Investor Presentation
M A Y 2 0 2 1
Niyogin Fintech Limited INVESTOR PRESENTATION PRESENTATION INVESTOR
About 2021 Niyogin
About Us 3
Our Team 4-5
Niyogin - History 6
Our Business Model 7 About Us PRESENTATION INVESTOR
Who we are & Who do we serve? 2021
We are India’s only public listed fintech company committed to delivering impact-centric solutions to MSMEs through Rural Tech, Credit and Wealth Tech using our partnership led model.
3 | www.niyogin.com Our Team PRESENTATION INVESTOR
Board of Directors 2021
Amit Rajpal Gaurav Patankar Sutapa Banerjee Subhasri Sriram NON-EXECUTIVE CHAIRMAN, NON-EXECUTIVE DIRECTOR, INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR CO-FOUNDER CO-FOUNDER
CEO – Marshall Wace Asia; Ex-BNY Mellon, Lockheed Martin Ex-ANZ Grindlays, ABN AMRO Director – TVS Electronics; Ex-Morgan Stanley Ex-Shriram City Union Finance
Eric Wetlaufer Kapil Kapoor Makarand Patankar Noorallah Charania INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR PROMOTER DIRECTOR WHOLE-TIME DIRECTOR
Director – TMX group; Chairman-InfoEdge India; Founder – Information Interface Ex-Aditya Birla Group, RBS Ex-CPPIB; Fidelity Ex-Nestle; ex-Global COO, Timex India Pvt Ltd; Ex-Glaxo
4 | www.niyogin.com Our Team PRESENTATION INVESTOR
Management 2021
Ravi Pratap Singh Tashwinder Singh Debiprasad Sarangi Himanshu Rajpal Mohit Gang CHIEF TECHNOLOGY & CHIEF EXECUTIVE OFFICER CHIEF EXECUTIVE OFFICER, CHIEF BUSINESS OFFICER CHIEF EXECUTIVE OFFICER, PRODUCT OFFICER RURAL TECH WEALTH TECH
Ex-Citigroup, KKR Ex-iCash Card Ex-Standard Chartered, Ex-HSBC, Citi Ex-Pine Labs, Mswipe PepsiCo, Euronet, PayPal
Neha Agarwal Rumit Dugar Parag Chopde Noorallah Charania COMPLIANCE OFFICER CHIEF FINANCIAL OFFICER CHIEF RISK OFFICER CHIEF OPERATING OFFICER
Ex-Essel Infraprojects Ex-JPMorgan, Infosys, Ex-RBL Bank, Exim Bank (T) Ex-Aditya Birla Group, RBS, IDFC Securities Ltd; Citi HDFC Bank
5 | www.niyogin.com Niyogin - History PRESENTATION INVESTOR How did we get here?
2021 Till Date 2021
2020 • Achieved cash breakeven
2019 • Acquired 51.00% in • Rural Tech crosses iServeU, a US$500 mn 130K touchpoints 2018 GTV platform adding • Acquired 50.01% in 5 products under a • Initiated iServeU Moneyfront, a digital credit segment 2017 new segment – • Initiated business platform, adding Rural Tech with the Credit Wealth Tech to its • Acquired M3 Global segment offering product stack • SaaS based B2B Finance, a BSE listed small ticket product went live NBFC, and renamed unsecured business under Wealth Tech Niyogin Fintech Ltd loans (UBL)
• Raised capital of • Focus on market ₹2,348 mn from access through CA institutional investors network
Note: All years are Calendar Years
6 | www.niyogin.com Our Business Model PRESENTATION INVESTOR How do we do it?
Urban Rural 2021
CREDIT Serving MSMEs & rural retailers via a Financial BC professionals Partner-led Partners digital model
WEALTH / CREDIT Model
URBAN TECH RURAL TECH
An Efficient Distribution Kirana/Retail Store Model - Low CAC
Cross-sell
7 | www.niyogin.com INVESTOR PRESENTATION PRESENTATION INVESTOR
Investment 2021 Rationale
Differentiating Factors 9
Investment Rationale 10
Our Investors 11 Differentiating Factors PRESENTATION INVESTOR Why we will win?
