#1L ANK BANKS Dhanvarsha Dhanvarsha Finvest Limited Investor Presentation August 2021#2The MSME Credit Gap in India MSME's Contribution to India's GDP Current: 29% Projected (2024): 50% Number of People Employed by MSMEs in India 63M MSMEs in India Current: Over 130Mn Projected (2024): 150Mn Contributing ~6.11% to India's manufacturing GDP, 24.63% of the service GDP, and 33.4% of manufacturing output. Less than 20% of MSMEs have access to Credit Potential Addressable Credit SME Gap: USD 300 Mn Credit Gap 350 million Blue Collared Workers Potential Addressable Market size: INR 893 Bn *Sources: India Flexistaing Association, Blume Ventures, ICRIER, Ministry of Micro, Small and Medium Enterprises (India); MOSPI Investor Presentation | www.dfltd.in E Policy Support: The government has released several policies for MSMEs such as an easy online registration form, a centralized data bank, and a mobile app with updated schemes available to MSMEs. Various government initiatives were launched to encourage young individuals, women and SC/ST entrepreneurs to launch business. Government Schemes: The government invests significantly to help MSMEs establish their business. Schemes related to credit, infrastructure building, skill development, technology, etc. are designed to incentivise MSMEs Road Ahead: The Government of India has envisioned doubling the Indian economy to USD 5 Tn in five years. To achieve this goal, MSMEs have the potential to serve as a key employment generators for the young population entering the workforce. Therefore, the government has taken up the promotion of MSMEs to create new jobs in the sector. Further, the government aims to enhance MSME's share in exports and its contribution to GDP. 2#3Challenges 1 2 Challenges in Lending to MSMEs Difficult to understand businesses / cash flows Fragmented set of customers High cost of customer acquisition Investor Presentation | www.dfltd.in 1 3 High dependence on the ecosystem Challenges in Access to Credit for MSME Customers 2 3 Products and Lack of data and information asymmetry Time-consuming process and high TAT of 2-4 weeks Credit assessment process not tailored to MSME businesses Rigid collateral requirements services gap for MSME customers as they are a small needle in the haystack 4 5 100 · 3#4Dhanvarsha's Solution Dhanvarsha believes in providing financial access through a diverse range of product offerings to underserved customers. The company is a one-stop solution for all Credit requirements, categorized and customized as per the customer's needs. The products are easily accessible without any hassles with transparent processes and affordable interest rates. Gold Loans Atmanirbhar Bharat Business Loans • Loan Range - INR 1-20 Lakhs • Loan Tenure - 12 to 60 months • Average Ticket Size - INR 0.40 Mn • Interest Rate -18-24% • LTV - N/A • Basis of Credit Approval - Cash Flow Analysis आत्मनिर्भर भारत Personal Loans • Loan Range - INR 1-20 Lakhs • Loan Tenure - 12 to 36 months • Average Ticket Size - INR 0.15 Mn • Interest Rate - 18-24% • LTV - NA • Basis of Credit Approval - Banking Statement Investor Presentation | www.dfltd.in $ MV • Loan Range - INR upto 50 Lakhs • Loan Tenure - 12 months Average Ticket Size - Up to INR 0.50 Mn • Interest Rate - 15-22% • LTV - 60-75% . Basis of Credit Approval - Purity-22KT Loan against Property (Off-Balance Sheet) • Loan Range - Upto 2 Crs • • Loan Tenure - 60 to 180 months Average Ticket Size - INR 2.70 Mn Interest Rate - 14-20% LTV - 60% Basis of Credit Approval - Mortgage of Propert 4#5Dhanvarsha At A Glance* Net Worth: INR 1,588 Mn^ AUM INR 1,299 Mn Disbursals INR 434 Mn Average Loan Ticket Size Active Lenders 11 Branches (Jun 21) 24 Secured 63% Head of Banking has 32+ years of experience MSME Lending FLDG Partners INR 1.20 lakhs Total Liability Book: INR 1,138 Mn Debt to Equity (x) 0.7x Dedicated Collections Cell headed by a legal expert Loan above INR 2 Cr to be approved by BOD Co-Lending Partnership with Central Bank of India Gross NPA: Employees (Jun-21) Customers (Jun-21) 2.87% Net NPA: 0.89% Cash and Investments INR 1,348 Mn Strong and liquid balance sheet geared for onward lending 220 Women Employees 10,955 Women Customers 45 1,894 Partners 8 Education Lending FLDG Partners Distribution Partners Social Capital Partners Insurance Partners 5 100+ 5 4 7 * Data as on Q1-22 Investor Presentation | www.dfltd.in 5#6Company Overview H NICE 712 6#7Company Overview Dhanvarsha Finvest Limited (DFL), is promoted under the aegis of the 80-year-old Wilson Group and has transformed into a technology-enabled financial services company focusing on MSME financing. Wilson Group's history traces back up to Pre-Independence and is a diversified conglomerate headquartered in Mumbai with interest and investments across education, philanthropy, institutional clearing and advisory services, angel investing, sustainable water infrastructure