Purple Finance Limited · BSE:PURPLEFIN
Purple Finance — Investor Presentation (December 2024)
38 slides from Purple Finance's investor presentation, December 2024
Slide 1: Ahead Together
Ahead Together Digitally Enabled Secured Lender for MSMEs
Slide 2: Our Company
Our Company Ahead TOGETHER Six like minded professionals having Started retail 130+ years of cumulative Listed on BSE & CSE Since 1993 lending from 2022 work experience came Limited together to create a Large Institution Private and Confidential | Purple Finance Ltd. 2
Slide 3: Significantly Large MSME Market
Significantly Large MSME Market MSMEs are broadly defined as businesses with annual revenue up to INR 250 Cr. (approximately $ 35 million). MSMEs can be further broken down into smaller categories by annual revenue. • Of the micro enterprises only 11% have access to credit MICRO SMALL MEDIUM Up to I
Slide 4: Unbanked MSME market: attractive investment opportunity
Unbanked MSME market : attractive investment opportunity 726 289 There is an opportunity for investors as the credit demand will see a matching equity demand of USD 1.7 Bn with an IRR of 15%. Source : Avendus Report on MSME Lending Private and Confidential | Purple Finance Ltd. 4
Slide 5: Aspire to be a Small Finance Bank for the MSME
Aspire to be a Small Finance Bank for the MSME Aspire to become a Impact through Create an institution Value for all Small Finance Bank ESG of size stakeholders Private and Confidential | Purple Finance Ltd. 5
Slide 6: Founders
FOUNDERS Amitabh Chaturvedi Rajeev Deoras Sabyasachi Rath Founder & Executive Chairman Co-Founder & Executive Director CEO & Co-Founder • 30+ years of experience and has • 27+ years of experience in the built successful organizations • 37+ years of experience in building entire spectrum of lending i
Slide 7: Founders
FOUNDERS Souvik Dasgupta Sonal Vira Mrinalini Sahai CBO & Co-Founder CFO & Co-Founder Legal / Compliance Head & • 23+ years of experience in Secured • A Chartered Accountant with 16+ Co-Founder Lending , Cross Border Payments , years of working experience in • 6+ years of experience in managing Fx T
Slide 8: Board of Directors
BOARD OF DIRECTORS Amitabh Chaturvedi Rajeev Deoras Minal Chaturvedi Founder & Executive Chairman Co-Founder & Executive Director Non-Executive Director Mr. Amitabh works with a distinct entrepreneurial Mr. Rajeev is known to have a keen eye for detail and Ms. Minal oversees business development act
Slide 9: Leadership Team
LEADERSHIP TEAM Sabyasachi Rath Souvik Dasgupta Sonal Vira CEO & Co-Founder CBO & Co-Founder CFO & Co-Founder • 27+ years of experience in the • 23+ years of experience in Secured • A Chartered Accountant with 16+ entire spectrum of lending in Lending , Cross Border Payments , years of working exper
Slide 10: Leadership Team
LEADERSHIP TEAM Mrinalini Sahai Vinay Patel Saurabh Lall Head Of Operations Head Credit Legal / Compliance Head & • 20+ years of experience with various • 30 years of experience worked in the NBFC space since Co-Founder banking and non-banking finance 1992. Associated with Organizations like Ashok L
Slide 11: Leadership Team
LEADERSHIP TEAM Gunjan Mishra Browne Prashant Pandey Asim Padhi Head Human Resource Chief Technology Officer Head Product and Policy • 12+ years of experience, Seasoned HR • 24+ years wealth of experience in various roles within the• 24+ years of experience of working with Banks and NBFCs. He Profes
Slide 12: Our Presence
