UGROCAPNSE23 January 2024

Ugro Capital Limited has informed the Exchange about Investor Presentation

Ugro Capital Limited

UGRO Capital Limited Q3’FY24

EMPOWERING MSME ECOSYSTEM

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

Rebound visible post-Covid for MSMEs Journey towards formal credit fold is accelerating

Sign of business rebound visible in post pandemic time frame

New credit disbursals picking up post Covid

During pandemic period

1st year Post pandemic

2nd year Post pandemic

Business activity and sales dip

77% customers showing resumption of activity

68% customers showing >10% YoY sales growth

90%

80%

70%

60%

50%

40%

30%

20%

10%

1600

1400

1200

1000

800

600

400

200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2019

2020

2021

2022

2023

Total Loans Sanctioned per Customer (in lakhs)

Sample size

% MSMEs showing YoY growth

% MSMEs showing over 10% YoY growth

In FY23, 68% of observed MSMEs in UGRO’s target segment show 10%+ YoY turnover growth

New credit sanctions per customer has increased steadily in post covid timeframe

Slide 3

Performance Highlights for Q3’FY24 and 9M’FY24

Q3FY23

Q3FY24

9M’FY23

9M’FY24

AUM (INR Cr)

Net Disbursement (INR Cr)*

Off-book AUM

Pre-Tax Profit (INR Cr)

PAT (INR Cr)

5,095

1,166

35%

22.2

13.1

8,364

1,552

45%

46.4

32.5

64%

33%

29%

109%

148%

5,095

3,183

35%

50.2

25.7

8,364

4,311

45%

122.8

86.7

Net Total Income %$

12.9%

13.5%

11.8%

13.0%

Cost to Income Ratio

ROA 1

ROE

64%

1.4%

5.5%

53%

2.4%

9.4%

*Gross Disbursements – Repayment received in Supply Chain Financing during the period $On Average Gross on-books AUM

17%

74%

72%

66%

1.0%

3.5%

55%

2.3%

9.7%

64%

35%

29%

145%

237%

11%

17%

129%

173%

Annualized EPS on current rate INR 14.24 per share for 9M’FY24

Book Value per Share INR 153.8 as on Dec’23

Price to Earning Ratio (P/E) 19.5x as on Dec’23 * Price as on 20 Jan 2024

Slide 4

Key metrics for 9M’FY24

Asset Growth

Profitability

Asset Quality

Liability & Co - lending

AUM As on Dec’23 : 8,364 Cr (+64% Y-o-Y)

Net Loans Originated 9M’FY24 : 4,311 Cr (+35% Y-o-Y)

Portfolio yield (net) As on Dec’23: 16.3%

Net Total Income 9M’FY24 : 436.5 Cr (+66% Y-o-Y)

PPOP 9M’FY24 : 198.0 Cr (+121% Y-o-Y)

Pre-tax Profit 9M’FY24 : 122.8 Cr (+145% Y-o-Y)

GNPA As on Dec’23 : 2.0% (+30 bps Y-o-Y)

NNPA As on Dec’23 : 1.1% (flat Y-o-Y)

Collection efficiency * 9M’FY24 : 97% (Stable)

* Total Collections (including overdue) / Current month demand

Borrowings As on Dec’23 : 4,173 Cr

Co-lending - Partnership with 13 co - lenders / co - originators - 3,765 Cr off-book AUM

(+121% Y-o-Y)

Cost of Borrowings As on Dec’23 : 10.65%

Slide 5

We continue to deliver strong Net Loan Origination Amount in INR Cr

Net loans originated increased to INR 1,552 Cr in Q3’FY24 from INR 1,476 Cr in Q2’FY24 ( +5%) and INR 1,164 Cr in Q3’FY23 (+33%).

