Unlocking Supply Chain Financing

Private & Confidential

August 2021

Investor Presentation
 Unlocking Supply Chain Financing 3.0

Supplier side supply chain Demand side supply chain Consumer financing

Inventory Inventory

Private & Confidential

Invoice Invoice
Customers
Raw Material Supplier
Corporates Distributors Retailers
0.5 Mn 15 Mn
Payment Payment

SCF 1.0 – Well funded by banks SCF 3.0 – Remaining leg to complete the entire cycle SCF 2.0 – Consumerism
pushing BNPL Demand

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 Operating in an ~$450bn opportunity

Industry Auto1 Consumer Kitchen FMCG Paints Education3 Apparels Pharma Cables
Durables2 ware

Private & Confidential

Size1
(US$) 49 20 4 230 9 4 85 42 10

$453bn

Sources: Avendus estimates

Note: 1. Auto ancillary industry; 2. excluding smartphones; 3. Pre-school education only; FX rate (1 USD = 74 INR) 3
 Product requirement of SCF 3.0 vs existing options

Solution that supply chain network is looking for

Invoice linked Shorter tenure Interest charged On Tap

Financing products on utilisation Financing

Private & Confidential

Existing solutions are broken and does not meet the requirements of the distribution networks

OD/CC Facility Credit from Trade partners Term loans

Backed by collateral with no Trade Partners eat into margins Negative carry & economically
control on end use of funds of 2% - 5% p.m unviable for inventory financing

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Mintifi - Building India’s largest supply chain financing platform

Corporate Distributors Retailers

Unlocking trade

Private & Confidential

Partnership with “Check out Shorter tenure
80+ blue chip data for flow based Financing” financing of
corporates underwriting experience 30 to 90 days

INVOICE

Riding on a Connecting with ERPs for

Very high acceptance
“Highly Trusted” ensuring
across any industry
network built over generations ”On Tap” financing
Benefits Benefits Benefits Benefits

Access to millions of SMEs Sub 1% default costs1 High stickiness and repeat Highly attractive yield of
with “Zero” CAC purchases 22%

Note: 1. Core business

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 Low risk model covering the entire value chain

Inventory Inventory

Corporate Distributors Retailers

Subvention Subvention

Private & Confidential

Disbursal Repayment Disbursal Repayment

Zero consumption Network extends subvention 45-60 days interest Social collateral “Stop Default
risk against early payments free period Supply” risk cover

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 Benefitting all stakeholders across the supply chain network

Corporate Distributors Retailers

Inventory turnover Earn cash discount Better margins

Lower collection cost 10% to 20% increase in sales Easy access to credit

Private & Confidential

Higher RoEs More operational efficiency Zero negative carry cost

Benefits to Mintifi

22% 11% <1%

Yield Cost of funds NPA
Best fintech Play with
Highly attractive Lower Cost of Funds Zero Customer Lower default risk1 Data/ tech ensuring high massive untapped
pricing Acquisition Cost operational efficiency market

Note: 1. Core business

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 Creating powerful network effect at scale

More Distributors More Distributors

Corporate
Distributors Retailers
Partners

Private & Confidential

More Enterprises More Retailer

Massive stickiness & cross sell opportunities

Corporate network helps in Building Brand awareness Distributors’ relationship helps Retailer experience helps Leading to a circular loop of
on-boarding distributors and trust in retailer on-boarding in on-boarding more more corporate partners and
Corporates access to massive network

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 $96mn of annualized purchases financed
Annualized Annualized
Maintaining strong growth momentum despite COVID Jun’20A Jun’21A
Annualized purchase financed1 (USD mn); Merchants served1 (#)
3,577 Purchase
3,225
$19mn financed $96mn
135
2,785

2,294 115
Invoices

Private & Confidential

2,026
96
100 24k financed 113k
(Volume)
1,342 85
993 997
1,085 73
864 67 69
667
53
248
373
505
46 $5.5mn AUM $15.3mn
147 191 41 44
35 32
26 24 24 23
20 22 19
13 12 16
10 11
4 5 7 Brands
0 2 2 1 56 83
onboarded
Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21
Purchases financed Merchants served COVID period
Projections

Note: 1. Core business; FX rate (1 USD = 74 INR) 9

 Most extensive network of blue-chip corporate partners

Ensuring free access to millions of SMEs already part of the network buying/ selling inventory

Large Indian
Conglomerates

Multinationals

Private & Confidential

Large Indian
Companies

Midsized Indian
Companies

Biggest entry barrier for any other player whereas creating an unparalleled network effect for us

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 Driving significant value for corporate partners

Market Leaders Challenger Brands Emerging Brands

Corporates

Private & Confidential

 Financing the long tail network  Increase market share  Access to new customers/ markets
Pain Points
 Demand forecasting  Drive higher sales without having to
block own working capital  Minimize credit control/ operations
costs