Technology Partner-led model platform in place for minimizes our cost 2021 achieving scale of scale
Established Well aligned interests product stack with of management & immense market stakeholders via adoption potential ESOPs, etc
03 04 Led by an High pedigree experienced 02 05 institutional board and quality shareholders management support 01 06
9 | www.niyogin.com Investment Rationale PRESENTATION INVESTOR
Why Niyogin? 2021
Unique - India’s Large Tech-centric Delivering M&A - A force only early stage addressable model impact multiplier listed fintech market company India’s only early stage Targeting MSMEs and Scalable tech platform Profit with purpose We are open to listed fintech company retailers : with a partner-led enterprise to drive synergistic M&A straddling the Rural • 63 mn MSMEs* and distribution model financial inclusion opportunities in the Tech, Credit and 70 mn rural retailers across urban and rural through our: startup ecosystem. India which gives us: Wealth Tech. • AEPS - US$31 bn~(3-yr • Rural reach CAGR @98%) • A low CAC market • Accessibility to access • DMT - US$20 bn# banking services (3-yr CAGR @17%) • Fee/ commission-led • Partner model revenue • Unmet credit - enabling income US$300 bn@ • Opportunity for augmentation transaction-led credit
*msme.gov.in; ~NPCI; @RBI; #Internal estimates
10 | www.niyogin.com Our Investors PRESENTATION INVESTOR Supported by top institutions
Shareholding Top Institutions Pattern
Others (16.9%)
• Ward Ferry Management 2021
Founders • Carmignac (38.5%)
• Alchemy Group
• Lucky Investment Managers Other Institutions (27.3%)
FPIs (17.3%)
Note: As of 31st March 2021
11 | www.niyogin.com INVESTOR PRESENTATION PRESENTATION INVESTOR
Addressable 2021 Market Opportunity
Potential Market Opportunity 13-14 INVESTOR PRESENTATION PRESENTATION INVESTOR Potential Market Opportunity (1/2) Our market access
Urban Rural
Large financial professional Who have been helping to BC partners widen the Who in turn tie up with network provides a conduit bring MSMEs into the distribution network@ large number of retail to MSMEs~ formal financial inclusion outlets & 2021 fold#
No. of practicing financial MSMEs taxpayers under GST No. of BCs (#) Retail outlets (potential BC professionals (#) (# mn) agents) (# mn)
1,43,452 7.0 5,41,175 70
5.7
1,32,480 5,04,142
FY18 FY20 FY18 FY20 FY15 FY20 FY20
Source: ~icai.org; #Economic Survey of India, gstn.org.in; @RBI; &internal estimates
13 | www.niyogin.com INVESTOR PRESENTATION PRESENTATION INVESTOR Potential Market Opportunity (2/2) What are we leveraging on?
Rural Market Opportunity 2021 Aadhar cards issued (Makes transactions frictionless) AEPS market size
+
Jan Dhan Account beneficiaries = Domestic Remittances (Increases penetration) market size
+
Rural Mobiles (Improves connectivity) 3-Year CAGR of AEPS
Source: PwC, PMJDY, TRAI, UIDAI, Internal estimates
14 | www.niyogin.com INVESTOR PRESENTATION PRESENTATION INVESTOR
Our Business 2021 Verticals
Rural Tech 16-21
Credit 22-23
Wealth Tech 24
Business Summary 25
Our Revenue Drivers 26 Rural Tech PRESENTATION INVESTOR iServeU – Rural Financial
Inclusion Platform 2021
What do we do? Empowering retail stores (MSMEs) in Rural India via digital platform to offer localized/hyperlocal financial services
16 | www.niyogin.com Rural Tech PRESENTATION INVESTOR How do we do it?
