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Onmobile Global Ltd
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Ladies and gentlemen, good day, and welcome to Q4 FY '22 Earnings Conference Call of OnMobile Global Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Asha Gupta from EY LLP Investor Relations. Thank you, and over to you, Ms. Gupta.
Thank you, Mahdev. Good day, and welcome to the Q4 and Full Year FY '22 Earnings Call of OnMobile Global Limited. Representing the management today, we have FC, Executive Chairman; Sanjay Baweja, Managing Director and Global CEO; Krish Seshadri, Chief Executive Officer of ONMO; Asheesh Chatterjee, Global Group CFO, Biswajit Nandi, Senior VP Global Sales.
The call will start with brief update about the overall performance during the quarter and year by Sanjay Baweja. Krish will give you a brief update on ONMO. Asheesh will update on financials, which will be then followed by FC, speaking on overall business activity and sharing his thoughts on future plans. We will then open the floor for Q&A session.
I would like to mention that some of the statements mentioned in today's call may be forward-looking in nature and may involve risks and uncertainties that we see. For a list of such considerations, please refer to the earnings presentation. OnMobile Global undertakes no obligation to publicly revise any forward-looking statement to reflect future or likely events or circumstances.
Having said that, I now hand over the floor to Sanjay sir. Over to you, sir.
Thank you. Thank you, Asha. Good day to everyone. I'm really glad to be with you once again and hope all of you are doing well, staying safe and healthy. Let me take this opportunity to thank all of you and our customers, also our team members for their continued trust in us. The results in the presentation are already posted on our website, and hopefully, all of you have had a chance to look at them.
So before I start, let me first introduce Asheesh Chatterjee, who joined us last month as the Global Group CFO. He will be an integral part of the company's management, helping OnMobile realize its long-term financial and operational goals. He has over 2 decades of experience and makes him a perfect fit to lead the financial chapter of the company's transformation as we work towards putting our customers first. I would like to start by sharing quick updates on our products and then Asheesh will take you through the financial performance. Before that, of course, Krish will talk about ONMO.
Let me start by sharing about Challenges Arena. In the quarter, which has ended, 6 new customers agreed to our terms for Challenges Arena taking our cumulative agreements to 26. Out of these, 16 are live -- were live in Q4. Further, additional 3 customers agreed and 1 customer went live during April itself. And in fact, as we speak, we have still more customer sign-ups and the total number of agreements today is 31 and actually 18 customers are live.
Challenges Arena contribution to total revenue has increased to 5% in Q4 FY '22 as against 2.3% in Q3 FY '22. And you will recollect that we lost this product in the start of the year. As we can see, the revenue has been doubling every quarter. And in fact, we achieved a landmark of around INR 3.5 crores monthly revenue in March of '22. The revenue growth is expected to continue at a very high pace in the coming quarters. And as more and more customers go live, we aspire to continue this momentum in the coming quarters. I will restate the guidance shared last quarter that we are aiming for a decent double-digit growth for overall mobile revenue in this next fiscal, which is FY 2023, which we've not seen over the last few years.
The cumulative gross paying subscribers at the end of the quarter stood at 4.4 million as compared to 2.6 million last quarter, a growth of almost 70% quarter-on-quarter. We are targeting to touch about 7.5 million customers in Q1 FY '23. We continue to see decent pipeline here and expect to be live and signed up many more customers in the coming quarters. Challenges Arena's net active base doubled every quarter in FY '22. And in Q4 '22, the net asset base increased to 1.33 million from a 0.14 million in Q1. So in 4 quarters, we've reached from 0.14 million to 1.33 million.
Challenges Arena has, like I said, live with 16 compared to 8 in Q3. So we had 8 new customers, which went live in this last quarter Q4, registering 100% growth quarter-on-quarter. We are confident that, going forward, we will see significant revenue growth coming from Challenges Arena. I would like to reiterate that we continue to see good traction there. We are noticing exponential increase in multi-active users for this segment. Also, let me talk about a bit on profitability of Challenges Arena where we are seeing initial high marketing spend, which will settle down in a couple of quarters leading to much better profitability. This is a product which intrinsically is much more profitable compared to our existing products.
