Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Investor Presentation (June 2022)
49 slides from Vakrangee's investor presentation, Jun 2, 2022
Slide 1: Vakrangee filing cover letter to stock exchanges
Vakrangee mrm~ Vakrangee limited "Vakrangee Corporate House~. Plot No 93. Road No 16. M,I DC Marcl, Andherl (East), Mumbal 400093. Maharashtra W wwwvakrangeeon L .9122 2850 3412 ·9122 6776 5100 F · 9122285020171 CIN L65990MH1990PLC056669 June 02, 2022 To, Department of Corporate Relationship Corpora
Slide 2: Vakrangee Limited Corporate Presentation
THE ASSISTED DIGITAL CONVENIENCE STORE “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM VAKRANGEE LIMITED CORPORATE PRESENTATION
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Vakrangee Limited (“Vakrangee” or “VL” or the “Company”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organ
Slide 4: Table of Contents
TABLE OF CONTENTS Company Overview 04 Strategy Update 17 Results Performance Update 25 Demerger Update 33 Update on Sustainability ESG Initiatives 37 Update on Awards & Recognition 41 Board of Directors Team 43 Annexure : Kendra Evolution 46 3
Slide 5: Company Overview
Vakrangee / ’ COMPANY OVERVIEW
Slide 6: NextGen Vakrangee Kendra – Scope of Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES Banking , ATM & Insurance Financial Services / Fintech E-Commerce / Online Travel Tele Medicine / Pharmacy PAN INDIA PRESENCE : • 84% IN TIER 4-6 LOCATIONS PHYSICAL + DIGITAL • 5,510 POSTAL CODES ECO-SYSTEM • 564 DISTRICTS “GO TO MARKET PLATFORM” : BUILDI
Slide 7: NextGen Vakrangee Kendra - Performance Update
NEXTGEN VAKRANGEE KENDRA - PERFORMANCE UPDATE VAKRANGEE : PHYSICAL + DIGITAL ECO-SYSTEM “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM Total No. of Outlets Presence in States/UTs Presence in districts Presence in Tier IV & VI Our Presence 22,042 32 564 ~84% Our To
Slide 8: NextGen Vakrangee Kendra – Scope of Services: BFSI & ATM
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES BFSI & ATM SERVICES • ATM Cash Withdrawal • Non-Financial Transactions (White Label ATM License) • Opening of Online Demat & Trading Account • Money Transfer • Lead Generations of Personal / Home / Business Loans • Pan Card Service • CIBIL Score service •
Slide 9: NextGen Vakrangee Kendra – Scope of Services: Assisted E-Commerce
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES ASSISTED E-COMMERCE SERVICES • Online Shopping of Goods • Telemedicine services • Online Shopping of Medicines • Mobile/DTH Recharge • Bill Payments • E-Mitra services in Rajasthan (Only for Rajasthan) • Train Ticket Booking • Bus Ticket Booking • Flight/
Slide 10: E-Commerce Marketing Initiatives
E-COMMERCE MARKETING INITIATIVES Link to the Co-Branded Advertisement Campaign - Amazon & Vakrangee : https://www.youtube.com/watch?v=MPtZ_c62 Odg https://www.youtube.com/watch?v=- AJarKHI94c 9
Slide 11: Formats of NextGen Vakrangee Kendra
FORMATS OF NEXTGEN VAKRANGEE KENDRA NEXTGEN VAKRANGEE KENDRA: GOLD, SILVER AND BRONZE MODEL Update on Nextgen Vakrangee Kendra Model:- • As the Bouquet of services have increased over the last few years , the viability of the kendra has increased on a standalone basis resulting into an Exclusive sto
Slide 12: NextGen Vakrangee Kendra - Key Features
NEXTGEN VAKRANGEE KENDRA - KEY FEATURES KEY FEATURES • Exclusive store model with same service level and same STORE EXCLUSIVITY & Customer experience CONSISTENT • Standardized layout & design by L&H (Lewis & Hickey) BRANDING • Uniform and Consistent Branding for Higher brand recall and visibility •
