Matrimony.com Ltd Management Discussions

The Management Discussion and Analysis includes statements regarding the Companys objectives, projections, estimates, and expectations. These may be considered forward-looking statements under applicable securities laws and regulations. Such statements involve risks and uncertainties that could cause actual results to differ materially. The Company assumes no obligation to update these forward-looking statements unless required by law. Readers should review this discussion alongside the Companys financial statements and accompanying notes in the Annual Report. This analysis is based on the Companys consolidated financial results.

GLOBAL ECONOMY OVERVIEW

Global GDP is expected to grow by 3.2% in 2024 and 3.3% in 2025, maintaining the same pace as in 2023. Growth was subdued amid lingering uncertainty, constrained by weak investments, sluggish productivity growth and high debt levels. Risks stemmed from geopolitical conflicts, rising trade tensions and elevated borrowing costs in many parts of the world. Compounding these challenges, the war in Ukraine drove energy prices even higher, placing additional strain on economies with significant energy demands.

While United States experienced strong growth as the year ended, many economies experienced currency depreciation which turned out to be disruptive, especially for the emerging market economies. However, the global economy demonstrated resilience and withstood a series of mutually reinforcing shocks, despite substantial interest rate hikes by central banks aimed at restoring price stability.

World Economic Growth An Overview

	Estimate		Projections
	2023	2024	2025	2026
World output	3.3%	3.2%	3.3%	3.3%
Advanced economies:
United States	2.9%	2.8%	2.7%	2.1%
Euro Area	0.4%	0.8%	1.0%	1.4%
Emerging markets and developing economies:
Emerging and developing Asia	5.7%	5.2%	5.1%	5.1%
China	5.2%	4.8%	4.6%	4.5%
India	8.2%	6.5%	6.5%	6.5%
Middle East and Central Asia	2.0%	2.4%	3.6%	3.9%

Source: IMF economic outlook update January 2025, S&P Global

OUTLOOK

Looking ahead, the global growth forecast for the next five years stands at 3.1%, marking its lowest level in decades. Lower inflation and ongoing monetary easing in many economies could provide a modest boost to global economic activity in 2025.

Meanwhile, advanced economies are forecast to maintain a steady growth rate of 1.5% in 2024, with a slight uptick to 1.7% in 2025. Developing economies are projected to expand at an average rate of 4% over 2024 and 2025, marking a slight slowdown from 2023. Weaker growth prospects in China and other emerging markets are expected to have ripple effects on their trading partners. In contrast, growth in low-income economies is expected to rise from 3.8% in 2023 to 5% in 2024, despite downward revisions in three out of every four low-income nations.

Inflation worldwide is projected to decline steadily, falling from 5.9% in 2024 to 4.5% in 2025, with advanced economies reaching their inflation targets sooner than emerging and developing markets. Core inflation is also expected to ease gradually.

Source: IMF economic outlook update January 2025, S&P Global

INDIAN ECONOMY OVERVIEW

Indias economy is forecasted to grow by 6.4% in the year ending March 2025, the slowest in four years, dragged by a weaker manufacturing sector and slower corporate investments. The forecast by the National Statistics Office (NSO) points low growth, high inflation, anemic capital flows, a growing trade gap and a slowdown in government spending as the key factors affecting growth.

As per the Economic Survey of 2024-25, Indias real GDP is projected to grow by 6.4% in FY 2024-25, aligning closely with the decadal average. India maintained a steady economic growth, despite global uncertainty. On the demand side, private final consumption expenditure at constant prices is expected to rise by 7.3%, driven by a recovery in rural demand. while on the supply side, real gross value added (GVA) is projected to grow by 6.4% in FY 2024-25. Considering both potential risks and opportunities, the Economic Survey projects real GDP to grow between 6.3% and 6.8% in FY 2025-26.

The agriculture sector remained stable and is expected to recover, while the industrial sector is estimated to expand by 6.2%, supported by strong growth in construction activities and utilities such as electricity, gas, and water supply. The services sector is anticipated to remain resilient, growing at 7.2%, driven by robust performance in financial, real estate, and professional services.

