VAKRANGEENSE8 February 2021

Vakrangee Limited has informed the Exchange about Investor Presentation

Vakrangee Limited

Vakrangee

CWfP~

February 8,2021

To,

Vakrangee Limited "Vak ran gee Co rp ora te House", Plot No. 93, Road No. 16, M LO C, Marol, An dh er i (Eas t), Mumbai 400093 , Ma harash tra W: ww w.vakrangee in I L +9 1 22 28 50 34 12/ +9122 677 6 5100 F: +9 1 222850 20 171 CIN : L65990M H1 990 PLC056 669

Department of Corporate Relationship

Corporate Relationship Department

BSE ltd.

Phiroze Jeejeebhoy Towers,

Dalal Street, Fort,

Mumbai 400001

Dear Sir/Madam,

National Stock Exchange of India Ltd.

Exchange Plaza, Bandra Kurla Complex,

Bandra (East), Mumbai - 400 051

Sub.: Corporate Presentation

Ref.: Scrip Code - 511431/VAKRANGEE

With reference to the captioned subject and pursuant to Regulation 30 of SEBI (Listing Obligations

and Disclosure Requirements) Regulations, 2015, please

find attached herewith Corporate

Presentation considered in the Board Meeting of the Company held today on February 08, 2021.

Kindly take the above on your record .

Thanking you

Yours faithfully,

Encl.: A/a

THE ASSISTED DIGITAL CONVENIENCE STORE

VAKRANGEE LIMITED RESULTS UPDATE – Q3 FY2020-21

February 8, 2021

DISCLAIMER

This presentation has been prepared by Vakrangee Limited (“Vakrangee” or “VL” or the “Company”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose. By attending this presentation, you are agreeing to be bound by the foregoing restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials.

The information contained in this presentation does not constitute or form any part of any offer, invitation or recommendation to purchase or subscribe for any securities in any jurisdiction, and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with any transaction. The information contained in these materials has not been independently verified. No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials.

Any forward-looking statements in this presentation are subject to risks and uncertainties that could cause actual results to differ materially from those that may be inferred to being expressed in, or implied by, such statements. Such forward-looking statements are not indicative or guarantees of future performance. Any forward-looking statements, projections and industry data made by third parties included in this presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

This presentation may not be all inclusive and may not contain all of the information that you may consider material. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives accepts liability whatsoever for any loss howsoever arising from any information presented or contained in these materials.

THIS PRESENTATION IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ELSEWHERE.

TABLE OF CONTENTS

Results Performance Update

Update on Sustainability ESG Initiatives

Company Overview

Update on Awards & Recognition

Case Studies

Board of Directors Team

Annexures

Kendra Evolution

RESULTS PERFORMANCE UPDATE

Key Highlights – Q3 FY2020-21 (Q-o-Q Basis)

TOTAL REVENUE

EBITDA

PROFIT AFTER TAX (PAT)

In Rs Mn

873.4

921.7

224.7

250.9

168.0

133.1

5.5%

11.7%

26.2%

Q2 FY2020-21

Q3 FY2020-21

Q2 FY2020-21

Q3 FY2020-21

Q2 FY2020-21

Q3 FY2020-21

•

There has been stable growth in Revenues on QoQ basis as the COVID and Lockdown situation normalizes and have witnessed robust growth in profitability on a QoQ basis as the company has leveraged technology and process automation initiatives which has resulted into enhanced profitability. The Company’s return to normalcy on the business front has been progressing well with month-on-month improvement in the sales. However normalization to pre-COVID levels shall take another quarter.

Outlet revenues have been impacted as only our key essential services like Banking, ATM, Mobile recharges and Tele-medicine services have been fully operational however other key services like Assisted Online shopping, Online Pharmacy have recently become operational. Travel services and Logistics have been significantly impacted because of the on-ground field level delivery challenges and travel services being closed due to the lockdown situation.

COVID-19 pandemic has caused unprecedented disruption in the world of work and thereby the Company is leveraging technology, implementing process automation and innovative Digital initiatives as new ways of conducting everyday business and managing field operations. These initiatives would result into improved Franchisee satisfaction and better centralized management of field operations. The company shall also get benefit of the same in overall cost reduction and enhanced profitability.