Now coming to ONMO, I'm glad to inform that we launched the B2C Cash battles and tournaments in India. We've also launched ONMO in Chingari beta and ramp up to the entire user base soon. During the quarter, we launched ONMO's first ad campaign with Just Beat It integral to the theme. Over 250,000 game players and 80 game editions so far for Just Beat It tournament. With rapid adoption of crypto, we now added Bitcoin as a payment method to play games on ONMO across the globe with the exception of India. We will soon add other crypto currencies to the payment method, and that's something we might do in the ONMO. Of course, India will remain an exception for the time being.
With the addition of Bitcoin payments, ONMO brings together 2 of the fastest-growing markets, crypto and e-sports, making it a versatile and easy to use. Bitcoin payments offers a cross-game and cross-region compatability coupled with streamlined payments. The platform will facilitate more crypto currency payment option in the future, providing its global user the best game experience and empowering them to play against each other with Bitcoins. ONMO is the world's first challenge creation AI engine, and that lets users compete on the best gaming moments in one place. Krish, of course, is going to talk a little more about this in a while.
Coming to B2B side of ONMO. We have made significant headway there, too. We have customer agreements with 10 customers, out of which 6 have already signed and 4 are in the process of documentation. We expect to be live with at least 4 customers in this quarter itself. We are targeting at least similar, if not better trajectory of growth that we saw in Challenges Arena last year. So we expect a complete surge like the way we saw in Challenges Arena in terms of revenue growth. We will see that in ONMO. But of course, let me say that, that ONMO revenue in time is likely to be higher than CA going forward.
Again, overall, I would say that in the year that went by, while we were able to -- we were stable on our Tones revenue, in fact, up 1%, the videos were down, thanks in some parts to the exchange rate and also some customer issues which we have since resolved. The legacy products like contest, et cetera, were also stable. Challenges Arena, like I said, has been on hyper-fast growth phase. Let me mention here that this perhaps was our last quarter for negative growth. And year-on-year and quarter-on-quarter we will see growth going forward. Both our new products, Challenges Arena and ONMO, will lead this growth for us. I would like to mention here that we'll continue with our discussions with some bankers and strategic investors as we go about our [ money days ], which we expect to happen in the next few months.
With this, I'd like to hand over the call to Krish to talk about ONMO. Thank you very much. Over to you, Krish.
Great. Thank you, Sanjay. Good afternoon, everyone. As Sanjay mentioned, in Q4, we made tremendous progress and had very good validation for almost real money gaming efforts on multiple fronts. We introduced new features and had multiple launches, and I'll touch on some of the key initiatives and the progress made.
First, we fully launched our cash real money gaming on 2 formats for Indian users, that's on Indian INR rupees. So 2 formats were tournaments and battles, and we are really, really excited by the tremendous adoption that we've seen from users. The cash tournaments are where you play a tournament, which has a set start and finish time. Multiple people have been joining these tournaments for cash. And we are seeing people rank on their leaderboards and at the end of play they come back. So engagement has also been very good.
And you can see distribution of prizes happening on those tournaments seamlessly. So that's on the cash tournament launch that happened during the quarter. And we also launched the one-on-one battle format, which is a player can challenge another individual one-on-one on a game for a cash fee. And the winner takes the entire prize pool. So if you've actually gone through our platform and played some of these tournaments and battles, you'll see that our prize pools for one-on-one cash format, goes all the way from INR 5 to INR 180.
And those were the 2 main launches along with the Beat It format, which Sanjay just mentioned. We launched our Beat It tournaments last quarter and the brand campaigns around it. These are tournaments where, if you beat the highest score in, let's say, a 24-hour time period, then your score and profile picture gets published and remains there till no one else beats your score in the same period. And I want to say that this is a really innovative format, which we introduced. We don't see anyone else doing this. And there's real value for this because players keep attempting this again and again just to appear in the feed and get published because there is that competitive spirit.