Our Presence GUJARAT UTTAR PRADESH Ahmedabad Himmatnagar Lucknow Palanpur Jetpur Raebareli Bayad Rajkot Kanpur UTTAR PRADESH MADHYA GUJARAT PRADESH MAHARASHTRA MAHARASHTRA Mumbai - HO Nashik MADHYA PRADESH Kalyan Yeola Indore Sanawad Virar Sangamner Dewas Shamgarh Bhandara Wani Manasa Shujalpur Nagp
Slide 13: Our Presence
GUJARAT Ahmedabad Himmatnagar Our Presence Palanpur Jetpur Future Presence Bayad Rajkot CHHATTISGARH MAHARASHTRA Raipur Mumbai - HO Nashik Rajnandgaon Kalyan Yeola Durg Virar Sangamner UTTAR PRADESH Bhandara Wani Nagpur Palghar Gondia Shrirampur Hinganghat Panvel MADHYA GUJARAT UTTAR PRADESH PRADESH
Slide 14: Functions
Functions Risk Finance & Business Accounts Credit Operations Administration Legal & Compliance Marketing Information Collection Technology Human Resource Private and Confidential | Purple Finance Ltd. 14
Slide 15: Digital NBFC Focused on Secured Lending
Digital NBFC Focused on Secured Lending Secured lending to Small ticket Selection of Sustainable Quality portfolio MSMEs loans ≤ 30 lacs geography business model Being consistent & right Private and Confidential | Purple Finance Ltd. 15
Slide 16: Secured MSME loans
Secured MSME loans Who we target Product features Selection methodology Loan up to Rs. 30 Lakh Declared Income Assessment A micro enterprise 01 Annual turnover does not exceed Rs 40 lakh Financial Statement and ITR etc. Sector agnostic ROI 19% to 23% Surrogate Assessment Manufacturers, traders, whol
Slide 17: 3 Key Pillars Of Purple Execution
3 Key Pillars Of Purple Execution 01 02 03 Differentiated strategy Tech-as-an-enabler Strong risk & governance to enter the market and operate for lean and agile operations for sustainability and profitability • Single secured product & focused • Clear go /no go decision in < 5 • High caliber board
Slide 18: Digital End to End But With High Touch
Digital End to End But With High Touch Branch at the sourcing Tech enabled collection locations to engender mechanism customer’s trust. 6 1 5 Straight through processing AI based trigger & with 6 eyes overview – quick portfolio management sanction decision. 2 4 3 Robust fraud Paperless disbursement
Slide 19: Technology Partners
Technology Partners Private and Confidential | Purple Finance Ltd. 19
Slide 20: Industry First: Soft Approval in < 5 Hrs
Industry First : Soft Approval in < 5 Hrs OTP based KYC Digital property due diligence 01 02 03 04 No Go Go Paperless on-boarding Manual que Multi bureau Financial assessment Digitally assisted journey Imaging tech & self populated In house BRE application Complete process in < 5 hrs. Digital proper
Slide 21: Credit-Risk
CREDIT-RISK Private and Confidential | Purple Finance Ltd. 21
Slide 22: Credit-Risk Framework
Credit-Risk Framework Executive Director Credit Policy Underwriting process Property Norms RCU Portfolio monitoring Private and Confidential | Purple Finance Ltd. 22
Slide 23: Credit Policy Highlight
Credit Policy Highlight Customer Selection and Acceptance Target Segment • Entry age : 21 years ▪ SENP in semi urban and rural areas • Exit age : 65 years of Tier 3 and 4 cities • Tenor band : 1-10 years ▪ Micro Enterprises • Cibil score :>=640 or NTC Product • Crif HM : Mandatory ▪ Secured lending
Slide 24: Credit Structure and Delegation of authority
Credit Structure and Delegation of authority Level Delegation L4 ED > Rs 30 lacs L3 Head Credit CEO Upto Rs 30 lacs L2 Area Credit Manager Area Credit Manager Area Credit Manager Upto Rs 15 lacs L1 Branch Credit Manager Branch Credit Manager Branch Credit Manager Upto Rs 5 lacs Upto 6 Lakh is approv
Slide 25: Underwriting Process Flow
