UGROCAPNSE24 January 2025

Ugro Capital Limited has informed the Exchange about Investor Presentation

Ugro Capital Limited

24th January 2025

To BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400001

National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block Bandra, Kurla Complex, Bandra (East) Mumbai 400051

Scrip Code – 511742

Symbol – UGROCAP

Subject: Investor Presentation for the quarter ended 31st December 2024

Dear Sir/Madam,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith investor presentation for the quarter ended 31st December 2024.

This is for your information and records.

The aforesaid information is being made available on the Company's website at www.ugrocapital.com

Thanking You,

For UGRO Capital Limited

Satish Kumar Company Secretary and Compliance Officer Encl: a/a

UGRO CAPITAL LIMITED

Registered Office Address: Equinox Business Park, Tower 3, 4th Floor, LBS Road, Kurla (West), Mumbai - 400070 CIN: L67120MH1993PLC070739 Telephone: +91 22 41821600 I E-mail: info@ugrocapital.com I Website: www.ugrocapital.com

UGRO Capital Limited Building an Institution for MSME Lending

Data Tech Empowering Small Businesses (MSME) Lending

Q3’FY25 Earnings Presentation 24 January 2025

NSE: UGROCAP | BSE: 511742

Slide 1

Safe Harbor

This presentation has been prepared by UGRO Capital Limited (the “Company”) solely for your information. By accessing this presentation, you are agreeing to be bound by the trailing restrictions.

This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract or commitment therefor. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India.

There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. However, the Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes

The financial information in this presentation may have been reclassified and reformatted for the purposes of this presentation. You may also refer to the financial statements of the Company available at www.ugrocapital.com before making any decision on the basis of this information.

Certain statements contained in this presentation that are not statements of historical fact constitute forward- looking statements. These forward- looking statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward- looking statements as a result of various factors and assumptions which the Company presently believes to be reasonable in light of its operating experience in recent years, but these assumptions may prove to be incorrect.

Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose.

This presentation and its contents are for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person and should not be distributed, published or reproduced, in whole or part, or disclosed by recipients directly or indirectly to any other person.

Slide 2

Q3’FY25 Snapshot: Record Growth through Expansion and Strategic Initiatives

Consecutive highest Quarter:

INR 2,098 Cr compared to INR 1,971 Cr in Q2’FY25 and INR 1,552 Cr in Q3’FY24

Successful the embedded finance disbursements:

initiation

MSL acquisition(1) has delivered as planned, with AUM reaching INR 302 crore as of December 2024; showcasing strong traction.

Focus on Emerging Market (EM) channel(2):

74 Emerging Market branches in 9M’FY25 taking total added branch count to 224

Highest ever disbursement by Emerging Market channel:

Mobilized highest ever borrowings in a quarter:

Stable Asset Quality:

INR 543 Cr vs. INR 180 Cr in Q3’FY24; overall contribution to EM channel increased to 19% as of Dec’24.

~INR 1,400 Cr in Q3’FY25 vs ~INR 1,100 Cr in Q2’FY25 and ~INR 800 Cr in Q3’FY24; INR 105 Mn of ECB sanctioned/raised

GNPA maintained at 2.1% with all portfolio stable; parameters provision coverage maintained at 47%.

(1) The process in underway and the regulatory approval is awaited. (2) ‘Micro’ has been renamed as ‘Emerging Market’ for better reference to our focus segment

Slide 3

Performance snapshot for Q3’FY25/ 9M’FY25

Q3’FY25

Q3’FY24

9M’FY25

9M’FY24

AUM (INR Cr)

11,067

Net Disbursement (INR Cr)(1)

2,098

Off-book AUM

44%

8,364

1,552

45%

32%

35%

71 bps

11,067

5,215

44%

8,364

4,311

45%

32%

21%

71 bps

Net Total Income %(2)

12.8%

13.5%

66 bps

12.3%

13.0%

71 bps

Pre-Tax Profit (INR Cr)

PAT (INR Cr)

53.0

37.5

46.4

32.5

14%

15%

145.9

103.4

122.8

86.7

19%

Cost to Income Ratio

56.7%

53.2%

350 bps

54.6%

5 bps

ROA

ROE(3)

1.9%

8.4%

2.4%

9.4%

46 bps

1.9%

96 bps

8.5%

2.3%

9.7%

42 bps

117 bps

Annualized EPS of 9M’FY25(4) INR 15.0 per share

Price to Earnings Ratio (P/E) 15.4x

(Basis BSE price as on Dec 31, 2024)

(1) Net Disbursement = Gross Disbursements – Repayment received in Supply Chain Financing during the period ; (2) On Average Gross on-books AUM; (3) Annualised and excluding equity component of CCDs; (4) Annualised Diluted EPS for 9M’FY25 of INR 14.3

Slide 4

Key metrics for Q3’FY25/ 9M’FY25

Asset Growth

Profitability

Asset Quality

AUM As of Dec’24 : 11,067 Cr (+32% Y-o-Y)

Net Loans Originated Q3’FY25 | 9M’FY25: 2,098 Cr | 5,215 Cr (+35% | +21% Y-o-Y)

Portfolio yield (net) As of Dec’24: 16.7%

Net Total Income Q3’FY25 | 9M’FY25: 218 Cr | 583 Cr (+34% | +34% Y-o-Y)

PPOP Q3’FY25 | 9M’FY25: 94 Cr | 265 Cr (+24% | +34% Y-o-Y)