And this competitive spirit adds that to the entire tournament format, to improve player engagement and player retention. And we are seeing tremendous gameplays over the last 3 to 4 months across all these formats. We are growing roughly at about 2 to 3x quarter-on-quarter on these 3 different formats put together and especially with the Beat It format that is gaining a lot of adoption by users. And as Sanjay mentioned, we also had our marketing and branding campaigns around Beat It going out a month ago. And our campaign covered all different forms of media, display campaigns, brand campaigns, video campaigns on multiple digital formats.
And in this context, we registered the Just Beat It as a very popular tagline globally for our brand and the Beat It tournaments. We also launched ONMO's first ad campaign with Just Beat It, which is very integral to the product team itself. And for those playing on the platform, you would have also seen brand influencer campaigns where we comported Just Beat It through influencer marketing with top gamers and digital creators. So all these campaigns have been very, very well received by the gaming community, and we are seeing good adoption in game play on the platform.
The fourth one was we talked about Bitcoin last time, and we've launched that to global users outside India. So basically enabled Bitcoin transactions for players to play globally outside of India, while ONMO users in India can still continue playing our different contest formats using real cash INR. So this is a really huge value for our global players. Firstly, gamers understand the value of virtual currencies, right. And they are very, very habituated to using tokens to buy virtual items. So we are just using what gamers already traditionally do with virtual tokens. And with the use of Bitcoins, it gives them cross-region compatibility, which means players across countries can now wager against each other with a common currency. And it also offers cross-game compatibility.
The fifth launch for us was obviously launching on the Chingari main app. As you know, Chingari is one of the top short video apps in India with over 100 million users. So we will leverage Chingari's 100 million user base. It's a growing installed base to expand ONMO's reach and audience in India. As we had mentioned in our few previous calls, ONMO's short format challenges and Chingari's short-form videos complement each other very well. It's all about short burst of entertainment and fun. And that's why the synergy between both the products is tremendous. And also the social aspects of ONMO and Chingari work very well with each other. So this launch provides Chingari's audience with an unparalleled social gaming experience on these short moments. And as Chingari user keep updating their app, ONMO will ramp-up to this entire base of Chingari to provide millions of users with an immersive entertaining social gaming experience.
On the content side, we continue adding games and thousands of unique moments to our platform, and that process will continue. And we'll get to over 10,000 unique moments or challenges in a couple of months. And that number is expected to grow to hundreds of thousands over the next few quarters. We also have a terrific pipeline of game partnerships. So the content and the number of games on the platform keeps getting added. So that's, in summary, all the different initiatives that we went through. And we are truly, truly off to a great start with real money gaming and social e-sports on multiple formats on ONMO platform. And our teams across India, Canada, Sweden, they've all been very focused on execution and releasing these features. And now we are just going to completely focus on player growth and gameplays and driving usage of the product. And we are really optimistic that ONMO will be the dominant social e-sports platform on thousands of short gaming moments, which we curate from popular casual mobile games.
With that, I'll hand it over to Asheesh, our CFO, for his comments.
Thank you, everyone, on this call. I'll share the key highlights of our financial performance for this quarter and full year ended March 31, 2022. In terms of full year FY '22 performance, we reported revenues at INR 544.3 crores, marginal drop of 5.5% on a Y-o-Y basis. The drop was primarily in video, which was temporary on account of reasons explained by Sanjay, which has since been resolved. On the cost front, we have done exceedingly well. Our rationalization efforts yielded a savings of 12.2% Y-o-Y on manpower cost. We have increased our focus to acquire skilled talent for our gaming business, along with rightsizing our legacy business requirements.
On marketing, we grew by 50.9% Y-o-Y, primarily due to increased investments in new launches which has resulted in a temporary decline in EBITDA for the year at INR 45.9 crores, while margins stood at 8.8% for FY '22. Operating profit is at INR 35.5 crores with a margin of 6.8%. Our profit after tax is INR 32.5 crores. As stated earlier by Sanjay, the objective is to increase revenues in CA money pools, while maintaining the base for legacy products. ONMO product has huge potential, which you just heard from Krish, which we are very positive about. This will ensure overall financial strength in the coming quarters.