projects and MSME lending. In 2017, DFL was reborn in its new avatar and has transitioned with the induction of a new Board and Management team, and it has withstood the slowdown in the NBFC market, COVID crisis, and has yet managed to scale up the business through diversification and introduction of new products. DFL's mission is to build "social capital" by aiming to provide Credit solutions to India's large underserved and underbanked MSME segment. The company prides itself on the highest standards of corporate governance and transparency with an eminent and completely Independent Board that comprises of veterans from banking, fintech, taxation, regulation, and global businesses and Key Management Personnel carefully recruited from renowned institutions. It aims to provide timely, affordable and sustainable access to Credit to the country's almost 500 Mn under-served borrowers, either through its own balance sheet or via significant distribution tie-ups coupled with its robust technology engine. The bedrock of the business is based on the loan book and an unrelenting focus on 4C's - Credit, Capital, Collections & Collaborations. The company has collaborated with various partners like Banks, NBFC's, Associations, DSA's and other Retail Loan Channel Partners. Investor Presentation | www.dfltd.in 493 41 AUM and NII (INR Mn) 372 45 1,045 08 1,299 27 FY19 FY20 FY21 Q1-FY22 Others 41% Q1-FY22 Sectoral mix Healthcare 5% Education 10% Salaried 11% Garment 10% Home/Office- .Retail 7% Other Kirana/General Food/Drinks Essentials 6% Store 4% 6% 7#8Formation of Dhanvarsha Started as a concept/idea, under the, aegis of Wilson Holdings, to provide access to capital to MSMEs Approval for open offer; overhaul of Board and leadership team. Capital infusion of INR 125 Mn by Wilson Holdings and Issuance of Warrants against receipt of 25% of INR 125 Mn May 2017 Jul 2018 1994 June Jan 2017 2017 Jan 2020 1994 Incorporated as a Private Limited Company 2017 Got Listed on BSE Investor Presentation | www.dfltd.in Wilson Holdings offered to acquire substantial interest in Dhanvarsha Finvest Limited Received Debt Line from Bank of India March 2020 Capital Infusion of INR 500 Mn from Wilson Holdings and Key Management of the group completed on 3rd November, 2020 Received Debt Lines from Northern Arc Capital Limited, NABARD, AK Capital, MAS Financial Services April 2020 Nov 2020 Mar 2021 Jan April 2021 2021 Received First Debt Line from HDFC Ltd Capital Infusion of INR 50 Mn from Promoter Group for conversion of warrants into equity shares Received Debt Line from Central Bank of India NCD Issuance of INR 25 Mn from Calypso and INR 25 Mn from Citrus Global Arbitrage Fund Capital Infusion of INR 658.3 Mn led by Aviator Emerging Market Fund (AEMF) and other notable investors completed on 16th April,2021 8#9Our Values Integrity We aspire to always do the right thing by acting with complete honesty, fairness and forthrightness. Accountability We honour our commitments to our partners, customers and our people proactively and responsibly. Respect We respect every living being without distinguishing between societal or organizational hierarchies. Customer Centricity Our customers and our people are at the center of everything that we do. 0000 Ownership Dhanvarsha empowers team members to think like owners and be decision makers. We empower our people to think like 'Board on Street' and not 'Feet on Street'. 이 J Equality & Reward for hard work To further cement our resolve in treating our people like owners, Dhanvarsha announced its Employee Stock Options scheme which included every employee who has been a contributing member of the business, irrespective of hierarchies. It was an important step towards building the culture of equality and rewards. People Practices Our people are key to all the initiatives that drive us. We ensure that we provide the right opportunities and platform to our employees to succeed in all that they do thereby guaranteeing the company's success. Upskilling An organization's long-term success relies on not only attracting but also nurturing the next generation of bright minds. The organization boasts of their unique Leadership Buddy Program that helps their leaders of today and tomorrow understand the finer nuances of business through the lens of other departments, thereby promoting a culture of teamwork, respect and accountability. Teamwork We work together, be it with our customers, partners or our people, towards a common goal by committing to support, communicate and act responsibly with everyone involved. Investor Presentation | www.dfltd.in 9#10Independent and Eminent Board comprising of Industry Stalwarts.... Mr. Rakesh Sethi Chairperson and Independent Director Mr. Rakesh Sethi age 64 years, former Chairman and Managing Director of Allahabad Bank, and a veteran banker with over 38 years of experience in financial