Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Investor Presentation (June 2024)
53 slides from Capri Global Capital's investor presentation, Jun 23, 2024
Slide 1: Exchange filing cover letter
June 23, 2024 The Secretary The Secretary BSE Limited National Stock Exchange of India Limited Pheeroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Dalal Street, Fort Plot No- 'C' Block, G Block Mumbai - 400 001 Bandra-Kurla Complex, Bandra (East) Scrip Code: 531595 Mumbai – 400 051 Scrip Code: CGCL
Slide 2: Corporate Presentation June 2024
Corporate Presentation June 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Capri Global Capital Limited (the “Company”), have been prepared solely for information purposes only and does not constitute any offer or invitation, directly or indirectly, in any manner, or
Slide 4: Capri Global Capital Limited
Capri Global Capital Limited Tech & Data Driven Financial Institution 23 MSME Loans Lender Relationships New to Credit, First Time and NEW! Women Borrowers Insurance Housing Distribution Loans ~378,000 Self Employed Live Accounts Underbanked NEW! Cash Flow Small Capri 13 States & UT Business Gold Lo
Slide 5: Bridging Financial Gaps: Transforming Lives
Bridging Financial Gaps: Transforming Lives ~42x AUM Growth in Past 12 Years 2011 2013 2017 2021 2022 2023 Raised 4.5 Bn equity Ventured into fully Forayed into Commenced third Gold Loans business Raised Rs 1.44 Bn capital and started secured MSME Housing Finance party distribution of launched in Au
Slide 6: Rapid Scaling and Operational Proficiency
Superior Execution Prowess Rapid Scaling and Operational Proficiency Launched Car Loan Started Co-Lending Loan Launched Gold Loan Distribution in Jan 2021 Distribution in Nov 2021 Business in Aug 2022 Car Loan Originations (INR Mn) Co-Lending AUM (% of Overall AUM) Gold Loan Book (INR Mn) 2.9x in 2
Slide 7: Business Verticals
Business Verticals CAPRIGLOBAL 6
Slide 8: Empowering Financial Inclusion and The Underserved
Empowering Financial Inclusion and The Underserved Supporting Throughout The Lifecycle Customer Requirement Capri Solutions Economic Impact Working Capital; Purchase of Loan against self occupied Empowering Entrepreneurship and MSME machinery, equipment and vehicles. residential or commercial proper
Slide 9: MSME Lending
MSME Lending Small Loans, Big Opportunity Large & Growing Ecosystem Geographical Distribution MSME AUM (INR Mn) UP Others 50,174 6% 4% Share of MSME GVA % Maharashtra 43,580 ~29% of overall GDP (FY22) 6% 33,065 Delhi Rajasthan 3% 25,114 34% 20,466 MSMEs share of total ~35% Credit exposure in India G
Slide 10: Affordable Housing
Affordable Housing Capitalizing on the Huge Demand Outlook Large & Growing Ecosystem Geographical Distribution Housing Finance AUM (INR Others Mn) Expected CAGR of UP 6% 40,727 affordable housing ~20% sector from 2022-2028 12% MP 33% 26,657 Housing shortage to Delhi 17,474 ~90% LIG and EWS 6% 11,552
Slide 11: Gold Loans
Gold Loans Scaling Fast Led By End-to-End Digital Journey Large & Growing Ecosystem Geographical Distribution Gold Loan AUM (INR Mn) Others New Delhi 5% Expected Gold Loan 34,910 ₹6.6 Tn market in FY25 8% Rajasthan Maharashtra 24% 9% Share of organized ~35% sector in Indian Gold 11,259 UP Haryana Lo
Slide 12: Construction Finance
Construction Finance Construction-linked Loans to Small & Mid Sized Real Estate Developers Large & Growing Ecosystem Geographical Distribution CF AUM (INR Mn) Others 26,213 7% Delhi NCR India’s construction ~$738 Bn industry in 2022 9% Mumbai MMR 26% 18,301 Hyderabad 12,662 10% 9,619 8,735 Estimated
Slide 13: Diversified Business Verticals
Diversified Business Verticals Strong and Sustained Momentum Supported by Tech AUM Segmental Break Up (INR Mn) AUM Segmental Break Up (%) MSME Gold Housing CF IL MSME Gold Housing CF IL 1,56,530 3% 5% 3% 3% 4,506 6% 18% 17% 26,213 24% 18% 19% 1,03,204 26% 26% 40,727 24% 26% 3,408 22% 18,301 11% 66,3
Slide 14: Superior Pace of Disbursement
