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Meta Tech Ventures Limited

Meta Tech Ventures Limited - Related Party Transactions

Introduction


Based on the DRHP (Draft Red Herring Prospectus) dated July 30, 2026, and subsequent filings, here are the “Related Party Transactions” (RPT) details of Meta Tech Ventures Limited.

Business Model Operations

Business Model: The company operates a dual-business model spanning Education Technology and AI-assisted SaaS solutions.

  1. "Study At Home": Delivers technology-enabled online education via recorded video lectures, e-books, and test series for professional courses like CA, CS, and CMA.
  2. "LeminAi": A SaaS/CPaaS platform providing communication automation (WhatsApp Business API, RCS messaging) and workflow management for business clients.


Advances from Customers: While not explicitly listed as a major liability line item, a substantial portion of sales are realized on an instant or upfront payment basis, keeping outstanding trade receivables historically low.


Comparable Peers: The company identifies Veranda Learning Solutions Limited (EdTech) and Route Mobile Limited (Enterprise Communication) as broad industry peers.


Raw Materials: The company consumes materials such as pen drives, SD cards, and printed inputs (paper, books, and ink) for its educational offerings.


Sourcing of Raw Materials: 100% of raw materials are sourced domestically; there have been no imports in the last three financial years.


Raw Material Price Volatility: The company has not entered into long-term contracts with suppliers, and prices are based on quotes, making it susceptible to market price fluctuations.


Key Raw Material Vendors: Sourcing is concentrated, with the Top 5 suppliers accounting for 91.31% of total purchases in FY 2025-26.


Key Factors Affecting Business: Demand for digital learning, technological developments in AI and communication, government policies, and general economic conditions in India.


Competitive & Regulatory Landscape: The company operates in a highly competitive and evolving market involving online learning platforms, coaching institutions, and international SaaS providers. It is regulated by laws including the Companies Act, 2013, and IT-related regulations.


Total Addressable Market (TAM): The document does not provide a specific monetary value for the TAM but highlights the growing sectors of Indian EdTech and SaaS-based marketing automation.


Key Competitors: Includes online learning platforms, coaching institutes, and providers of WhatsApp Business API/CPaaS solutions.


Order Book: The company does not explicitly state a specific "order book" value, as its revenue is primarily driven by recurring subscriptions and service usage.


Customer Concentration: Concentration is reducing; the Top 10 customers accounted for 35.05% of revenue in FY26, down from 51.78% in FY24.


Domestic vs. Exports Revenue (FY26): 94.15% Domestic (â‚ą1,400.24 lakhs) and 5.85% Exports (â‚ą87.02 lakhs).


Asset Turnover (last 3 years):

  1. FY 2025-26: 1.37 times.
  2. FY 2024-25: 1.49 times.
  3. FY 2023-24: 0.98 times.


Growth Plans: Expansion includes acquiring commercial premises in Lucknow and recording studios in Noida, plus procuring high-end IT equipment to scale "Study At Home" and "LeminAi".


Government Intervention: The business is subject to changes in government policies and regulatory actions (e.g., Code on Social Security, 2020) that may affect operations or taxation.

Financial Performance Health

Balance Sheet Health: The company is debt-free as of March 31, 2026. It maintains a Current Ratio of 2.99, indicating strong liquidity, although this has declined from 10.81 in FY24 due to increased tax provisions.


Operating Cashflows:

  1. FY 2025-26: â‚ą583.68 lakhs.
  2. FY 2024-25: â‚ą208.34 lakhs.
  3. FY 2023-24: â‚ą43.02 lakhs.


Total Debt Raised (Last 3 Years): Nil. The company has not availed any term loans or working capital facilities during this period.


Capital Expenditure (Last 3 Years):

  1. FY 2025-26: â‚ą262.85 lakhs.
  2. FY 2024-25: â‚ą214.52 lakhs.
  3. FY 2023-24: â‚ą75.52 lakhs.


Return on Capital (ROCE): Consistently increasing: 2.52% (FY24) -> 25.28% (FY25) -> 53.15% (FY26).

  1. Financial Trends (Sales, EBITDA, PAT): All are increasing.
  2. Revenue: â‚ą542.26L (FY24) -> â‚ą1,010.47L (FY25) -> â‚ą1,487.26L (FY26).
  3. EBITDA: â‚ą62.59L (FY24) -> â‚ą248.17L (FY25) -> â‚ą688.74L (FY26).
  4. PAT: â‚ą10.17L (FY24) -> â‚ą123.54L (FY25) -> â‚ą417.64L (FY26).
  5. Margin Trends: All are increasing.
  6. EBITDA Margin: 11.54% (FY24) -> 24.56% (FY25) -> 46.31% (FY26).
  7. PAT Margin: 1.80% (FY24) -> 11.94% (FY25) -> 27.65% (FY26).
  8. Reason for Increases: Growth is driven by the integration and scaling of the higher-margin LeminAi (IT services) vertical, which provides significant operating leverage.


Free Cash Flow and EBITDA to CFO Conversion


Trend: The EBITDA to CFO conversion percentage is consistently increasing (from 68.73% to 84.75%), indicating improved cash generation efficiency.

Risks Management Outlook

Legal Cases: There are no criminal proceedings against the company or promoters. However, there is a pending income tax demand of â‚ą1.75 lakhs against Mr. Raj Kumar Agrawal and small direct tax e-proceedings (â‚ą0.16 lakhs) involving the company.


Key Risks:


Family Breakdown: Irretrievable breakdown in relationship with certain immediate relatives who are deemed part of the Promoter Group but have refused to provide information.


Cash Flow: Historical negative net cash flows in FY24 and FY25.


Concentration: High dependence on a limited number of suppliers.


Compliance: Instances of delayed ROC filings and payments.


Red Flags: The company carried on IT and digital marketing activities beyond its original object clause from Sept 2024 to Nov 2025, which required regularisation and a suo motu adjudication application to the ROC.


Promoter Quality: Led by Mr. Raj Kumar Agrawal (Chartered Accountant, All India Rank 27) with 15 years of industry experience. The promoters have received multiple awards (e.g., "India's 40 Under 40 Business Leaders").


Structural vs. Cyclical Trends: Management commentary indicates the business is not seasonal. While not explicitly using "structural," they emphasize a long-term shift toward higher-margin technology-enabled services (SaaS/AI).

Disclaimer

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