Investor Presentation June 2020 1
Sanskrit for “ empowerment ”, niyogin is born out of a deep understanding of the real We are niyogin problems faced by small businesses every day - beginning with collateral free access to credit. We are a passionate team of people who are re-imagining the future of small businesses in India by applying technology, data, analytics and human understanding Our Vision Our vision is to be the country’s best small business centric organization , empowering customers through an ecosystem of products, partnerships, technology and exceptional customer experience. Our Mission Our mission is to give small businesses access to a holistic support system , through cost efficient, innovative technology and a committed network of partners 2
NIYOGIN “Evangelization” and product Equity Capital. Sufficiently funded with right customization due to community presence business model to enable digitisation CAPITALISING ON of finance professionals network THE OPPORTUNITY EFFICIENT HYBRID CAPITAL DISTRIBUTION Externalizing the 4 key components to create an enabling platform Empowering MSMEs On-going pandemic to accelerate digitisation TECHNOLOGY & SOLUTIONS & DATA STRATEGIC ALLIANCES Platformification by providing access to Enabling customers to digitise and formalise services/products beyond credit their businesses. 3
Foundation of trust Innovative, flexible ● ● and transparency and agile solutions to MSME problems IMPACT Customer Centric Approach niyogin aims to have a Paperless ● Helping NTC ● positive impact in every Approach Customers sphere possible Financial Environment Empowerment Reach beyond ● Tier 2 cities SaaS Offerings ● Local support & ● NRM’s Reaching Enabling Underserved Technology 4
PHASE 2 ✔ Tech centric & no burn ✔ Accrete BV - Realigned investments to reflect lighter business model PHASE 1 THE JOURNEY ✔ Scale retail partner network ✔ Capital raise of $40m ✔ Balance sheet light & specialised credit ✔ Scaling distribution : 1900+ partners Phase 1 - Credit centric onboarded on the platform ✔ Leverage retail beyond credit ✔ Reach : Distribution across 10 states and 131 locations ✔ Evaluate M&A with like minded founders Phase 2 – Tech centric ✔ Platform Customers : 16k+ ✔ Digital credit centric organisation ✔ Foray into digital wealth tech with Moneyfront 5 FY 21 & Beyond FY 18 - FY 20
350M Consumers 3.5M Businesses C PLATFORM PLAY R RETAIL E RETAIL CHANNEL - NIYOGIN D I T Moving from narrow credit to wider tech centric model Platform Delivery Distribution Centric (B2B+C) Category Centric Selective On BS Credit 6
EXECUTION FOCUS Accelerate digital Culture Collections Active foreclosure and collections Idea meritocracy program for high risk (current) Tech centric customers BV accretion Managing risk BV accretion Cross-Sell Aggressively cut burn SaaS wealthtech - live Realigned costs – full impact from Q2FY21 Secured loan partnership - live 7
Retail Network Outcomes RETAIL BEYOND CREDIT Continued 2500+ partners on- expansion of retail Scale Retail boarded* network & Deep distribution Low CAC customer beyond Tier - I access Actively leverage beyond on-balance sheet credit - SaaS Wealthtech Tech and platform - MSME digital centric products workspace * Partner count as of June 2020 8
Specialised - WIP ● PRODUCT VIEW Credit Payments - WIP ● GST - Live ● Wealth - Live ● Our aim is to be the Treasury - Live ● Insurance - WIP ● “Go to platform” that addresses business Compliance Financial SME’s needs Services Wealth Tech - Live ● Digital ● Business Services - Pilot ● workspace for MSMEs - Pilot SaaS Technology 9
Digital transaction data Digital Customer data • product, • Video KYC • payment • Reports & analytics • logistics • Bill payments DATA DRIVEN PRODUCTS Data gathering stage Financial Details ingestion • PO & invoice in formation • Bureau analyzer • Accounting data through API • Banking analyzer • Transaction data • GST data Constant data engagement with Data lake customers Financial guidance Scorecard based decisioning Data driven engagement • Invoice discounting • Cost flow reports - Treasury and investments • FD, RD, Credit card • Co- lending - Insurance • Current account • Fee generation
