Investor Presentation - MAY 2021 Niyogin Fintech Limited
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Investor Presentation MAY 2021 Niyogin Fintech Limited
INVESTOR PRESENTATION 2021
About
Niyogin
About Us 3
Our Team 4-5
Niyogin - History 6
Our Business Model 7
About Us
INVESTOR PRESENTATION 2021
Who we are & Who do we serve?
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
INVESTOR PRESENTATION 2021
Board of Directors
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
INVESTOR PRESENTATION 2021
Management
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
INVESTOR PRESENTATION 2021
How did we get here?
2021 Till Date
2020 • Achieved cash
breakeven
2019 • Acquired 51.00% in • Rural Tech crosses
iServeU, a US$500 mn 130K touchpoints
GTV platform adding
2018 • Acquired 50.01% in • Initiated iServeU
5 products under a
Moneyfront, a digital new segment – credit segment
2017 • 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
INVESTOR PRESENTATION 2021
How do we do it?
Urban Rural
WEALTH / CREDIT
Serving MSMEs
CREDIT
& rural retailers via a
Financial BC
professionals Partner-led Partners
digital model
Model
URBAN TECH RURAL TECH
An Efficient Distribution Kirana/Retail Store
Model - Low CAC
Cross-sell
7 | www.niyogin.com
INVESTOR PRESENTATION 2021
Investment
Rationale
Differentiating Factors 9
Investment Rationale 10
Our Investors 11
Differentiating Factors
INVESTOR PRESENTATION 2021
Why we will win?
Technology Partner-led model
platform in place for minimizes our cost
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
INVESTOR PRESENTATION 2021
Why Niyogin?
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.
Wealth Tech. India which gives us: • Rural reach
• AEPS - US$31 bn~(3-yr
CAGR @98%) • A low CAC market • Accessibility to
access banking services
• DMT - US$20 bn#
(3-yr CAGR @17%) • Fee/ commission-led • Partner model
revenue enabling income
• Unmet credit -
US$300 bn@ • Opportunity for augmentation
transaction-led credit
*msme.gov.in; ~NPCI; @RBI; #Internal estimates
10 | www.niyogin.comOur Investors
INVESTOR PRESENTATION 2021
Supported by top institutions
Shareholding
Top Institutions
Pattern
Others (16.9%)
• Ward Ferry Management
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.comINVESTOR PRESENTATION 2021
Addressable
Market
Opportunity
Potential Market Opportunity 13-14Potential Market Opportunity (1/2)
INVESTOR PRESENTATION 2021
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 &
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.comPotential Market Opportunity (2/2)
INVESTOR PRESENTATION 2021
What are we leveraging on?
Rural Market Opportunity
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.comINVESTOR PRESENTATION 2021
Our Business
Verticals
Rural Tech 16-21
Credit 22-23
Wealth Tech 24
Business Summary 25
Our Revenue Drivers 26Rural Tech
INVESTOR PRESENTATION 2021
iServeU – Rural Financial
Inclusion Platform
What do we do?
Empowering retail stores
(MSMEs) in Rural India
via digital platform to
offer localized/hyperlocal
financial services
16 | www.niyogin.comRural Tech
INVESTOR PRESENTATION 2021
How do we do it?
Third party product Our Product Stack
providers
Microinsurance
Credit
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.comRural Tech
INVESTOR PRESENTATION 2021
How do we operate?
Server
Kirana/Retail Store (Web & Mobile App)
Customer avails
Financial Products
iSU Platform
(Rural Individuals)
iSU Platform
Customers
iSU Platform
Retail Store delivers
Financial Products
Kirana/Retail Store Partner Bank
Flow of financial products through our tech platform
18 | www.niyogin.comRural Tech
INVESTOR PRESENTATION 2021
Revenue Model
Who is Partners
Banks/
Borrowers
Insurance
Retailers
paying us? Rural individuals companies
Fee per DMT &
One-time Software Interest Insurance Hardware Device
For what? setup fees
AEPS/M-ATM
Income Commission Sales
transaction
License
Commissions Others
Fee
19 | www.niyogin.comTechnology
INVESTOR PRESENTATION 2021
Scalable Architecture
High Throughput Infinite Scale at
Capacity Minimum Cost
GoLang Concurrency Cloud Infra
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.comRural Tech
INVESTOR PRESENTATION 2021
How are we creating an impact?
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.comCredit
INVESTOR PRESENTATION 2021
What do we do?
Providing Capital
access to MSMEs &
retailers via channel
partners
22 | www.niyogin.comCredit
INVESTOR PRESENTATION 2021
How do we do it?
Leveraging on the large distribution
BC Partners Financial Professionals
network of our channel partners
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.comWealth Tech
INVESTOR PRESENTATION 2021
Moneyfront – Digital platform for
Wealth Advisory & Analytics
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.comBusiness Summary
INVESTOR PRESENTATION 2021
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
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.comOur Revenue Drivers
INVESTOR PRESENTATION 2021
Identifying the Monetization levers
Verticals License Fee Commission/Fee Interest Income Others
Direct Money Transfer (DMT)
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.comINVESTOR PRESENTATION 2021
Peer
Analysis
Peer Analysis – Qualitative 28Peer Analysis - Qualitative
INVESTOR PRESENTATION 2021
What sets us apart?
Credit Wealth Tech
• CapitalFloat • Groww
• LendingKart • Kuvera
• 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.comINVESTOR PRESENTATION 2021
Financial
Highlights
Q4FY21 Highlights 30-32
Businesses built to scale - Rural Platform 33
Businesses built to scale - Urban Platform 34
Financial Snapshot 35Q4FY21 Highlights
INVESTOR PRESENTATION 2021
Business
Business Update Distribution Build
• iServeU integration completed
• 27,826 retailers added in Q4FY21
• 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.comQ4FY21 Highlights
INVESTOR PRESENTATION 2021
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
• 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.comQ4FY21 Highlights
INVESTOR PRESENTATION 2021
Financial Snapshot
Consolidated (INR mn) Q4FY21 Q4FY20 YoY change
(31st Mar 2021) (31st Mar 2020)
Total Income 183.9 85.1 116.0%
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.comBusinesses built to scale
INVESTOR PRESENTATION 2021
Rural Platform
Consistent increase ..leading to ..fuelling rise in ..and rise in value.
in iServeU partners.. manifold growth volumes..
in retailers..
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.comBusinesses built to scale
INVESTOR PRESENTATION 2021
Urban Platform
Niyogin partners Wealth Tech Throughput
(#) (INR mn)
FY21 4,017
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
FY19 91,800
FY20 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.comFinancial Snapshot
INVESTOR PRESENTATION 2021
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
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.comINVESTOR PRESENTATION 2021
Appendix
Definitions 37
Disclaimer 38Definitions
INVESTOR PRESENTATION 2021
Understanding the jargons
1. AEPS Aadhar Enabled Payment System
2. AUM Assets Under Management
3. BBPS Bharat Bill Payment System
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.comDisclaimer
INVESTOR PRESENTATION 2021
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.
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.comThank
You Corporate office address
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: investorrelations@niyogin.in E-mail: rudeshi@christensenir.com
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