services. Mrs. Manjari Kacker Independent Director Mrs. Manjari Kacker, was a Member of the Indian Revenue Services batch of 1974 and retired as a Member of the Central Board of Direct Taxes, in the rank of Special Secretary to the Government of India. Mr. K.P Raghuvanshi Independent Director Mr. Raghuvanshi currently acts as a Strategic Security Advisor to the Reserve Bank of India and has previously served as Additional Director General of Police (Law & Order). He was a part of the 1980 IPS batch. Mr. Atwood Porter Collins Non-Executive Director Mr. Atwood Porter Collins is the co-founder of Seawolf Capital, partner at Front Point and was featured in the book and movie "The Big Short" for accurately predicting the 2008 global financial crisis. Mr. Rohanjeet Singh Juneja Joint Managing Director Mr. Rohanjeet Singh Juneja serves as the Joint Managing Director. An investment banker, hedge fund manager, and Head of Strategy & Research for an HFC and NBFC with 17+ years of experience in India & the US. Investor Presentation | www.dfltd.in Mr. Nirmal Momaya Independent Director Mr. Momaya is an Entrepreneur with over 30 years of experience in various industries including Specialty chemicals, FMCG, quick service Restaurants, Engineering, and Retail. He is a part of the board of Camlin Life Sciences Limited. Mr. Rajiv Kapoor Independent Director Mr. Rajiv Kapoor, former Regional Head and Senior Vice President Cross Border for the Asia Pacific region at Visa Inc. from 2013-2016. Mr. Kapoor has over 38 years of experience in Marketing, Sales, Consulting and Corporate Advisory. Mrs. Minaxi Mehta Non-Executive Director Mrs. Minaxi Mehta is serving as the director of the Minaxi Mehta Welfare Foundation. She is also a member of the managing committee of the Shri Vile Parle Kelavani Mandal. Mr. Karan Desai Joint Managing Director Mr. Desai serves as the Joint Managing Director of Dhanvarsha Finvest Ltd. and brings significant financing and operational experience to the company. Ex-Investment Banker with 15+ years of experience across Bank of America, PwC, and Centrum Capital. 10#11Professional Management Team Mr. Sanjay Kukreja Chief Financial Officer Mr. Kukreja has 27 years of experience in Financial Planning and Control, Profit Center Operations, Taxation & Budgeting, etc. He has previously worked as Joint CEO in Masscorp Ltd. and KPL exports Pvt. Ltd and has also been previously associated with Rotex Wheels Pvt. Ltd and Welspun Group of Companies. Before joining Dhanvarsha, he was a part of Wilson Holdings Pvt. Ltd as Chief Financial Officer. He has completed his FCA from The Indian Institute of Chartered Accountants of India. Mr. Sahil Lakshmanan Chief Business Officer Mr. Lakshmanan is our Chief Business Officer and is responsible for our digital and new business initiatives. He has over 15 years of global experience across verticals like business development, product development, analytics, and marketing. His versatile background comes from working across sectors such as Fintech, Insurance, Banking, Wealth Management, etc. He has completed his M.B.A. (Finance and Strategy) from H.E.C. Paris. Ms. Namita Pradhan Head Human Capital Management - Ms. Pradhan has an experience of over 6 years and is a seasoned professional in the field of Human Resources. With her diverse knowledge and expertise, she is responsible for driving the HR function at Dhanvarsha. She was previously associated with Oberoi Realty Limited. She is a Mass Media graduate and has completed her MBA in Human Resources Management. Ms. Priyanka Singh Chief Impact Officer - Ms. Singh has extensive experience in financial services, fintech, and consulting. Her forte is executing projects across business functions be it customer outreach, operations, and technology, in her past roles. She has over 7 years of experience liaising with global stakeholders across industries such as I-Banking, TMT, Automobiles, and P2P Lending. Academically, she comes with a blend of M.B.A. (Finance), Technology, and Humanities. Mr. Mahendra Kumar Servaiya Principal Officer and Credit Head Mr. Servaiya is one of the most experienced members of the core team with over three decades of banking experience. He last served as an AGM in the Credit team of Union Bank. At Dhanvarsha, Mr. Servaiya has a dual responsibility; he takes care of communication and compliance filings with the Reserve Bank of India and heads the Credit function of the company. Mr. Sunil Ranpara Vice President - Collections Mr. Ranpara heads the Collections vertical and has more than 15 years of experience in Collections, Recovery & Litigations at renowned institutions like Capital First Ltd, Kotak Mahindra, and HDFC Bank. He is an experienced mortgage specialist with a demonstrated history of working in financial services in India. He is a commerce graduate and has completed his LLB. He has been consistently commended and awarded