(Source: Ministry of Finance)

OUTLOOK

India is poised to lead the global economic landscape, retaining its position as the fastest-growing major economy. According to the World Banks Global Economic Prospects (GEP) report, Indias economy is projected to expand at a robust 6.7% in both FY 2025-26 and FY 2026-27, far surpassing global and regional counterparts. With global growth expected to remain at 2.7% in 2025-26, Indias strong performance highlights its resilience and increasing influence in shaping the worlds economic future. A sustained growth reflects the countrys strong economic fundamentals and ability to maintain momentum despite global uncertainties, reinforcing its position as a key player in the global economy.

(Source: World Bank & International Monetary Fund)

DIGITAL INDIA

An Overview

Indias emergence as a digital powerhouse reflects the synergy of affordability, technology, and ambition. A decade ago, the digital landscape was nascent; today, it is a thriving ecosystem fueling innovation, job creation, and social progress. The nations transformative journey in digital infrastructure underscores its commitment to innovation, inclusivity, and efficiency. As India continues to build on this momentum, it is paving its way for a digital future that empowers every citizen, fosters socio-economic growth, and strengthens governance.

Launched in 2015, the Governments Digital India campaign aimed at enhancing online infrastructure and expanding internet connectivity to provide seamless electronic services to the citizens of the country. Since then, India has built a world-class digital public infrastructure, including initiatives to connect rural areas with high-speed internet. India leverages its digital initiatives to drive key government programs such as BharatNet, Standup India, Make in India, and AtmaNirbhar Bharat.

The Digital India campaign fosters growth in industries where digitalization plays a central role, including information technology (IT) and business process management (BPO), digital communication services, and electronics manufacturing. With the support of this initiative, these sectors are expected to double their contribution to GDP, reaching US$ 355-435 billion by 2025.

As a leading center for technology services and a rising force in electronics hardware production, India consistently holds a key position on the global stage. Indias Union Budget 2025-26 takes a two-pronged approach to technology, bridging the rural digital divide, while reaffirming Indias global tech ambitions.

The Budget unveiled key initiatives for the tech sector, such as enhanced India AI mission funding, an AI Center of Excellence for Education, and a Deep Tech Fund to fuel innovation. It has proposed a national framework for Global Capability Centers in Tier-II cities, tapping into Indias vast talent reservoir. The India AI Mission has been allocated a budget of around 2,000 crore, a massive increase from 173 crore in 2024-25. The Budget also provides for setting up a Center of Excellence in Artificial Intelligence for Education.

Powered by AI, blockchain, and 5G, Digital India is undergoing transformative growth. These technologies enhance service delivery and transparency, while initiatives like BharatNet and Digital India 2.0 bridge infrastructure and connectivity gaps. As these accelerate, governance will become more inclusive and accessible. Despite the ongoing challenges, digital unlocks vast opportunities, ensuring efficient, citizen-centric governance and a thriving digital economy.

Deciphering India Stack

The India Stack consists of several major components, including Aadhaar for digital identity, UPI for quick payments, e-KYC for paperless identity verification, DigiLocker for secure document storage, and the eSign framework for electronic signatures. India Stack facilitates paperless documentation with digital signatures and enables online submission of documents, simplifying most government services and business interactions.

India Stack serves as the accelerator to create Digital India as it has revolutionized payments, government services, and business models, bringing millions of individuals and small businesses into the formal digital economy. As more innovation hits the ground and more people come online through digital inclusion, India Stack continues to reshape Indias economy.

(Source: India Brand Equity Foundation, Protean)

Rising Internet Penetration

Indias internet usage has surged, highlighting the nations rapid digital transformation, according to the TRAI report. Indias internet penetration surged from 14% in 2014 to over 52% in 2024, granting access to more than half of its 1.4 billion population, and positioning India as the worlds second-largest market for active internet users.