1,054

963

1,359

1,653

Gross Loans Originated

817

199

195

268

611

107 81 44

250

103

917

143

119 66 91

305

192

1,100

193

126 58 120

353

251

1,874

33%

1,166

148

134 65 136

13%

12%

387

33%

294

25%

2,314

2,036

1,459

193

173

109

206

418

360

1,284

172

153 16 151

429

363

2,506

1,476

209

167

188

524

304

2,810

1,552

261

17%

225

180

15%

12%

590

38%

244

16%

Q3'FY22

Q4'FY22

Q1'FY23

Q2'FY23

Q3'FY23

Q4'FY23

Q1'FY24

Q2'FY24

Q3'FY24

Prime - Secured

Prime - Unsecured

Micro Enterprise Loan

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

*Percentages represent product wise portfolio mix

Slide 6

And strong AUM Amount in INR Cr

AUM increased to INR 8,364 Cr as on Dec’23 from INR 7,592 Cr as on Sep’23 (+10%) and INR 5,095 Cr as on Dec’22 ( +64%).

64%

5,095

746

564 458 338

14%

11%

9% 7%

1,528

30%

6,081

715

701

567

472

1,899

10%

7,592

849

893

670

636

2,380

8,364

967

12%

1,037

12%

722

721

2,664

32%

6,777

750

798

585

548

2,109

1,462

29%

1,727

1,986

2,164

2,252

27%

2,589

523 183 259 574

976

106

2,970

535 253 287

766

1,022

3,656

620 361 356

1,000

1,150

170

4,375

718

465 397 240

1,261

1,294

Q3'FY22

Q4'FY22

Q1'FY23

Q2'FY23

Q3'FY23

Q4'FY23

Q1'FY24

Q2FY24

Q3FY24

Prime - Secured

Prime - Unsecured

Micro Enterprise Loan

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

*Percentages represent product wise portfolio mix

Slide 7

Which is delivering operating leverage Amount in INR Cr

Consistently increasing PBT over past 8 quarters

109%

Q3'FY22

Q4'FY22

Q1'FY23

Q2'FY23

Q3'FY23

Q4'FY23

Q1'FY24

Q2'FY24

Q3'FY24

Slide 8

Our collection efficiencies and portfolio performance remains stable

Current Month and Overall Collection Efficiency remains robust

ECL Data (Dec’23)

Current Month Collection (excluding overdue) / Current Month Demand

Total Collections* (including overdue) / Current Month Demand

97%

94%

97%

94%

98%

93%

97%

93%

98%

91%

96%

91%

Q2FY23

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Key highlights:

• GNPA / NNPA as a % of Total AUM stood at 2.0% / 1.1% as of Dec’23

• Stage 3 provisioning coverage stood at ~49% (on-book AUM)

• Total Restructured portfolio stood at 0.4% of Total AUM

• Total provisions as of Dec’23 stood at ~ ₹108.3 Cr (1.3% of Total AUM)

*Excluding foreclosures

(In Cr)

Stage 1

Stage 2

Stage 3

Total

Loan Exposure

Loan Exposure (%)

7,887

306

171

8,364

94.3%

3.7%

2.0%

100.0%

Product wise GNPA

Product Category

AUM (INR Cr)

GNPA(%)

Prime - Secured Loans

Prime - Unsecured Loans

Micro Enterprise Loan

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

Grand Total

2,552

2,664

721

722

1,037

967

8,364

0.6%

3.6%

2.3%

3.9%

0.8%

0.0%

2.0%

Slide 9

Our collection efficiencies and portfolio performance remains stable

Stage 1 has remained stable over last 5 quarters

Provision Coverage Ratio

96%

95%

94%

49%

48%

49%

38%

Dec'22

Mar'23

June'23

Sep'23

Dec'23

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

Restructured Loans (standard portfolio)

1.5%

76.7

1.1%

64.9

0.8%

52.9

0.6%

48.8

0.4%

34.3

•

Stage 1 assets have been around ~95% over past 6 quarters

Restructured loans have decreased from INR 76.7 Cr (1.5% of Total AUM) as on Dec’22 to INR 34.3 Cr (0.4% of Total AUM) as on Dec'23.

