What happens should those number of machines increase to 10,000? What would the business fetch for then? That's what I have my attention on.
In the recent Corporate Presentation the company highlighted that no new capital will be required to fund significant growth opportunities. What are some of these opportunities?
What I've been most excited about is should small to mid sized banks be open to discussing a mutually beneficial arrangement for TSI India to manage their existing networks (refer to page 1 in the announcement below), I believe this will be a game changer for the company. Why? Because transaction volume & revenue for this model should be immediate. Yes, it might be at a lower fee, but I'm more than ok with that. I've highlighted this previously, but the reason why I'd prefer they start off with managing a few existing banks ATMs, than go out buying their existing fleets is because it would give them a very good understanding of this new model and the metrics that need to be improved. The kicker with this new model would be that it would most likely require little time and little outlay. Should they be successful with managing a few of these banks ATM fleets and they're able to improve various metrics, then that's when they should look to buying banks existing fleets. Refer to link below.
Here's the beauty of all of this - CX Partners are funding all of this.
Sure, our interest is 25%, but look at how this business is growing - soon to be online 2700 machines in total (once 500 remaining ATMs and new E-Kiosks contract are online). It wouldn't be too far fetched to see TSI India's fleet of machines double to 6000 should they be successful with just this ONE new opportunity in a relatively short period of time imo.
