Financing Social Mobility @ Scale

Bazaari Global Finance Limited

Contents
► Our Mission @ Bazaari Global Finance Limited

► Addressable Market

► Team “JAVA”

► The JAVA Code

► Tech Enabled Approach

► Business Summary

► Long Term Plan

► The Ask; and Why Us?

 Our Mission @ BGFL

As a tech enabled NBFC, we are on a

mission to drive upward social mobility1
by offering comprehensive and accessible
financial services that address the unique
needs of Middle India.

1 Social mobility is the movement of individuals, families, households or other categories of people within or between social
strata in a society. It is a change in social status relative to one’s current social location within a given society
ADDRESSABLE
MARKET
Low Mid Income Customer: Small is Big
50% + of growing Indian population Income & Expense; Tidy & Rising Fast

In Mn

Major Spend: Accommodation & Commute Emergencies: Funded By Friends

Savings Friends Money Banks/ NA

Lenders` NBFCs

Source: ICE360, Home Credit- The Great Indian Wallet Study

Low Mid Income Customer: Banks Unable to Cater

BANKS / LARGE NBFCs UNABLE TO CATER TO LOW MID INCOME CUSTOMERS

▪ Small Ticket, Voluminous, Tough to Build & Manage ► SPECIALISED SCALABLE SOLUTIONS
▪ High Opex ► TECHNOLOGY – A KEY ENABLER
▪ Higher Credit Cost ► CROSS SELL, ACROSS LIFE CYCLE

SPECIALISED TECH ENABLED PLATFORM CAN HELP BANKS SERVICING LOW MID
INCOME CUSTOMERS
Low Mid Income Customers: Pot Of Gold
BRIDGE TO BANKING FUNDS: CO-LENDING & DIGITAL LENDING (LSP)
► Introduced in 2018, Co Lending Volumes
crossed INR 1 lakh Crores
► Digital Lending (LSP) volumes to continue
to out grow industry
► Future of catering Low Mid Income lies via
Co Lending or LSP route
OPPORTUNITY – BEST IN CLASS RISK ADJUSTED RETURNS FOR LENDERS
END USE PRODUCTS CURRENT MARKET IRR TICKET SIZE
SIZE ($ BN)
Accommodation Affordable Home (EWS) Loan 15 12%-18% INR 5L – 10 L
Micro Loan Against Property 7 16%-24% INR 5 L– 50 L
Commute Two-Wheeler Loan 14 19% - 25% INR 75k- 2L
Used Car Loan 6 15%-22% INR 3– 10 L (566,000)
Emergencies Personal Loan 151 24%-38% INR 5k – 5 lakhs
Source: Knight Frank, CRISIL, Company Estimates, Cars24, Experian
TEAM JAVA
About BGFL: Team JAVA

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Johney Dua Ashish Bazaari

MBA (Finance), FMS MBA (Finance)
Retail Lending | Credit & Retail Lending | Business Owner
Collections | Distribution Organization Development
Ex-CBO CEO
20+ years of retail lending
20+ years of retail lending
About BGFL: Team JAVA

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Vishal Gabda Ashish Lodha

CA & MBA (Finance), NMIMS CA & CFA (USA)
Corporate Finance | Investor Corporate Finance | Business
Relations | Compliance Strategy | Treasury
Ex-CFO Ex-CFO
20+ years of corporate finance 20+ years of corporate finance
Team Build(ing): Underway
BGFL
Human
Sales Credit Collections Technology Data
Resources

Team Area Credit Team Yet to be

Head Consultant
Leaders Manager Leaders hired

Executives Executives Executives Executive

► Founders lead different functions

► Managerial bandwidth addition needed across functions
► Larger manpower investment needed in New products, New geographies, Tech and Data
The JAVA CODE
 The JAVA Code – Customer Lifecycle (drive LTV)
Working Capital, Small Biz Loan /
Personal Needs Personal Loan
Upward Social Mobility Value Chart

Entry Product
Urgent, Medical Emergency
Two Wheeler Finance
needs, Wedding Credit Line