for his performance during his past stints. Investor Presentation | www.dfltd.in m 11#12Recognition CEO nights BOS RAHUL NARTEKAR DREAM DARE DO ון ון ון וו ון 11 ון ון ון ון II ון ון Dhanvarsha was formed with a vision to empower, with financial access, the unserved and underserved entrepreneurs of India: Joint MDs of Dhanvarsha Finvest INDIA'S FINEST & SHARPEST newsx by Yohan P Chawla July 23, 2010 in Back to Business Exclusive Featured back to business ROHANJEET SINGH JUNEJA TODAY ON THE SHOW KARAN DESAI SHIVYA MALHOTRA A ID Karan Desai Rohanjeet Singh Junein ון ון || ון ון Joint Managing Directors Dhanvarsha HELLO MUMBAI NEWS Mumbai : Dhanvarsha Finvest Launches Dhan Vidya, Offers Easy Access to Education Loans 11 ון 11 Dhanvarsha 11 RUPIFI Mumbai's Esteemed Lender Serving Unserved & Underserved MSME Clients India's top 10 Financial Service Providers - 2020 CEO Insights ון 11 ון ון Rohanjeet Singh Juneja, Karan Desai from Dhanvarsha Finvest Ltd. share their journey of empowering & funding underserved Indian entrepreneurs 11 11 NewsX Dhanvarsha was formed with a vision to empower, with financial access, the unserved and underserved entrepreneurs of India Medianews4u.com ון ון ון וד Dhanvarsha Finvest Launches Dhan Vidya, offers easy access to Education Loans Hello Mumbai News 11 Dhanvarsha and Rupifi join hands to solve the financial needs of MSMEs and small business owners of India by offering them cash flow based credit lines. Hello Mumbai News Investor Presentation | www.dfltd.in ון 12#13Our Product Offering 13#14Atmanirbhar Bharat Business Loans Investor Presentation | www.dfltd.in Atmanirbhar Bharat Business Loans आत्मनिर्भर भारत DFL is an advocate of the Government of India's 'Make in India' campaign to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build best-in-class manufacturing infrastructure locally while generating livelihood for semi- skilled workers and facilitating upskilling of human resources. DFL has build a robust, yet easily accessible and convenient Business Loan product aptly named "Atmanirbhar Bharat Business Loan" With "Atmanirbhar Bharat Business Loan", DFL aims to empower the MSMEs of India and nurture them by offering hassle-free access to credit through quicker Turnaround Time and simplified processes to build and expand their business and fulfill their dreams Essential Commodities product - Express Loan Funding for Essential Commodities, which cater to the daily essentials Sectors, viz. Medical, Kirana & General Stores, FMCG (including Food), Education and Information Technology. • Loan Range INR 1-20 Lakhs • Loan Tenure - 12 to 60 months • Average Ticket Size - INR 0.40 Mn • Interest Rate -18-24% LTV-50% Basis of Credit Approval - Cash Flow Analysis m 14#15Gold Loans FINE BANK FINE GOLD 9999 6000 3684420 1684420 84873 Gold Loans • · DFL has launched Gold Loans to help customers access a loan effortlessly and through a transparent process using gold as collateral. The company promises delivery of funds under 30 minutes in all serviceable locations. The company has launched 18 Gold Loan Branches as on June 2021 and plans to further expand its footprint across Maharashtra. Loan Range - INR upto 50 Lakhs Loan Tenure - 12 months Average Ticket Size - Up to INR 5 Mn Addressable Market Size in Total Addressable Market for Gold Loan Maharashtra estim • I to grow at 15% Y/Y The company plans to foray into other states from April 2022 onwards March 2022 Gold Potential: AUM INR 1,580 Mn 13,167 Customers March 2023 Gold Potential: AUM INR 7,040 Mn 58,667 Customers March 2024 Gold Potential: AUM INR 15,168 Mn 1,26,400 Customers March 2025 Gold Potential: AUM INR 27,888 Mn 2,32,400 Customers Investor Presentation | www.dfltd.in Source: SDG National Indicator Framework - Progress Report 2021; and BDO Research ● Interest Rate - 15-22% LTV - 60-75% Basis of Credit Approval - Purity-22KT BANK ZANK BANK FINE GOLD FINE GOLD 9999 m 15#16Personal Loans Investor Presentation | www.dfltd.in Personal Loans • DFL wants to be the financing partner of choice to help consumers meet their needs and life goals. Through the company's Digital Assets and business correspondents it offers quick, easy, and affordable personal loans to both salaried and business professionals. The company has designed this product based on end-use of funds to cater to different borrower needs promptly: (1) Education Loan - Dhan Vidya (2) Medical Loan - Dhan Aarogya (3) Home Renovation Loan - Dhan Ghar (4) Debt Consolidation Loan - Dhan Sukh (5) Travel Loan - Dhan Safar • Loan Range - INR 1-20 Lakhs • Loan Tenure - 12 to 36 months . Average Ticket Size - INR 0.15 Mn . Interest Rate - 18-24% • LTV - NA . Basis of Credit Approval - Banking Statement 16#17Loans Against Property Investor Presentation | www.dfltd.in Loans Against Property (Off Balance Sheet) . . DFL offers Loans Against Property by raising finance against residential, commercial, or