Superior Pace of Disbursement New Growth Drivers Adding Momentum… Disbursements Segmental Break Up (INR Mn) Disbursements Segmental Break Up (%) MSME Gold Housing CF IL MSME Gold Housing CF IL 1,60,112 7.6% 16.8% 15.9% 25,483 32.9% 41.1% 13.0% 33.2% 20,876 18.8% 11.8% 18,909 21.0% 16.9% 76,461 19.8%
Slide 15: Complementary Asset Light Income Streams
Complementary Asset Light Income Streams Co-Lending, Distribution and Cross-Selling Car Loan Distribution o Lead Generation for 8 banks/financial institution o Pan-India coverage through presence in 788 locations in 32 states & UTs o Gross Fee Income of INR 2.2 Bn generated in FY24 Co-Lending Mechan
Slide 16: Car Loan Distribution
Car Loan Distribution Growing At Superior Pace Key Statistics PAN India Presence INR 2.2 Bn INR 1.0 Mn 3 14 Gross Fee Income In FY24 Average Ticket Size (FY24) 25 4 23 29 4 4 788 32 1 80 9 60 2 Total Locations States/UTs Presence 39 4 5 1 47 17 5 70 24 Partner Banks 12 20 50 16 17 8 77 41 34 43 Note
Slide 17: Co-Lending Focus
Co-Lending Focus Additional Funding Source & ROE Accretive Co-Lending AUM (INR Mn) 11.7% 18,306 8.9% 7.8% 3,185 6.2% 5.3% 11,948 9,685 6,674 2,583 2,084 6,931 2,255 5,469 2,083 1,414 465 8,446 Co-originating loans in the MSME, Affordable Housing and 5,518 6,195 5,004 Gold Loan segment with partner b
Slide 18: Insurance
Insurance Newly Ventured Space License Approval Strategic Partnerships IRDAI Composite License Secured for Tied with 11 Insurance companies (5 Life, Non-Life, and Health Insurance Life Insurance, 4 Health Insurance and Distribution since Dec ‘23 2 General Insurance) Customized Solutions Capitalizing
Slide 19: Underwriting Excellence
Underwriting Excellence Navigating Risk With Precision and Expertise Login to Sanction ~37% 115 bps – Long Term Credit Cost Prudent Lending Practices and Risk Management Proactive Approach to Manage Credit Risks Strong Safety of Margin Healthy Asset Quality (Net NPA) MSME Housing Gold CF MSME Housin
Slide 20: Commitment to Prudent Risk Practices
Commitment to Prudent Risk Practices Improvement in Asset Quality Gross NPA (%) Net NPA (%) 3.3% 2.4% 2.4% 2.1% 1.9% 1.7% 1.7% 1.4% 1.2% 1.1% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 ✓ Approval rate guided by conservative policy parameters to ✓ ~99% Average Collection Efficiency post COVID
Slide 21: Technology & Data Science
Technology & Data Science C A P R I G L O B A L 20
Slide 22: Loan Journey 2.0
Loan Journey 2.0 Technology Led, Digital First Approach E-KYC, E-Signing › Pragati - Sales App 25% Sales Productivity Acquisition Through Capri Business Partners Process 9000+ INR 7Bn+ Leads Disbursed Amount Collection Whatsapp Chatbot, Capri Loans App 100% Self Onboarding C A P R I G L O B A L 21
Slide 23: Seamless Customer Onboarding
Seamless Customer Onboarding The Pragati Sales App - For MSME / Housing Loan ✓ Strong API ecosystem ✓ In-house OCR model ✓ EKYC, E-Signing ✓ Increase sales productivity by reducing per file login cost by 50% from INR 8K to INR 4K leading to a saving of approximately INR 300 Mn in FY25E C A P R I G L
Slide 24: Developing Additional Business Sourcing Model
Developing Additional Business Sourcing Model Capri Business Partner App Building variable cost business model through Capri Business partners application. ✓ 14k+ registrations ✓ 9000+ Leads Disbursed till date ✓ INR 7 Bn+ Disbursed Amount ✓ Next year projection of ~INR 10 Bn disbursals through CBP
Slide 25: Omnichannel Customer Engagement (1/2)
Omnichannel Customer Engagement (1/2) Capri Loans App 1,90,000 4.7/5 Downloads via Google Play Rating on Play store 24,000 40,000 Average Active Users Highest number of user logins in a day 3,30,312 ~ INR 3.4 Bn Counts of EMI repayment Total Amount of EMI Paid C A P R I G L O B A L 24
Slide 26: Omnichannel Customer Engagement (2/2)
Omnichannel Customer Engagement (2/2) Capri Loans App ✓ Self-service mode for customer repayment ✓ Ability to Top-up loans in 60 Seconds ✓ Click to call service available ✓ Raise Query feature available that's linked with CRM ✓ All customer documents on Consumer App like MITC, SOA, Loan agreement, e