✓ Dealer/ Retailer financing ✓ Higher credit limits to drive growth ✓ Secured financing to reduce credit risk

Mintifi Offerings
Integrated platform for complete Subvention & deep tech integration End to end AR management including
✓ ✓ ✓
tracking of dealer/ retailer financing for “Single Credit Limit” ensuring digital invoicing & payments using
better credit discipline multiple payment options

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 Delivering strong value across range of partners

Overview Leading paint manufacturer Leading automotive player French lubricant major

Issues  Japanese firm with tight credit policy  No supply channel financing solution  Large well-established distributors but
offered to authorized service stations highly price sensitive
 Aggressive competition in the space and spare part dealers

Private & Confidential

 Looking for larger credit limits
Low ticket size (<INR 1.5 Mn) for
 traditional lenders  PAN India distribution network and
therefore, were looking for a partner
with similar geographical footprint

Outcomes ✓✓ Single credit limit with deep ERP ✓✓ 300+ dealers onboarded in less than 6 ✓✓ Mintifi offered a solution with part
integration months inspite of COVID deposit from distributors to reduce the
overall interest
Account locked in by Nippon in the Mintifi working as an exclusive partner
✓✓ event of any delay in repayment
✓✓ Runaway success with 30% of the
✓✓ portfolio funded through deposits
Mintifi working as an exclusive partner
✓✓ generating a yield 24% & zero default till
date

Distributor penetration 10% 36% 20%

(of Tata Motors’ distributors onboarded for retail
financing)

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 Partner onboarding picking up pace with increasing penetration

Strong momentum in new brands onboarded Continuous increasing in brand depth 120k+ annualized invoices processed

# Brands on the platform # Borrowers per corporate by cohort (top 50 corporates)

123
83
76
69
#10,000 #7,000 #6,000

Private & Confidential

55 57

47 47
40
57
#5,500 #4,000 #2,664
28 39

#2,016 #1,530 #1,284

Q0 Q2 Q4 Q6 Q8 Q10 Q12
Mintifi becoming Preferred Payment Option

COVID period FY18 FY19 FY20 # No. of Invoices financed

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 Why do distributors/dealers love to work with Mintifi

1 2 3 4 5

Private & Confidential

Opt to finance the Corporates provides Distributors repays
Distributors Mintifi transfers funds
invoice using Mintifi or subvention to Mintifi within 90 days
receives invoice to corporates
pay directly via PG distributors

Creates a highly sticky

Single
platform for continuous
Platform
Invoicing Payments Auto Posting
customer engagement

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 Increasing engagement with borrowers over time

High share of repeat purchases Value retention over 1 year1

Share of monthly purchase financed Cum. monthly purchases by cohort financed starting M0

Cumulative
Disbursals from
M1-M12

Private & Confidential

90% Disbursals
83% 83% 79% 80%
in M0
3.4x
47% 46% 50%
33%

Q1FY20 Q3FY20 Q1FY21 Q3FY21 Q1FY22 M0 M3 M6 M9 M12

Repeat Merchants New Merchants

Note: 1. For disbursals, monthly average taken across cohorts M0 to M12 for Jun’20 - Jun’21
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Network effects driving strong momentum in T2 financing

Private & Confidential

Onboarded in Dec ‘20 PAN India campaign to Ongoing discussions with 3
onboard retailers by M&M other leading auto brands in
40+ distributors onboarded India which are likely to
6 distributors onboarded in less close by Sep end
250+ retailers with INR 30 than a week
crore limit

Word of mouth spread across

the auto segment
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Nearly 75k SMEs with US$4bn of annualized sales data synced

72k
US$100mn
Pre-approved limits across the
3,565 existing network
52k

2,831
39k
3x

Private & Confidential

2,181
Growth in Distributors in 12 months1

22k

787
30x
Growth in retailers in 9 months1

2018-19 2019-20 2020-21 2021-22

Annualised turnover synced (USD mn) Borrowers (#)

Note: 1. Core business

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 Leveraging flow-based data for superior underwriting and risk
monitoring
Sources Credit underwriting variables Risk monitoring

Early warning
Corporate transaction data Funds transfer directly in risk
corporate’s account assessment
Monthly Bureau platform
Payment history transaction scrub
with corporate frequency
Corporate

Private & Confidential

No invoice above 30 days
Cash flow can be financed Risk grade
Partners level data customers with
defined
actionable for
Relative Underlying
Tax returns collections
performance Product sold generates flow based team
of distributors profits data
KYC records
Merchants Bank
Single credit limits
statement Ecosystem
to avoid Self learning
analysis feedback overleverage loop
Repayment
trends
Zero
Consumption
Traditional methods (T) Mintifi (M)
Risk