PERFORMANCE OUTLOOK UPDATE

Sale Revenue & Profitability Growth : Positive & Encouraging • Return to normalcy on the business front has been progressing well with

month-on-month improvement in the sales

• Quarterly Throughput crossed Rs. 106+ Billion •

Implemented Process automation & Technology Initiatives resulting into enhanced profitability

Business Opportunity on Growth Side: Positive • Substantial Increase in Trust & Awareness • Enhanced visibility and Brand Awareness during Nationwide Lockdown • More than 1,20,000+ Applications in place

Planned Target : Return to Normalcy & Strong Growth • Expect Pre-COVID Business Revenue level by next Quarter onwards • Outlet expansion to 25,000 NextGen outlets by FY2022

VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE

PERFORMANCE UPDATE FOR QUARTER ENDED DECEMBER, 2020

~Rs. 106.8 Bn

10,000+

Quarterly Throughput on Vakrangee Platform – Q3 FY21 Transaction Value

No. of NextGen Outlets currently operational

~Rs. 5.8 Bn

~33.7 Mn

Annual Run Rate Throughput – Transaction Value - basis Current No. of operational Outlets

Quarterly No. of Transactions on Vakrangee Platform – Q3 FY21

Our Aim to become India’s Largest Rural Consumption Platform

VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE

Q3 FY2020-21 - GMV / THROUGHPUT CONTRIBUTION (RS. MN.)

E-Commerce

* 895

ATM

BFSI

Margin Profile %

2 - 15%

30552

Rs. 15/ Fin Txn

75305

0.25 - 0.40%

•

Banking and ATM services witnessed Robust GMV and number of transactions. Stable Growth seen in overall BFSI segment. BFSI GMV has improved during Q3 FY21 due to higher withdrawal transactions because of the Government subsidy distribution during the current COVID period.

Although, other BFSI services like Insurance services, Money transfer have been impacted due to COVID-19 Pandemic.

E-Commerce has witnessed QoQ growth and is improving, however has been impacted due to services such as Online shopping, Travel services, Online pharmacy being slow in progress due to on-ground field level and delivery challenges as well as ban on Travel services.

* E-Commerce includes online Shopping, Online Pharmacy, Travel Ticket Booking, Logistics & other Services

SUSTAINABILITY ESG PERFORMANCE UPDATE

Global recognition reflects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability.

Company has been successful in benchmarking its performance on a wide range of industry specific economic, environmental, governance and social criteria that are relevant to the growing focus on Business sustainability and financially relevant to the corporate success.

Sr. No.

ESG Assessment & Rating platform Sustainalytics ESG Risk Assessment Rating CDP Score - Climate Change 2020 SAM Corporate Sustainability Assessment (CSA) – S&P Global

Bloomberg Gender Equality Index (BGEI)

Vakrangee Ranking

Globally ranked No.1 in the Sustainalytics ESG Risk rating rankings out of the 668 companies assessed in the Software and Services industry across worldwide

Achieved “B” Score from CDP for Environmental Practices, Better than the Industry’s Average (Asia regional average of D, Global Average of C )

Globally ranked No. 13 Company in the global industry ranking and ranked No. 9 in the Corporate Governance global industry raking based on RobecoSAM – S&P Global ESG Score.

Included in the Bloomberg’s 2021 Gender-Equality Index (GEI). The 2021 Bloomberg GEI comprises of 380 companies across the world with a combined market capitalization of USD14 Trillion Headquartered in 44 countries and Regions across 11 sectors.

CONSOLIDATED FINANCIAL STATEMENTS

Key Profit & Loss Statement Items

Particulars (Rs. Mn.)