Our Tone business is growing, is very stable, while video will also remain stable and new products like CA, which are very high on profitability and ONMO, will add to our growth and transformation. We look at -- we continue to look at operational efficiencies and opportunities to optimize costs and invest behind growth areas. We are in an age of transformation and many opportunities across the landscape are under our list to look at product expansions, innovations and gamifications. We are also evaluating fundraise for our new ONMO business in the coming quarters.
In terms of quarter 4 FY '22 performance, we reported revenues at INR 133.2 crores, which is a marginal drop on a Y-o-Y basis for reasons stated earlier. On the cost front, with our continued rationalization efforts, we've witnessed a reduction of 14.8% quarter-on-quarter, 18.2% Y-o-Y in manpower costs. Our marketing costs grew 59.3% quarter-on-quarter, primarily due to increased investments in new products and other digital products.
In CA alone, as Sanjay mentioned, we had 16 live customers during the quarter. And this way will be a little bit of a lag in terms of revenue as the coming quarters will see huge increase in revenues from these same very live customers. Our EBITDA was INR 8.9 crores with a margin of 7% for the quarter. Our profit after tax was INR 4.7 crores. As it was mentioned in the previous quarter, from next year, we will start reporting ONMO P&L separately. And our legacy business, along with CA, Challenges Arena, will report higher revenues and margins in the coming quarters.
In line with our strategy to shut down some business entities that do not measure up to our stated goals of revenue and profitability, we continue to focus on unprofitable Latin American business, which we are in process of exiting from these countries. From a product perspective for FY '22, Tones contributed 40.2% to revenue, an increase of 2.5% as compared to FY '21, primarily due to increase in digital tones revenue in India. As Sanjay mentioned, I would echo the same that going forward we would expect to see a decent growth in revenues led by both new products, Challenges Arena and ONMO. We expect to have agreements with 35 customers by quarter 1 itself for Challenges Arena.
In terms of balance sheet, our DSO was at 125 days. We have a strong cash balance on our book at INR 135.2 crores. During the year, we have made strategic investments in Chingari and rob0. We have also incurred R&D or product development expenditures towards ONMO of INR 48.7 crores. We are also happy to inform that the Board has recommended a dividend of 15%, which will be paid in the AGM for customary shareholder approvals. We'll continue to invest in our gaming products to strengthen our position in the B2C gaming market as well as continue our foray into the B2B space. A lot of operating metrics and data have already been shared in the presentation deck. I'm sure all of you would have access to the same.
With this, I will now hand over the call to FC. Thank you.
Thank you, Asheesh. Welcome on board. Really happy to have you. Thank you all. A very big quarter, and I want to start really by congratulating Nandi and the sales team on OnMobile. So all the efforts of signing all these contracts really, really good momentum. I mean we -- it's one thing to plan. It's one thing to deliver some of it, and it's another thing to really deliver the numbers that the team has done. 31 contracts signed so far just on Challenges Arena. The team has done a fantastic job on this. You sit on the revenues, doubling every quarter. And the growth is really coming forward.
We see the same path with ONMO B2B coming along. Really a lot of operators now and as we mentioned we knew that, right, a lot of operators have invested in 5G. We all see the curve coming, and there's no other services specialized on mobile 5G. A lot of 5G services and gaming services are for console or PC. They are not for specifically mobile and short moments. And today the feedback we get from every operator that we're the only one in the market with short moments cutting out the best moment of the game and doing social e-sports.
So really good validation of that model. Great job again on the sales team and really pushing forward. And I just want to touch back. You saw that we added to the investor presentation now are -- on the final page, the objectives that we set ourselves for 2025. And you'll see the first one being 200 operators. You'll notice today, we have 100 operator plus, right? So we plan to double the base one end. But today, with the 31 contracts that we signed with Challenge Arena, 70% are new operators. That's a big number. So -- and again, the sales team has done a great job, not just approaching our current customers, but getting new ones. 70% new ones, and we're looking at the trend. And that's why we really have as a target the 200 operator plan in the next 2, 3 years.
