MoneyOnMobile, Inc.

May 16, 2016

Market Data

Fiscal Year March
Industry Technology
Market Cap $40.5M
Price/Earning (ttm) N/A
Price/Book (mrq) 5.0x
Price/Sales (ttm) 6.8x
Insider Ownership 24.6%
Shares Outstanding 50.6M
Equity Float 36.1M
Avg. Volume (3 mo.) 31,124
As of May 13, 2016

Income Statement Snapshot

Revenue (TTM) $6.0M
Net Loss (TTM) ($15.6M)

Balance Sheet Snapshot

Cash (MRQ) $2.4M
Debt (MRQ) $7.0M
MoM Generates Significant Increases in Processed Volume, Net Revenue, and Gross Profit

Strong increases in processed volume, net revenue, and gross profit in 3QFY16. CLPI showed significant increases in processed volume, net revenue, and gross profit in 3QFY16. Total processed volume was Rs 14 billion Indian Rupees, up 108% from 1QFY16 and up 40% from 2QFY16. Net revenue of $1.6 million represented an increase of 26% from 1QFY16 and an increase of 11% from 2QFY16. Gross profit of $892,000 showed a strong 70% increase from 1QFY16 and a 32% increase from 2QFY16. These increases have primarily been driven by domestic money transfers. The Company charges a fixed fee per transfer, leading to processed volume growing at a significantly faster rate than net revenue. Money transfers are higher margin, thus also leading to much higher gross margins. CLPI’s gross margin was 55.4% in 3QFY16, up from 46.9% in 2QFY16 and 41.1% in 1QFY16. Increased volume from money transfers should continue to lead to higher gross margins, in our view. We believe gross profit is the most important metric for investors to track over the near-term.

CLPI’s operating loss and net loss attributable to stockholders in 3QFY16 were ($3.9 million) and ($5.1 million), respectively. A portion of the operating and net losses were due to one-time charges from disposing CLPI’s former U.S. subsidiary. The following chart shows the results from Indian operations only. Operating and net losses from the Company’s Indian operations were ($0.8 million) in 3QFY16. We expect this figure to trend downward over time as revenues increase.

Other metrics indicate increasing usage and reach of MoM. Metrics continue to show increases in processing volume, the number of retail stores offering MoM, and the amount of repeat users on the platform. Improvements in these metrics should lead to better operating results. Processing volume grew to Rs 5.234 billion Indian Rupees ($78.6 million) in April 2016, representing a 160% YoY increase. Processing volume in March 2016 grew to Rs 6.233 billion Indian Rupees ($93.6 million), representing a 253% YoY increase. Processing volume was lower in April than in March due to a significant number of Indian holidays, which leads to seasonally lower processing volume in April.

MoM is currently available in 313,541 retail locations in India, up from 310,676 stores in March 2016 and 252,815 stores in March 2015. Long-term, CLPI intends to have 1 million locations in India and be within ¼ mile of 80% of India’s population.

CLPI consistently has between 7-8 million users per month using MoM. 7.8 million users accessed MoM in March 2016, and 4.5 million users were repeat users. The number of repeat users increased 15% YoY. The Company also continues to offer additional services to gain more users and increase the amount of transactions from these users. These services include free 30-day accident insurance coverage, which is important considering the number of migrant manual laborers in India, and the introduction of eCommerce payments through India’s largest eCommerce website, Flipkart, and

Larger market opportunity for MoM versus other successful mobile payment solutions. Other successful mobile payment solutions include QIWI in Russia and MPESA in Kenya. QIWI and MPESA generates annual net revenues of $242 million and $320 million, respectively. MoM has a much larger potential market size in India, with the Company estimating a potential customer size of 700 million, versus 70 million in Russia and 30 million in Kenya. India is also the world’s fastest growing economy in 2015, with GDP growing 7.5%. Long-term, the India market is likely to provide an overall superior opportunity to either Russia or Kenya. We believe that the success of QIWI and MPESA provides an analog for CLPI’s long-term potential. We expect CLPI to achieve profitability as its revenues and volume increase over the next few years.

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Auditor: Liggett, Vogt and Webb, PA
Legal: Sichenzia, Ross, Friedman, Ference, LLP
Transfer Agent: Securities Transfer Corporation

Company Information

Company Website

About RedChip

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Company Contact Info:
MoneyOnMobile, Inc.
Dallas, TX 75201
Investor Contact Info:
RedChip Companies, Inc.
1017 Maitland Center Commons Blvd.
Maitland, FL 32751
(407) 644-4256



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