Radiant is an integrated cash logistics player with a leading presence in the retail cash management (RCM) segment and one of the largest in terms of network locations.
They provide services across 13,044 pin codes in India with about 55,513 touch points serving more than 5,388 locations. Their marquee clients include some of the largest foreign, private and public sector banks, and the end users include some of the largest e-commerce companies, retail chains, NBFCs, insurance firms, ecommerce logistics players, railways and retail petroleum distribution outlets.
They cater to a broad set of outsourcing requirements pertaining to cash management services for banks, financial institutions, organized retail and e-commerce companies in India. They operate across five verticals:
- Cash pick-up and delivery
- Network currency management
- Cash processing
- Cash Vans / Cash in transit
- Other Value Added Services
Strengths And Risks
+ Leading integrated cash logistics player: : Radiant is a leading player in RCM segment and largest by network locations.
+ Pan India presence:: The company has 55,513 touch points, of which 86% are located in tier 2 and tier 3+ towns and cities.
+ Diversified client base:: The company has a marquee client base covering some of India’s largest foreign, private sector and PSU banks e.g. Axis Bank, Citibank, Deutsche Bank, HDFC Bank, ICICI Bank Limited, Kotak Mahindra Bank, SCB, SBI, HSBC, Yes Bank etc.
+ Robust operational risk management: : Risk management is critical to cash management operations. The company has prepared a solid risk management framework with technology and risk management teams. They conduct periodic audits of standard operating procedures and continuity plans.
+ Scalable, asset light business model: : The company is in scalable business that is not asset heavy. They have invested in tech infrastructure that gives operating leverage in business.
- Industry risk: : The company’s business is heavily dependent on banking industry, any adverse impact in banking can affect their revenues.
- Client concentration: : The business depends on a limited number of large customers. Any attrition of even a single customer can significantly affect the business.
- Threat from non- cash players: : The business heavily depends on usage of cash payments in India. Any decrease in cash model due to growth of non-cash payment modes can impact the business.
Demonetisation affected the cash circulation in the country and affected their business.
- Operational risks: : The company manages large amount of cash which exposes them to operational risks e.g. robbery, fraud, human errors etc.
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