And I think that's really something that the team can deliver on, bringing our gaming platform, both for CA and ONMO to operators. And that's going to bring twofold, right? Because the advantage of doing deals with operators that they market our service co-branded, that's a new also. In 20 years, the history of OnMobile, it's always been branded by the operator. Now we have ONMO, which we represent -- understand the social aspect of being able to compete subscriber-wise on a worldwide level, not just on the operator base and the network effect of that social aspect. So they're all inclined to really push the ONMO brand. So that's one thing.
And the other thing also is that for every operator, we will deploy the edge computing service, which really, really helps on the delivery of the service to make sure there's no latency. And edge computing -- you have to be in the edge. You have to be in the operator's network. And luckily again, and I want to bring back our legacy of OnMobile for 20 years of dealing with mobile operators and having a team dedicated of installing servers in the operator's network, you'll see also in our presentation we have today 2,900 servers installed with a team of 350. It shows dedicated on self-support, sales and technical network management of these servers.
Well, the key here is to leverage that to really build the biggest private edge computing network in the world. And I really believe we're the only company or one of them that can really deploy this, just for our needs on gaming. So that's why we were upfront on showing these 2 objectives. The 1,000 enterprise objectives. Enterprise that they are calling us. We -- as you know, we're really focused on mobile operators. Enterprise are calling us to be able to get some gaming and gamification products.
So obviously, with all the components that we have on our gaming platform and gamification platform to build a gamification Platform-as-a-Service is really the components that we have. And for each enterprise, we can take some small bits and really address their needs also, which is obviously a very downscale version of what we're providing operators. But we really have and truly have a market for the enterprise market here. So that's why you see it as an objective. So overall -- and let me finish with the 250 million users. We have 75 million users today. Growing at that pace of 200 operators and adding both enterprise and mobile operators, we're getting to that number.
Adding to it the B2C features and numbers, we really feel we can obtain these numbers in the next 3 years. And let me just finish on ONMO. I know Krish has talked about the product today and all this, but I must say we have quite a big road map for the summer. And that's one thing also. The team now already has a good pace on delivering. I mean, if you're playing on the service, you'll notice that every 2 weeks to a month, you see new features coming along, and we're trying to pace the feature. So every time we introduce a feature, obviously, that brings a lot of changes, but adds on to the service. We have a very big summer plan with how that service is going to evolve with very new social features coming along. So honestly, as a nutshell, and obviously, you see -- you feel my excitement in there. I really feel we have a great plan. The team is really delivering on that front -- on multiple fronts. And I want to thank the shareholders for supporting us.
So to that, I'm going to open the floor for questions.
[Operator Instructions] The first question is from the line of Naman Bhansali from Perpetuity Ventures.
Could you please provide the revenue breakup on geography basis?
Yes. Thank you for the questions. So from a geographical perspective, India is now actually leading the race at 14.4% last -- so India's contribution has gone up to 16.5% from 14.4% last year. Middle East and Africa, again, has gone up from 17.7% last year to 19.5%. Europe is at 56.9% and America is basically roughly at 1.3%. Would that answer your question, Naman?
Yes. Am I audible?
You're audible. Go ahead, Naman.
Yes. I just wanted to know how are your plans on Chingari, and what are the marketing spend? Like how do they stand at the current levels?
Krish, would you like to take that?
Sure. I guess, your question was what are the plans with Chingari. The thing is we initially had rolled out Chingari to its beta users. And over the course of the last few months, it's released to -- on the main Chingari app, which is on the Play Store. Now if you download Chingari, you'll be able to see ONMO. And as Chingari users keep updating that app, we'll have access to millions and millions of users. So that integration is already complete. And your second question was on marketing. I mean we don't have any marketing related to Chingari per se, because Chingari does its own marketing, and it's a vital product. So the marketing for ONMO is a separate item. It's got nothing to do with how Chingari does its marketing I hope that answers your question.
