Slide 1: Vakrangee results update filing letter
Vakrangee CWff)~ Vakrangee Limited "Vakraflgee Cal porate House", Plot NO. 93. Road No. 16, M I,DC, Marol , Andheri (East) , Mum bai 400093, Maharashtra W www.vakrangee. in I L ~91 2 22 850341 2 / +9 1 2267755100 F ~91 22 2850 20J 7 1 IN L65990MHL990PLC056669 November 13, 2019 To, Department of Corp
Slide 2: Vakrangee Limited Results Update Q2FY2019-20
THE ASSISTED DIGITAL CONVENIENCE STORE VAKRANGEE LIMITED RESULTS UPDATE – Q2FY2019-20 November 13, 2019
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 Results Performance Update 04 Q2 & H1 FY2019-20 Results Update 17 Strong Corporate Governance – Regulatory Compliances 19 Company Overview 21 Update on Awards & Recognition 38 Directors & Leadership Team 41 Annexures 44 Kendra Evolution 45 Branding & Marketing Campaign 53 3
Slide 5: Results Performance Update
RESULTS PERFORMANCE UPDATE 4
Slide 6: Key Highlights - Q2 FY2019-20
RESULTS PERFORMANCE UPDATE Key Highlights - Q2 FY2019-20 REVENUE FROM OPERATIONS EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 1,518.5 204.6 108.7 1,267.8 192.6 78.1 19.8% 6.2% 39.1% Q1 FY2019-20 Q2 FY2019-20 Q1 FY2019-20 Q2 FY2019-20 Q1 FY2019-20 Q2 FY2019-20 • Robust growth seen in Financials due to clea
Slide 7: NextGen Outlets – Performance Update
NEXTGEN OUTLETS – PERFORMANCE UPDATE ~Rs. 37.5 Bn 8,500+ Quarterly Throughput on Nextgen No. of NextGen Outlets currently Vakrangee Platform – Transaction operational Value (in Rs.) ~US$ 2.1 Bn ~15.1 Mn Annual Run Rate Throughput – Quarterly No. of Transactions on Transaction Value - basis Current N
Slide 8: Visibility on Opening of NextGen Outlets
NEXTGEN OUTLETS – PERFORMANCE UPDATE VISIBILITY ON OPENING OF NEXTGEN OUTLETS Total Number of Total Number of Outlets under Operational Outlets : Formal Expression of On-Boarding Interest : 8,500+ Process : 74,000+ 12,500+ CLEAR VISIBILITY OF 25,000 NEXTGEN OUTLETS BY MAR 2020 7
Slide 9: Guidance on Opening of NextGen Outlets
NEXTGEN OUTLETS – PERFORMANCE UPDATE GUIDANCE ON OPENING OF NEXTGEN OUTLETS 3,00,000 NO OF NEXTGEN OUTLETS 25,000 21,000+* 8,500 LONG TERM TARGET 3,504 95 Dec-18 Mar-19 Jun-19 Sept-19 Mar-20 E Mar-25 E Note: * Operational outlets Outlets under On-Boarding Process Planned Target is to have last Mile
Slide 10: NextGen Outlets – Performance Update
NEXTGEN OUTLETS – PERFORMANCE UPDATE NextGen Live outlets are currently only 9 months old. The below is the Average Data for the month of September 2019. As the stores mature, we expect the financials to significantly improve. Avg. No. of Daily Transactions - ~40-50 transactions per day per ATM ATM
Slide 11: NextGen Outlets - Performance Summary
NEXTGEN OUTLETS - PERFORMANCE SUMMARY Debt Free & Cash Rich Balance Sheet Zero Strong Promoter Senior WELL Pledge & Mgmt. team POISED FOR Promoter STRONG in Place Stake GROWTH Increased Scalable All Franchisee Regulatory Model with Compliances Strong in Place Operating Leverage 10
Slide 12: Case Studies: NextGen Top Performers – Santidev Bag
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 3,05,145 From Assisted Online Shopping in just 1 month” SANTIDEV BAG West Bengal Number of Orders 305 TIER 5 LOCATION AGEING OF OUTLET –11 Months 11 Total Sale Value ₹ 15,87,009 11
Slide 13: Case Studies: NextGen Top Performers – Mahtab Alam