Customer Housing Affordable

Needs Requirement Home Loan

Business
Micro LAP
Requirement

Social Status
Upgrade
Used Car Loan

► 2W Smallest SECURED Entry Point in a Low Mid Income Customer Life Cycle;
► Prime/Sub prime is not score driven, customers borrowing <INR 5 Lakhs affected by downturns easily;
► Optimal Combination of Tech with Data and Physical execution capability

The JAVA Code = Structured Solutions + X Sell + Technology = High teens ROE
 Multiply Returns using Co Lending Platform
Particulars Self BC_Risk BGFL Co Lending_Risk BGFL Co Lending_Risk Share Assumptions
On Book On Book Off Book Total On Book Off Book Total On Book Off Book Total Co-Lending % 20.0%
Loan Amount 1,00,000 - 1,00,000 1,00,000 20,000 80,000 1,00,000 20,000 80,000 1,00,000 Equity% 20.0%
Equity Capital Deployed 20,000 5,000 5,000 20,000 20,000 4,000 4,000 ROI to Customer 25.0%
Interest Income 25,000 350 350 5,000 5,000 5,000 5,000 Finance Cost:
Co-lending spread income 10,500 10,500 8,800 8,800 7,200 7,200 -Debt_On books 14.50%
Interest Expense / Loss 11,600 - - - 2,320 2,320 - BC 14.50%
Net interest Income 13,400 350 10,500 10,850 5,000 8,800 13,800 2,680 7,200 9,880 - CoLending_Risk 14.00%
Other Income 3,000 - 3,000 3,000 600 2,400 3,000 600 2,400 3,000 - CoLending_Risk Share 16.00%
Net Total Income 16,400 350 13,500 13,850 5,600 11,200 16,800 3,280 9,600 12,880 Other Income %
Operating Expenses 10,000 - 10,000 10,000 2,000 8,000 10,000 2,000 8,000 10,000 -On Books 3.0%
Credit Cost 2,500 - 2,500 2,500 500 2,000 2,500 500 - 500 -BC/Co [Net] 3.0%
PBT 3,900 350 1,000 1,350 3,100 1,200 4,300 780 1,600 2,380 Credit Cost 2.5%
Tax 975 88 250 338 775 300 1,075 195 400 595 Opex%Disbursement 10.0%
PAT 2,925 263 750 1,013 2,325 900 3,225 585 1,200 1,785 Tax % 25.0%
ROA 3% nm 16% 9% BC_FLDG% 5%
ROE 15% 20% 16% 45% Int on FLDG 7%

► Evolving the Company from borrowings only to Business Correspondent & now Co-Lending Models
► Co Lending with Risk Sharing / Direct Assignment / DSA offers great opportunity to improve RoE
JAVA: Scalable Tech Architecture
Integrations Customer layer
Microservice-architecture
Data Services
Collection High extensibility through modular
Sales App WhatsApp Bot
Credit Bureaus App design and API-basedarchitecture
Live
Live InUAT

KYC Identification Cloud based architecture

Internal layer Ensuring scalability with littleoverhead
Alternate Data
Core Systems Support Systems Combine best in class
Account solutions to provide seamless
CRIF Jaquar
Aggregator CreditScoring
LOS journey to customer via
& RuleEngine ML &Analytics
several medium
Social Upcoming
Live Upcoming

Jaquar InHouse
LMS
Lead
Management GL
Tally Vendors &Technologies
PaymentServices
Live
Live
Digio Live

CluCloud InHouse
Customer Data
Payment Getaway Collections
Service Warehouse

Live Upcoming Indevelopment

Infrastructure
`
Google Cloud

ExternalAPIs
TECH ENABLED
APPROACH
Work Flow: Digital Journey * Physical Excellence

Web based Loan Electronic Loan Pre-Approved

Origination Documentation Offers
Underwriting & Collections
Fraud Control Digital Lines
Dealer/Sales Rep Physical Security
EMI due reminder
Onboarding App Documentation
Digital Id (SMS / WA)
Re-Engagement
Verification
E-NACH / Cheques
Pre-Call
Bureau Checks TVR / Delivery
Digital Customer Post Call
Acquisition Check Retention, Up-sell
Internal Score* and Cross Sell
Field Collection
Household Income ₹
Assessment Legal / Repo /
Disbursement Arbitration
TVR, FI & Fraud
Checks Agent App, Live
Track, Skip trace
Automated
Decisioning

