BLS E-Services went public this year. The company made a blockbuster debut on Dalal Street, listing at a 128.9% premium at ₹309, compared to the IPO price of ₹135. BLS E-Services is a technology-driven digital service provider, offering business correspondent services to major Indian banks, along with assisted e-services and e-governance solutions at the grassroots level.

In this conversation, Lokanath Panda, chief operating officer, shares insights on the IPO process, business performance, upcoming plans, and the company’s vision for growth.

Here are the excerpts from the interview.

Q: How has the transition from being a privately held company to a publicly traded one been for BLS E-Services?

A: "We are the first player in this segment to successfully launch an IPO, which is exciting. It was an interesting experience for us," said the COO. The transition from being privately held to publicly traded has brought some positive changes. "The IPO gives us good mileage in terms of respect in the industry, as well as when we seek more business from larger entities like banks and government organizations. It's also strengthened our partnerships, helping us expand our services and overlay new ones on top of our core offerings."

Q: Could you give us an overview of how business has been for BLS E-Services in the past few years?

A: “Our business grew by about 26% in terms of revenue between 2023 and 2024,” the COO shared. “Similarly, our EBITDA grew by 37%, to around ₹49-50 crore, with margins improving by 139 basis points.” He also mentioned that the company is pursuing inorganic growth alongside organic growth: “We've earmarked some capital for acquisitions, and we have already announced our intent to acquire a 55% stake in Aadifidelis Solutions.” This acquisition is expected to close by the end of this quarter.

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Q: Are there other acquisitions BLS is considering?

A: We are always on the lookout for synergetic opportunities that align with our business model and can enhance our EBITDA. Any acquisition must be profitable from day one. While I can't provide specific details, there are definitely opportunities we are exploring.

Q: How do you see the rest of the year shaping up for BLS?

A: We've embarked on a few new things while closing last financial year,” the COO noted. “For instance, we started working with private sector banks, like HDFC Bank, Kotak, and Karur Vysya Bank. This is in addition to our public sector and regional rural bank clientele.” The company is also focusing on new contracts in the public sector, especially in e-governance projects. We’ve signed new contracts in Punjab, Uttar Pradesh, and Gujarat, and are continuing work on land records and the Ayushman Bharat project.

Q: What are your plans for the insurance segment?

A: We're expanding our insurance services. One of our subsidiaries, Starfin, has become a corporate agent for insurance, and we've partnered with large insurance companies such as SBI General Insurance and we have issued 50,000 policies with them. We're currently focusing on crop and health insurance, with plans to move into life insurance eventually. This is a growing segment for us, and we see strong potential in the coming years.

Q: Are you looking to add more partners in the insurance business?

A: Yes, we are. For example, we've partnered with Aditya Birla Health Insurance to provide services in Assam because they are the lead health insurance providers in Assam. We look for specific opportunities and product categories that align with our capabilities and can strengthen our network.

Q: Managing such a large network across different geographies must come with its own set of challenges. How do you handle that?

A: One of our key challenges is training our workforce. When we are talking about delivering these public services, each aspect of the project whether it is banking, insurance, e-governance, or assistive services, requires specific skills so that you do not missell to people. We overcome this by digitally training people and also taking support from partners like banks insurance companies and governments for their specific domains.

The second challenge has to do with literacy. In the customer segment that we deal with, there is a need to explain how and what benefit they will get when there is a bank account insurance provided to them or a pension.

The third challenge is the infrastructure because you are in the remote corners of the country. And there are challenges. Connectivity is a challenge, any change in technology that you’re trying to add also becomes a challenge. For example, we are undergoing a change currently for a new way of authenticating Aadhaar.

So, these are continuous efforts, right? And that’s where operational excellence plays a big role.

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