[Operator Instructions] The next question is from the line of [ Shirom Kapur ] from Prabhudas Lilladher.
I just wondered, could you give some color on what revenue guidance would be? I might have missed that in your earlier comments what the revenue guidance would be for the coming quarters and for FY '23. And if you could give this -- if it's possible to [ split ] this by your business segments?
Yes. I'll take that. So we said that while we cannot give specific number by product, et cetera, what we've said clearly on an overall basis is that we will do a double-digit growth from a year-on-year perspective. This is going to get led by Challenges Arena in a big way. Challenges Arena we expect at least 4 to 5x growth clearly. And also ONMO B2B, which was start the way, like I said, Challenges Arena about last year ONMO will be this year. So clearly, we expect significant growth. We've not seen that over the past few years, I would say. But going forward, we expect serious growth happening quarter after quarter and year after year in that one. But this year, like I said, it will be a double-digit growth is what we are targeting.
[Operator Instructions] The next question is from the line of Prakash Rama from Pragya Consulting.
Congratulations on a great set of numbers on Challenges Arena and the stabilization of the legacy business. I have a question if I'm looking forward to 2025, when you have the objective of 200 operators. Can I -- I know you can't give a specific guidance about projections. Do we believe that the Challenges Arena business will be as large as -- or larger than the legacy business? So that's one question. And the other question is about the marketing spends on ONMO. When do you see us get to a point where the marketing spends -- when the growth in the turnover on ONMO, the marketing spends get normalized and get to 15%, 20% of sales or some number like that. So how long do you think that's going to take?
So 2, 3 parts...
Let me address some part and Krish will address the part on ONMO. Clearly, Challenges Arena will continue to grow like it had in 2, 3 years. The 200 number -- enterprise number is what we are tasking ourselves. This should rarely take it to the levels that our legacy products are. So clearly, this will be the larger product in the pool of products that we have. So that's a given from where we are to where we are planning to be. Clearly, this will exceed the other products, [ small ], in that sense. As far as marketing is concerned, the settle down will take some time, but I'd like Krish to answer that. There is one other part of the question. I can take that before Krish takes. Tell me that.
Sure. Actually you asked a question about marketing for ONMO I presume that's D2C. So see, right now, ONMO is focused in growing the India market. But when you look at the next 3 to 4 years, 80% of our revenues is expected to come from global markets. And that also, as we had mentioned in the previous calls, will require marketing of nearly $100 million plus, right? So it's very difficult for me to say when will that contribute just 15% of total revenue. I think you need to look at it from a larger 3- to 4-year plan. And we've got some idea of what that is, but can't really tell you which year that will happen. But it should happen within a 3- to 4-year period.
Fair enough. And just a follow-up question from this saying, a similar deal to what you've done with Chingari in India, where you're basically having a strategic relationship with somebody who already has customers and then your incremental marketing spend is a little bit more limited. Are you willing to look at similar customers -- similar relationships around the world?
Absolutely. I mean don't want to give specific numbers. But even if you take our Chingari example in India, there is tremendous marketing value from that relationship, right? It's -- we're going to be saving a lot of money just from that relationship. We'll use that as a template in Europe and North America as we progress into those countries. So definitely marketing dollars will come down. I'm not saying we don't need other money. We will because we need to build the ONMO brand. But from pure customer acquisition standpoint, such partnerships will drastically reduce the amount of money we need for pure, let's say, performance marketing and customer acquisition.
Fair enough. So I'm taking the feedback that, of course, this is the plan for India with Chingari, going forward for global markets as well. You'd be open to those kind of relationships, which optimize your marketing spend.
Yes, but there has to be some kind of a synergy between the products. And for example, in the Chingari case, in our case, the player base or the audience base is also more or else the same, right? So we will be looking for those opportunities, not just with Chingari type of companies, but it could be other enterprises also. FC, do you have anything to add there because there are some other conversations also underway?