Slide 27: Loan Journey 2.0
Loan Journey 2.0 Inhouse Systems & Process Efficiency leading to cost saving For LoanXpress 20% 50% FTR Credit Efficiency Acquisition Cost Optimisation for File Logins Process 30% INR 4K Credit Processing Cost Per File Login Cost Collection Co-Lending Model Conversion ~ 7% ~ 85% ~ 99% Conversion Q3F
Slide 28: Digitising Loan Origination System (1/3)
Digitising Loan Origination System (1/3) Proprietary LOS - For MSME / Housing Loan LoanXpress (LOS) ✓ Single Portal for all functions and vendors ✓ No Email Communication culture of transparency and informed decision making ✓ Paperless journey with E-sign approximately 80 physical signatures per loa
Slide 29: Digitising Loan Origination System (2/3)
Digitising Loan Origination System (2/3) Proprietary LOS - For Gold Loan Swarnim (LOS) ✓ Single POS for all on ground staff ✓ Industry-first paperless journey with OTP based E- sign ✓ Aadhaar based biometric e-KYC ✓ Customer 360 degree view for all active and closed loans C A P R I G L O B A L 28
Slide 30: Digitising Loan Origination System (3/3)
Digitising Loan Origination System (3/3) Proprietary LOS - For Gold Loan Swarnim (LOS) ✓ Digital Credit appraisal memo ✓ Bank Account addition via reverse Penny Drop ✓ Ease of repayment via BBPS ✓ Advanced Gold Audit management system C A P R I G L O B A L 29
Slide 31: Standardization of Underwriting (1/2)
Standardization of Underwriting (1/2) Through Data Analytics & Tech Underwriting Application ✓ Better customer selection through CIBIL gating at time of onboarding - ~10% upfront rejection rate ✓ Improved customer profiling and selection through the implementation of underwriting BRE categorising cu
Slide 32: Standardization of Underwriting (2/2)
Standardization of Underwriting (2/2) Through Data Analytics & Tech Underwriting Application ✓ Improved productivity through the implementation of PD application- Bank Statement Analyzer ✓ Standardized income template on LOS platform ✓ Amortization of loan agreements and implementation of e-signatur
Slide 33: Collateral Evaluation Automation (1/2)
Collateral Evaluation Automation (1/2) App for Digital Evaluation ✓ Real Time data on locality for past exposure ✓ Reference valuation conducted in same locality/colonies ✓ Informed credit decisioning basis delinquency analysis in the vicinity of proposed collateral ✓ Check street view to analyze oc
Slide 34: Collateral Evaluation Automation (2/2)
Collateral Evaluation Automation (2/2) App for Digital Evaluation ✓ Land rate trends in the vicinity for cross audit cases where rates considered vary significantly from the median rates ✓ Broker information to cross verify rates considered in the vicinity ✓ Effort vs conversion in any locality thro
Slide 35: Scaleup disbursement under Colending Model
Scaleup disbursement under Colending Model For MSME / Housing Loan / Gold Loan Colending Systems Colending Disbursement INR 4.6 Bn INR 16 Bn ✓ Multiple BREs for Co-lending conversion 9.1 with Partner Bank 4.1 4.7 ✓ System generated Reconciliation and 2.2 Settlement reports 0.5 ✓ Generates ROE at the
Slide 36: Loan Journey 2.0: Collection Modules
Loan Journey 2.0 Collection Modules Leading to Better Assets Monitoring State of the Art Tele-Calling Centre ~ 35% ~ 65% FY 22-23 FY 23-24 Collection Resolution Improvement Acquisition Feet-on-Street Optimisation Process 12 % Annual Savings on Collections Human Collection Resources cost Total Cases
Slide 37: State-of-the-Art Analytics Dashboard
State-of-the-Art Analytics Dashboard Granular and Live monitoring of assets quality C A P R I G L O B A L 36
Slide 38: Application for Collection Team
Application for Collection Team Collect Xpress C A P R I G L O B A L 37
Slide 39: Financial Performance
Financial Performance C A P R I G L O B A L 38
Slide 40: Strong and Well Funded Balance Sheet