Indias internet user base is poised to exceed 900 million by 2025, driven by increased usage of Indic languages in digital content, according to a report by the Internet and Mobile Association of India (IAMAI) and KANTAR. The ‘Internet in India Report 2024 reveals that active internet users stood at 886 million in 2024, reflecting an 8% YoY growth. Rural India, with 488 million users, led the surge accounting for 55% of the total internet population.

As per a TRAI report, the average monthly data consumption per user reached 20.27GB as of March 2024, up from 0.27GB in 2014-15, growing by a CAGR of 54%. This is estimated to grow to 75 GB per month by 2029, according to Mobile Data Traffic Outlook by Ericsson. Adoption of 5G services is reshaping the telecom sector, and driving significant expansion in data consumption.

Embracing the 5G revolution A paradigm shift in technology

India is experiencing a digital revolution, with next-generation digital services reshaping how consumers connect, businesses embrace digital transformation, citizens access government services, and Communications Service Providers (CSPs) evolve to meet future connectivity demands. As a unifying connectivity fabric, 5G links people, devices, machines, and ecosystems in an era of hyperconnectivity and rapid technological progress.

Given the limited penetration of fixed broadband, 5G plays a crucial role in bridging the digital divide and extending connectivity across Bharat. With its key attributes low latency, enhanced bandwidth, and support for massive machine-type communications 5G is driving business innovation and accelerating digital transformation. Its cloud-native, service-based architecture enhances the adoption of emerging technologies such as AI, IoT, and robotics, unlocking new opportunities for growth and efficiency.

(Source: TRAI, Statista.com )

Start-up Ecosystem in India

Indias startup ecosystem has experienced remarkable growth over the past decade, emerging as the worlds third-largest hub for technology start-ups. Compared to other nations, India excels in talent, policy support, and the pace of new startup creation. Notably, Indian start-ups achieve a post-Series B funding conversion rate of over 30%, one of the highest globally. This underscores the maturity and strength of the countrys scaled-up start-up ecosystem. While major hubs like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR have led this transformation, Tier II and III cities are also fueling the momentum, contributing to the growing wave of start-ups across the nation.

The government plays a crucial role supporting fostering growth and tives initia the next generation of entrepreneurs through like Start-up India, Start-up India Seed Fund Scheme (SISFS), Credit Credit Scheme for Start-ups (CGSS), Fund of Funds for Start-ups (FFS), and sector-specific programs such as the Atal Innovation Mission (AIM) and the MeitY Startup Hub (MSH). Strong collaboration among stakeholders has further reinforced the ecosystem, fueling economic growth and empowering future innovators. Looking ahead, Indias start-up landscape is poised to grow further.

Role of the government in boosting start-ups

The Startup India initiative plays a pivotal role in fostering innovation and strengthening the countrys startup ecosystem, driving entrepreneurship, economic growth, and employment nationwide. Over the past decade, the Make in India initiative has fueled remarkable progress, with a new startup emerging every hour. As of June 2024, the Department for Promotion of Industry and Internal Trade (DPIIT) recognized 1,40,803 startups under this initiative, contributing significantly to job creation with over 1.55 million direct jobs generated across India.

Indias startup landscape is also witnessing a surge in Generative AI (GenAI) ventures, with over 100 startups securing more than US$ 600 million in funding since 2019 demonstrating a seamless fusion of cutting-edge innovation and traditional entrepreneurship. In September 2024, the Indian government launched BHASKAR, a centralized startup portal designed to enhance collaboration, address ecosystem challenges, and further promote entrepreneurship and job creation.

Indias tech start-up ecosystem remains focused on strengthening business fundamentals, with deep technologies becoming integral to improving operations. Over 60% of start-ups anticipate revenue growth this year, and despite global uncertainties, founders are optimistic about a better funding environment. Investment in deep tech remains strong, with two-thirds of start-ups leveraging AI to enhance product capabilities and internal efficiencies.

Funding of India Startups

Indian startups raised a total of US$ 30.4 billion in funding throughout FY 2023-24, a 6.5% decline from the US$ 32.5 billion secured in FY 2022-23, according to data from Tracxn, a leading market intelligence and data platform. Despite this dip, the Indian startup ecosystem demonstrated resilience, with several companies such as Rapido, Ather, Perfios, Porter, and Money View achieving unicorn status this year.