Stage 3 PCR has improved from 38% as on Dec'22 to 49% as on Dec'23

Dec'22

Mar'23

June'23

Sep'23

Dec'23

Restructured loans

% of Total AUM

Slide 10

Tri-pronged liability strategy – on-balance sheet, co-lending and assignment continues to mature 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

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

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

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

Slide 11

Robust momentum of our co-lending platform continues

Increasing Mix of oﬀ - Book AUM

Product wise Mix of oﬀ - Book AUM (Sep’23)

On Book Portfolio

Off Book Portfolio

21%

29%

35%

40%

43%

45%

2,252

2,664

721

51%

49%

66%

34%

48%

52%

722 7%

93%

1,037

41%

59%

967 3%

97%

Prime Secured

Prime Unsecured

Micro Enterprise

Supply Chain Financing

Machinery Financing

Partnership & Alliances

79%

71%

65%

60%

57%

55%

On-Book

Off-Book

Jun'22

Sep'22

Dec'22

Mar'23

Jun'23

Sep'23

Dec'23

Jun’22

Sep’22

Dec’22 Mar’23

Jun’23

Sep’23

Dec’23

Off Book AUM

Co-Origination

Co-lending

782

304

215

263

1,272

1,775

2,442

2,929

3,405

3,765

619

915

1,181

1,457

1,604

1,615

332

322

505

355

773

488

943

530

1,166

1,474

635

676

1,148

28%

38%

34%

1,768 4% 30%

66%

343

43%

57%

100%

430

27%

60%

13%

Prime Secured

Prime Unsecured

Micro Enterprise

Supply Chain Financing

Machinery Financing

Partnership & Alliances

Co-Origination

Co-lending

Co-lending Partnership with 7 Banks and 6 NBFC’s

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

10.53%

10.58%

10.66%

10.61%

10.65%

19%

Cost of Borrowings

3,149

3,342

2,885

4,173

3,798

10%

Total Debt INR 4,173 Cr

43%

18%

10%

2% 0%

24%

Total Debt INR 4,173 Cr

70%

Q3'FY23

Q4'FY23

Q1'FY24

Q2'FY24

Q3'FY24

Banks

NBFC

DFI

FIIs

Capital Markets

Term Loan CP

NCD Cash Credit/OD

Securitization

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

Public Sector Banks and institutions

Private Sector Banks

DFI

SFBs and NBFCs

Slide 13

Finance | Income Statement

Income Statement (₹ Cr)

Q3FY23

Q3FY24

Y-o-Y

Q2FY24

Q-o-Q

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

ROA %

133.1

42.9

13.6

189.6

81.6

108.0

40.5

28.6

38.9

16.7

22.2

9.1

13.1

182.8

76.4

20.1

279.3

116.7

162.6

48.5

38.0

76.1

29.7

46.4

13.8

32.5

1.4%

2.4%

37%

78%

48%

47%

43%

51%

20%

33%

95%

78%

109%

52%

148%

171.9

64.8

17.0

253.6

105.4

148.2

46.0

36.8

65.4

24.6

40.8

11.9

28.9

2.3%

18%

10%

11%

10%

16%

21%

14%

16%

13%

Slide 14

Finance | Income Statement & ROA Tree

Income Statement (₹ Cr)

9MY23

9MFY24

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

341.8

91.7

33.1

466.6

202.9

263.7

100.6

73.6

89.5

39.3

50.2

24.4

25.7

516.2

185.1

50.0

751.3

314.8

436.5

131.4

107.0

198.0

75.2

122.8

36.2

86.7

Y-o-Y

51%

102%

51%

61%

55%

66%

31%

45%

121%

91%

145%

48%

237%

FY23

ROA Tree

9MY23

9MFY24

482.9

As a % of Gross On Book AUM

154.1

Total Income

46.8

Interest Expenses

683.8

Net Total Income

293.3

Opex

390.5

Credit cost

PBT

PAT

140.7

109.1

140.6

20.8%

9.1%

11.8%

7.8%

1.8%

2.2%

1.1%

22.4%

9.4%

13.0%

7.1%

2.2%

3.7%

2.6%

56.8

Key Ratios (Annualized)