industrial assets and provides quick access to funds at attractive interest rates. Further, it has been classified as an Off-Balance Sheet Item. . Loan Range - INR 1-50 Lakhs • Loan Tenure - 60 to 180 months . Average Ticket Size - INR 2.70 Mn • Interest Rate - 14-20% . LTV - 60% . Basis of Credit Approval - Mortgage of Property 17#18Asset, Liability and Distribution Strategy 18#19Asset & Liability Strategy Capital Efficiency and Risk Management are at the forefront with a mix of on and off-balance sheet AUM Own Balance Sheet Lending Small Ticket • Short tenor, high yield products • MSME Business Loans and Gold Loans Conservative Underwriting Robust collection and recovery platform Business Correspondent • High fee generating business with share of interest & fee Ability to collaborate with large lenders to build substantial off- balance sheet AUM Large sourcing platform that enables successful build up of profitable AUM Lenders Co-Lending with FLDG • . • Solid sourcing in new geographies with very low acquisition cost Risk moved to partner with funded guarantee provided by them Robust credit assessment guidelines through Joint Credit underwriting policy High ROA with minimal asset quality risk Strong collection capabilities in the essential sectors Loans are backed by an FLDG (First Loss Default Guarantee). HDFC BANK We understand your world CITRUS GLOBAL State Bank of India THE BANKER TO EVERY INDIAN JHAS VINANCIAL SERVICESITY) The Power of Distribution Bank of India Relationship beyond banking Union Bank of India सेन्ट्रल बैंक ऑफ इंडिया Central Bank of India CSB Bank Fly The Can eduvAnz RUPIFI finwego Making Education Accessible. oan2grow CREDENC socially relevant commercial lending ◆NIRA Investor Presentation | www.dfltd.in Existing Partnerships Forthcoming Partnerships - Going Live by end of Jun-21 LENDINGKAT TCPL ↑ UPWARDS Think Cash, Think Lendingkart Group! TECHFINO CAPITAL PVT LTD AROGYA FINANCE Medical Loans Made Easy NABARD NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT CALYPSO NORTHERN ARC 60.6% Liability on book (INR Mn) & Cost to Income Ratio (%) 254 156 805 1,138 FY19 FY20 FY21 Q1-FY22 62.5% 76.7% FY19 FY20 FY21 Q1-FY22 a.k. A.K. CAPITAL SERVICES LTD. BUILDING BONDS SakshamGram Navadhan AJIVÍKA FINANCE LIMITED Capital Capital Trust Liability Type by Sanctions (INR Mn) Borrowings from Banks & Fls 938 O NCD 200 19 61.5%#20On the Asset Side, our focus is on the select sub-sectors After doing in-depth studies across sectors on various parameters the company has selected the following sectors to focus on lending: Tilda Sector: Kirana/General Stores Sector: Education Sub-Sector: Primary Schools, Higher Education, Upskilling Sector: FMCG Sub-Sector: Retail Shops Sector: Food/Drinks Sub-Sector: Retail Shops like Kirana Stores LEE BE 迪 Sector: E-Commerce Sub-Sector: Delivery of Provisions/Groceries/Food Etc. Sector: Agriculture Sector: Information Technology Sub-Sector: Software and Mobile Application Companies, IT Software, IT Hardware Investor Presentation | www.dfltd.in Sector: Pharma Sub-Sector: Chemist Shops, Traders related to medical products Salaried Individuals 20 20#21Client Acquisition Strategy Branch Sales Team • Leverage branch sales teams for customer acquisition through outreach/ walk-ins; support with technology • Build targeted sales force with sector / segment experience and community understanding to ensure deep knowledge of customers Financial Inclusion Stores Traditional Charinels Direct Sales Agents New Channels Digital Channels • . • . • Onboard a Financial Inclusion Store which includes retail shop owners like medical and convenience stores, milk, dairy, hardware store etc. Stores share economics not just for disbursement volume but also for collection efficiency . Develop strong relationships with DSAs and DSA aggregators operating in target segments/ geographies . Driven by competitive commissions/ sales contests, faster processing, better experience, etc. Leverage third party digital origination platforms for lead sourcing, if available in specific segments Create own digital channels - to acquire directly and as a support to own sales force Develop partnerships in prioritized segments with key participants Eg: FLDG Partnerships Industry Partnerships • Partnered with large lenders to build profitable off-balance sheet AUM Business Correspondents Investor Presentation | www.dfltd.in 21#22Distribution Strategy • The bedrock of the business is based on the loan book and an unrelenting focus on 4C's: - Credit, Capital, Collections & Collaborations. . The company has 18 Gold Loan Branches as of June 2021 and plans to further expand the network by approximately 3-4 branches per month in FY22. • The company has 5 additional branches in Mumbai, Jaipur, Ahmedabad, Lucknow and Delhi and the focus is predominantly on Maharashtra in FY22. . The company also has partnered with various