Purple Finance Limited · BSE:PURPLEFIN
Purple Finance — Investor Presentation (May 2025)
39 slides from Purple Finance's investor presentation, May 19, 2025
Slide 1: Regulation 30 intimation cover letter to BSE and CSE
Ref: PFL/ BSE-CSE/2025-26/22 19th May, 2025 To, To, BSE Limited The Calcutta Stock Exchange Limited, The Corporate Relationship Department 7, Lyons Range, P.J. Towers, 1st Floor, Dalhousie, Kolkata-700001, Dalal Street, West Bengal Mumbai – 400 001 Scrip Code: 544191 CSE Scrip Code: 26505 Scrip ID:
Slide 2: Ahead Together: Digitally Enabled Secured Lender for MSMEs
Ahead Together Digitally Enabled Secured Lender for MSMEs
Slide 3: Our Company
Our Company Ahead TOGETHER Four like minded professionals having 130+ years of cumulative work Listed on BSE & CSE Since 1993 Started retail experience came together Limited lending from 2022 to create a Large Institution Private and Confidential | Purple Finance Ltd. 2
Slide 4: Founders
FOUNDERS Amitabh Chaturvedi Rajeev Deoras Sabyasachi Rath Souvik Dasgupta Founder & Executive Chairman Co-Founder & Executive Director Co-Founder & CEO Co-Founder & CBO • 30+ years of experience and has • 27+ years of experience in the • 23+ years of experience in Secured • 37+ years of experience i
Slide 5: 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. MICRO SMALL MEDIUM • Of the micro enterprises only 11% Up to INR 5 Cr INR 5-75 Cr IN
Slide 6: 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. 5
Slide 7: Our Competitors
Our Competitors Private and Confidential | Purple Finance Ltd. 6
Slide 8: 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. 7
Slide 9: Board of Directors
BOARD OF DIRECTORS Amitabh Chaturvedi Rajeev Deoras Ajay Kumar Pandey Rajan Bhat Founder & Executive Chairman Co-Founder & Executive Director Non-Executive Director (Independent) Non-Executive Director (Independent) Mr. Amitabh works with a distinct Mr. Rajeev is known to have a keen eye for Mr. Aja
Slide 10: Leadership Team
LEADERSHIP TEAM Meghana Lale Vinay Patel Sabyasachi Rath Souvik Dasgupta Head Of Operations CFO Co-Founder & CEO Co-Founder & CBO • 19 years of experience in building finance • 20+ years with leading banks and • 27+ years of experience in the • 23+ years of experience in Secured functions across Bro
Slide 11: Leadership Team
LEADERSHIP TEAM Saurabh Lall Gunjan Mishra Browne Asim Padhi Prashant Pandey Head Credit Head Human Resource Head Product and Policy Chief Technology Officer • 30+ years in NBFCs, including • 12+ years of experience, Seasoned HR • 24+ years of experience of working with • 24+ years wealth of experie
Slide 12: Our Current Presence
1 Our Current Presence 1 GUJARAT UTTAR PRADESH Ahmedabad Himmatnagar Lucknow Raebareli Palanpur Jetpur Kanpur Bayad Rajkot UTTAR UTTAR Botad Jamnagar PRADESH PRADESH MADHYA PRADESH MAHARASHTRA Indore Sanawad MADHYA MADHYA GUJARAT PRADESH PRADESH Mumbai - HO Nashik Dewas Shamgarh Kalyan Yeola MAHARAS
Slide 13: Our Future Presence
Our Future Presence UTTAR PRADESH UTTAR PRADESH RAJASTHAN MADHYA GUJARAT MADHYA PRADESH GUJARAT PRADESH MAHARASHTRA MAHARASHTRA STATE NO OF NEW BRANCHES TELANGANA TELANGANA 2 GUJARAT 2 RAJASTHAN 4 UTTAR PRADESH 3 MADHYA PRADESH 2 Private and Confidential | Purple Finance Ltd. 12
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. 13
Slide 15: Secured MSME loans
Secured MSME loans Who we target Product features Selection methodology Declared Income Assessment A micro enterprise Loan up to Rs. 30 Lakh 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 16: 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 17: 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 18: 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 19: Technology Partners
Technology Partners Private and Confidential | Purple Finance Ltd. 18
Slide 20: Credit-Risk
CREDIT-RISK Private and Confidential | Purple Finance Ltd. 19
Slide 21: Credit-Risk Framework
Credit-Risk Framework Executive Director Credit Policy Underwriting process Property Norms RCU Portfolio monitoring Private and Confidential | Purple Finance Ltd. 20
Slide 22: Credit Policy Highlight
Credit Policy Highlight Customer Selection and Acceptance Target Segment • Entry age : 21 years SENP in semi urban and rural areas of • Exit age : 65 years Tier 3 and 4 cities • Tenor band : 1-10 years Micro Enterprises • Cibil score :>=640 or NTC Product • Crif HM : Mandatory Secured lending
Slide 23: Credit Structure and Delegation of Authority
Credit Structure and Delegation of authority Level Delegation L5 CEO Head Credit Upto Rs 30 lacs Deputy Credit State Credit L4 Head Head Upto Rs 25 lacs L3 State Credit Head Upto Rs 15 lacs Upto 10 Lakh is approved at state level jointly by State L2 Sr. BCM Upto Rs 6 lacs Business Head and State Cre
Slide 24: Underwriting Process Flow
Underwriting Process Flow CREDIT PROCESS CREDIT BUREAU LEGAL SEARCH & DEDUPE BILLS (PURCHASE TEAL REPORT HYGIENE AND SALE) DOCUMENTATION EXISTENCE ONSITE VISIT & TECHNICAL DATA ENTRY CASH FLOW PERSONAL INCOME CUSTOMER PROPERTY EVALUATION PROCESS KYC DISCUSSION VALIADATION DISBU
Slide 25: 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. 24
Slide 26: 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. 25
Slide 27: 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 28: Journey So Far
JOURNEY SO FAR Private and Confidential | Purple Finance Ltd. 27
Slide 29: Current Traction: We have impacted more than 6000 lives
Current Traction : We have impacted more than 6000 lives First Loan Human Debt Footprints Booked Capital Raise 32 branches that 19th Oct covers more than People ₹ 95 Cr 2022 150 towns 350+ Portfolio Snapshot • Disbursement till date – Rs ~118 Cr • AUM – Rs 110 Cr • No of customers ~ 2000 + • 100% ha
Slide 30: Customer Profile
CUSTOMER PROFILE Private and Confidential | Purple Finance Ltd. 29
Slide 31: 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 32: Before and after our funding: yearly income increase
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. 31
Slide 33: 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 34: 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. 33
Slide 35: 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 36: 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 37: Proposed Rights Issue
PROPOSED RIGHTS ISSUE Private and Confidential | Purple Finance Ltd. 36
Slide 38: Rights Issue Proposal
Rights Issue Proposal Rights issue opening date : Monday, June 02, 2025 Rights issue closing date : Tuesday, June 10, 2025 Record Date : Friday, May 23, 2025 Amount to be Raised : ₹ 40.33 Crore (Assuming full subscription) Issue Size : 96,04,273 shares (Assuming full subscription) Subscription Ratio
Slide 39: Thank You
Thank You Meghana Lale CFO +91- 9819452828 meghana.lale@purplefinance.in www.purplefinance.in