Net Profit Q3’FY25 | 9M’FY25: 38 Cr | 103 Cr (+15% | +19% Y-o-Y)

GNPA As of Dec’24 : 2.1% (Dec’23: 2.0%)

NNPA As of Dec’24 : 1.5% (Dec’23: 1.1%)

Liability & Co - lending

Borrowings As of Dec’24 : 6,151 Cr

Co-lending - Partnership with 16 co - lenders / co - originators - 4,902 Cr off-book AUM

(+30% Y-o-Y)

Collection efficiency(1) Dec’24 : 96%

Cost of Borrowings As of Dec’24 : 10.68%

(1) Total Collections (including overdue) / Current month demand

Slide 5

Serving a diverse set of customers with multi-product, multi-channel strategy

UGRO’s Focus

GRO line

Prime Intermediated: Metro & Tier 1/2 Branches

Emerging Market: Tier 2 & beyond branches

Ecosystem Channel & Green Asset Financing

Direct & Digital Alliances

Collateral: Prime Property (For Sec.), Prime Machinery Cashflow: GST, Banking & Liquid income assessment

Rs 1cr – 15cr Customer Turnover

Secured Biz. Loan: Rs 81L Biz. Loan*: Rs 19L Prime Machinery: Rs 40L Average ticket size

Yield: Sec/Biz/Mch: 14%/19%/15% Tenure: Sec/Biz: 12/3/4 yrs

Channel AUM Mix: 53% Sec/Biz/Mch : 22%/30%/1%

Collateral: Standard Property Collateral: Standard Property Cashflow: Liquid income Cashflow: Liquid income assessment assessment

Collateral: Prime Machinery & Collateral: Prime Machinery receivables Cashflow: GST & Banking Cashflow: GST & Banking

<Rs 1cr Customer Turnover

Rs 14L Average ticket size

Yield: 19% Tenure: 9 yrs

Rs 1cr – 10cr Customer Turnover

Rs 35L Average ticket size

Yield:. 14% Tenure: 4 yrs

Channel AUM Mix: 19%

Channel AUM Mix: 12%

Collateral: Receivables, FLDG from partner Cashflow: Banking & liquid income assessment

<Rs 50L Customer Turnover

Alliances: Rs 4L Embedded Finance: Rs 1L Average ticket size

P&A/Embedded fin Yield: 15%/16% Tenure: 4 yrs/1yr

Channel AUM Mix: 11%/3%

*CGTMSE backed

Products sold across channels: Intermediated: Secured Biz. Loan, Biz. Loan, Rooftop Solar and Machinery; Emerging Market: Secured Enterprises Loan, Rooftop Solar and Machinery; Equipment finance and Green Asset Financing: Direct distribution and across other channels; Digital business & Alliances: Digital business and retailer finance

Strategic decision to rundown lower yielding SCF book – not covered here

Slide 6

Emerging Market Snapshot- Y-o-Y

9M’ FY24

9M’FY25

Quarterly trends- Last 5 quarters

Strategy- Current/ Target

# of branches

# of states

201

148%

# of branches:

57%

187

201

127

141

• Target to increase the number of branches to 400 by March 2026 and increase geographical presence in another 2-3 states.

# of logins

15,070

28,434

89%

Dec-23 Mar-24

Jun-24

Sep-24

Dec-24

Disbursement (Rs cr)

518

1,208

133%

Channel AUM (Rs cr) trend:

AUM (Rs cr)

1,000

2,073

107%

1,000

2,073

1,644

1,144

1,279

Channel AUM Mix %

12%

19%

623bps

Dec-23 Mar-24

Jun-24

Sep-24

Dec-24

• Significant

focus

increasing the volumes.

• The AUM mix is planned to increase from current levels to approx. 35-40% in the next 4-6 quarters.

Our Emerging Market Channel continues to grow quarter on quarter with steady volumes and increase in number of branches as desired

Slide 7

Embedded finance platform (MSL) acquisition tracking as per plan

Embedded finance ecosystem and potential

MSL Performance so far..

65mn Total Merchants

45mn Digital Merchants

35mn Digitally enabled small Merchants & Retailers(1)

$22bn+ Annual Credit Requirement for Small Retailers (2)

92% Credit Gap(3)

$20bn+ Annual Credit Gap

Current Partnerships

• Our targeted acquisition of the embedded finance

platform (MSL) has tracked to the right scale.

• We have seen good traction for the partner volumes, with monthly run rate of Rs 150cr to Rs 200cr.

• Out of total universe of ~3 crore merchants pertaining to MSL’s partners, we have served 28,000+ customers. The AUM as of Dec-24 is Rs 302cr.

• Along with existing partners on the platform, talks are in final stages with couple of leading partners in this space.

• The approval process for completion of acquisition

is ongoing.