Slide 13: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 12
Slide 14: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.35 BILLION POLLING STATIONS 1 MILLION TOTAL NO OF VILLAGES 6,62,986 TOTAL NO OF GRAM PANCHAYAT 2,53,268 TOTAL NO OF URBAN WARDS 75,535 TOTAL OUTLET POTENTIAL 3,28,803 13
Slide 15: Store Economics of a NextGen Kendra
STORE ECONOMICS OF A NEXTGEN KENDRA NextGen Outlet Estimated Avg. Revenue per Month Revenue Per Store Rs. 80k – 100k* NextGen Outlet Estimated Ranging from 65:35 to 80:20 based on Commission Sharing Ratio Service Type Vakrangee Margins NextGen Outlet Estimated Operational Gross Level – 18-20% Profit
Slide 16: Our Proprietary Technology Platform
OUR PROPRIETARY TECHNOLOGY PLATFORM SERVICES PROVIDED THROUGH REAL-TIME INTEGRATION WITH PARTNER SYSTEMS BANK – CORE BANKING SERVER ALL PARTNER SYSTEM (e-Commerce, e-Governance, Insurance, Financial Services & Logistics) Customer Vakrangee Kendra Internet Vakrangee Management System Connectivity Ken
Slide 17: White Label ATM – Opportunity
WHITE LABEL ATM – OPPORTUNITY • India ranks low in the world in terms of ATM Density. We have ATM density of 210 ATMs per Million whereas developed countries like Canada have 2,141 ATMs per Million. • Low ATM Penetration in Tier 3, 4, 5 and 6 cities creates Huge opportunity for WLAs to bridge the ga
Slide 18: Strategy Update
Vakrangee / ’ STRATEGY UPDATE
Slide 19: Strategy Update – Digital Banking
STRATEGY UPDATE – DIGITAL BANKING DIGITAL BANKING : MOVING TOWARDS NEO BANK – VAKRANGEE WELL PLACED TO ENTER THE NEO BANKING SEGMENT While currently nascent, the Indian Neobanking userbase is expected to grow fast – at 80%+ yearly till FY26 Indian digital banking userbase +x% CAGR In Mn, FY 2017, 20
Slide 20: Strategy Update – Digital Banking: Neo Bank Transition
STRATEGY UPDATE – DIGITAL BANKING MOVING TOWARDS TRANSITIONING INTO A NEO BANK – VAKRANGEE WELL PLACED TO ENTER THE NEO BANKING SEGMENT PERFORMANCE FOR BANKING SERVICES Q4 FY2021-22 FY2021-22 KEY DIFFERENTIATORS : DIGITAL AS WELL AS PHSYICAL Number of Bank Accounts Opened ~ 1.1 MILLION ~ 2.7 MILLION
Slide 21: Strategy Update – Digital Banking: Demat & Stock Broking
STRATEGY UPDATE – DIGITAL BANKING VAKRANGEE WELL PLACED TO ENTER THE NEO BANKING SEGMENT BFSI SERVICES : DEMAT & STOCK BROKING SERVICES PERFORMANCE FOR PILOT PROJECT : ONLINE DEMAT & TRADING ACCOUNT OPENING 12,892 Q4 FY2021-22 FY2021-22 10,514 Number of Demat Number of Demat Accounts Opened – Accoun
Slide 22: Strategy Update – Digital Healthcare: eHealth Opportunity
STRATEGY UPDATE – DIGITAL HEALTHCARE Digital (eHealth) Healthcare Opportunity: eHealth sector has been witnessing rapid growth, whereas the overall penetration rates across segments still remain low, providing Huge Long Term Growth potential !! eHealth Market GMV1 Annual India eHealth Penetration eP
Slide 23: Strategy Update – Digital Healthcare: Pilot Performance
STRATEGY UPDATE – DIGITAL HEALTHCARE DIGITAL HEALTHCARE OPPORTUNITY : • Current Rural consumer requires assistance to understand different healthcare services • Limited availability of physical doctors in rural locations • Lack of access to Health Infrastructure & Expert Consultation PERFORMANCE FOR
Slide 24: BharatEasy Mobile Super App Update