Third party product Our Product Stack providers Microinsurance
Credit 2021
Cash Access – AEPS & M-ATM
BBPS Banks Domestic Money Transfer To Facilitate Services (DMT)
iSU Platform Providing a Digital Platform with a large product stack to retailers to serve their Types of BC Partners customers (rural individuals)
Enterprises
BC Partners Retailers Rural Individuals
Local Community BCs Onboarded to reach out to Retailers
17 | www.niyogin.com Rural Tech PRESENTATION INVESTOR How do we operate?
Server Kirana/Retail Store (Web & Mobile App) Customer avails
Financial Products 2021
iSU Platform
iSU iSU Platform
Customers (Rural (Rural Individuals)
iSU Platform Retail Store delivers Financial Products
Kirana/Retail Store Partner Bank
Flow of financial products through our tech platform
18 | www.niyogin.com Rural Tech PRESENTATION INVESTOR Revenue Model
Who is Banks/ Insurance Partners Borrowers Retailers
paying us? Rural individuals companies 2021 Fee per DMT & One-time Software Interest Insurance Hardware Device AEPS/M-ATM For what? setup fees Income Commission Sales transaction
License Commissions Others Fee
19 | www.niyogin.com Technology PRESENTATION INVESTOR Scalable Architecture
High Throughput Infinite Scale at Capacity Minimum Cost
GoLang Concurrency Cloud Infra 2021
High Velocity + High Modern Stack Fidelity Database GoLang, Springboot, CockroachDB + NodeJS, Angular, Cassandra Python
Failsafe Circuit Best of the Breed Breaker Solution Providers Architechture Clevertap, Salesforce, Microservices + Exotel, Looker PubSub Queue
20 | www.niyogin.com Rural Tech PRESENTATION INVESTOR
How are we creating an impact? 2021
Niyogin’s Rural Tech platform empowers its various stakeholders by offering
1 2 3 Income Network Optimizes augmentation monetization market access to Retailers for Partners and product delivery for Banks
21 | www.niyogin.com Credit PRESENTATION INVESTOR
What do we do? 2021
Providing Capital access to MSMEs & retailers via channel partners
22 | www.niyogin.com Credit PRESENTATION INVESTOR How do we do it?
Leveraging on the large distribution BC Partners Financial Professionals
network of our channel partners 2021
Rural Tech Retailers
MSMEs Niyogin Platform
Unsecured working Lending Partners capital loans To provide off-BS credit to MSMEs Transaction-centric short Credit duration loans
Niyogin Secured loans Provides on-BS credit to platform users
23 | www.niyogin.com Wealth Tech PRESENTATION INVESTOR Moneyfront – Digital platform for
Wealth Advisory & Analytics 2021
What do we do? Niyogin’s Wealth Tech platform serves urban areas by offering
1 2 3 A SaaS enabled Analytical A platform for tech platform to services to individuals to financial wealth help them in consultants to managers of financial serve MSMEs large enterprises planning
24 | www.niyogin.com Business Summary PRESENTATION INVESTOR Our services explained
Rural Tech Credit Wealth Tech
What Empowering retail stores Helping MSMEs access Helping MSMEs & MSME
(MSMEs) to provide – DMT, AEPS, capital owners manage wealth 2021 M-ATM, BBPS, Microinsurance
How Digital Digital Digital
Revenue License Fee Interest Income License Fee Commission Commission/Fee Commission Hardware Sales
M&A Product Product Product Scale Market Access Scale
Future Rural financial inclusion via Aggregator & Transaction Scale Outlook Neobank Model data-led credit
25 | www.niyogin.com Our Revenue Drivers PRESENTATION INVESTOR Identifying the Monetization levers
Verticals License Fee Commission/Fee Interest Income Others
Direct Money Transfer (DMT) 2021 Cash Access Rural BBPS Tech Microinsurance
Hardware Sales
Platform Setup
Unsecured working Credit capital and short-term transaction-based loans
Direct-to-Individuals Wealth SaaS B2B Tech Analytics
26 | www.niyogin.com INVESTOR PRESENTATION PRESENTATION INVESTOR
Peer 2021 Analysis
Peer Analysis – Qualitative 28 Peer Analysis - Qualitative PRESENTATION INVESTOR What sets us apart?