Source: Paytm DRHP, SBFC DRHP | Notes: (1) Total number of merchants using QR payments are considered as small retailers, (2) Considering INR 50k average ticket size, (3) Credit gap for small retailers

Slide 8

Our collection efficiencies and portfolio performance remains stable

Collection Efficiency remains robust

ECL Data (Dec’24)

Total Collections* (including overdue) / Current Month Demand

98%

96%

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Q2FY25

Q3FY25

Key highlights:

• GNPA / NNPA as a % of Total AUM stood at 2.1% / 1.5% as of Dec’24

• Stage 3 provisioning coverage stood at 47%

*Excluding foreclosures

(In Cr)

Stage 1

Stage 2

Stage 3

Total

Loan Exposure

Loan Exposure (%)

10,341

488

237

11,067

93.5%

4.4%

2.1%

100.0%

Product wise GNPA

Product Category

AUM (INR Cr)

GNPA(%)

Secured Business Loan

Business Loan

Emerging market LAP

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

Embedded Finance

Grand Total

3,042

3,353

1,362

309

1,500

1,199

302

11,067

0.4%

3.8%

10.7%

0.8%

0.1%

0.5%

2.1%

Slide 9

Our collection efficiencies and portfolio performance remains stable

Stable Stage 1 assets

Stable Stage 3 assets

95%

94%

93%

94%

1.9%

2.0%

2.1%

Sep'23

Dec'23

Mar'24

Jun'24

Sep'24

Dec'24

Sep'23

Dec'23

Mar'24

Jun'24

Sep'24

Dec'24

Adequate Provision Coverage Ratio

49%

48%

47%

Sep'23

Dec'23

Mar'24

Jun'24

Sep'24

Dec'24

Slide 10

Unique capital light liability strategy

Demonstrated ability to manage a prudent mix of on-balance sheet and off-balance sheet approach

On-Balance sheet Diversified Lender base across Lending Institutions – Banks, Large NBFCs and DFIs. Multi product approach through TL, NCDs, MLDs, CPs

Co-Lending with Banks/NBFCs Partnership with PSBs, Pvt. Banks and Large NBFCs to achieve scale with lesser leverage and lower on-balance sheet risk

Co-lending

On-Book

Assignment

Assignments with FIs 100% PSL Loan book leading to higher demand of securitized pool and a lever to manage ALM

Actively partnering with liability providers and focus on building a long-term relationship

Slide 11

Overall off book ratio maintained

High proportion of oﬀ - Book AUM mix

Product wise Mix of oﬀ - Book AUM (Dec’24)

On Book Portfolio

Off Book Portfolio

3,042

3,353

1,362

43%

45%

44%

57%

55%

56%

Jun'23

Sep'23

Dec'23

Mar'24

Jun'24

Sep'24

Dec'24

Jun’23

Sep’23

Dec’23 Mar’24

Jun’24

Sep’24

Dec’24

Off Book AUM

2,929

3,405

3,765

4,078

4,114

4,493

4,902

Co-Origination

1,457

1,604

1,615

1,610

1,513

1,398

1,412

Co-lending

943

530

1,166

1,474

1,685

1,839

2,222

2,350

635

676

784

762

874

1,141

48%

52%

Secured Business Loans

1,473

30%

49%

21%

Secured Business Loans

61%

39%

61%

309 0%

100%

1,500

51%

49%

302

100%

1,199 8%

92%

Business Loans

Emerging Market LAP

Supply Chain Financing

2,031 4% 45%

51%

534

44%

56%

Business Loans

Emerging Market LAP

- Supply Chain Financing

Machinery Financing

Partnership & Alliances

Embedded Finance

On-Book

Off-Book

768

37%

54%

100%

Machinery Financing

Partnership & Alliances

#DIV/0! - Embedded Finance

Co-Origination

Co-lending

Co-lending Partnership with 9 Banks and 7 NBFCs

Slide 12

Diversified Lender base and continued build-out of liability book

Total Debt (INR Cr) and Cost of borrowings

Liability mix by lender profile

Liability mix by product

10.65%

10.70%

10.73%

10.75%

10.68%

Cost of Borrowings

4,173

4,653

4,529

6,151

5,344

19%

17%

Total Debt INR 6,151 Cr

49%

10%

3% 4%

25%

Total Debt INR 6,151 Cr

52%

16%

Q3'FY24

Q4'FY24

Q1'FY25

Q2'FY25

Q3'FY25

Banks

NBFC

DFI

FIs

Capital Markets

Term Loan

ECB NCD CP Others

(Others includes CCD, Sub-debt, CC/OD & Securitization)

Our liability sanctions have been raised from a diverse set of lenders

Public Sector Banks and Institutions

Private Sector Banks

DFIs

NBFCs

Slide 13

Finance | Income Statement

Income Statement (₹ Cr)

Q3’FY25

Q3’FY24

Y-o-Y

Q2’FY25

Q-o-Q

Annualised ROA Tree

Q3’FY25

9M’FY25

Interest Income

Income on Co-Lending / Direct Assignment

Other Income

Total Income

Interest Expenses

Net Total Income

Employee Cost

Other Expenses

PPOP

Credit Cost

PBT

Tax

PAT

254.4

103.6

26.9

385.0

167.3

217.7

64.6

58.8

94.2

41.3

53.0

15.5

37.5

181.1

76.4

21.8

279.3

116.7

162.6

48.5

38.0

76.1

29.7

46.4

13.8

32.5

41%

36%

23%

38%

43%

34%

33%

55%

24%

39%

14%

12%

15%

208.0

109.5

25.3

342.9

143.1

199.8

61.6

43.7

94.5

44.3

50.1

14.6

35.5

22%

(5%)

12%

17%

35%

(7%)

As a % of Gross On Book AUM

Total Income

22.7%

21.7%

Interest Expenses

9.9%

9.4%

Net Total Income

12.8%

12.3%

Opex

Credit cost

PBT

PAT

7.3%

2.4%

3.1%

2.2%

6.7%

2.5%

3.1%

2.2%

Key Ratios

Q3’FY25

9M’FY25

ROA (% Avg. Total Assets)