DSA's and channel partners to enhance the loan sourcing pipeline and collection mechanism. Lastly, the company has entered in a Franchisee Model (Financial Inclusion Stores) and has tied up with 200 Franchisees with the goal to onboard 1,500+ Franchisees by March 2022. Tie-ups are with Kirana Stores, Chemists, Traditional Shopkeepers like Pan Walas etc. Distribution Partners 1) Ruloans Insurance Partners RULOANS much more than money 1) TATA AIG Branches • Gold Loan • Others Secured and Unsecured Loans Social Capital Partners 1) Tofler TOFLER TATA AIG INSURANCE WITH YOU ALWAYS 2) Conscious Labs 37% CONSCIOUS LABS 2) Andromedia ANDROMEDA India's Largest Loan Distributor 2) IndiaFirst IndiaFirst LIFE INSURANCE 3) Royal Finserv 3) Minaxi Mehta Welfare Foundation 4) Mera Cashier 99 Mera Cashier 3) Magma HDI MAGMA HDI And 100+ partners ROYAL FINSERV General Insurance Company Ltd. Together we will... 5) Easy Invoice Manager Invoice Manager ■ Secured Unsecured Investor Presentation | www.dfltd.in 63% 22 22#23. . Substantial Opportunity Ahead in Maharashtra Significant AUM and earnings growth led by Gold loan branch build out and franchisee model in Maharashtra. Maharashtra is home to ~7 Mn or 11% of India's MSME businesses. Market share of small and mid size lenders in Gold and MSME loans in Maharashtra is extremely fragmented. We firmly believe there is a significant opportunity for us to gain extremely profitable market share with capital efficiency and superior risk adjusted margins given our expertise in these two segments. DFL is poised for substantial value accretion from Gold, MSME and Franchisee Model in Maharashtra 1) Gold and MSME Potential in Maharashtra 2) Dhanvarsha Financial Inclusion Stores - Distribution with Scale The company has onboarded 200 Financial Inclusion Stores until June 10th Guidance for onboarding 1,500+ Stores by March 2022. MSME Loan Market Share - Maharashtra In INR Bn Gold Loans Market Share - Maharashtra In INR Bn FLA MSME Loan MH 82% March 2022 P 25,308 Customers 60 Branches MSME Loan MH March 2023 P 98,352 Customers 120 Branches Gold Loan MH March 2024 P 2,22,911 Customers 200 Branches 76% Top 5 Players Gold Loan MH March 2025 P 57 4,34,115 Customers Financial Inclusion Stores - Count 284 390 275 Branches 475 99 99 Source: SDG National Indicator Framework - Progress Report 2021; and BDO Research Investor Presentation | www.dfltd.in MAY-21 163 JUN-21 JUL-21 AUG-21 SEP-21 23 23#24Underwriting & Collections Process DFL has an extremely robust credit appraisal and collections & recovery process which has been strengthened further given the Covid-19 pandemic. The credit team has pro-actively made changes in the appraisal process by assessing the cases on banking habits rather than DSCR and I-T returns of the borrowers. The company has developed models to assess borrowers based on DBR (Debt to Banking Ratio) even for larger ticket size loans (above 10 lakhs). Our Risk Management Framework comprises of: 1 2 3 4 5 6 O Deep understanding of the MSME and retail market and experience of underwriting segments within the underserved market Policy and process- based approach to assist people in risk- mitigation with customized policies to cater to multiple customer requirements A Centralized Credit Processing Centre with Committee Approach for sanction ensuring tight underwriting controls. A multi-layered system strengthens the Credit assessment process Multiple verifications and checks have been introduced to get a 360-degree risk assessment done before the final disbursement call Major Risk Assessment tools deployed are Credit Bureau Checks, Satisfactory Banking Habits, Genuineness of Financial Statements, Decent Business/Residential Set- up, Personal/Surprise visits, Field Investigation, Fraud Control Unit Checks, etc. Specialized collections team manages overdue collections Investor Presentation | www.dfltd.in 24 24#25Loan Origination and Management System CHANNELS Call Center DSA/FOS Branches Co Lending Partners Financial Inclusion Stores Digital Marketing CUSTOMER ONBOARDING LENDING RELATED BANKING SYSTEMS Master Data Customer Info Database Tally Books Payment Systems Reporting Systems Collections Employee Database Document Management Regulatory System ALM Reports Data Warehousing OTHER BACKEND SYSTEMS Vendor Management Reconciliation System OPEN PLATFORM Investor Presentation | www.dfltd.in DATABASE Data Warehousing Lending API Middleware Envelope LOAN ORIGINATING SYSTEM Process Flow Configuration Omnichannel Customer Flow Credit Scorecards Configuration Back-Office Orchestration API Connectivity & Reusability LOAN MANAGEMENT SYSTEM AGILE API INTEREPEROBILITY EXTERNAL GATEWAY EXTERNAL SYSTEMS Perfios REALTIME ANALYSIS & DECISIONING SOLUTION Payu tu TransUnion CIBIL NACH NATIONAL AUTOMATED CLEARING HOUSE NSDL Technology, Trust & Reach IndiaStack :karza TECHNOLOGIES CRIF Together to the next level Geegality