Underwriting Process Flow CREDIT PROCESS ➢ LEGAL SEARCH & ➢ CREDIT BUREAU TEAL REPORT DEDUPE ➢ BILLS (PURCHASE ➢ HYGIENE AND SALE) DOCUMENTATION ➢ TECHNICAL ➢ EXISTENCE ➢ ONSITE VISIT & EVALUATION ➢ DATA ENTRY CASH FLOW CUSTOMER ➢ INCOME PROPERTY PERSONAL PROCESS ➢ KYC DISCUSSION VALIADATION ➢ REGIS
Slide 26: Property acceptance Norm
Property acceptance Norm • Only Self-Occupied residential Property(SORP) • Only Self-Occupied Commercial Property(SOCP) • Mandatory Registered Mortgage on all properties funded • Mandatory RCU of Property documents Private and Confidential | Purple Finance Ltd. 26
Slide 27: RCU Norms
RCU Norms • Profile check • KYC/ Salary/ bank document check • Onsite visit to Gram panchayat office and SRO to check documentation • All original property documents undergo RCU Private and Confidential | Purple Finance Ltd. 27
Slide 28: Portfolio Analytics and Early Warning Approach
Portfolio Analytics and Early Warning Approach 01 02 03 Delinquency and portfolio analytics External data analytics Trigger management • Early Vintage • Roll Forward • CIBIL Scrub • Exposure Caps Delinquency Analysis • Roll Backward • Retro CIBIL Score • Triggers for Business • Month on Board • Flow
Slide 29: Journey So Far
JOURNEY SO FAR Private and Confidential | Purple Finance Ltd. 29
Slide 30: Current Traction: We have impacted more than 3000 lives
Current Traction : We have impacted more than 3000 lives First Loan Human Debt Footprints Booked Capital Raise 30 branches that 19th Oct covers more than People ₹ 60 Cr 2022 600 districts 270+ Portfolio Snapshot • Disbursement till date – Rs ~75 Crs • No of customers – ~1250 • 100% have women borrow
Slide 31: Customer Profile
CUSTOMER PROFILE Private and Confidential | Purple Finance Ltd. 31
Slide 32: Customer Details
Customer Details Customer Name & • Darshika Patkar, Virar - Maharashtra Location Business • Stitching Ladies garments from home Current Annual • 4,20,000/- Income CIBIL Score of • 777 Applicant Our Funding Amount • 6,20,000 /- LTV & FOIR • 53% & 42% Collateral • Self Occupied Residential Property Fl
Slide 33: Before our funding / After our funding
Before our funding Yearly Income Increased from 4.2 Lakh pa to 9.6 Lakh pa After our funding Private and Confidential | Purple Finance Ltd. 33
Slide 34: Customer Details
Customer Details Customer Name & • Panchal Ravchandbhai Punambhai, Bayad - Gujarat Location Business • Repairing of cycle and bike & Agri ( Owns one Bigha Land) Current Annual • 3,60,000/- Income CIBIL Score of • 736 Applicant Our Funding Amount • 4,00,000 /- LTV & FOIR • 38% & 45% Collateral • Self
Slide 35: Before our funding / After our funding
Before our funding • Milk Statement Taken from Amul Application After our funding • Additional Annual Income of 120000/ from these Buffalo Private and Confidential | Purple Finance Ltd. 35
Slide 36: Purple Customer Case Study I – Kirana Store
Purple Customer Case Study I – Kirana Store Business : Location : Loan Amount Kirana Store Virar East : ₹ 700,000 FOIR : ~48% LTV : ~ 56% Purple Impact • Reduced borrowing cost, resulting savings & better cashflows • Working capital for business for higher stocking & inventory • Timely disbursement
Slide 37: Customer Case Study II: Canteen and Tiffin Centre
Customer Case Study II : Canteen and Tiffin Centre Business : Location : Loan Amount Canteen Virar : ₹ 700,000 FOIR : LTV : ~ ~51.81% 35.54% Purple Impact • Reduced borrowing cost, resulting savings & better cashflows • Increase in business • Cashflow increased by 1.5 X Private and Confidential | Pu
Slide 38: Thank You
Thank You purple
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