I just want to clarify this. Our view is that the D2C business for ONMO has to be financed separately from OnMobile. OnMobile is a B2B business. The plans that we have here, and just to address the point, we have a legacy business in Tones and in video, which we suspect and grow in small numbers. But the focus, as you can see in this plan, is really not there. Our focus is 100% on gaming and gamification platform.
Back on the 200 operators, we're talking about getting to 200 operators with gaming, right? Now that -- in some cases, that might help us with Tones, that might help us with video, but the focus is really gaming. And the gaming here that I'm talking about for mobile is B2B gaming, where is the curve, and the -- it's a money-generating business that we invest in marketing. That's exactly the charge you see this quarter for launching new services in the coming quarters. So it's not a long-term plan -- venture plan like D2C with ONMO. So I like to keep these 2 separate because we now have to see the OnMobile P&L as a B2B business and we have to fund the ONMO D2C business as a venture plan, which has to be funded separately. So back to your initial question, how do we see the revenues of OnMobile in the next 3 years? Well, we see the revenues of OnMobile in 3 years to be gaming revenues, right? So that's -- I hope that's clear.
[Operator Instructions] The next question is from the line of Naman Bhansali from Perpetuity Ventures LLP.
I was looking at the presentation, and I was -- I couldn't find the app installs for Tones and monthly active visitors for videos and editorials. So do you have any light on that?
Nandi, do you have the updated numbers on this?
Naman, we'll get back to you separately on that.
Okay.
And by the way, I'm sorry. You're right. We used to disclose this. But with the new presentation, we really focus on gaming though. We should bring that number up because that's still important to track. So in the next presentations, we'll make sure we bring back that number.
Okay, sure. No issue. And I wanted to know that -- correct me if I'm wrong, but in the previous calls you mentioned that you would disclose some numbers on ONMO too on the revenue front. So is there any specific bifurcation coming forward similar to like Challenges Arena?
Yes. So yes, we will do a segment reporting like Asheesh also mentioned from Q1 onwards, so that the launch is now happened. So we will report that second segment. And FC also mentioned, ONMO D2C is a separate business segment for us. The B2B business is a separate segment for us. So these are the 2 segments that we'll report on.
[Operator Instructions] The next question is from the line of [ Alkesh Jain ], an individual investor.
I would like to ask you what are your future plans with the stake in Chingari. How do we plan to move ahead with this stake in Chingari? Do we want to cash it out at some point of time? Or we just do another synergy or something of that sort? So do you have some clarity on that one?
So we can't, obviously, say that -- when such an event will happen. But encashment is not -- it's not happening now. It's not imminent. But at some future date, we don't know how our thoughts will be. But let's see how their valuation goes and then we'll take a view for that. But as of now we're not thinking of that at the moment.
Secondly, I would ask you -- would like to know that what are we planning to -- are we -- do you think that in next 2 years' time, the gaming business will be more than the legacy Tones business, the -- revenue-wise?
No, I think FC just mentioned that over the next 2, 3 years, we believe gaming will be our real big revenue rather than this -- like we said, the legacy business will be stable. It's the gaming business which will overtake the other businesses, whether it's from Challenges Arena, whether it's from ONMO B2B or whether it's from ONMO D2C. This will constitute a bigger proportion of our revenue than the legacy business.
And the other thing I want to ask was in the opening remarks the CFO said about fundraising. So what -- can you throw some color on how we're planning to do this fundraising for the growth of the company?
FC also mentioned, I had also mentioned, that we are talking to a few strategic investors and some bankers. We are looking at funding for ONMO B2C business or the overall business -- for the legacy business. And for our B2B part we are well funded. We are highly profitable from that angle. There is no challenge for us. In fact, we generate cash to put the money into the D2C part. But B2C business is a very different kind of business. That's where we need money. We are talking to a few investors. We are talking to a few bankers. And we expect that we will raise money over the next 2 quarters.
The next question is from the line of [ Ankur Gulati ], an individual investor.