Startup funding experienced a strong recovery in 2024, rebounding to levels seen in 2020, signaling renewed investor confidence and ecosystem stability. Startup funding in 2024 was driven by innovative business models and a growing focus on emerging technologies. Key sectors attracting substantial investment included artificial intelligence (AI), healthcare and health tech, financial technology (fintech), cybersecurity, clean tech and green energy, and e-commerce and retail tech.

A major trend shaping the startup landscape is the evolution of new business models, redefining operations and unlocking fresh opportunities for entrepreneurs and investors. Additionally, sustainability is set to be a dominant theme for startups moving into 2025.

As of December 31, 2024, the Department for Promotion of Industry and Internal Trade (DPIIT) issued over 1.57 lakh certificates recognizing start-ups, reinforcing Indias position as the worlds third-largest startup ecosystem. Driven by a thriving landscape of over 100 unicorns, the country is reshaping innovation and unlocking new opportunities across various sectors.

(Source: NASSCOMs report ‘Weathering The Challenges - The Indian Tech Start-Up Landscape Report 2023, Startup India-DPIIT)

Surge in social media users

The internet serves as a cornerstone of the modern information age, connecting billions of people globally. Over 62.6% of the worlds population now uses social media, with 259 million new users joining in the past year. As of October 2024, the average daily social media usage stood at 2 hours and 19 minutes. The increasing time spent on social media platforms is expected to drive demand for online matchmaking services.

The number of internet users has been steadily rising over the years, with Asia leading as the region with the highest online population surpassing 2.93 billion users. In India, internet usage is projected to grow consistently between 2024 and 2029, adding approximately 262.9 million users (+27.73%). By 2029, after 15 consecutive years of growth, the number of internet users in India is expected to reach a record 1.2 billion.

(Source: Statista, Datareportal)

INDIAN MATRIMONY MARKET

Large youth demographic

Indias population was estimated at 1.4 billion in January 2025, overtaking China and marking a 1.26% increase from 1,443,721,994 in 2024, with the male and female population being approx. 51.6% and 48.4%, respectively.

India has the worlds largest young population and the youth demographic is characterized by a median age of approximately 28.4 years, with a significant portion of the population falling within the 15-34 age group, reflecting the countrys demographic structure. The growth of online matrimony market is being fueled largely due to the Indias youth demographic, coupled with increased digital adoption and changing attitudes towards marriage.

(Source: Countrymeters)

Online Matrimony Market in India

The Indian wedding industry is worth an estimated US$ 130 billion, making it the second-largest segment after food and groceries within the US$ 681 billion retail market. This growth is fueled by rising consumer spending, a booming luxury sector, and demographic trends, with a vast number of individuals reaching marriageable age in the next five years.

According to the Confederation of All India Traders (CAIT), India holds the second-largest wedding market globally, following the US, underscoring its immense economic impact and growing international prominence. The 2024 wedding season set new records, with an estimated 4.8 million weddings taking place between October and December, generating a staggering 6 trillion in business. This marks a sharp increase from 3.8 million weddings in 2023, which contributed 4.74 trillion to the economy.

Market research reports forecast substantial growth in Indias wedding industry from 2025 to 2030. The Wedding Services Market expanded from US$ 267.08 billion in 2023 to US$ 284.87 billion in 2024, and is projected to further grow at a CAGR of 7.02%, reaching US$ 429.56 billion by 2030.

Online meeting A key driver of social change

While arranged marriages are still common practice in the country, the wedding industry has further evolved with online matrimony services. Young Indians are increasingly turning to matrimonial platforms to find life partners, with a notable rise in users from Tier II and Tier III cities. The growth of digital adoption, widespread internet penetration, higher spending power, evolving habits, and the increasing use of digital payments are the key factors driving growth of the online matrimony industry.

