Ugro Capital Limited · NSE:UGROCAP
Ugro Capital — Q1 FY2023 Earnings Presentation
30 slides from Ugro Capital's earnings presentation, Jul 25, 2022
Slide 1: UGRO Capital Limited Q1'23 Investor Presentation
UGRO Capital Limited Q1’23 Investor Presenta�on Catalyzing the future of credit access for MSMEs NSE: UGROCAP | BSE: 511742
Slide 2: Safe Harbor
Safe Harbor This presenta�on has been prepared by UGRO Capital Limited (the “Company”) solely for your informa�on. By accessing this presenta�on, you are agreeing to be bound by the trailing restric�ons. This presenta�on is for informa�on purposes only and should not be deemed to cons�tute or form p
Slide 3: Executive Summary
GRO Executive Summary
Slide 4: Data can be the engine for SME credit in India
It has been proven that data can be the engine for SME credit in India End to End MSME Digital Lending is now a reality Iden�ty Tax and Legal Filing B2B e-Commerce Layer e-KYC Apps Embedded Credit Aadhar E KYC E Sign Neo Banks 50% + of Social Networks MSME and Retail loans to Payments Accoun�ng and
Slide 5: India's first fully data driven Lending as a Service company
India’s First fully data driven Lending as a Service (LaaS) Company Business Loan Public Sector – Secured Banks Machinery Private Sector Micro and Small Business with Liability / Co-lending Partners Finance Banks 1 L to 5 cr credit need Business Loan Data – Unsecured Driven SFBs Mul� 10 Co-lending C
Slide 6: Evolved to a Data Tech Company within 3 years of inception
Evolved to a Data Tech Company within 3 years of incep�on Technology Pla�orms Opera�ons and Collec�ons • Web & Mobile based applica�ons for each • E-Sign Applica�on, E-Agreement, business channel Customer Whatsapp bot, E-NACH integra�ng on one common • Payment gateway integra�on business pla�orm + D
Slide 7: Revolutionizing credit to MSMEs through data driven underwriting
Revolu�onizing credit to MSMEs through data driven underwri�ng 21,000+ Dec 2022 • Gro Score 3.0 Applica�ons processed Gro Score 3.0 • One score combining bureau, banking & GST data since Jul 21 67,000+ Mar 2022 • 76% of prime branch book on boarded through Gro Score • Analysis of accepts & rejects s
Slide 8: Data driven proprietary scoring model powered by AI / ML Models
Data driven proprietary scoring model powered by AI / ML Models Ability to capture alternate data from banking and bureau.. … and to draw meaningful insights out of unorganized data Across Mul�ple parameters Ar�ficial Intelligence GRO 2.0 GRO 3.0 Engineering of making Intelligent Credit Credit Bureau
Slide 9: GRO Score 2.0 – Proof of Concept
GRO Score 2.0 – Proof of Concept Market Performance of Disbursed cases Score Disbursed cases Non Disbursed 30+ DPD % in 6 months 90+ DDP % in 6 months Band count cases count 4% 4% 9% 9% 8% 8% 3% A 2,352 4,885 6% 5% 5% 2% 2% B 1,346 3,381 4% 2% 3% 1% C 585 2,779 2% 2% 1% 1% 1% 1% 1% 0% D 228 1,360 A
Slide 10: Deep analysis of macro and micro economic factors to develop sector focus
Deep analysis of Macro and Micro Economic Factors to develop sector focus A con�nuing process involving extensive study of macro and micro economic parameters carried out in conjunc�on with market experts like CRISIL Light Engineering Chemicals Auto Components Hospitality Healthcare Micro Educa�on F
Slide 11: System Architecture to support full-suite SME Lending
System Architecture to support full - Suite SME Lending GRO - Plus GRO - Direct Intermediaries Direct Interface An uberized distribu�on model for Direct to customer (Online) FOS origina�on and onboarding channel – went live in beta phase DSAs, CAs and other intermediaries in December 2019 GRO Partne
Slide 12: Catering to all credit needs of all MSMEs
Catering to all credit needs of all MSMEs 20 Prime Branches Supply Chain Financing Secured LAP 76 Micro Branches 1,000+ GRO Partners Unsecured Business Loans Our Product 49 Offering Affordable LAP Anchors 29 OEMs 32 Fintech Partners Machinery Loans Micro Enterprises Loans 685+ Sales Employees WWW.UGRO
Slide 13: Multi pronged approach led by technology capabilities
Mul� pronged approach led by tech capabili�es Branch-Led Channel Prime Loan Branches Micro Loan Branches Catering to Micro and Small enterprises through 95+ branches Ticket Size ROI Ticket Size ROI • Prime Loan Branches : 20 branches with loans largely sourced through LAP 50L-500L 12%-12.5% LAP 2L –
Slide 14: Building India's largest Co-Lending platform: Lending as Service
Building India’s largest Co – Lending pla�orm: Lending as Service Increasing Mix of Off Book AUM • Secured Business Loans 1% 2% 4% 7% 16% 21% • Agreement under new co-lending regulation – Jun’21 • Small Ticket Secured and Unsecured Business Loans • Agreement under new co-lending regulation – Nov’21 •