BHARATEASY MOBILE SUPER APP UPDATE • Vakrangee would be launching an online digital platform to enable seamless services for the consumer at the comfort of their homes. Through this, company has evolved into the unique O2O (Online to Offline) platform, whereby there is Assistance available through t
Slide 25: Business Model: Our Unique Offering
BUSINESS MODEL : OUR UNIQUE OFFERING Customer Strong Value Proposition • All in One Super App Platform • Access to Physical Store network - Trust & Comfort for Customers especially in Rural India Unique Convenience Features : Leveraging the Vakrangee Eco-System • Store Pick Up Facility • Pay at Stor
Slide 26: Results Performance Update
RESULTS PERFORMANCE UPDATE 25
Slide 27: Results Performance Update: Key Highlights
RESULTS PERFORMANCE UPDATE Key Highlights – Q4 FY2021-22 (Y-o-Y Basis) REVENUE FROM OPERATIONS EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 2088.1 420.5 301.2 296.6 207.9 1018.5 105.0% 41.8% 44.9% Q4 FY2020-21 Q4 FY2021-22 Q4 FY2020-21 Q4 FY2021-22 Q4 FY2020-21 Q4 FY2021-22 Key Highlights – Full Year FY20
Slide 28: Results Performance Update
RESULTS PERFORMANCE UPDATE Strong Growth witnessed during Q4 FY2022 & Full Year FY2022 : Positive • Witnessed strong Financial & Operational growth. Return to normalcy on the business front as E-commerce, Online Healthcare and other Financial services have become operational. • Strong growth witness
Slide 29: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q4 FY2021-22 Q4 FY2020-21 YoY% FY2021-22 Revenue from Operations 2,088.1 1,018.5 105.0% 7,786.9 Total Expenses 1,722.2 919.4 87.3% 6,393.7 EBIDTA 420.5 296.6 41.8% 1,586.9 Profit before Tax (PBT) 377.6 275.6 37
Slide 30: Vakrangee Kendra Outlets – Performance Update
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE PERFORMANCE UPDATE FOR QUARTER ENDED MARCH, 2021 ~Rs. 126.6 Bn ~32.9 Mn Quarterly Throughput on Vakrangee Quarterly No. of Transactions on Platform – Q4 FY22 Transaction Value Vakrangee Platform – Q4 FY22 PERFORMANCE UPDATE FOR FULL YEAR FY2021-22 ~Rs.47
Slide 31: Vakrangee Kendra Outlets – GMV / Throughput Contribution
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE Full Year FY2021-22 - GMV / THROUGHPUT CONTRIBUTION (RS. MN.) Margin Profile % * E-Commerce 7,110 2 - 15% ATM 1,13,511 Rs. 17/ Fin Txn BFSI 3,54,138 0.25 - 0.40% • BFSI and ATM services witnessed robust QoQ as well as YoY growth as we get back to pre-cov
Slide 32: Case Studies: NextGen Top Performers
CASE STUDIES : NEXTGEN TOP PERFORMERS Franchisee – SHAWAN ALI from a Tier-3 Number of Accounts Opened - 53 SHAWAN location of Uttar Pradesh have Earned ALI `1,17,114 in just month from BFSI – Total Transaction Value - Banking Services `3,04,31,630 Number of Financial Transaction - PREM Franchisee –
Slide 33: Focussed to Build Pan-India Presence Covering 100% Postal Codes
FOCUSSED TO BUILD PAN-INDIA Within 12-18 Months PRESENCE COVERING 100% POSTAL CODES - 75,000+ Outlets - 19,000+ Postal codes - 36 States / UTs - ~70% Tier V & VI - 740 + Districts Q4 FY 2021-22 - 22,042 Outlets - 32 States / UTs - 564 Districts With Exclusive Branded Format Stores, - 5,510 Postal co
Slide 34: Demerger Update
Vakrangee / ’ DEMERGER UPDATE
Slide 35: Demerger Update
DEMERGER UPDATE • As on June 19, 2021 the Board of Directors of Vakrangee Limited had approved Demerger of its digital Division. • However, The Board of Directors have now after due deliberations and detailed discussions, taking into consideration the best interest of all its stakeholders, have fina
