool for the domestic mutual fund operation by adding 47 new validations, implemented more than 20 automations for bridging system and process gaps, and automated the audit management tool in our Quest platform. However, despite our efforts and proactiveness, our risk management framework may prove inadequate and may result in adverse impact on our financial and operational performance. As we continue to diversify our businesses and expand globally, we will stay committed to strengthen our risk management policy and internal controls. For more information on our risk management and mitigation practices, please refer to page 60.

Human Resources

At KFintech, we are committed to build a future- ready workforce, elevate employee experience and accelerate business success through impactful and forward-looking human resources initiatives. Our Company is committed to fostering a supportive and collaborative work environment that prioritises employee well-being and offers opportunities for inclusive growth. Our diversified businesses offer cross-functional opportunities to our people on a rotational basis, providing them a planned and sustainable career progression. Our learning and development program support the aspiration of our people and make them future-ready. 61% of our employees attended at-least one training program in FY 2024-25, with an average 8.93 person-hours per employee. Our intent is to increase the coverage to at least 75% in FY 2025-26. We have rolled out business specific mandatory training programs and have seen 100% adherence in FY 2024-25. Our capability development model for information technology and operation team has helped us to build skilled-staff inventories. During the financial year, we launched leadership programs for three different cohorts - key talents, high potential candidates and emerging sales leaders, to identify and invest in future leaders. Our lean initiatives, implemented during the year, helped us to optimise recruitment costs by hiring 76% new hires through direct-hiring model and reduce people onboarding time by half. Our Company has implemented a range of policies and benefits designed to support inclusivity, wellness, recognition and career growth. Our workforce reflects our commitment to diversity and inclusion, with employees representing a broad range of age groups, backgrounds and professional experiences, including tenure at leading industry firms and multinational organisations.

As of March 31, 2025, our company employed 6,371 full-time employees.

For more information, please refer pages from 76-83.

Internal Controls

KFintech implements and maintains a robust framework of internal control measures for all its global businesses to enable efficient functioning and control of business operations across all its verticals. Our internal audit function, headed by the Chief Internal Auditor, continuously assesses the adequacy and effectiveness of internal processes, policies, and systems to ensure that business units adhere to our policies, compliance best standards, and internal and statutory guidelines. Our Company has established a robust and effective system of financial reporting and internal controls, ensuring true and fair presentation of the financial results and key performance indicators in a timely manner that is complete, reliable and understandable in compliance with regulatory and statutory requirements, safeguarding the interests of all our stakeholders. Ernst and Young LLP is our Internal Auditor who conduct periodic reviews based on the internal assurance plan, as approved by our Audit Committee. The Audit Committee is responsible for reviewing the findings of both the internal and statutory auditors and ensuring that internal controls remain adequate and effective over time. Furthermore, the Board oversees the Audit Committees work and ensures that timely and proactive measures are taken to mitigate risks and resolve any issues that arise.

Cautionary Statement

Certain statements made or discussed in this release may be forward-looking in nature and/or based on managements current expectations and beliefs regarding future developments and their potential impact on KFin Technologies Limited. These forward- looking statements do not constitute guarantees of future performance and involve risks and uncertainties. There are significant factors that could cause actual results to differ, possibly materially, from those expressed or implied in such statements. KFin Technologies Limited does not intend, and assumes no obligation, to update any forward-looking statement contained in this release.