CAMS eyes 20% share of revenue from non-core businesses in 2-3 years

CAMS, the largest mutual fund registrar and transfer agent, anticipates its non-mutual fund revenue sources to constitute approximately 20% of total revenue within the next two to three years. This strategic shift is driven by the company's expansion in payment services and the development of new revenue streams such as DPDP compliance, account aggregation, and other industries.

Cam's CFO, Ram Charan Sesharaman, revealed that non-mutual fund businesses currently generate around 15-16% of the company's revenue, which has increased from a mere 10% a few years ago. Sesharaman expressed confidence that the company will achieve this target in the next two to three years. The core mutual fund business continues to grow at an annual rate of 15-18%.

CAMS has been diversifying into various sectors, including payments, alternative investment fund services, KYC registration, insurance repositories, analytics, and account aggregator technology services. The company's latest venture, a product for Digital Personal Data Protection (DPDP) compliance, is also a significant part of their strategy.

Despite the rapid growth, payment services, currently the largest non-mutual fund business, is projected to reach ₹100 crore in revenue this year. Account aggregation, while a longer-term opportunity, currently generates an estimated ₹5-6 crore in annual revenue, with potential revenue reaching up to ₹10 crore. Sesharaman highlighted that CAMS views its newer businesses as a portfolio of opportunities, investing ahead of demand to avoid being left behind when adoption increases.