The introduction of online dating has transformed the traditional ways of approaching relationships in India, causing a significant impact on social change in the country. This impact has been far-reaching and has impacted the societal structures in India. Since the onset of the COVID-19 pandemic, Indians are now more open to meet their significant others online.

According to industry trends, 30% of couples who met online in 2024 found their partners through various digital platforms, with 9% specifically connecting through matrimonial sites. Despite this digital shift, 60% of couples still meet through traditional offline methods, including workplace, family introductions, social gatherings and workplace connections, demonstrating a blend of tradition and modern technology in todays matchmaking landscape.

(Source: Business Standard, WedMeGood, Wright Research)

COMPANY OVERVIEW

Strengths & Opportunities

Robust brand recognition and market positioning: Matrimony.com is a leading online matchmaking service, offering online and mobile-based matchmaking and marriage services in India and globally. With strong brand recognition, its flagship platform, BharatMatrimony, is among the most trusted and recognized names in the industry.

Holding the #1 position in Indias online matchmaking industry, the Company commands approximately 60% market share. The Company offers a wide range of matchmaking services, both online and offline, tailored to meet the distinct preferences of Indian-origin consumers, including regional, community-based, and exclusive elite matchmaking services.

The Company provides a variety of online and offline matchmaking solutions, including BharatMatrimony, CommunityMatrimony, EliteMatrimony, and AssistedMatrimony, enabling users to connect with potential life partners. Additionally, Matrimony.com has a retail presence with over 150 outlets across India, catering to users who prefer a personalized, traditional matchmaking approach.

Matrimony.com offers paid subscription plans for its online matchmaking services in India and internationally, enabling users to connect with other members, safeguard their privacy, and enhance their profiles. In FY 2024-25, the platform recorded over 9.95 Lakhs paid subscriptions compared to 10.74 Lakhs on March 31, 2024, a significant increase from 5.7 Lakhs in FY 2023-14.

Micro-market strategy: Matrimony.coms micro market strategy helps it differentiate itself from other matchmaking services in India, catering to 17 regional portals, over 300 community websites, and serves the NRI community in Dubai and the USA. It allows the Company to offer a variety of products and services to meet the evolving needs of people. The micro market strategy offers a range of customized products and services to meet the needs of specific groups of people, based on a persons religious, linguistic, and community preferences. With a presence in over 40 cities, it has successfully facilitated more than 18,000 weddings.

One-stop shop: With a forward integration strategy of offering marriage services across the value chain to enhance its online matchmaking platform, the Company offers a seamless, asset-light vendor marketplace for wedding services such as photography, decorations, catering and venue bookings. Additionally, its online market place, WeddingBazaar, serves as a comprehensive marketplace for other wedding-related services, offering inspiration in makeup, photography, mehendi, wedding planning, catering, and decorations. Further, through Mandap.com, its wedding venue booking service platform, it simplifies wedding venue bookings, offering a selection of 6,000+ mandaps, banquet halls, and convention centers.

Entering adjacent segments to capture new customers: Additionally, the Company has also forayed into adjacent segments to tap potential customers. MeraLuv.com is an exclusive dating app for Indian Americans. It also plans to launch Luv.com an App , that addresses next generation (Next-Gen) serious relationships. Focusing on the theme of ‘love before marriage, the App brings about key differentiators in the market, besides addressing the growing market potential.