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 Tech being the backbone for execution

ERP Integration
Access to proprietary data – purchase history, payment
records

Private & Confidential

Supply chain management platform
Invoice/ credit limit management, real time drawdowns,
repayments and reconciliation

Borrower portal
Manage multiple credit limits, enjoy early payment cash
discounts and analyse cashflows through a single platform

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Real time decisioning engine for lead prioritization & risk classification

Analyzing 100s of variables for lead optimization. Helps in driving significantly higher productivity and better credit decisioning

Anchor Data Policy

Analysis Framework

ERP/ Tally Bureau Smart Leverage

Sync Match Analysis

Private & Confidential

Vintage Sales CRM
Industry Risk

New
Data feature
Purchase
History
APIs Rollup creatio
n

Anchor Risk
LOS
Payment
Track Public Alternate Loan Original
Data data Platform

Demographi Borrower
cs Risk

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Leveraging WhatsApp for superior client engagement & real time
invoice financing

Private & Confidential

Launching India’s First Engage with customers in Send schedule reminders On-tap checkout
invoicing & payments real time as well as payment Links financing experience
solution on WhatsApp

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 Hybrid balance sheet to optimize on cost and liquidity

On balance sheet Off balance sheet Deposits collected as a share of AUM1

Diversified source of financing (16 lending partners) Co-lending platforms with leading financial Institutions
14%
14%

“Amongst the lowest COFs for any 12%

fintech player”
Banks NBFCs Public Market Funds

Private & Confidential

8%
Significant decline in COFs even during pandemic
11.00%
14.00%
10.00%
12.50% 3%
9.50%
11.30%

Jun-20 Sep-20 Dec-20 Mar-21 Jun-21

FY20 FY21 FY22E Muthoot DCB SBM

Rationale for lenders

offering compelling
interest rates Experienced management
Corporate led supply chain Negligible credit costs Plug & play tech solution
team
Note: 1. Core business
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 On track to become profitable by Sep ‘21

Monthly P&L (USD ‘000) Jun ’20A Sep ’20A Dec ’20A Mar ’21A Jun ’21A Sep ’21E Dec ’21E Mar ’22E

Interest Income 204 241 230 233 306 419 611 854
Interest expense 54 75 87 93 86 127 257 286
NIM 150 166 144 140 220 291 354 567

Private & Confidential

Other Income 37 34 69 104 87 145 191 367
Net Revenue 188 200 213 245 307 437 545 934

Provisioning cost 18 (18) 220 267 118 67 78 104

Total OpEx 142 177 198 335 228 348 437 498

PBT 27 41 (205) (358) (39) 22 29 332

Note: FX rate (1 USD = 74 INR)

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 Unit Economics

FY22E Steady State

Gross Yield 1 25.5% 22.5%

Cost of funds 6.7% 11.3% interest rate 7.5% 9.2% interest rate

15.0%

Private & Confidential

Net Yield 18.7%

Credit costs 2.9% 0.9%

Opex 14.1% 5.6%

Taxes 2.1%
Leverage2 Leverage2

ROA 1.7% 0.7x 6.4% 4.5x

ROE 2.1% 24.9%

Note: 1. Includes processing fee, insurance & other income; 2. Synthetic leverage which includes co-lending book
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 Potential to create a $1bn+ outcome

Jun’21A Mar’26E Potential to create $1bn AUM by Mar’26

83 Brands 400 25%

20%

Private & Confidential

14%

10%
2.4k Distributors 13k
1,013
2.1%

593
0.5k Retailers 33k 319
59 151

FY22E FY23E FY24E FY25E FY26E

Annualized AUM ($ mn) ROE (%)

$96mn $3.5bn
Purchases financed

Note: FX rate (1 USD = 74 INR)

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 Building a deeply integrated supply chain platform

Digitising retail value chain

Vendor financing

Private & Confidential

Invoicing & payment solution Leveraging seamless integration
to provide inventory and retailer

SaaS offering for corporates to management solutions to

do dynamic discounting by distributors and retailers

Automated invoice generation
via ERP sync with multiple leveraging existing integrations

payment options including

WhatsApp

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 Backed by an ideal mix of technology edge and deep
understanding of credit risk

▪ Ex - MD & TMT Head (India &

SEA) Jefferies Investment
Banking
Anup Agarwal ▪ 16+ years of IB experience Pushkar Aditya Pravin Mhatre Viswadeep Chavali Tilak Dadhich
Chief Technology Officer Tech Products Data science
Co-founder & CEO

Private & Confidential

▪ Ex-President & COO of Minhaj Malik Madhavi Bhalerao Nishant Ratanpal Raghu Venkat
Sales Collections Credit Senior advisor
Neo-Growth
Sanjay Shome ▪ 24+ years of experience in
retail lending
Co-founder & COO