Leverage

RoE*

1.9%

3.1x

8.4%

1.9%

3.1x

8.5%

* Excluding Equity component of CCDs

Slide 14

Operating & Financial Metrics

Total Income (INR Cr) & Portfolio Yield$

Finance Cost (INR Cr) & Cost of Borrowing

Operating Exp. (INR Cr) and Cost to Income

17.5%

16.3%

17.7%

16.6%

17.7%

16.7%

17.8%

16.7%

18.2%

16.7%

10.65%

10.70%

10.73%

10.75%

10.68%

53.1%

52.0%

54.1%

52.7%

56.6%

279

330

302

343

385

117

128

136

143

167

105

123

Q3'24

Q4'24 Total Income

Q1'25 Gross Yield (%)

Q2'25

Q3'25 Net Yield (%)

Q3'24

Q4'24 Finance Expense

Q1'25

Q2'25

Q3'25

Cost of borrowing (%)

Q3'24

Q4'24

Q1'25

Q2'25

Q3'25

Operating Expenses

Cost to Income Ratio (%)

Credit Cost (INR Cr) & Credit cost / Avg AUM

PBT (INR Cr) and PBT / Avg. Total Assets#

PAT (INR Cr) and PAT / Avg. Total Assets#

1.5%

1.9%

1.5%

1.8%

1.6%

3.3%

3.7%

2.6%

2.8%

2.7%

2.3%

2.2%

1.9%

2.0%

1.9%

Q3'24

Q4'24

Q1'25

Q2'25

Q3'25

Q3'24

Credit Cost

Credit Cost/ Avg AUM

Q4'24

PBT

Q1'25

Q2'25

Q3'25

Q3'24

Q4'24

Q1'25

Q2'25

Q3'25

PBT/ Avg Total Assets

PAT

ROTA %

1,998

Net Worth

11,067

AUM

44%

Off book %

6,151 / 21.5%

Total Debt / CRAR

2.1% / 1.5%

GNPA / NNPA (Total AUM)

224

115,000+

Branches

Active Borrowers

$ Weighted Average AUM yield as on Period End # Annualized ratio based on quarterly average of total assets

Slide 15

We continue to work towards 4% ROA

Change of ~160 bps

2.3% RoA

150 bps

75 bps

50 bps

~4% RoA

YIELD EXPANSION

COST OF BORROWING DECREASE

OPERATING LEVERAGE

CREDIT COST INCREASE

Emerging Market LAP mix increase led by branch addition

Aided by scale, capital raise, vintage, expected easing rate cycle

On the back of strong AUM growth

Portfolio seasoning

Slide 16

MSME lending : The largest opportunity today

Slide 17

For India’s GDP to reach USD 5 trillion, MSME sector has to reach USD ~2 trillion

Today

India’s GDP in FY2028

FY2028

MSME 35-40%

~6.3 Crore MSMEs

MSME 35 – 40%

~25 Crore employment

~30% of GDP

MSME 35-40%

~8 – 10 Crore MSMEs

~20-22 Crore employment

~30-40% of GDP

MSME sector expected to grow to USD ~2 trillion by FY2028

Rapid digitization, expansion of the ecommerce Penetration of the Digital India Stack 2.0 Rising digital payments; India accounts for 45% of global transactions Other initiatives: Account Aggregator Framework, OCEN, ONDC Continuous support from Government

Slide 18

MSME sector is the key to India’s ‘Employment Generation’, making it one of the Central themes of Government in the last decade MSME count to grow to ~10 crores employing 20-22 crores

Slide 19

…well supported by continuity in Government initiatives

Government Initiatives throughout the years

Financial Support for MSME Growth - 2024

•

2014 - Pradhan Mantri MUDRA Yojana (PMMY)

Budget Allocation

2015 - Udyog Aadhaar Memorandum (UAM)

2016 - Stand-Up India Scheme

2017 - MSME Samadhaan, MSME Sambandh

2018 - 59-minute loan portal, Interest Subvention Scheme for MSMEs

2019 - MSME Support and Outreach Program

2020 - Emergency Credit Line Guarantee Scheme (ECLGS)

2021 - Raising and Accelerating MSME Performance (RAMP) Program

2022 - Revised Credit Guarantee Scheme for MSMEs

2023 - Credit guarantee trust, Vivad se Vishwas scheme

•

For Ministry of MSME: INR 22k Crores

Funds for central sector schemes for MSMEs: INR 22k Crores

Loan Enhancements

• Mudra Loans for 'Tarun' category limit: Increased to INR 20 lakh for

borrowers who have repaid earlier loans

• Micro and Small Enterprise-Cluster Development Programme (MSE-

CDP): INR 400 crores

Credit Facilities

• Guarantee Emergency Credit Line (GECL): ~INR 10k Crores for additional

working capital loans to MSMEs

• Raising and Accelerating MSME Performance (RAMP): INR 1,170 Crores

for credit guarantees to improve credit access

• MSME Champions Scheme: INR 55 crores for MSME modernisation

• Credit Guarantee Scheme: INR 100 crores for manufacturing sector Others

•

24 new MSME branches by year-end, will enable SIDBI to cover 168 of 242 major MSME clusters thereby expanding its reach amongst MSMEs Slide 20

Building a large institution for MSME financing is a real possibility Explosion of Credit in MSME Segment: Large market opportunity, conducive macro, favorable policy framework

Total MSME Credit gap is INR 1,03,000 Bn

Credit Gap of our customer segment constitutes majority portion

Overall MSME Credit Addressable Market

FY24: INR 1,38,000 Bn

Credit Gap

FY24: INR 1,03,000 Bn

MSME addressable credit demand

FY24: INR 67,500 Bn

Medium Enterprise No. of entities – 0.05L (0.8%)

Medium

Small

Small Enterprise No. of entities – 9.6L (1.5%)

UGRO’s Target Customer Segment T/o INR 25L - 15Cr

Micro

Micro Enterprise No. of entities – 623L (97.7%)

Unserved Customers

Source: IFC report on Financing India’s MSME; Crisil Report.