FINANCIAL PERFORMANCE

An overview of the consolidated financial results of the Company

Particulars	FY 2024-25 ( Lakhs)	% to Total Income	FY 2023-24 (Lakhs)	% to Total Income	Growth %
Revenue from operations	45,584	98.81%	48,136	99.73%	(5.30%)
Other income	549	1.19%	131	0.27%	319.08%
Total income	46,133	100.00%	48,267	100.00%	(4.42%)
Expenses
Employee benefit expenses	14,156	30.69%	13,968	28.94%	1.35%
Advertising and business promotion expenses	18,842	40.84%	18,682	38.70%	0.86%
Other expenses	6,759	14.65%	8,272	17.14%	(18.29%)
Total expenses	39,757	86.18%	40,922	84.78%	(2.85%)
Earnings before interest, tax, depreciation, and amortization (EBIDTA)	6,376	13.82%	7,345	15.22%	(13.19%)
Depreciation & amortization 2,926 6.34% 2,840				5.88%	3.03%
Finance cost	480	1.04%	517	1.07%	(7.16%)
Finance income	(2,824)	(6.12%)	(2,484)	(5.14%)	13.69%
Profit before tax & share of profit / (loss) from associate	5,794	12.56%	6,472	13.41%	(10.48%)
Share of profit / (loss) from associate, net of taxes	(12)	(0.02%)	(1)	-	(1000.00%)
Profit Before Tax (PBT)	5,782	12.54%	6,471	13.41%	(10.65%)
Tax expense	1,254	2.72%	1,516	3.14%	(17.28%)
Profit after tax (PAT)	4,528	9.82%	4,955	10.27%	(8.62%)

Revenue: Overall revenue decreased by 5.30% for the year. The revenue distribution is through two segments such as Matchmaking and Marriage services & others. The segment-wise performance is given in the table later in the discussion. Matchmaking comprises 98.71% of revenues and decreased by 4.74% in FY 2024-25 as compared to a growth of 5.91% in FY 2023-24. The matchmaking billings decreased by 4.74% in 2024-25 as compared to a growth of 5.21% in FY 2023-24. The key drivers for this business are the number of paid profiles and Average Transaction Value (ATV). The paid profiles are at 9.95 Lakhs, a decrease of 7.29% over the previous year. ATV is at 4,496, an increase of 2.67% over the previous year as part of the segmentation strategy. The company typically has subscription packages ranging 3 months, 6 months and 1 year and the billings are recognized as revenue over the subscription period.

Other income: Other income majorly includes notional gain from closure of leased locations accounted under Ind AS 116 “Leases”, liabilities not required to pay written back, profit on sale of assets etc. Other income increased by 418 Lakhs majorly on account of higher gain from pre closure of leases & liabilities no longer written back.

Expenses:

Employee benefit expenses: Employee benefit expenses have increased by 188 Lakhs mainly due to head count.

Advertising and Promotion Expenses: Current year marketing expenses are in line with previous year spend with a marginal increase at 0.86%. These are ongoing investments to fuel future growth and increase brand visibility.

Other Expenses: Other expenses mainly comprise IT, infrastructure & facility management cost, collection charges, legal & professional charges and other administrative expenses which have decreased by 1,513 Lakhs compared to previous year. This was majorly due to decrease in collection charges (1,878 Lakhs - collection charges decrease is mainly on account of disputed service fee accounted in previous year because of Google litigation, but the same is not applicable in current year as the company changed its business model which was not disputed) , this decrease is offset by increase in Infrastructure & facilities management expenses (mainly on account of new retails added & rental escalations during the year 98 Lakhs), increase in tech fees (majorly due to webhosting & other IT-related expenses 198 Lakhs) and other admin expenses by 70

Lakhs. Overall, as a % of total income, it has decreased by 2.49% as compared to the previous year (14.65% in FY 202425, 17.14% in FY 2023-24).

EBITDA margins: Our EBITDA margins are at 13.82% as compared to 15.22% in FY 2023-24, indicating a decrease of EBITDA by 1.40% in FY 2024-25.

Finance income: Finance Income consists mainly of income from investments of surplus funds in fixed deposits (FD), mutual funds & Tax free bonds. The increase in income is majorly on account of higher yield in the mutual fund investments and interest income on IT refund received during the year.

Finance cost : Finance cost mainly consists of notional interest on lease liabilities charged to Profit and Loss account as per Ind AS 116.

Effective Tax Rate: The effective tax rate is at 21.69% in FY 2024-25 as compared to 23.42% in FY2023-24. FY 2024-25 had a lower tax due to LTCG tax benefit on account of holding period & lower long-term capital gains tax rate.

Profitability: Our PAT margins in FY 2024-25 are at 9.82% as compared to 10.27% in FY 2023-24, indicating a decrease of PAT by 0.45% for FY 2024-25.

