Image source: © 2025 Krish Capital Pty. Ltd.

Highlights
• Total revenue for fiscal year ended March 31, 2025, increased to USD 2 million from USD1.3 million
• Net assets improved to USD 4.6 million from net liabilities of USD23 million
• General and administrative expenses rose to USD 10.3 million, largely due to IPO-related costs

Diginex Limited (Nasdaq:DGNX) reported a total revenue of USD 2 million for the fiscal year ended March 31, 2025, marking a year-over-year increase of USD 0.7 million. The growth was primarily driven by a USD0.9 million license fee from a non-exclusive white-label distribution deal for diginexESG. Excluding this transaction, core subscription and license revenues remained steady at USD 0.4 million.

The company reported modest gains in advisory fees, which rose to USD0.3 million from USD 0.2 million, while customization revenue declined by USD0.3 million to USD0.4 million. This shift reflects the company's strategic pivot toward prioritizing recurring revenues over one-off project work.

Abidance with cost discipline was emphasized, despite general and administrative expenses increasing to USD 10.3 million from USD 9.3 million. The rise was primarily attributed to professional fees related to the company’s IPO and a fair value adjustment linked to preferred shares issued during an USD 8 million capital raise in May 2024. Cost reductions were recorded in employee benefits, IT development, and audit fees, with headcounts marginally increasing to 32 from 29 the previous year.

Balance sheet restructuring significantly improved Diginex’s financial position. At March 31, 2025, the company reported net assets of USD4.6 million, reversing a net liability position of USD23 million the year prior. This turnaround was due to the capitalization of loans and preferred shares triggered by the IPO. The company’s cash balance increased to USD 3.1 million from USD 0.1 million, and it reported no interest-bearing debt.

Additionally, Diginex disclosed signing a memorandum of understanding on March 17, 2025, for a potential dual listing on the Abu Dhabi Securities Exchange. The agreement outlines a possible USD250 million capital raise targeting institutional investors in the GCC and plans for strategic growth in the region.

Post-year-end, the company also signed MOUs to acquire Resulticks and Matter, aimed at enhancing its AI-driven ESG capabilities. Both transactions remain subject to due diligence and final agreements.