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 2,22,676 From Assisted Online Shopping in just 1 month” MAHTAB ALAM Uttar Pradesh Number of Orders 618 TIER 3 LOCATION AGEING OF OUTLET – 11 Months Total Sale Value ₹ 11,76,393 12
Slide 14: Case Studies: NextGen Top Performers – Satendra Kumar
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 1,72,462 From Assisted Online Shopping in just 1 month” SATENDRA KUMAR Uttar Pradesh Number of Orders 2,074 TIER 1 LOCATION AGEING OF OUTLET – 11 Months 13 Total Sale Value ₹ 2,89,784 13
Slide 15: Case Studies: NextGen Top Performers – Suparna Raje
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 35,291 From Assisted Online Pharmacy in just 1 month” SUPARNA RAJE West Bengal Number of 2,411 TIER 2 LOCATION Transaction AGEING OF OUTLET – 11 Months Total Transaction Value ₹ 2,37,393 14
Slide 16: Case Studies: NextGen Top Performers – Baburao Devkate
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 54,886 From BFSI – Banking Services in just 1 month” BABURAO DEVKATE Maharashtra Number of Accounts 165 TIER 4 LOCATION Opened AGEING OF OUTLET – 3 Months Total Transaction Value ₹ 2,29,85,527 15
Slide 17: Case Studies: NextGen Top Performers – Rushikesh Bankatrao
CASE STUDIES : NEXTGEN TOP PERFORMERS “I have earned Rs. 1,10,693 From BFSI – ATM Services in just 1 month” RUSHIKESH BANKATRAO Maharashtra Number of Financial 10,001 TIER 6 LOCATION Transaction AGEING OF OUTLET – 9 Months 16 Total Transaction Value ₹ 2,21,35,300 16
Slide 18: Q2 & H1 FY2019-20 Results Update
Q2 & H1 FY2019-20 RESULTS UPDATE 17
Slide 19: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q2FY2019-20 Q1FY2019-20 QoQ % H1FY2019-20 Revenue from Operations 1,518.5 1,267.8 19.8 2,786.3 Total Expenses 1,558.9 1,315.4 18.5 2,874.3 EBIDTA 204.6 192.6 6.2 397.2 Profit before Tax (PBT) 168.5 157.6 6.9 32
Slide 20: Strong Corporate Governance: All Regulatory Due Diligence Already in Place
STRONG CORPORATE GOVERNANCE : ALL REGULATORY DUE DILIGENCE ALREADY IN PLACE 19
Slide 21: Strong Corporate Governance – SEBI, EOW, MCA Investigations
STRONG CORPORATE GOVERNANCE ALL REGULATORY DUE DILIGENCE ALREADY IN PLACE SEBI INVESTIGATION EOW INVESTIGATION MCA INSPECTION There were no findings or Clean chit given to Update on MCA Inspection instance of any stock promoter & promoter - No Irregularities & no manipulation by Promoter group with
Slide 22: Company Overview
COMPANY OVERVIEW 21
Slide 23: NextGen Vakrangee Kendra – Scope of Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES Vakrangee Kendra offers a broad spectrum of services across different sectors to offer a “One Stop Shop” solution for its customers ASSISTED E-COMMERCE : BFSI & ATM SERVICES : Assisted Online Shopping and ATM Pharmacy Insurance Services Bill Payments and
Slide 24: Assisted E-Commerce Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES ASSISTED E-COMMERCE SERVICES 23
Slide 25: 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 24
Slide 26: Unique Features of Assisted Online Shopping
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES UNIQUE FEATURES OF ASSISTED ONLINE SHOPPING Own The World’s Monopolistic Biggest E-mall : More than Offering of Marketplace 1 Crore+ products POTENTIAL EARNING OF High Quality Products at Rs. 1,00,000+ Competitive Prices Zero Working Capital per month Req