SEGMENT PERFORMANCE

The following tables depict an overview of the segment performance of the Group: in Lakhs

	FY 2024-25	FY 2023-24
Revenue:
Matchmaking	44,996	47,237
Marriage services & others	588	899
EBITDA:
Matchmaking	9,216	9,869
Marriage services & others	(1,451)	(1,033)
Key Ratios:
EBITDA Margin	13.82%	15.22%
Net Profit Margin	9.82%	10.27%
Return on Net Worth	17.00%	18.20%

Note: The reduction in the percentage of return on networth is due to reduction in the profitability for the year 2024-25

CASH FLOWS

The Company spent 1,282 Lakhs as capital expenditure during the year. Consequently, the Company generated a free cash flow of 4,404 Lakhs of cash during the year taking the cash (including cash and cash equivalents and investments) as of March 31, 2025 to 32,435 Lakhs. The EBITDA to operating cash flow conversion has been strong at 0.89 times and EBITDA to free cash flow is at 0.69 times.

HEADCOUNT

The total number of employees (excluding subsidiaries and associates) as on March 31, 2025 is 2,754, as compared to 2,713 as on March 31, 2024.

STRATEGY AND OUTLOOK

The Companys key strategic focus areas for FY 2025-26 are as follows:

Accelerate Jodii, Retail outlets and personalized services to enhance growth in matchmaking

Consistently enhance product differentiation based on customer preferences, behavior and evolving trends

Drive growth by leveraging the current momentum in newly launched MeraLuv.com, Luv.com, makemywedding, Astrochat, and ManyJobs.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Kindly refer 49&50 in Directors Report.

RISK MANAGEMENT

Effective risk management is a cornerstone of strong corporate governance. Internal controls serve as structured processes designed to identify, mitigate, and manage potential risks. By proactively assessing risks that could significantly impact long-term sustainability, the Company develops targeted action plans for mitigation. Each mitigation plan is assigned to specific owners, set against defined timelines, and regularly monitored and reviewed to ensure progress.

The Companys comprehensive risk management framework enables the systematic identification, evaluation, and control of risks associated with its business and operations. Oversight of risk management falls under the Companys Risk Management and ESG Committee, which is responsible for identifying and mitigating risks. This committee reports to the Board of Directors, which sits at the top of the corporate governance structure.

Some of the key risks and their corresponding mitigation measures during the year under review are as follows:

A. Business & Market Risk:

Changes in consumer demands remain a market risk and may impede growth. Additionally, new regulations, such as the Google Play billing system, could negatively impact the Companys profitability and expansion.

Mitigation Strategy:

The Company has introduced several new initiatives, including retail expansion, the integration of vernacular languages into its core products, and a stronger focus on personalized services. It has also launched MeraLuv.com an exclusive dating , app for Indian Americans. Additionally, the Company launched Luv.com a matchmaking app designed for Next-Generation , (Next-Gen) serious relationships. This platform will emphasize the concept of ‘love before marriage, creating a distinct market positioning and tapping into significant growth potential. Furthermore, the Company has actively engaged in relevant forums to advocate for its interests concerning new regulations that may impact the business environment. It has also adapted its business models to mitigate potential risks to revenue and profitability.

B. Competition Risk:

Competition can significantly affect the companys market position, pricing and margins.

Mitigation Strategy:

The Company sustains its market leadership through innovative strategies and the implementation of new initiatives, as outlined above.

C. Cybersecurity Risk:

Technology failures, IT system breakdowns, cybersecurity breaches, and threats such as viruses and phishing attacks could disrupt the Companys operations and harm its reputation.

Mitigation Strategy:

As a market leader in the online matchmaking industry, the Company prioritizes safeguarding its systems against cybersecurity threats. It conducts regular vulnerability assessments and audits through its internal audit framework to proactively identify and mitigate potential risks. Additionally, the Company remains focused on ensuring compliance with the recently introduced Digital Personal Data Protection (DPDP) Act to protect the interests of all stakeholders.