Q3 FY2020-21

Q2 FY2020-21

QoQ%

Q3 FY2019-20

YoY%

9M FY2020-21

Revenue from Operations Total Expenses

EBIDTA Profit before Tax (PBT) Tax Expenses Profit after Tax (PAT) Earnings per Share (EPS Basic)

Particulars (Rs. Mn.) Net Worth Share Capital

Other Equity

Total Debt Long Term Debt

Short Term Debt

Other Non-Current Liabilities

Total Sources of Funds

Fiscal Year (FY) is 12 months ending March

743.6 711.8

250.9 210.0 42.0 168.0 0.16

702.3 696.1

224.7 177.3 44.2 133.1 0.13

5.9 2.3

11.7 18.4 (5.0) 26.2 23.1

1,992.0 1,925.5

299.0 284.0 69.6 214.4 0.20

(62.7) (63.0)

(16.1) (26.1) (39.7) (21.6) (20.0)

2124.4 2092.0

679.6 552.6 132.6 420.0 0.40

Key Balance Sheet Items

H1 FY2020-21

FY2019-20

26,367.7

1,059.4

25,308.3

0.0 0.0

0.0

52.0

26,373.0

1,059.4

25,313.6

0.0 0.0

0.0

66.8

26,419.7

26,439.8

Particulars (Rs. Mn.) Fixed Assets Other Non-Current Assets Inventory Trade Receivables Cash & Cash Equivalents Other Current Assets Less: Trade Payables Less: Other Current Liabilities Net Current Assets Total Application of Funds

H1 FY2020-21

FY2019-20

1,564.8 6,324.9 56.5 13,095.2 208.7 7,373.6 221.4 1,982.6 18,530.0 26,419.7

1,539.9 6,340.4 78.1 13,688.4 1,785.1 4,757.4 690.8 1,058.7 18,481.4 26,439.8

OUR RESPONSE TO COVID-19 PANDEMIC

Our Key priorities during COVID-19 Pandemic:

•

Safeguarding people’s health – Our Franchisees, Field Team & Customers

Ensuring business continuity through our outlets being Operational

Supporting communities by giving them access to Essential Services like Banking, ATM & Tele-medicine services.

Innovative strategies Implemented such as Door step banking for senior citizens and deep rural locations.

Our Frontline Franchisees & Field Team have been instrumental in ensuring our outlets being operational and providing access to Essentials needs of our customers. More than 70% of our outlets are in Tier 5 &6 Rural locations thereby benefiting the unserved and underserved bottom of the Pyramid population.

Vakrangee Kendra Outlets: Stores Operational with all Safety Protocols in Place

Please refer for Details : https://vakrangee.in/pdf/News_and_Announcements/COVID-19%20Update%20Note%20on%20Vakrangee%20Limited.pdf

UNDERSTANDING THE IMPACT OF COVID-19 PANDEMIC

COVID-19 PANDEMIC IMPACT:

• Nationwide Lockdown led

to store closures

• Only Essential Services

Operational like Banking, ATM & Tele Medicine

•

Supply Chain Disruption

Liquidity Stress

Logistic and On-Ground Delivery Challenges

CHALLENGES Revenue Impact due to store closure during initial Lockdown period and Only Essential services like Banking and ATM available .

Situation is improving , However would take another one quarter to normalize. Demand side challenge for services like Online shopping, Travel services.

Supply Chain disrupted impacting Hardware equipment availability / prices and Liquidity Challenges for the Vendor Partners

OPPORTUNITIES

Increased Store and Brand awareness due to availability of Essential services like Banking, ATM and Tele-medicine.

Positive Response received to Marketing Campaign for Enquiries on NextGen Vakrangee kendra Franchisee

Easy Loan availability under Mudra Loan scheme for MSMEs

Robust balance sheet in place to benefit and ensure software / Hardware availability without material price impact.

•

POST COVID:

OPPORTUNITY TO INCREASE OUR COMPETITIVE ADVANTAGE & ACHIEVE OUR PLANNED TARGETS AHEAD OF TIME

VAKRANGEE KENDRA - GROWTH STRATEGY UPDATE

WELL PLACED TO LEVERAGE THE GROWTH OPPORTUNITY

Emerging as a Convenience Store of Choice for Consumers in Rural India

Huge Number of Enquiries Received for NextGen Kendras with Loan Facility in Place

•

Enhanced visibility and Brand Awareness during Nationwide Lockdown.

• Our stores were open and have

been providing Essential services like Banking, ATM, Mobile recharges and telemedicine consultation services.