Slide 27: BFSI Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES BFSI SERVICES • ATM Cash Withdrawal • Non-Financial (White Label ATM License) Transactions • Money Transfer • Lead Generations of Personal/Home/ Business Loans • Life Insurance • General Insurance • Health Insurance • Account Opening • Cash Withdrawal/ De
Slide 28: 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 29: Key Features – NextGen Vakrangee Kendra
KEY FEATURES – NEXTGEN VAKRANGEE KENDRA 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 30: NextGen Vakrangee Kendra – Gold Model
NEXTGEN VAKRANGEE KENDRA – GOLD MODEL NEXTGEN VAKRANGEE KENDRA: GOLD MODEL 29
Slide 31: NextGen Vakrangee Kendra – Silver Model
NEXTGEN VAKRANGEE KENDRA – SILVER MODEL NEXTGEN VAKRANGEE KENDRA: SILVER MODEL 30
Slide 32: NextGen Vakrangee Kendra – Our Presence
NEXTGEN VAKRANGEE KENDRA – OUR PRESENCE Sr. No. State & UT Name 1 Andhra Pradesh 21,000+* OUTLETS 2 3 Assam Bihar 4 Chandigarh 5 Chhattisgarh 29 STATES & UTs 6 7 Dadra and Nagar Haveli Daman and Diu 8 Delhi (NCR) 9 Goa 10 Gujarat 11 Haryana 12 Himachal Pradesh 13 Jammu and Kashmir 14 Jharkhand 15 Ka
Slide 33: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.21 BILLION TOTAL NO OF VILLAGES 6,54,424 TOTAL OUTLET POTENTIAL 3,69,977 RURAL OUTLET POTENTIAL 2,94,442 URBAN OUTLET POTENTIAL 75,535 Click here – Potential Market Opportunity 32
Slide 34: Advantage Vakrangee: Our Strengths
ADVANTAGE VAKRANGEE : OUR STRENGTHS Tie up with Technology & On Ground Field Size and Scale Strong Partners & Integration Presence till the with Strong Access to Key Expertise Block Level Franchisee Model Licenses • Over two decades of • Field Level Hierarchy System Integration till the Block level
Slide 35: Store Economics of a NextGen Kendra
STORE ECONOMICS OF A NEXTGEN KENDRA NextGen Outlet Estimated Avg. Revenue per Month Revenue Per Store Rs. 0.1 mn * 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 Ma
Slide 36: Our Proprietary Technology Platform
OUR PROPRIETARY TECHNOLOGY PLATFORM Technology Internet Connectivity • Technology platform integrated with CBS of • Seamless connectivity through V-SAT or Broadband Internet various banks, delivering real-time & interoperable banking access • Biometric authentication enabling quick KYC Security Spec
Slide 37: Franchisee Focused Team Structure
FRANCHISEE FOCUSED TEAM STRUCTURE Relationship Relationship Manager Corporate Head Office Team Manager Dedicated Dedicated support support State Operations State Marketing directly from directly from Head Office Head Head Head Office to franchisee to franchisee for all type of for all type of Operat
Slide 38: White Label ATM – Opportunity
WHITE LABEL ATM – OPPORTUNITY • India rank’s is 148 in the world in terms of ATM Density ATM per Mn Population 2,423 • Low ATM Penetration in Tier 3, 4, 5 and 6 cities ~ Huge opportunity for WLAs to bridge the gap between Urban 1,859 1,745 and Rural India 1,537 1,338 • As on September 2019, India ha
Slide 39: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 38
Slide 40: Awards & Recognition
AWARDS & RECOGNITION Vakrangee makes history by setting GUINNESS Vakrangee has been awarded as the best WORLD RECORDSTM title for the Most stores ‘FINANCIAL SERVICES RETAILER OF THE YEAR’ at launched simultaneously on 14th January 2019 the Indian Retail Awards 2019. Launches 1107 Nextgen Vakra