Slide 21

UGRO Capital: Well-placed to capitalize on the opportunity

MSME Focused Lender targeting large credit gap

Targeting MSME sector which has substantial credit gap of ~INR 103 lakh crore

Analytics Powered

Pan-India Presence

trailblazing data-driven India’s underwriter, cashflow transforming the MSME credit landscape

based

Extensive network pan India, with branch network of 224, expanding fast

Large Capital Base

Capital Light Model

Multi-product Capability

Marquee investors have invested ~INR 2,700 crore in 3 rounds

Pioneered “Unique Capital Light Liability Strategy” by co-lending with Banks and large NBFCs and assignment of the PSL book for greater scale

Prime, EM LAP, Machinery, Roof- top Solar, Partnership & Digital alliances products cater to the entire MSME ecosystem

Slide 22

UGRO’s Data & Tech driven approach

Slide 23

UGRO’s journey of Data-Tech driven lending to MSMEs over 5+ yrs

Build phase Infrastructure build at inception during Covid, pivoted to cash flow based underwriting models

Early Validations At Dec 2022, 87% of organic prime business was using GRO Score

Maturing phase

term

portfolio long performance starting to emerge

Growth Phase industry an Become benchmark in data-driven decision making for MSME

First Banking scorecard and Gro Score 2.0 (Jul 21) In house analytical rule engine for fast deployment of analytics strategies

API integrations Data layer First gen Gro Score on look- alike data from credit bureau

Industry first statistical model using GST data Gro Score 3.0 as a combination of Bureau + Banking + GST

2022-23

2021-22

2020-21

Develop Network Science, ability to create blueprint of large supply chains First generation eligibility recommendation model

2023-24

2024+

Gro Score 4.0 – 100% digital including hyper- underwriting customization personal interactions Sector specific data models based on proprietary data and knowledge Doubling of credit productivity with stable asset quality

Data Repository- Dec’24

6.2L+

Bureau Records analyzed

2.5L+

Bank Statements analyzed

88k+

GST records analyzed

135k+

Customer served

Slide 24

Data driven by AI/ML powers our core underwriting :

Ability to capture alternate data from banking and bureau…

…to draw meaningful insights out of unorganized data...

Across Multiple parameters

Turnover and transaction intensity

Borrowing mix and nature

Cheque bounces & bank charges

Frequency and magnitude of defaults

Payment cycles

History of high-cost debt/credit card usage

Obligations as % of turnover

Balances and withdrawals

Counterparties & relative strengths

Pace of borrowing

GRO 2.0 Credit Bureau Data + Banking Data

GRO 3.0 Credit Bureau Data + Banking Data + GST

GST

Bank

Bureau

Matches Banking & Bureau Scorecards to generate one single score which further gets augmented with GST data as an external input

Machine generates 25,000+ data features applicant’s from bureau record and bank statement

… and decide whether to disburse or not disburse the loan within 60 minutes.

Artificial Intelligence Engineering of making Intelligent Machines and Programs

Machine Learning Ability to learn without being explicitly programmed

Deep Learning Learning based on Deep Neural Network

Historical aggregation – several pages of statement going back 12 months can be summarized instantly

Normalization – convert absolute values to scale, for even comparison

Trending – create changes over standardized measure of comparison across diverse nature of entities, sectors, geographies

time,

Scoring of each case into one of the five bands of A – E with A being the best and E being the worst

Slide 25

A CD GRO Score – Risk Bands Stacking up on Historical Portfolio

Default rates across score bands – All customers assessed Since Inception

Score Band wise break up of recent disbursals (Jul 24 – Dec 24)

3.0%

1.9%

1.0% 0.7%

1.4%

0.8%

1.8%

1.2%

A+&A

D,E

Disbursed cases

Not Disbursed cases

Segments A+,A, B – contributing to majority share of disbursals and lever for calibrated increase of throughput

12%

GRO Score A+ to C ~87%

44%

31%

A+&A

To that effect we have analysed both sets of data i.e. cases disbursed and rejected by UGRO. Performance across risk bands was observed to be stacking up for both sets of data

Explanation note : Scores are computed based on repayment track record of loan applicants and submitted bank statements. Default rate tracking is done based on quarter-end credit bureau data; “default” represents incidence of 90 dpd in any business purpose credit facility reported in bureau during a period of six months from the point of assessment at U GRO Capital

Slide 26

Our System Architecture supports full SME lending

Secured

Business Loan

Factoring

P&M Loans

OD product

EV / Solar

Digital Finance

Co-lending

Embedded Finance

Bureau + Banking

GROSCORE 2.0

GSTN

Bureau + Banking + GSTN

GROSCORE 3.0

UGRO’S PROPRIETARY TECH CAPABILITY

Co-lending

Supply Chain

D2C Offering

Credit BRE

Origination

Retailer

GRO line

Operational Data Store (Data Lake)