Credit Wealth Tech
• CapitalFloat • Groww
• LendingKart • Kuvera 2021 • MFIs • Upstoxx Niyogin has • Regional / local • INDWealth lenders competitors in every business segment. However, with its large product stack, it lies at the intersection of all its domestic peers. Rural Tech
• Paynearby • Spice Money • Novopay
28 | www.niyogin.com INVESTOR PRESENTATION PRESENTATION INVESTOR
Financial 2021 Highlights
Q4FY21 Highlights 30-32
Businesses built to scale - Rural Platform 33
Businesses built to scale - Urban Platform 34
Financial Snapshot 35 Q4FY21 Highlights PRESENTATION INVESTOR Business
Business Update Distribution Build
• iServeU integration completed
• 27,826 retailers added in Q4FY21 2021 • Expansion of financial professionals network and iServeU retailers for long term footprint • Rural retailer base at 131,082 up 143% YoY
• Rural Tech business launched Aadhar pay, enabling • 359 retail partners added in Q4FY21 digital-to-digital transfer • Retail partner base (Urban Tech) at 4,017, up 109% YoY • Launched transaction-based credit on our Rural Tech platform • Retail channel (Urban Tech) activation rate for FY21 at 19%
• Added new fee-led product partnerships in our Urban Tech distribution business
30 | www.niyogin.com Q4FY21 Highlights PRESENTATION INVESTOR Financial Update - Consolidated
P&L Update Balance Sheet Update
• Total Income for the quarter at INR 183.9 mn, up 116.0% • Loan book stood at INR 455.0 mn, down 64.0% YoY YoY 2021
• We remain a zero debt and net cash company • Additional ECL charge of INR 34.0 mn taken as management overlay given the second COVID wave in India . • Cash position further strengthened and stands at INR 1,559.0 mn • ESOP charge for the quarter at INR 15.2 mn • GNPA (adjusted for FLDG) at 7.6% - adequately covered through our provisioning • Non-GAAP (ex - ESOP) PBT of INR (40.7) mn
.
31 | www.niyogin.com Q4FY21 Highlights PRESENTATION INVESTOR Financial Snapshot
Consolidated (INR mn) Q4FY21 Q4FY20 YoY change
(31st Mar 2021) (31st Mar 2020)
Total Income 183.9 85.1 116.0% 2021
Total Expenses 239.8 152.1 57.6% Revenue growth driven by Rural Tech business EBITDA (40.2) (55.0) NA
Reported Pre-Tax Profit/(Loss) (A) (55.9) (67.0) NA
Depreciation and Amortization 15.1 11.3 33.6%
ESOP (B) 15.2 5.9 157.6% Reduction in loss despite management overlay in our loan book Non-GAAP PBT (C ) = (A) + (B) (40.7) (61.1) NA
32 | www.niyogin.com Businesses built to scale PRESENTATION INVESTOR Rural Platform
Consistent increase ..leading to ..fuelling rise in ..and rise in value. in iServeU partners.. manifold growth volumes..