digio MICROSERVICE BASED ARCHITECTURE 25#26Proprietary Lending and Risk Advisory Engine Onboarding process Gathering of Data Dhanvarsha Application Customer Signup in LOS Create user Profile in altimate engine Push SMS Call Logs GPS Device Info Classification of Data No Template Available Yes Useful Data Junk Create Template Template Approved Investor Presentation | www.dfltd.in Data Parsing Bank Data processing E-commerce KYC Utility ML Modelling ☐ ΑΡΙ Internal Credit Score LOS 26#27Money Rabbit: Dhanvarsha's Omni Channel Digital Platform for MSME's and Blue-Collar Work Force Credit Health Check Tool Get to know your latest Bureau Score and other credit details along with suggestions and offers Wallet and UPI Services Transfer money or Pay Using our seamless Wallet and UPI services Cashbacks and Rewards 9:41 Credit Score 9:41 money rabbit Build and Monitor Your Credit Score With Money Rabbit Learn More Hello there, Mohana! 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Welcome back! experian 751/900 GOOD CIBIL Sarted Trynd Next update in 5 days Your Score History 900 800 700 689/900 FAIR Next update in 15 days ove Your Score r planner to set a goal and improve your 784 751 Siperian 790 650 June July Aug Sep Oct Bec Improve Score d Timeframe 801 900 Investor Presentation | www.dfltd.in EXPERIAN CIBIL 3 months 6 months 9 months Summary of your credit report 12 Monthe Payments Perfect score of 790 in 6 months can be Status of payments you've made in the last 3 years. 5/7 payments are on time Limits Good Remaining limit on your credit cards. 68% credit is available ising the score by 50 is difficult. Showing sults for increase of 30 accounts that are not in use e your credit card utilisation from 100% to r get the limit increased by the bank 28#29One Card for All Needs • Money Rabbit's Virtual and Physical Card is easy to use and issued instantly (Gives a feel-good factor as our customers do not have easy access to Credit Cards) Accepted with most merchants online and offline. This enables multiple customer engagement touchpoints during their lifetime Seamless Loyalty and Cashback programs to drive App adoption, usage, engagement and referral traffic money rabbit . Enriching existing credit assessment metrics with Al & ML powered Alternate Data Engine for a Mobile-first and Digital-native audience to get real-time insights and refined need-gap analysis Basis on Alternate Data Engine (ADE) we get additional authentication and estimation models to supplement Bureau data Promoting financial inclusion by incorporating separate triggers to identify NTC audience and enabling access to credit Modular and Robust architecture to scale products and services across geographies and target audience with emphasis on low maintenance and upgrade cost Mohana Gupta Investor Presentation | www.dfltd.in RuPay ») Electronic Use Only Non Transferable AUTHORISED SIGNATURE NOT VALID UNLESS SIGNED VALID THRU 202 03/22 5166 5166 XXXX XXXX 7718 1900 382 1192 International Collect: +94 4323 1123 Reach out: [email protected] Bank Partner: Powered by M2P 29#30Dhanvarsha Neo Bank All your Banking needs 'On the Go' ₹ HV Unified Lending Platform • Personal Loans • Business Loans • Gold Loans • BNPL Savings Account • Zero Balance Savings • Account opening Investments • Mutual Funds ₹ NEO BANK . Systematic Term Plan . Systematic Investment Plan Lumpsum Investment Investor Presentation | www.dfltd.in iPod 13:10 Dhanvarsha Insurance • General Insurance • Life Insurance Other Insurance All your finances secure in one place!! Pay and automate all your bills, lifestyle and subscription payments and discover amazing offers !! SKIP 30#31ESG Integration Framework for Building Social Capital Lending Hand-Head-Heart • With a deep sense of purpose to support the organization's commitments towards the environment, health and safety, corporate social responsibility, governance, sustainability, and other public policy matters, the company has formed a cross-functional Board level ESG committee in 2021. • This committee will provide guidance, leadership and necessary oversight for embedding ESG aspects into business strategy. ESG Material Metrics Firm-wide 16 ESG material metrics identified. ESG Working Groups • • ESG Disclosures and Communications KPIs have been defined to measure outcomes as we build social capital. • Employee Engagement and Well-being • • Corporate Social Responsibility Few of the material metrics are listed below: • Financial Inclusion • Responsible Lending • Diversity and Equal Opportunity • Economic Performance • Product Innovation • • Sustainability and Climate Risk The ESG Working Groups are cross functional teams Responsible for implementation of ESG material metrics in business practices and report progress to the committee • • Dhanvarsha Finvest Limited ESG Framework 2021 Global Standards Compliant IFC Performance Standards & Exclusion