Slide 41: Awards and Certifications
AWARDS AND CERTIFICATIONS • Guinness World Records Title for the Most Stores Launched Simultaneously on 14th January 2019. Launches 1107 Nextgen Vakrangee Kendra stores across the country at 11.07 am on the same day • Awarded as the best ‘Financial Services Retailer of the year’ at the Indian Retail
Slide 42: Directors & Leadership Team
DIRECTORS & LEADERSHIP TEAM 41
Slide 43: Independent / Nominee Directors on the Board
INDEPENDENT / NOMINEE DIRECTORS ON THE BOARD Strong Board of Directors RAMESH JOSHI • Has about 40+ years of business experience in the banking industry. Non Executive • Has worked with RBI for over three decades and a former ED of SEBI Independent Director • Holds a Bachelor’s degree in Arts from t
Slide 44: Leadership Team
LEADERSHIP TEAM STRONG MANAGEMENT TEAM IN PLACE TO DRIVE NEXT PHASE OF GROWTH ACROSS ALL BUSINESSES • Has about 27+ years of business experience. Main functions and areas of responsibilities in the Company include policy DINESH formulation and decision making. NANDWANA • Has received a memento from
Slide 45: Annexures
ANNEXURES 44
Slide 46: Kendra Evolution
KENDRA EVOLUTION 45
Slide 47: Kendra Evolution – Phase 1: E-Governance Player
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER PHASE 1: CSC & E-MITRA MODEL OUTLETS WERE PRIMARILY TERMED AS “COMMON SERVICE CENTRE - CSC” OR “E-MITRA KENDRA” :- • NON-EXCLUSIVE STORE MODEL • SINGLE LINE OF SERVICE PRIMARILY E-GOVERNENCE SERVICES • NO STANDARDIZED DESIGN LAYOUT & BRANDIN
Slide 48: Kendra Evolution – Phase 1
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER 47
Slide 49: Kendra Evolution – Phase 2: Banking BC Point Model
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL PHASE 2 : BANKING BC POINT MODEL COMPANY RECEIVED THE BUSINESS CORRESPONDENCE BANKING MANDATE AND STARTED THE BC POINT SERVICES THROUGH THE KENDRA – • NON-EXCLUSIVE • DUAL LINE OF SERVICE - E-GOVERNENCE & BANKING SERVICES • NO
Slide 50: Kendra Evolution – Phase 2
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL 49
Slide 51: Kendra Evolution – Phase 3: Multi Speciality Store Model
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL PHASE 3 : MULTI-SPECIALITY STORE MODEL EVOLVED INTO A MULTI SPECIALITY STORE MODEL :– • PLANNED AS AN EXCLUSIVE STORE MODEL • MULTI-LINE OF SERVICES – BANKING, E- GOVERNENCE, INSURANCE, E-COMMERCE & OPTIONAL ATM SERVICES •
Slide 52: Kendra Evolution – Phase 3
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL 51
Slide 53: Kendra Evolution – Phase 4: Exclusive NextGen Store
KENDRA EVOLUTION PHASE 4: E-GOVERNANCE PLAYER TO AN EXCLUSIVE NEXTGEN ASSISTED DIGITAL CONVENIENCE STORE PHASE 4 : NEXTGEN KENDRA MODEL – ASSISTED EVOLUTION INTO AN EXCLUSIVE ASSISTED DIGITAL CONVENIENCE STORE DIGITAL CONVENIENCE STORE MODEL – • EXCLUSIVE STORE MODEL • MULTI-LINE OF SERVICES – BANKI
Slide 54: Branding & Marketing Campaign
BRANDING & MARKETING CAMPAIGN 53
Slide 55: National Level Advertising - Print
NATIONAL LEVEL ADVERTISING - PRINT 54
Slide 56: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 55
Slide 57: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 56
Slide 58: National Level Advertising - Localised
NATIONAL LEVEL ADVERTISING - LOCALISED 57
Slide 59: Thank You
Thank You 58