Slide 15: Business Model Evolving to Generate Significant Cashflows
Business Model Evolving to Generate Significant Cashflows FY22 Q4FY22* Q1FY23* FY23P FY25P AUM (INR Cr) 2,969 2,969 3,656 7,000+ 20,000+ Off Book AUM % 16% 16% 21% 35% + ~ 50% Net Total Income % 9.3% 10.6% 10.5% ~ 13.0% ~ 15.0% Cost to Income Ratio % 71.8% 73.3% 72.1% ~ 60.0% ~ 45.0% Credit Cost % 1.5
Slide 16: Portfolio Performance
GRO Portfolio Performance
Slide 17: Well Diversified and Granular Portfolio
Well Diversified and Granular Por�olio Product Mix Por�olio Concentra�on in key geographical areas* Sector Mix* 17% 10% 52% 17% 18% 22% 9% 10% 5% 9% 8% 27% 14% 20% 11% 12% 11% Secured Prime Loans Supply Chain Finance 8% Unsecured Prime Loans Machinery Loan 4% 5% 4% 14% 6% Micro Loans Partnerships and
Slide 18: Portfolio Provisioning, Collection Efficiency & Restructuring Highlights
Por�olio Provisioning, Collec�on Efficiency & Restructuring Highlights Overall Collec�on Efficiency Trend • Total provisions as of Jun’22 stood at ₹49.4 Cr (1.7% of the Loan Exposure) 93.0% 93.3% 93.8% 93.9% 93.3% • GNPA stood at 2.13% and NNPA stood at 1.57% as of Jun’22. • Majority of the restructurin
Slide 19: Operating and Financial Metrics
Opera�ng and Financial Metrics
Slide 20: Operating & Financial Metrics
Opera�ng & Financial Metrics AUM (INR Cr) Gross Loans Originated (INR Cr) Total Income (INR Cr) & Por�olio Yield$ +166% +23% +311% +41% 3,656 1,359 16.0% 16.4% 16.7% 2,969 15.8% 15.7% 2,589 21% 1,053 963 114 124 1,933 7% 16% 791 85 1,375 4% 63 79% 331 51 2% 93% 84% 96% 98% Q1'22 Q2'22 Q3'22 Q4'22 Q1
Slide 21: Finance | Income Statement
Finance | Income Statement Income Statement (₹ Cr) Q1 FY22 Q4FY22 Q1FY23 Interest Income 49.6 94.0 93.1 Gain on derecogni�on of Financial instruments 0.7 16.1 22.6 Other Income (Opera�ng + Non Opera�ng) 0.9 4.1 8.1 Total Income 51.3 114.2 123.8 Interest Expenses 22.4 49.7 53.1 Employee Cost 12.3 28.
Slide 22: Board and Management Team
GRO Board and Management Team
Slide 23: Eminent Board of Directors
Eminent Board of Directors Satyananda Mishra – S. Karuppasamy - Abhijit Sen - Karnam Sekar – Hemant Bhargava – Non Execu�ve Chairman Chairman, Compliance Chairman, Audit Commi�ee Independent Director Independent Director Ex-Chairman, MCX, Ex-CIC, GOI, Commi�ee Ex-CFO, Ci�-India Ex - MD & CEO of Indi
Slide 24: Strong Leadership Team with 190+ years of cumulative experience
Strong Leadership Team with 190+ years of cumula�ve experience Shachindra Nath - Amit Mande - Anuj Pandey - Amit Gupta - Sunil Lotke – Vice Chairman & Managing Chief Revenue Officer Chief Risk Officer Chief Financial Officer Chief Legal & Compliance Director 20+ Years of Experience 20+ Years of Experience
Slide 25: Annexures
GRO Annexures
Slide 26: U GRO Capital - Overview
U GRO Capital - Overview About UGRO Vision / Mission Our Thesis U GRO Capital limited is a BSE and NSE listed, Problem of MSMEs can be solved by technology focused, small business lending pla�orm. Mission: Bringing homogeneity to a non-homogeneous Sector Built on 5-pillars of Data, Technology, Stron
Slide 27: Platforms further integrated with rich data enrichment layer
Pla�orms further integrated with rich data enrichment layer Branch Channel Partnership & Alliances Sourcing Channel Supply Chain Financing Partnership & Alliances Digital Direct (Prime + Micro) Marketplace A Plug and Play Partnership & GRO-Plus & Micro GRO Direct Distribution Module Alliances API Fr
Slide 28: U GRO Capital – Journey since inception
U GRO Capital – Journey since incep�on 3,656 Cr 1,375 Cr 861 Cr 79 Cr Raised Started Capital Disbursing Jul’18 Jul’19 Mar’19 Mar’20 Jun’21 Jun’22 Growth Covid – 19 Cautious Covid – 19 Resuming Growth Stage Operational Shut Resumption of Wave 2 Stage down Operations Operational Slow (Apr – Jun) Down
Slide 29: Lending as a service is a highly profitable model
Lending as a service is a highly profitable model Sample Illustra�on Assump�ons for Calcula�on Par�culars (INR Cr) Normal Scenario Co-lending Par�culars Ra�os Loan Amount 1,00,000 1,00,000 Yield 14.5% Interest Income 14,500 2,900 Co-lending spread income - 3,200 Cost of Borrowing 10.5% Interest Expen
Slide 30: UGRO Capital Limited Registered Office
UGRO CAPITAL LIMITED Registered Office Address: Equinox Business Park, Tower 3, 4th Floor, LBS Road, Kurla (West), Mumbai - 400070 CIN: L67120MH1993PLC070739 Telephone: +91 22 4891 8686 l E-mail: customercare@ugrocapital.com | Website: www.ugrocapital.com