List ILO Fundamental Principles UN Sustainable Development Goals 2030 (UN-SDGs) National Guidelines on Responsible Business Conduct (NGRBC) • Business Responsibility and • • Sustainability Reporting (BRSR) Global Reporting Initiatives Standards (GRI) Sustainability Accounting Standards Board (SASB) Investor Presentation | www.dfltd.in 31#32Financial Overview E 71% MSCCM 25 S&P 500 Index 28 S&P 500 index MSC PM S&P 500 ANO EM 32 32#33Consolidated Income Statement Income Statement (INR Mn) Interest Income Less: Finance Cost Net Interest Income Other Income FY19 FY20 FY21 Q1-FY22 93 62 62 122 62 62 52 17 42 35 2 80 41 45 27 22 100 131 179 75 141 176 259 102 Operating Expenses 117 121 231 84 Total Income Profit Before Tax 24 55 28 18 Less: Tax Profit for the Period Investor Presentation | www.dfltd.in 3 14 15 18 21 41 13 33 33#34Consolidated Balance Sheet Balance Sheet (INR Mn) Financial Assets Cash and Investments Gross Loans Less: Impairment Loss Allowance Net Loans Non-Financial Assets Total Assets FY20 422 94 372 FY21 1,663 666 1,045 44 48 329 997 63 202 485 1,865 Financial Liabilities 163 Trade Payables & Other Liabilities 7 836 31 Borrowings 156 805 Non-Financial Liabilities Total Liabilities Equity Share Capital Other Equity Total Equity Total Liabilities and Equity 10 30 173 866 135 153 176 846 312 999 485 1,865 Investor Presentation | www.dfltd.in 34#35Investor Presentation | www.dfltd.in 267 65% FY19 493 372 1,045 1,299 Consistent Expansion of AUM with Strong Equity & Debt Support AUM (in INR Mn) Disbursals (in INR Mn) FY20 FY21 Net worth (in INR Mn) & CRAR 312 69% 666 71% 1,588 94% FY19 FY20 FY21 Q1-FY22 FY19 0 Q1-FY22 FY19 1 192 87 FY20 FY21 Number of lenders FY20 FY21 Q1-FY22 11 11 FY19 088 434 Q1-FY22 FY19 538 485 254 0.95 Debt (in INR Mn) & Leverage Ratio 156 0.5 FY20 FY21 Total Assets (in INR Mn) FY20 FY21 Q1-FY22 35 1,865 2,817 805 0.8 Q1-FY22 1,138 0.7#36Investor Presentation | www.dfltd.in 117 121 93 Opex (in INR Mn) 231 84 62 62 122 62 Operating & Financial Ratios continue to improve as we scale up Interest Income (in INR Mn) Finance Cost (in INR Mn) NII (in INR Mn) 52 62 17 42 35 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 3.02% 5.96% 2.59% 5.07% GNPA (%) & NNPA (%) 0.82% 2.95% Q1-FY22 0.89% 2.87% 24 FY19 FY20 FY21 S 5 08 45 اس 41 Profit Before Tax (in INR Mn) 87 Q1-FY22 36 18 27#37Investor Presentation | www.dfltd.in 600% 500% 400% 300% 200% 100% 0% -100% Jul-20 Price Data (30th June 2021) Face Value Aug-20 Sep-20 Capital Market Graph Oct-20 Nov-20 INR Dec-20 Jan-21 10.0 Market Price 785.3 Public 52 Week H/L 837.1/88.1 38.81% Market Cap(Mn) 12,040.2 Equity Shares Outstanding (Mn) 15.3 1 Year Avg Trading Volume ('000) 24.2 DFL Sensex Feb-21 Mar-21 Apr-21 Shareholding Pattern as on 30th June 2021 Promoters 61.19% 37 May-21 Jun-21#38Disclaimer Dhanvarsha Finvest Limited Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context has been taken care off in the presentation and neither we undertake any obligation as to the regular updating of the information as a result of new information, future events or otherwise. We will accept no liability whatsoever for any loss arising directly or indirectly from the use of, reliance of any information contained in this presentation or for any omission of the information. The information shall not be distributed or used by any person or entity in any jurisdiction or countries were such distribution or use would be contrary to the applicable laws or Regulations. It is advised that prior to acting upon this presentation independent consultation/advise may be obtained and necessary due diligence, investigation etc. may be done at your end. You may also contact us directly for any questions or clarifications at our end. This presentation contain certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our industry and our competitive and regulatory environment. In addition to statements which are forward looking by reason of context, the words 'may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential or continue and similar expressions identify forward looking statements. Actual results, performances or events may differ materially from these forward-looking statements including the plans, objectives, expectations, estimates and intentions expressed in forward looking statements due to a number of factors, including without limitation future changes or developments in our business, our competitive environment, telecommunications technology and application, and political, economic, legal and social conditions in India. It is cautioned that the foregoing list is not exhaustive This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review. For further details, please feel free to contact our Investor Relations Representatives: XX® VALOREM ADVISORS Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: [email protected] Investor Presentation | www.dfltd.in 38