In-House LMS

Qualtech LMS

Jayam LMS

Dedupe System

Collection System

BANKING PARTNERS

A FEW KEY API ECOSYSTEM PARTNERS

DEVELOPMENT PARTNERS

Slide 27

Multi-product, multi-channel Asset Engine

Slide 28

Serving a diverse set of customers with multi-product, multi-channel strategy

GRO line

Prime Intermediated: Metro & Tier 1/2 Branches

Emerging Market: Tier 2 & beyond branches

Ecosystem Channel & Green Asset Financing

Direct & Digital Alliances

Collateral: Prime Property (For Sec.), Prime Machinery Cashflow: GST, Banking & Liquid income assessment

Rs 1cr – 15cr Customer Turnover

Secured Biz. Loan: Rs 81L Biz. Loan*: Rs 19L Prime Machinery: Rs 40L Average ticket size

Yield: Sec/Biz/Mch: 14%/19%/15% Tenure: Sec/Biz: 12/3/4 yrs

Channel AUM Mix: 53% Sec/Biz/Mch : 22%/30%/1%

Collateral: Standard Property Collateral: Standard Property Cashflow: Liquid income Cashflow: Liquid income assessment assessment

Collateral: Prime Machinery & Collateral: Prime Machinery receivables Cashflow: GST & Banking Cashflow: GST & Banking

<Rs 1cr Customer Turnover

Rs 14L Average ticket size

Yield: 19% Tenure: 9 yrs

Rs 1cr – 10cr Customer Turnover

Rs 35L Average ticket size

Yield:. 14% Tenure: 4 yrs

Channel AUM Mix: 19%

Channel AUM Mix: 12%

Collateral: Receivables, FLDG from partner Cashflow: Banking & liquid income assessment

<Rs 50L Customer Turnover

Alliances: Rs 4L Embedded Finance: Rs 1L Average ticket size

P&A/Embedded fin Yield: 15%/16% Tenure: 4 yrs/1yr

Channel AUM Mix: 11%/3%

*CGTMSE backed

Strategic decision to rundown lower yielding SCF book – not covered here

Slide 29

Sector Focused Approach, Multiple Products and Large Distribution Strength

Emerging Market

Light Engineering

Auto Components

Chemicals

Food Processing

Education

Healthcare

Electrical Equipment & Components

Hospitality

Business Loan

Retailer Finance

Our Product Offering

Business Loan Secured by Property

New Age Products

Machinery Loan

Emerging Market LAP

9 sectors are further subdivided into multiple sub-sectors basis homogeneity of cash flows among MSMEs

Prime Branches

201

EM Branches

730+

GRO Partners

10+

Green Anchors

70+

OEMs

60+

Fintech Partners

1,800+

Front-end Sales

Slide 30

Highest-ever Net Loan Origination (Channel wise Q-o-Q) Amount in INR Cr

Disbursement is up 35% YoY; Disbursement excluding Supply Chain Financing(1) is up 44% YoY

109

1,459

193

173

206

418

360

1,284

172

153

151

429

363

1,477

209

167

188

524

304

1,166

148 134

136

387

294

1,552

1,554

261

225

180

590

244

-184

-89

322

227

203

627

264

1,146

156

196

209

524

244

1,971

2,098

-98

277

291

456

623

422

-61

335

233

260

543

412

376

Q3'FY23

Q4'FY23

Q1'FY24

Q2'FY24

Q3'FY24

Q4'FY24

Q1'FY25

Q2'FY25

Q3'FY25

Secured Business Loans

Business Loans

Emerging Market LAP

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

Embedded Finance

Note: Secured Business Loan is secured by property, Business Loan is secured by CGTMSE, Emerging Market LAP is secured by property, SCF is secured by receivables, Machinery Loan is secured by machinery, Partnerships & Alliances are secured by FLDG. Embedded Finance through MyShubhlife (MSL) platform (1) Strategic decision to rundown lower yielding SCF book

Slide 31

Strong AUM Growth Trend (Product wise Q-o-Q) Amount in INR Cr

AUM increased to INR 11,067 Cr as of Dec’24 from INR 10,157 Cr as of Sep’24 and INR 8,364 Cr as of Dec’23 (+32%)

32%

8,364

967

12%

1,037

12%

722

721

2,664

32%

9,047

1,112

1,168

632

813

2,936

9,218

1,108

1,253

439 895

3,073

11,067

302

1,199

1,500

309

1,362

11%

14%

12%

3,353

30%

10,157

1,184

1,391

355

1,105

3,331

6,777 - 750

798 585

2,109

548

7,592 - 849

893

670 636

2,380

1,986

2,164

2,252

27%

2,385

2,451

2,792

3,042

27%

338

5,095

746 564 458

1,528

1,462

472

6,081

715 701 567

1,899

1,727

Q3'FY23

Q4'FY23

Q1'FY24

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Q2FY25

Q3FY25

Secured Business Loan

Business Loan

Emerging Market LAP

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

Embedded Finance

Slide 32

Well diversified, granular and stable portfolio quality

Product Mix (AUM)