in retailers.. 2021
No. of BC partners (#) No. of BC agents (#) No. of transactions (mn) iServeU Transaction GTV (INR mn)
1,31,082 432 25 57,581
39,394 266 15
53,956
FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21
33 | www.niyogin.com Businesses built to scale PRESENTATION INVESTOR Urban Platform
Niyogin partners Wealth Tech Throughput
(#) (INR mn)
FY21 4,017 2021 FY21 26,329 FY20 1,925 FY20 15,529 FY19 612
+
Market access (Low CAC) via Niyogin partners Wealth Tech AUM
MSME market reach via partners (#) (INR mn)
FY21 6,02,550 FY21 9,837* FY20 2,88,750
FY20 FY19 91,800 7,497
*Note: Short-term impact due to wealth customers’ draw down for tax payment, the AUM as on April 30, 2021 stands at INR 11,099.5 mn
34 | www.niyogin.com Financial Snapshot PRESENTATION INVESTOR Annual
Consolidated (INR mn) FY18* FY19* FY20 FY21
(31st Mar 2018) (31st Mar 2019) (31st Mar 2020) (31st Mar 2021)
Total Income 122.3 228.5 280.5 506.3 2021
Total Expenses 148.8 310.3 527.0 578.8 Revenues crossed the INR 500.0 mn mark EBITDA (21.3) (49.0) (202.6) (20.0)
Reported Pre-Tax Profit/(Loss) (A) (26.5) (81.8) (246.5) (72.5)
Depreciation and Amortization 5.2 30.8 40.9 50.1
ESOP (B) - 37.4 38.9 33.4 Impacted due to management overlay of INR 55.7 mn Non-GAAP PBT (C ) = (A) + (B) (26.5) (44.4) (207.6) (39.1)
*Standalone for FY2018 & FY2019, Consolidated figures considered in FY2020 and FY2021 post Moneyfront and iServeU acquisition.
35 | www.niyogin.com INVESTOR PRESENTATION PRESENTATION INVESTOR
Appendix 2021
Definitions 37
Disclaimer 38 Definitions PRESENTATION INVESTOR Understanding the jargons
1. AEPS Aadhar Enabled Payment System 2. AUM Assets Under Management
3. BBPS Bharat Bill Payment System 2021 4. BC Business Correspondent 5. CAC Customer Acquisition Costs 6. DMT Domestic Money Transfer 7. GTV Gross Transaction Value 8. L-F-L Like For Like 9. M-ATM Micro ATM 10. ML Machine Language 11. M&A Mergers & Acquisitions 12. MSME Micro, Small & Medium Enterprises 13. NBFC Non-Banking Financial Company 14. Partners Collectively refers to financial professionals and BC partners 15. SaaS B2B Software as a Service Business to Business
37 | www.niyogin.com Disclaimer PRESENTATION INVESTOR
This presentation has been prepared by Niyogin Fintech Limited (the “Company”) solely for your information and for your use. This presentation is for information purpose only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or subscribe for any securities of the Company, nor shall it or any part of it or the Fact of its distribution form the basis of, or be relied upon in connection with, any contract or commitment, therefore. The financial information in this presentation may have been reclassified and reformatted for the purposes of this presentation. You may also refer to the financial statements of the Company before making any decision on the basis of this information. 2021
This presentation contains statements that may not be based on historical information or facts but that may constitute forward-looking statements. These forward-looking statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company presently believes to be reasonable, but these assumptions may prove to be incorrect. Any opinion, estimate or projection constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company.
No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. This presentation does not constitute and should not be considered as a recommendation by the Company that any investor should subscribe for, purchase or sell any of Company’s securities. By viewing this presentation, you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. None of the Company, their affiliates, agents or advisors,, promoters or any other persons that may participate in any offering of any securities of the Company shall have any responsibility or liability whatsoever for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith.
38 | www.niyogin.com Thank
Corporate office address You Niyogin Fintech Limited, 311/312, 3rd Floor, Neelkanth Corporate IT Park, Plot No. 240/240-1-8, Kirol Road, www.niyogin.com Vidyavihar (w), Mumbai - 400 086
For further information please contact:
RUMIT DUGAR RAVI UDESHI / SONIA KESWANI Niyogin Fintech Limited Christensen Investor Relations Chief Financial Officer E-mail: [email protected] E-mail: [email protected] [email protected]