A quick question. Is there any impact of a GST change on, which government is potentially going to implement?
No, not -- nothing from our B2B part. There's nothing that will impact us. In the D2C, we will take it as it comes, but we don't expect an impact from a business perspective on the D2C model that we have.
Yes. Just wanted to understand. At least in India when you guys are charging, earlier it used to be -- GST used to be on whatever fees you are charging, right, not on your GMV but the proposal is now on GMV.
We are waiting for the finality on that. I don't think the final word has been said on that, and we'll wait for it to happen and then we'll take a view on that.
Understood. Different point. You guys are getting so much of data on your users. Any views on how we will monetize that data with, if at all? I mean you're doing a lot of customer profiling, right? So have you guys thought of monetizing that part as well?
In the B2C portion, we'll get a lot of customer profiling. Krish, do you want to talk about that if we have plans?
I couldn't hear you properly, Sanjay. Can you come again?
No, the question is like...
Yes. Go ahead please.
Yes. You'll end up with 100 million Indian customers on ONMO. That means you have 100 million unique profiles sometime in the future. So that's a massive digital network, which can potentially be bought back. And more so on a real-time basis because most of your customers will be live on your apps without a doubt. Any thoughts on monetizing that, not by selling company but just to see how can we monetize those profiles.
For some reasons it's not very audible. FC, do you...
Honestly, you see our plans today and we're really focused on -- for ONMO for customer experience and monetizing what we have with customer. We didn't plan at all to monetize the data of 100 million subscribers. That's honestly not in our plans today. Could it change in the future? Maybe. But for now, I mean, we're not focused on that.
I mean, when we are looking at our revenue base, we are not looking at advertising as a revenue if -- to answer your question specifically, as of now. In the future it could be different.
[Operator Instructions] The next question is from the line of [ Kunal Shah ], an individual investor.
Actually everything is done.
The next question is from the line of Prakash Ramaseshan from Pragya Consulting.
Just a follow-up question to the CFO. Basically acceptance of digital currencies globally for the gaming business. How does that get exchanged for cash in India? I mean how does that work operationally? And are there any tax implications there?
So we have introduced Bitcoin as of now only outside of India, not in India. So it's excluding India. So we'll wait for that to be...
Which means that outside of India you will finally be encashing that for currencies in that particular country?
Yes. When we -- if the local countries allow we will do that. And the business will be held in the local companies there and not subsidiaries in the local jurisdiction there. So to that extent, we will do whatever is required by law in that jurisdiction.
Because the whole digital currencies on your books is different risks than holding what you hold right now. So...
We will not hold it in that manner. It will be the customers account. And if we -- if they play with each other and somebody wins, then ours will be a responsibility of making sure that people get it. And please remember, it will not be on our books as in at the India level. If at all, it will be on our books at the global level, let's say, in our subsidiary in the U.S., for example, the ONMO.
Okay. Fair enough. So basically, you're saying if customers challenge each other and there is -- one of them wins, your responsibility is to hand over currency to that person, which may be digital?
Yes. And we will take our fee cut on that. And that's the cash modeled in it.
Okay. The fee is for cash.
The next question is from the line of [ Ankur Gulati ], an individual investor.
I have a quick follow-up. Since you guys are basically dealing in crypto, especially outside India, any thoughts on offering some sort of a metaverse [ screenings ] because crypto can be used there, right, outside India? So just trying to understand the fact it helps you guys get some sort of arrangement with these metaverse right outside India?
I mean, right now, we haven't -- our focus is not on building metaverse using crypto. We are completely just focused, at least from an ONMO standpoint, on the social e-sports space. The mobile social e-sports space itself is a very, very large space for us to kind of build out this product. So we're quite focused over there.
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Well, thank you all. Thank you for this call. Really, really positive, again, on the business and where we're heading. Really look forward to sharing our plans next quarter, which is coming up faster. Normally it's in early August. So we should be able to give you good news again by then. And I look forward to it. Thank you so much.
Thank you. On behalf of OnMobile Global Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.