Slide 36: Proposed Demerger Structure
PROPOSED DEMERGER STRUCTURE PRE-DEMERGER 1 2 POST- VL E-GOVERNANCE & IT VAKRANGEE LIMITED – SOLUTIONS BUSINESS DEMERGER CURRENT LISTED ENTITY DIVISION – TO BE LISTED ARRANGEMENT TO INCLUDE :- TO INCLUDE :- • VAKRANGEE KENDRA POST- • E-GOVERNANCE BUSINESS BUSINESS (PHYSICAL DEMERGER • IT/ITES BUSINES
Slide 37: Vakrangee Kendra Business – Post Demerger
VAKRANGEE KENDRA BUSINESS – POST DEMERGER POST DEMERGER : VAKRANGEE LIMITED TO EMERGE AS PURE RETAIL CONSUMER CENTRIC BUSINESS RETAIL CONSUMER STRONG RURAL BRAND UNIQUE PHYSICAL + CENTRIC BUSINESS PRESENCE DIGITAL PLATFORM SCALABLE FRANCHISEE DEBT FREE BALANCE ASSET LIGHT MODEL LED MODEL SHEET HIGH
Slide 38: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 37
Slide 39: Sustainability ESG Performance Update: S&P Global Yearbook
SUSTAINABILITY ESG PERFORMANCE UPDATE VAKRANGEE EARNS BRONZE CLASS SPOT IN SUSTAINABILITY YEARBOOK 2022 BY S&P GLOBAL • Vakrangee Limited has been honored to be included in this year’s Sustainability Yearbook 2022, published by S&P Global. • Vakrangee has earned a “S&P Global Bronze Class” spot in t
Slide 40: Sustainability ESG Performance Update: Sustainalytics
SUSTAINABILITY ESG PERFORMANCE UPDATE VAKRANGEE RECOGNIZED AS A ESG GLOBAL 50 TOP RATED COMPANY BY SUSTAINALYTICS • Vakrangee Limited has been identified as a top ESG performer out of more than 4,000 comprehensive companies that Sustainalytics cover in the global universe. • In 2022, Vakrangee has b
Slide 41: Key Initiatives: Sustainability Impact & ESG
KEY INITIATIVES : SUSTAINABILITY IMPACT & ESG Being Responsible • Being one of the largest franchisee-based, multi-service retail network, Vakrangee is focused on creating India’s extensive network of last-mile retail outlets at every & Social Conscious postal code in the country, enabling Indians t
Slide 42: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 41
Slide 43: Awards & Recognition
AWARDS & RECOGNITION Vakrangee makes history by Vakrangee has been ranked Vakrangee has been Vakrangee has been awarded setting GUINNESS WORLD amongst Top 100 Franchise awarded as the best ESG India Leadership Award RECORDSTM title for the Most Opportunities for the year ‘FINANCIAL SERVICES
Slide 44: Board of Directors Team
Vakrangee BOARD OF DIRECTORS TEAM
Slide 45: Board of Directors
BOARD OF DIRECTORS Strong Board of Directors • Has about 40+ years of business experience. He has held several leadership positions in the Reserve Bank of RAMESH JOSHI India and has been Nominee Director on behalf of RBI on the Boards of Various Banks, and retired as an Non Executive Executive Direc
Slide 46: Board of Directors
BOARD OF DIRECTORS Strong Board of Directors AVINASH VYAS • Has wide experience in Audit Certification for externally aided projects funded by foreign agencies such as World Non Executive Bank and its extended arms Independent Director • Holds a Bachelor’s Degree in Commerce and is LL.B (professiona
Slide 47: Annexure: Kendra Evolution
ANNEXURE : KENDRA EVOLUTION 46
Slide 48: Kendra Evolution
KENDRA EVOLUTION PHASE 1: INITIALLY AN E- PHASE 2: EVOLVED TO A PHASE 3: EVOLVED TO MULTI PHASE 4: EXCLUSIVE NEXTGEN GOVERNANCE PLAYER BANKING BC POINT MODEL SPECIALITY STORE MODEL DIGITAL CONVENIENCE STORE PHASE 1: CSC & E-MITRA PHASE 4 : NEXTGEN KENDRA PHASE 2 : BANKING BC PHASE 3 : MULTI-SPECIALI
Slide 49: Thank You
Vakrangee / ’ Thank You