Poorvi Shah Jayesh Mandalia Akshay Sharda Tricha Anjali

Business development Risk Finance Senior advisor

▪ Co-founder & CEO of

Audience Backed by marquee investors
▪ 12+ years of product
Ankit Mehta development experience
Co-founder & Chief Architect

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 Profit & loss statement and RoE tree
Numbers in $mn FY21A FY22E FY23E FY24E FY25E FY26E FY21A FY22E FY23E FY24E FY25E FY26E

Purchases Financed 39 159 576 1,165 2,137 3,544

Balance sheet AUM 18 53 120 255 473 809
Co-lending AUM 1 6 31 65 120 205
AUM 19 59 151 319 593 1,013
Interest Income 3 6 19 39 73 125 20.8% 18.9% 20.1% 19.8% 19.5% 19.1%
Interest Expense (1) (2) (6) (14) (28) (49) 6.6% 6.7% 6.2% 7.3% 7.5% 7.5%
Net Interest Income 2 4 13 24 45 76 14.1% 12.1% 13.9% 12.5% 11.9% 11.7%

Processing Fee 0 1 3 6 11 18 1.8% 3.2% 3.0% 3.0% 2.9% 2.7%

Private & Confidential

Investment Income 0 1 1 2 2 3 1.6% 2.3% 1.4% 1.0% 0.6% 0.4%
Insurance Income 0 0 0 0 1 1 0.2% 0.2% 0.2% 0.2% 0.2% 0.1%
Other Income 0 0 0 0 0 0 1.0% 0.9% 0.3% 0.1% 0.1% 0.0%
Gross Revenue 3 8 23 47 87 147 25.3% 25.5% 25.0% 24.2% 23.2% 22.5%

Net Revenue 2 6 17 33 59 98 18.7% 18.7% 18.8% 16.9% 15.7% 15.0%

Credit Cost (1) (1) (1) (2) (4) (6) 7.5% 2.9% 1.2% 1.2% 1.0% 0.9%
Employee Benefit Expenses (1) (2) (4) (6) (9) (13) 10.0% 7.4% 4.3% 3.2% 2.5% 2.0%
Other Operating Expenditure (1) (2) (5) (9) (16) (23) 7.9% 6.8% 5.7% 4.7% 4.2% 3.6%

Profit Before Tax (1) 1 7 15 30 56 (6.7%) 1.7% 7.5% 7.8% 8.0% 8.5%
Tax – – (1) (4) (8) (14) 0.0% 0.0% 1.6% 2.0% 2.0% 2.1%

Profit After Tax (1) 1 6 11 22 42

Return on Assets (6.7%) 1.7% 5.9% 5.9% 6.0% 6.4%
Return on Equity (7.1%) 2.1% 10.2% 14.0% 19.9% 24.9%

Note: FX rate (1 USD = 74 INR)

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 Balance sheet and Key Ratios
Numbers in $mn FY21A FY22E FY23E FY24E FY25E FY26E

Source of Funds 29 88 150 303 534 886

Shareholders' equity 17 51 57 102 124 200
Borrowings 11 33 89 195 401 674
Provisions 0 1 2 3 6 9
Trade payables 0 0 0 0 0 0
Other Liabilities 0 3 3 3 3 3

Private & Confidential

Application of Funds 29 88 150 303 534 886
Fixed Assets 1 1 2 3 3 4
Loans & Advances 18 53 120 255 473 809
Cash and Cash equivalents 10 33 27 45 56 72
Other Assets 0 1 1 1 1 1

Key Ratios
Debt/Equity 0.7x 0.6x 1.6x 1.9x 3.2x 3.4x
Cost of Funds 12.5% 11.3% 10.1% 9.8% 9.4% 9.2%
AUM/Net worth 1.1x 1.2x 2.7x 3.1x 4.8x 5.1x
Equity Infusions – 34 – 34 – 34

Note: FX rate (1 USD = 74 INR)

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 Contact

PANKAJ NAIK PRANAY JAIN PRANSHU SEJPAL

Co-Head, Digital & Technology Investment Banking Director Associate Vice President
E-mail: [Link]@[Link] E-mail: [Link]@[Link] E-mail: [Link]@[Link]
Mobile: +91 98204 13013 Mobile: +91 99875 62655 Mobile: +91 98206 80468
Landline: +91 22 6648 0020 Landline: +91 22 6648 0043 Landline: +91 22 6648 0932

Private & Confidential

SAHIL SHAH PRANJAY MODI
Associate Associate
E-mail: [Link]@[Link] E-mail: [Link]@[Link]
Mobile: +91 97697 23027 Mobile: +91 98998 37226
Landline: +91 22 2653 3488 Landline: +91 22 6648 0040

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