Strong and Well Funded Balance Sheet Foundation Laid for A Fast-Growing Business Consolidated Networth (INR Mn) Capital Adequacy (%) 38,366 35,655 47.0 43.5 39.9 38.0 37.7 33.1 31.2 29.5 30.5 19,225 30,464 17,173 30,466 26.6 15,392 14,645 13,077 14,523 5,250 3,250 3,250 1,750 1,750 1,939 2,652 FY20
Slide 41: Financial Performance
Financial Performance Galloping Growth Over The Years Net Interest Income (INR Mn) Net Income (INR Mn) 13,689 9,869 9,080 6,361 5,087 6,319 3,872 3,848 4,305 4,484 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Operating Profit (INR Mn) Profit After Tax (INR Mn) 4,569 2,794 3,783 3,330 2,050 2,04
Slide 42: Key Ratios
Key Ratios Consistent Improvement Spreads (%)1: Cycle Turning C/I (%) : Impacted By Gold Loan Opex 6.9 6.8 66.6 63.4 6.5 6.4 6.2 38.4 40.1 35.2 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Return on Average Assets (%) : Short Term Impact Return on Average Equity (%) : Short Term Impact 3.7 3.6
Slide 43: CGCL Consolidated Income Statement
CGCL Consolidated Income Statement Annual Comparison Profit and Loss A/c FY20 FY21 FY22 FY23 FY24 INR Mn except stated Interest income 6,700 6,735 8,396 11,678 18,228 Interest expenses 2,828 2,887 3,308 5,317 8,359 Net interest income 3,872 3,848 5,087 6,361 9,869 New businesses Other income 433 636
Slide 44: CGCL Consolidated Balance Sheet
CGCL Consolidated Balance Sheet Annual Comparison Balance Sheet FY20 FY21 FY22 FY23 FY24 INR Mn except stated Ample leverage room to continue delivering robust growth. ~3.4x growth in balance sheet in 4 years. Addition of new products creating foundation for a strong and sustainable growth. ~3.4x gr
Slide 45: CGCL Consolidated Earnings
CGCL Consolidated Earnings Du Pont Analysis ROA Tree (%) FY20 FY21 FY22 FY23 FY24 Interest income 15.4 13.1 13.0 12.3 13.5 Interest expenses 6.5 5.6 5.1 5.6 6.2 Net interest income 8.9 7.5 7.8 6.7 7.3 Other income 1.0 1.2 1.9 2.9 2.8 Fees 0.9 1.2 1.7 1.2 0.8 Other income 0.1 0.0 0.2 1.6 2.0 Net inco
Slide 46: Leadership
Leadership C A P R I G L O B A L 45
Slide 47: Board Of Directors
Board Of Directors Independent Board Guides Executive Management Lingam Venkata Prabhakar, Chairman & Independent Director Rajesh Sharma, Ex-MD & CEO Canara Bank and ex- Managing Director ED Punjab National Bank; rich Founder & Promoter with over 2.5 experience in banking and finance, decades of exp
Slide 48: Leadership Team
Leadership Team Retail Business Ravish Gupta Bhupinder Singh Technology & Data Analytics Satish Shimpi (Chief Compliance Officer) (Business Head – Gold Loans) (Head – Legal Litigation) Ex-Bajaj Finance, Bandhan Bank, Ex-IIFL Finance, GE Money, HDFC More than a decade experience IndusInd Bank, Bank o
Slide 49: ESG & CSR
ESG & CSR C A P R I G L O B A L 48
Slide 50: ESG at Core
ESG at Core To Grow Responsibly… Environmental Social Corporate Stewardship Responsibility Governance Integration of UPI payments from top Significant Women Borrowers serving as Executive Management overseen by an providers into CGCL system. Primary Applicants independent Board of Directors Board Co
Slide 51: And Various CSR Initiatives
And Various CSR Initiatives Continue To Serve The Underprivileged 1,14,256 33,647 Health Initiatives Women Empowerment & Livelihood 19,523 23,527 315 Education Initiatives Sustainable Environment Animal Welfare Note: All figures relate to the number of beneficiaries / projects / initiatives under CG
Slide 52: Outlook for Future..
Outlook for Future.. Targeting INR 500Bn AUM and High-teen RoE by FY29 Innovation Capability building in technology and data science will enable us to achieve 01 Leadership lowest cost-to-income ratio in secured informal lending segment. High-Quality Fee income business, namely car loan distribution
Slide 53: Thank You
Thank You For Further information, please contact : For Further information, please contact : Ravikant Pramod Bhat Shettigar Sheetal Khanduja Rajat Gupta Sheetal Khanduja Rajat Gupta ravikant.bhat@capriglobal.in pramod.shettigar@capriglobal.in sheetal@GoIndiaAdvisors.com rajat@GoIndiaAdvisors.com sh
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