Portfolio Concentration in key geographical areas

Sector Mix

11%

27%

14%

12%

18%

12%

Guaranteed by CGTMSE

Secured Business Loan Emerging Market LAP Machinery Loan Embedded Finance

Business Loan Supply Chain Financing Partnerships & Alliances

State wise AUM coverage

17%

10%

Rest of India < 1%

21%

11%

13%

AUM (Cr)

ROI (%)

Ticket size (Lakh)

Product category

Secured Business Loan

Business Loan

Emerging Market LAP

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

Embedded Finance

3,042

3,353

1,362

309

1,500

1,199

302

14.3%

18.9%

20.4%

15.1%

14.5%

15.1%

16.0%

Grand Total

11,067

16.7%

State wise branches

EM LAP

Prime

Total

Tamil Nadu Madhya Pradesh Rajasthan Andhra Pradesh Maharashtra Telangana Karnataka Gujarat Uttar Pradesh Other States Total

39 32 28 22 17 15 15 14 11 8 201

1 3 2 2 6 1 1 1 1 6 23

40 35 30 24 23 16 16 15 12 13 224

17%

23%

27%

Auto Components

Chemicals

Education

Electrical Equipment

Food Processing

HealthCare

Hospitality

Light Engineering

Emerging Market

Other MSME

Slide 33

Shareholding, Board, and Management

Slide 34

Institutionally Owned: Majority held by Institutional Investors

Shareholding Pattern as of Dec’24

Fully diluted shareholding pattern*

Other Public shareholders, 29.5% 39k+ shareholders

16.4%

(Investment arm of Denmark govt.)

Other Public shareholders, 26.3%

Insurance Cos, 1.8%

FPIs, 3.0%

Corporate, 7.2%

16.2%

MSL shareholders, 0.5% Insurance Cos, 1.2%

FPIs, 2.0%

Corporates, 10.5%

10.5%

(Investment arm of Denmark govt.)

10.4%

Promoter, 2.2%

16.2%

7.5%

Founder and Management, 5.0%

5.5%

17.8%

Management to potentially own 7 Mn shares on a fully diluted basis; vesting conditions linked to share price performance (ranging between Rs 261-538 till 2026) over next 2 years, thereby aligning management’s goals towards company’s performance and ultimately shareholder returns

*considering full allotment of shares issued on preferential basis

Slide 35

We are Independently supervised by eminent Board of Directors

Non-Executive Chairman

Satyananda Mishra Chairman, Corporate Social Responsibility Committee Ex-Chairman- MCX, Ex-CIC, GOI, Ex-Director - SIDBI

Independent Directors

Karnam Sekar Ex - MD & CEO of Indian Overseas Bank

Hemant Bhargava Ex-Chairman in charge and MD of LIC

Rajeev K. Agarwal Ex-Whole Time Member, SEBI

S. Karuppasamy Ex-Executive Director, RBI

Tabassum Inamdar Ex Goldman Sachs, UBS Securities, Kotak Securities

Committee Chairman Risk Management

Committee Chairman Audit

Chetan Gupta (Samena Nominee) Managing Director at Samena Capital

Committee Chairman Nomination & Remuneration, Stakeholder Relationship, Securities allotment and transfer committee

Committee Chairman IT Strategy, Compliance & Customer Service

Nominee / Shareholder Directors

Suresh Prabhala (ADV Nominee) Partner at ADV

Rohit Goyal (IFU Nominee) VP at IFU

Shachindra Nath - Founder & Managing Director 26+ Years of diversified financial services experience across asset management, lending, capital markets & insurance

Slide 36

With strong corporate governance framework enshrined in the Articles

▪

High degree of regulatory oversight and transparency

An institution created with a long-term view, designed for continued operational efficiency

Access to permanent capital

▪ Any proposed loan >1% of net worth or to a related party to require unanimous approval of ALCO and the Board

▪ Board approved multi-layer credit authority delegation

▪ Removal of key management (including CRO, CFO) to

require 3/4th board approval

▪ Any significant action by the Company to need 3/4th

approval of the Board

▪

Reputed Audit Firm to be appointed as the statutory auditors

Sharp and Tannan appointed as the statutory auditor and Khimji Kunverji & Co appointed as the co-sourced firm for internal audit

▪ Independent directors to comprise majority for

perpetuity

▪ Any shareholder holding >10% to qualify for a board seat

▪ Key committees to be headed by an independent member

with required credentials

▪ The majority of the NRC, ALCO and Audit Committees to

comprise of independent directors

Special Resolution of Shareholders required for effecting any changes to the AoA; Promoters/Management do not have unfettered rights to divert business strategy

Slide 37

Professionally Managed: Leadership team has 165+ years of cumulative experience

Shachindra Nath - Founder & Managing Director 26+ Years of diversified financial services experience across asset management, lending, capital markets & insurance

Amit Mande Chief Revenue Officer 24+ Years of Experience

Anuj Pandey Chief Risk Officer 25 Years of Experience

Kishore Lodha Chief Financial Officer 23+ Years of Experience

Sunil Lotke Chief Legal & Compliance Officer 21+ Years of Experience

Rajni Khurana Chief People Officer 24+ Years of Experience

Sharad Agarwal Chief Operating & Technology Officer 25+ Years of Experience

Slide 38

Leadership is supported by strong second layer of management

Monika Kapoor CBO - Intermediated Business 21+ Years of Experience

J Sathiayan CBO – Emerging Market 25+ Years of Experience

Ajit Kumar CBO - Equipment Finance & Green Asset Financing 25+ Years of Experience