•

Provided Door-step banking and subsidy payment services in unserved locations during Lockdown.

•

Aggressive Marketing Campaign over last 9 months have resulted into overwhelming response generating 1,20,000+ Enquiries.

Dedicated Loan facility for franchisees with Tie up with Union Bank of India , to ease the franchisee on-boarding process

Clear visibility of 25,000 NextGen outlets over the next 12 months

Leveraged Strong Balance sheet to ensure Kendra Hardware / Software Availability

• Most of equipment’s are

imported and are assembled in India. In current environment, we expect price hike as well as availability challenges.

Leveraged strong balance sheet to financially support vendors and ensure software / Hardware availability without material price impact.

Software / Hardware procurement well in place for batch of 25,000 Kendra.

•

The company is well poised to achieve its store expansion targets . However, there has been delay in expansion due to COVID Pandemic leading to Logistic challenges as well as Hardware availability challenges.

VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE

VISIBILITY ON OPENING OF NEXTGEN OUTLETS

Total Number of Operational Outlets : 10,000+

Total Number of Formal Expression of Interest : 1,20,000+

CLEAR VISIBILITY OF 25,000 NEXTGEN OUTLETS OVER THE NEXT 12 MONTHS

UPDATE ON SUSTAINABILITY ESG INITIATIVES

KEY INITIATIVES : SUSTAINABILITY IMPACT & ESG

Being Responsible & Social Conscious Company

Being UNGC Signatory Member

Independent ESG Risk Assessment & Integrated Report Assurance

•

Being one of the largest franchisee-based, multi-service retail network, Vakrangee is focused on creating India’s extensive network of last-mile retail outlets at every postal code in the country, enabling Indians to benefit from financial, social and digital inclusion.

Vakrangee Limited has been accepted as a Signatory of the United Nations Global Compact.

• We are now part of a global network of over 9,500 companies and 3,000 non- business participants that are committed to building a sustainable future.

•

• Globally ranked No.1 in the Sustainalytics ESG Risk rating rankings out of the 668 companies assessed in the Software and Services industry across worldwide. Achieved “B” Score from CDP for Environmental Practices, Better than the Industry’s Average (Asia regional average of D, Global Average of C ) Independent Assurance of Integrated Annual report of FY20 by Grant Thornton .

•

We have mapped our sustainability initiatives with the United Nation’s Sustainable Development Goals. Our aim is to efficiently adopt these goals and address the global challenges, which includes poverty, inequality, climate, environmental degradation, prosperity, and peace and justice.

HIGHLIGHTS OF SUSTAINALYTICS ESG ASSESSMENT REPORT

Vakrangee Limited

ESG Risk rating

7.4 Negligible

Exposure

30.0 Low

Management

81.4 Strong

•

Vakrangee has been globally ranked No.1 in the Sustainalytics ESG Risk rating rankings out of the 668 companies assessed in the Software and Services industry across worldwide.

Rating Overview - The company is at negligible risk of experiencing material financial impacts from ESG factors, due to its low exposure and strong management of material ESG issues. Furthermore, the company has not experienced significant controversies.

Sustainalytics has recognised the company’s leadership in sustainability-related matters by giving a score of 7.4 Negligible in ESG risk rating. Sustainalytics mentions that the company's overall management of material ESG issues is strong.

Link to report: https://vakrangee.in/pdf/Policies-PDF/Vakrangee%20Ltd%20- %20Sustainalytics%20ESG%20Risk%20Rating%20Summary%20Report.pdf

HIGHLIGHTS OF CDP SCORE REPORT

•

Vakrangee Demonstrates Environmental Transparency and achieves “B” Score from CDP for Environmental Practices, Better than the Industry’s Average.

This is higher than the Asia regional average of D, Global Average of C and Higher than the specialized professional services sector average of D.

It is a proof and recognition of the concrete and constant commitment of the Company in its efforts to fight against climate change.