9MY23

9MFY24

83.8

44.1

39.8

ROA (% Avg. Total Assets)

Leverage

RoE

1.0%

3.0x

3.5%

2.3%

3.0x

9.7%

Slide 15

Operating & Financial Metrics

Total Income (INR Cr) & Portfolio Yield$

Finance Cost (INR Cr) & Cost of Borrowing

Operating Exp. (INR Cr) and Cost to Income

17.4%

17.3%

16.0%

16.1%

17.3%

16.3%

190

217

218

17.4%

16.2%

254

17.5%

16.3%

279

10.5%

10.6%

10.7%

10.6%

105

10.7%

117

63.9%

55.9%

55.0%

55.9%

53.2%

Q3'23

Q4'23 Total Income

Q1'24 Gross Yield (%)

Q2'24

Q3'24 Net Yield (%)

Q3'23

Q4'23 Finance Expense

Q1'24

Q2'24

Q3'24

Cost of borrowing (%)

Q3'23

Q4'23

Q1'24

Q2'24

Q3'24

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#

1.4%

1.3%

1.4%

1.5%

2.3%

3.2%

3.1%

3.2%

3.4% 46

1.4%

2.2%

2.3%

2.4%

Q3'23

Q4'23

Q1'24

Q2'24

Q3'24

Q3'23

Credit Cost

Credit Cost/ Avg Total AUM

Q4'23

PBT

Q1'24

Q2'24

Q3'24

Q3'23

Q4'23

Q1'24

Q2'24

Q3'24

PBT/ Avg Total Assets

PAT

ROTA %

1,405

Net Worth

8,364

AUM

45%

Off book %

4,173 / 22.3%

Total Debt / CRAR

2.0% / 1.1%

GNPA / NNPA (Total AUM)

104/2,350+

Branch/ Employees1

67,000+

Active Borrowers

$ Weighted Average AUM yield as on Period End # Annualized ratio based on quarterly average of total assets 1 Employees include on-roll employees and dedicated off-roll employees

Slide 16

UGRO Overview

Slide 17

Building a large institution for small business financing is a real possibility Explosion of Credit in MSME Segment: INR 92 Trn MSME Credit Gap Presents a large Market Opportunity

Total MSME Credit gap is Rs 92 trn

Credit Gap of our customer segment constitutes 95%

Total MSME Credit Demand (INR Trn)

FY17

~ 16% Formal Credit availability

Total MSME Credit Gap (INR Trn)

Source: IFC report on Financing India’s MSME dated November 2018;Crisil Report

FY23

116

~ 20% Formal Credit availability

Medium Enterprise No. of entities – 0.05L (0.05%) Credit O/s – INR 7.6 Trn (33%)

Medium

Small

Small Enterprise No. of entities – 3.3L (0.52%) Credit O/s – INR 9.5 Trn (41%)

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

Micro

Unserved Customers

Micro Enterprise No. of entities – 631L (99.47%) Credit O/s – INR 5.8 Trn (25%)

Slide 18

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 long term portfolio performance starting to emerge

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

Data Repository-Dec 2023

3.5L+

Bureau Records analyzed

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 underwriting including hyper- customization of personal interactions Sector specific data models based on proprietary data and knowledge Doubling of credit productivity with stable asset quality

1.5+

Bank Statements analyzed

50k+

GST records analyzed

3k+

Anchor/OEM networks discovered

7k cr+

Disbursed through GRO Score

Slide 19

Our Distribution continues to be powered by our GRO Score

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

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

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

Slide 20

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

ABCD 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 23 – Dec 23)

3.7%

3.2%

1.1%

2.2%

0.9%

4.2%

1.5%

D,E

Disbursed cases

Not Disbusred cases

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

GRO Score A&B ~84%

22%

61%

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 UGro Capital

Slide 21

Sector Focused Approach, Multiple Products and Large Distribution Strength

Hospitality

Light Engineering

Auto Components

Chemicals

Food Processing

Education

Healthcare

Electrical Equipment & Components

Micro Enterprises

Supply Chain Financing

Unsecured Business Loans

Our Product Offering

Business Loans Secured by Property

New Age Products

Machinery Loans

Micro Enterprises Loans

9 sectors are further subdivided into 200+ subsectors basis homogeneity of cash flows among MSMEs