* Yet to be implemented
Cloud based Tech Architecture

► Frontend API: AngularJS Sales

► App: Flutter

► Backend API: Java Spring

► BootDatabase: PostgreSQL

► Hosting: Google Cloud Platform

Digital Assets: Sales App to Collection App
Pre- and Post-Login Parts Collection and FI App

Public Product and company Dialler; Tracking Agents for

overview, Login required to their calling and field visits
access customeraccount

Responsive pp Manager Dashboard

Optimized forall devices Inbuilt check actionable

(mobile, app)and check points for Managers
connection speed

Target-groupspecific UI optimised for

positioning executives

UI, UXand content optimized

for target segment
Digital Assets: Credit Dashboard

► Easy Credit Dash-Board: Identity, Bureau, Asset & Banking in 1 Go

► Best In Class Tool Kit: 55 check points across 8 categories
Digital Assets: User Friendly LMS
Digital Projects: Build Ai First Organization
Particulars Current Infra Current Cost Proposed Upgrade Est. Cost
CURRENT WORK FLOW
Customer App Part of current LoS
Customer Bot Under development Rs. 100,000
+ Re. 1/login
PLATFORM CAPABILITIES
Loan Origination System (LoS) Jaquar ▪ Develop platform that can login file 50,00,000
with different lenders as LSP, BC, Co
Lender or collecting partner
▪ Upgrade to ML based engine
Rs. 4,50,000 p.a.
Loan Management System (LMS) Jaquar ▪ Additional platform features needed: 50,00,000
1) Co Lending
2) Direct Assignment
Collection App Clu Rs.3,600 / exec; ▪ Integration with LMS 100,000
Rs 24,000/ caller
AI PROJECTS
AI based Advanced Fraud Identification Re 1 per id
ML based Business Rule Engine Rs 50,00,000
Hyper-Personalized Interactions via AI
voice & chat bots Rs 3 / Min

Ai First Approach: 24*7; Customer Friendly; Self Learning Organization

 BUSINESS
PEFORMANCE
What have we built: Distribution & Market Profile
BGFL – Markets Distribution and Reach

# Dealers
Market Stage

Rajasthan Harvest 400

Greater Mumbai Grow

101
Uttar Pradesh Test

FY 21 FY 25
Mix
1. Market Presence
Healthy Mix of Rural and Urban Presence
Rajasthan – Strong presence Top 3 in Existing and Top 5 in New Locations
Mumbai – Growing Market with 5% Market Share
Uttar Pradesh – New Market, In Test Stage

2. Reach
4x increase in Customer Reach* in FY 25 compared to FY 21
>4x increase in distribution network between FY21 and FY25
* Customer Reach calculated basis number of Unique Customer Pin Codes
JAVA stands for the Initials of the Management Team.
JAVA Code is the term used for the Strategy implemented by this team
Financial Performance
Rs in Cr. FY 22 A FY 23 A FY 24 A FY25 (Prov)
TOTAL AUM, INCL. MANAGED BOOK 30.1 48.9 90.0 102.6
Net Worth, incl. OCD 11.0 11.6 13.4 18.8
Borrowing incl. Partner's Share 19.2 45.0 90.2 100.3
INCOME & EXPENSES
Platform Revenue, Interest and Fees 6.0 12.1 22.4 29.5
Platform revenue % of AUM 31% 31% 31%
Revenue 5.6 11.4 19.0 24.0
Interest Cost 2.1 3.8 7.0 8.3
Employee Cost 1.3 2.5 4.2 4.5
Management Cost 0.7 1.7 2.7 2.8
Overhead 1.4 1.7 2.9 4.1
Total cost 5.4 9.7 16.8 19.7
Pre provision operating profit 0.2 1.7 2.2 4.2
Provision & Write-Offs -0.3 -0.9 -1.1 -3.0
Operating Profit -0.1 0.8 1.1 1.2
Sale of Investment 0.9 - - -
PBT 0.8 0.8 1.1 1.2
PAT 0.5 0.6 0.8 0.9
FINANCIAL RATIOS
Leverage 1.74 3.88 6.71 5.34
ROA 0% 2.1% 1.6% 1.3%
ROE, pre tax 0% 7.2% 8.8% 7.7%
Employee Cost 4.2% 5.1% 4.7% 4.4%
Management Cost 2.4% 3.5% 3.0% 2.7%
Overhead 4.5% 3.5% 3.3% 4.0%
Total Opex 11.1% 12.1% 10.9% 11.1%
Partners :A Testimony of our performance
Banks (2) Non Banks (19)
Lending
LONG TERM(5)
Partners
FALL-BACK(4)