Tanya Chadha CBO - Digital Business & Alliances 19+ Years of Experience

Irem Sayeed Chief Credit Officer 25+ Years of Experience

Subrata Das Chief Innovation Officer 19+ Years of Experience

Satyabrata Mohapatra Head - Operations & Customer service 24+ Years of Experience

Sameer Nanda Chief Collections & Litigation Officer 25+ Years of Experience

Arun Arora Head - Litigation, FCU & Collateral Management 19+ Years of Experience

Neeraj Deshpande Head – Co-lending 24+ Years of Experience

Ritu Prakash Singh Head – Investor Relations & Senior Economist 18+ Years of Experience

Ankit Chothani Head - Marketing & Corporate Communications 19+ Years of Experience

Slide 39

Understanding Co-lending

Note: This section is only for learning & illustration purpose

Slide 40

RBI Guidelines on Co-lending

RBI circular dated November 05, 2020

➢ Loan sanction - Joint contribution of credit by banks and NBFCs

➢ Interest rate - Blended rate to be offered to customers

➢ Common Escrow Account: The Bank and the NBFC shall open common escrow account for disbursal as well as repayments

➢ Sharing of risks and rewards – Banks and NBFCs to share risk and rewards in loan sharing ratio.

➢ Grievance Redressal: The originator will be primarily responsible for providing the required customer service and grievance redressal to the

borrower.

➢ Collection & Efficiency: The originator shall be responsible for collections of receivables under default

➢ Enforcement of Security: The originator shall act as servicing agent for enforcement of security

Slide 41

Co-origination Process Framework - CLM 1

NBFC funding

Bank funding

NBFC revenue

Bank revenue

Documentation:

➢ Co-Branded Sanction letter issued to the customer post approval by both the lenders.

➢ Customer signs agreement with both the

lenders.

➢ Security (if any) to be created in favor of both the lenders on pari passu basis or as may be mutually agreed between the lenders

➢ NBFC acts as the sole customer inter-face

Slide 42

Co-Lending Process Framework - CLM 2 (akin to Direct Assignment)

Case underwritten and disbursed by UGRO and shared Case underwritten and disbursed by NBFC and shared with partner as per the common lending policy with bank as per the common lending policy

Customer

Loan Repayment

Case is evaluated by the bank and upon approval Case is evaluated by the bank and upon approval deed of assignment is executed between UGRO deed of assignment is executed between NBFC and and Bank. Bank disburses their share to UGRO bank. Bank disburses their share to NBFC

NBFC UGRO

Escrow Account

NBFC revenue U GRO revenue Share: X%

Bank revenue Partner revenue Share: 100-X%

Documentation:

➢ Sanction

letter, Loan agreement and Security documents, if any, are executed between borrower and NBFC.

➢ Sanction Letter and Loan Agreement contains appropriate clauses on Co-lending / Assignment of Loan to Bank.

➢ Upon approval deed of assignment

executed between NBFC and Bank

➢ Intimation

about the assignment of loan to the bank under Co- lending model is sent by NBFC

borrower

➢ NBFC acts as the sole customer inter-face

Slide 43

Co-Lending model is a win-win combination for Banks, NBFCs & Customers

Benefits for various stakeholders

▪ Expand

under-served minimal opex.

distribution areas

in at

▪ Access to higher liquidity at

competitive cost

▪ Access to specific, untapped market (eg: MSMEs, low-income groups)

segments

▪ Opportunity

increase

share of credit in PSL

▪ Access

product to innovations, technology & functional expertise

▪ Better asset quality

▪ Enabling stronger growth in short time due to increased collaboration

▪ Increased reach in lending particularly

ecosystem underserved customers

▪ Ability to offer competitive rates and niche products

▪ Access to credit particularly for under-served segments and with geographies limited access to credit

▪ Access

competitive

interest rates and products

▪ Better service due to N FC’s customer-centric approach

Slide 44

Direct Assignment (DA) vs Co-Lending akin to DA

Particular Forms part of Gross Loans (Balance for Originator

Sheet)

Direct Assignment (DA)

Co-lending akin to DA

Only 10% share

Only the 20% (self-funded) portion of the loan

Underwriting diligence

due

Underwriting is done by originator. Investor conducts due diligence at the portfolio level and can extend up to 100%, in accordance with its policy

Originating NBFC and funding Bank agree on a common lending policy basis which both the partners does customer level underwriting at the time of the sanction/ disbursement. Originator and funding partner – both, conduct due diligence for each contract, involving KYC verification, policy compliance, and examination of underlying securities documents

Minimum Holding Period (MHP) requirement

Minimum Requirement (MRR)

Retention

Three months for loans with original tenor less than 24 months

Six months for all other loans

Not applicable

Applicable from the date of Full disbursement/or registration of security interest with CERSAI (whichever is later) 5% of book value of the loan, with original maturity less than 24 months

10% of book value of the loan, with original maturity more than 24 months

5% of book value for Residential MBS, irrespective of maturity

Can be waived off in case of full due diligence

If the co-lender originating the loan is an NBFC, an MRR of 20% is required

Funding

Initial funding done by the originator; post completion of MHP, the investor funds the agreed portion to the originator

The initial originator provides customer funding, and the funding partner funds the agreed portion of the loan to the originator without the need for MHP requirements

Ugro Capital Limited has informed the Exchange about Investor Presentation

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