Prime Branches

Micro Branches

500+

GRO Partners

70+

Anchors

OEMs

40+

Fintech Partners

1100+

Sales Employees

Slide 22

Of our addressable market, we serve a diverse set of customers

Prime: Metro & Tier 1/2 Branches

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

Rs 1cr – 15cr Customer Turnover

Secured: Rs 69L Unsecured: Rs 16L Average ticket size

Ecosystem (SCF & Machinery)

Micro: Tier 3-6 Branches

Partnership & Alliances

Direct Digital

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

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

Rs 1cr – 10cr Customer Turnover

SCF: Rs 25L Machine: Rs 36L Average ticket size

<Rs 1cr Customer Turnover

Rs 8L Average ticket size

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

<Rs 50L Customer Turnover

Rs 4L Average ticket size

Collateral: None Cashflow: Banking Cashflow: Banking

<Rs 20L Customer Turnover

Rs 35k Average ticket size

AUM Mix: 59% Sec/Unsec: 27%/32%

AUM Mix SCF/Machine: 9%/12%

AUM Mix: 8%

AUM Mix: 12%

AUM Mix: <1%

Through our multi-pronged distribution channels

Branch-Led Channel – Catering through 100+ branches • Prime Loan Branches : 23 branches with origination through intermediated

channel

• Micro Loan Branches : 81 branches across 7 states, loans directly sourced

by sales executives (FOS)

Product

Secured Biz. Loan

Biz. Loan

Prime Loan Branches

Micro Loan Branches

Avg. Ticket

Yield %

Tenor

Avg. Ticket

Yield %

Tenor

69L

16L

13.8%

11 yrs

19.6%

3 yrs

20.5%

8 yrs

25.2%

3 yrs

Eco-System Channel - Catering through Anchors and OEM partners • Supply Chain Financing : Anchor and its ecosystem financing of Supply

Chain

• Machinery Finance : Secured loans to machine buyers with a charge on

machines

Product

Avg. Ticket

Yield %

Machinery Finance

Supply Chain Finance

36L

25L

13.4%

Tenor

4 yrs

13.6% (Net)

0.24 yrs

Partnership & Alliances Channel - Catering through Fintech Partners • Joint lending partnerships with NBFCs/Fintech (downstream). • These partners originate loans and provide 5% - 15% FLDG cover

Product

Avg. Ticket

Yield %

Tenor

Secured/Unsecured Loans

14.8% (Net)

4 yrs

Direct Digital Channel – D2C 100% Digital sourcing • On tap merchant financing through mobile application • Ability to dispense credit through UPI and other forms of payment

Product

Avg. Ticket

Yield %

Tenor

Unsecured Merchant Financing

35K

27%

1 yr

Slide 24

Resulting in a well diversified, granular and stable portfolio quality

Product Mix (AUM)

Portfolio Concentration in key geographical areas

Sector Mix*

12%

27%

12%

23%

Guaranteed by CGTMSE

Prime - Secured Loans Micro Enterprise Loan Machinery Loan

Prime - Unsecured Loans Supply Chain Financing Partnerships & Alliances

Product category

AUM (Cr)

ROI (%)

Ticket size (Lakh)

Prime - Secured Loans

2,252

13.8%

Prime - Unsecured Loans

2,664

19.6%

Micro Enterprise Loan

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

721

722

1,037

967

20.8%

13.6%

13.4%

14.8%

Grand Total

8,364

16.3%

State wise AUM coverage *

21%

11%

13%

18%

23%

Rest of India – 4%

23%

State wise branches Tamil Nadu Rajasthan Gujarat Karnataka Telangana Maharashtra West Bengal Andhra Pradesh Other States Total