OTHERS (10)

Debt Mix 53% 47% Direct Assignment

13%
Term Loan
45%
On Book Off Book

Co-Lending
21%
Increase in share of
Off Book (Managed) BC Model with FLDG
13%
AUM OCD, 1% NCD
7%

✓ Strong liquidity support with adequate available credit line

✓ Diversified mix of liability instruments
LONG TERM
PLAN
Business Plan: Tech enabled franchise for future
Launch Secured Products such as
1 Product Diversification
1) Micro Loan against property; and
2) Used Cars

Increase geographical coverage

2 Geographic Expansion
1) Western rural Rajasthan
2) New states like Uttar Pradesh

Build a fully tech enabled platform enabling banks to

3 Tech Platform participate via different routes
1) Co Lending
2) Sourcing as Fintech
1) Direct Assignment
1. Credit Rating,
4 Liability and Partners
2. Increase Banks Share
3. Non recourse co lending / direct assignment

1. Technology and Data Science, 1. VP

5 Team building
2. Human Resources, 2. Managers
3. Accounting and Treasury
Projected Financial Performance
Rs 20 Cr (Pre Series A) Rs 100 Cr Series A
Rs in Crores
Year 1 Year 2 Year 3 Year 4 Year 5
Total AUM 150 265 465 690 1015
Net Worth 43 50 165 189 221
Borrowing 120 240 360 575 880
INCOME & EXPENSES
Platform Revenue 37.6 56.6 100.3 155.0 220.4
Revenue (Net of Managed AUM) 30.0 45.8 84.0 133.6 190.8
Borrowing cost 6.5 12.5 17.9 35.6 54.7
Employee Cost 6.6 9.4 19.1 27.4 38.1
Management Cost 3.5 3.7 4.8 5.6 6.4
Overhead 4.4 5.6 9.3 14.0 20.5
Total Cost 21.0 31.2 51.1 82.6 119.7
Pre provision operating profit 8.9 14.6 33.0 50.9 71.1
Credit Cost 4.3 5.7 10.5 17.2 25.1
Profit before tax 4.7 8.9 22.5 33.8 46.0
PAT 3.3 6.2 15.7 23.7 32.2
FINANCIAL RATIOS
Leverage 2.77 4.85 2.18 3.04 3.98
ROA 3.7% 4.3% 6.2% 5.9% 5.4%
ROE, pre tax 11.1% 19.0% 14.1% 18.8% 22.1%
Employee Cost 4.4% 3.5% 4.1% 4.0% 3.8%
Management Cost 2.3% 1.4% 1.0% 0.8% 0.6%
Overhead % 2.9% 2.1% 2.0% 2.0% 2.0%
Total Opex 9.7% 7.0% 7.1% 6.8% 6.4%
The Ask

We are seeking to raise Growth

Capital of INR. 12 Crore to fund
growth, introduce new products,
team building and strengthen our
technology capabilities
Why Us?
► Low Mid Income Customers offer the Best In Class Risk ► Founder team has combined work experience of ~ 8-
Low Mid Income

Adjusted Return opportunity years

Strong Team
► Strong and rising ROE ► Senior qualified professionals (CA, CFA, MBA)
► Secured asset class along with X Sell is the best asset ► Senior positions at different companies (CEO, CFO, CBO)
class which has strong demand from bankers for TL, Co ► Diversified experience across business and financing
Lend, DA, etc.

► Best in class digital solutions for the small ticket loans ► Proven business model with favorable Unit Economics

► Strong Management understanding of ongoing tech ► Business poised to huge scale up significantly owing to

High Returns
Tech Enabled

trends strong built up

► Best in Class cost adoption by Founders

Ai Ready Profitable Fast Growth Opportunity

30
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