Wealth AUM India (INR .trn) VC/PE Funding India ($ mil) CAGR : MF : 25% , Bank Deposits : 9% WEALTH TECH MARKET OPPORTUNITY Niyogin’s Approach - SaaS centric model - Digital D2C - Moneybot Advisory Increasing High Tech Low Penetration Individual Wealth Adoption Rate Levels Source : a)Source: AMFI, RBI, CRISIL Research; Note: Bank deposits includes nationalised banks, private sector banks and foreign banks 11 b)Emerging technologies disrupting the financial sector PWC 2019
VALUE PROPOSITION WEALTH TECH IN RETAIL CHANNEL SaaS model SaaS based wealth platform Low cost & full stack digital Partners leverage their for partners transaction and knowledge existing customer Launched in Apr 2020 platform relationships Encouraging early adoption trends EARLY TRENDS Focus on scaling and AUM activations Partners converting and Healthy early conversion Positive trends on AUM building new digital wealth activation rates post rate from existing partners practice adoption 12
Platform customers (L-F-L) Retail partners 2,500 20,000 16,627 1,925 2,000 43 % 15,000 PLATFORM 11,582 3x 1,500 METRICS 10,000 1,000 612 5,000 500 FY20 vs FY19 - - FY19 FY20 FY19 FY20 Wealth AUM (INR M) Credit activation rate (%) 7,497 8,000 40% 43 % 33% 27% 6,000 5,250 30% 25% 22% 20% 20% 4,000 10% 2,000 0% 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 - FY19 FY20 13
AUM (INR M) Disbursals (INR M) 2,000 1,600 1,407 1,731 1,800 CREDIT 1,400 1,600 METRICS 1,200 2.8x 1,400 2.8x 1,000 1,200 1,000 800 800 615 510 600 600 FY20 400 400 200 200 - - FY19 FY20 FY19 FY20 Ticket Size (INR M) & ROI (%) Asset Quality (%) 2.00 26.0% 1.80 1.50 24.0% 1.50 1.30 24.6% NNPA 0.91% 1.10 21.0% 23.4% 22.0% 0.87 0.87 0.86 1.00 22.1% 0.73 19.9% 20.2% 20.8% 21.4% 20.0% 0.50 18.0% GNPA 4.86% 0.00 16.0% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Ticket Size ROI 14
FINANCIAL Q4FY2020 Q4FY2019 Standalone (INR M) YoY Change SNAPSHOT (31 Mar 2020) (31 Mar 2019) Total Income 81.9 62.1 31.9% Q4’20 vs Q4’19 Total Expenses (excl. ECL) 72.9 77.9 -6.4% ECL 71.5 21.4 234.1% Reported Profit/(Loss) -62.4 -37.2 NM Depreciation and amortisation 8.5 8.4 1.2% ESOP 5.9 15.9 -62.9% Cash Profit/(Loss)* 15.9 -12.9 NM Adjusted Profit/ (Loss)* 1.7 -37.2 NM Note: * Pre estimated COVID-19 ECL charge of INR64.1M (GDP + Management Overlay) ⮚ 32% YoY revenue growth ⮚ Cash profit adjusting for Covid-19 ECL charge 15
FINANCIAL FY2020 FY2019 SNAPSHOT Standalone (INR M) YoY Change (31 Mar 2020) (31 Mar 2019) Total Income 276.3 228.5 20.9% FY20 vs FY19 Total Expenses (excl ECL) 339.2 288.6 17.5% ECL 170.0 21.7 683.4% Reported Profit/(Loss) -232.9 -81.8 NM Depreciation and amortisation 34.5 30.8 12.0% ESOP 38.9 37.4 4.0% Cash Profit/(Loss)* -95.4 -13.6 NM Adjusted Profit/ (Loss)* -168.8 -81.8 NM Note: * Pre estimated COVID-19 ECL charge of INR64.1M (GDP + Management Overlay) 16
Gaurav Patankar Amit Rajpal FOUNDERS Our founders are Gaurav is the CIO of Atharva A&C an OCIO and a Family office Amit is the CEO of Marshall Wace Asia and is proven Financial advisor and in that capacity advises several institutional an expert in the area of financial services, investors. He is also the contributing EM strategist at Institutional investing and research with 20+ years of Bloomberg. Over the last 20 years, Gaurav has been an Investors experience activist investor focused on emerging markets having worked at Bank of America, BNY Mellon, Citigroup, Millennium Partners and Lockheed Martin. He started his career as the co-founder of Information Interface India Pvt. Ltd. ( niyogin’s parent). Gaurav is an engineer and an MBA and completed his PhD in Political Science and Social Economics. KEY INVESTORS Carmignac Emerging Portfolio WF Asian Reconnaissance Fund Limited Our investor base comprises of well Alchemy India Long Term Fund Ltd established Strategic India Equity Fund institutional funds and HNWI Vikasa India EIF I Fund 17
Recommend
More recommend