Micro 20 15 15 15 10

2 4 81

Prime 1 2 1 1 1 6 4 2 5 23

Total 21 17 16 16 11 6 4 4 9 104

Auto Components

Chemicals

Education

Electrical Equipment

Food Processing

HealthCare

Hospitality

Light Engineering

Micro Enterprises

Other MSME

* Includes Prime – Secured Loans, Prime – Unsecured Loans, Micro Enterprise Loan, Supply Chain Financing, Machinery Loan and Co-lending

Slide 25

Board, Management and Shareholding

Slide 26

Independently Supervised : Eminent Board of Directors

Satyananda Mishra – Non-Executive Chairman Ex-Chairman, MCX, Ex-CIC, GOI, Ex-Director - SIDBI

S. Karuppasamy - Independent Director Ex-Executive Director, RBI

Karnam Sekar – Independent Director Ex - MD & CEO of Indian Overseas Bank

Hemant Bhargava – Independent Director Ex-Chairman in charge and MD of LIC

Rajeev K. Agarwal - Independent Director Ex-Whole Time Member, SEBI

Tabassum Inamdar Independent Director Ex Goldman Sachs, UBS Securities, Kotak Securities

Amit Gupta (New Quest Nominee) Founding Partner of New Quest

Chetan Gupta (Samena Nominee) Managing Director at Samena Capital

Manoj Sehrawat (ADV Nominee) Partner at ADV

Deepa Hingorani (IFU Nominee) Senior VP at IFU

Legend: Independent Directors, Non-executive Directors

Slide 27

Professionally Managed : 190+ years of cumulative experience

Shachindra Nath - Vice Chairman & Managing Director 25+ Years of Experience

Amit Mande - Chief Revenue Officer 20+ Years of Experience

Anuj Pandey - Chief Risk Officer 20+ Years of Experience

Kishore Lodha - Chief Financial Officer 20+ Years of Experience

Sunil Lotke – Chief Legal & Compliance Officer 19+ Years of Experience

J Sathiayan - Chief Business Officer 25+ Years of Experience

Rajni Khurana - Chief People Officer 20+ Years of Experience

Rishabh Garg - Chief Technology Officer 17+ Years of Experience

Om Sharma- Chief Operating Officer 20+ Years of Experience

Subrata Das - Chief Innovation Officer 17+ Years of Experience

Management to potentially own 7.7% equity stake on fully diluted basis; vesting conditions linked to share price performance (ranging between Rs 261-538) over next 3 years, thereby aligning management’s goals towards company’s performance and ultimately shareholder returns

Slide 28

Institutionally Owned : Majority held by Institutional Investors

Shareholding Pattern

Other Public shareholders, 27.7%

24k+ shareholders

Insurance Companies, 3.3%

Foreign Portfolio Investors, 2.2%

Corporate (Family Offices, HNIs), 7.8%

16.5%

IFU: Investment arm of Denmark govt.

16.3%

Promoter, 2.2%

16.3%

7.5%

Slide 29

Business Metrices in line with long term goal

Off Book Aum Mix increasing YoY

45%

35%

Q3'FY23

Q2'FY24

Q3'FY24

Credit Cost has been stable

1.4%

1.5%

Cost To Income Ratio decreasing Y-o-Y

Q3'FY23

Q2'FY24

Q3'FY24

Credit Cost

Credit Cost/ Avg Total AUM

64%

56%

53%

~<2% Credit Cost

Q3'FY23

Q2'FY24

Operating Expenses

Q3'FY24 Cost to Income Ratio (%)

Strong AUM growth continues

64%

5,095

7,592

8,364

>50% Off-Book AUM

~<45% Cost to Income Ratio

~30% Loan Growth on Sustained basis

~4%/~18% ROA/ROE

Q3'FY23

Q2'FY24

Q3'FY24

On a sustainable basis beyond 2025

Increasing ROA/ROE

1.4%/5.5%

2.3%/8.5%

2.4%/9.4%

Q2'FY23

Q2'FY24 PAT

Q3'FY24 ROA/ROE

Thank You

www.ugrocapital.com

Slide 31

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