Link to report: https://vakrangee.in/pdf/Policies-PDF/2020_Climate_Change_Vakrangee_Ltd.pdf

HIGHLIGHTS OF ROBECOSAM – S&P GLOBAL ESG SCORE

Vakrangee ranked No. 13 Company in the global industry ranking and ranked No. 9 Company in the Corporate Governance global industry raking based on RobecoSAM – S&P Global ESG Score.

HIGHLIGHTS OF BLOOMBERG GEI SCORE

•

Vakrangee is globally recognized & included in 2021 Bloomberg Gender-Equality Index.

The 2021 Bloomberg GEI comprises of 380 companies across the world with a combined market capitalization of USD14 Trillion Headquartered in 44 countries and Regions across 11 sectors.

The Average overall GEI score is 66% however Vakrangee have score 70.86%. As we strongly stand with gender equality and it reflects company’s long-standing commitment to being a fully inclusive company and to the women who make business successful every day.

The Bloomberg GEI index measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies, and pro-women brand.

Link to report:

HIGHLIGHTS OF INTEGRATED ANNUAL REPORT

•

First Integrated Annual report of Vakrangee limited released with Assurance from Independent Auditor Grand Thornton India LLP [FY19-20]

• Highlights of Integrated Annual Report:

•

Vakrangee adopted the Integrated Reporting Framework of the International Integrated Reporting Council (IIRC) for the report.

Assurance from Independent Auditor reflects our determination to follow the principles of the highest standards of corporate governance.

Focussed to build robust, transparent and effective reporting framework for our stakeholders.

Vakrangee has mapped their business strategy and sustainability initiatives with the United Nation’s Sustainable Development Goals.

•

Link to Integrated Annual Report: https://vakrangee.in/pdf/Annual_Reports/Integrate d%20Annual%20report%202019-20%20- %20Vakrangee%20Ltd.pdf

Nextgen Vakrangee Kendra – Sustainable Business Model

Vakrangee Kendra business model is a Long Term sustainable business model as we are a Provider of Emergency and Essential Services

Even during the current COVID-19 Pandemic situation, Our Vakrangee kendras have been Exempted from Lockdown and are Operational, thereby resulting into Sustainable Earnings

Ministry of Home Affairs circular for lockdown dated 24th March - Link to Circular

Vakrangee Kendra outlets are one stop shops providing key Essential services to the citizens of the country such as –

• • •

Banking Services ATM Services Telemedicine health services – Including Unlimited Tele & Video Consultation with expert doctors & Home Blood test facility

During COVID-19 Pandemic, Our more than 10,000 Vakrangee Kendras are operational to provide the key essential services and thus serving the Nation. 80% of our outlets are in Tier 5 &6 Rural locations thereby benefiting the unserved and underserved bottom of the Pyramid population.

COVID-19 update note on Vakrangee - Link to Circular

Nextgen Vakrangee Kendra – Sustainable Business Model

Vakrangee Kendras disbursing Government DBT Subsidies and Providing Essential Services during Lockdown:-

Please view Video Links for more Details : -

• Vakrangee Cares : Serving the Nation: https://www.youtube.com/watch?v=4-eHcPznPTM • Doorstep Banking:

• • •

https://www.youtube.com/watch?v=Fi0aoR118CU https://www.youtube.com/watch?v=rfkNwTX58jQ&t=82s https://www.youtube.com/watch?v=jHGSP4PNaTc

COMPANY OVERVIEW

NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES

Vakrangee Kendra offers a broad spectrum of services across different sectors to offer a “One Stop Shop” solution for its customers

BFSI & ATM SERVICES :

ASSISTED E-COMMERCE :

ATM

Banking and Financial Services

Insurance Services

Assisted Online Shopping and Online Pharmacy

Bill Payments and Recharge

Tele-Medicine : Consultation with Expert Doctors

NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES

ASSISTED E-COMMERCE SERVICES

•

Online Shopping of Goods Online Shopping of Jewellery

Online Shopping of Medicines Telemedicine services

• Mobile/DTH Recharge Bill Payments E-Mitra services in Rajasthan

• •

•

• •

Train Ticket Booking Bus Ticket Booking Flight/Hotel Ticket Booking

(Only for Rajasthan)

E-COMMERCE MARKETING INITIATIVES

Link to the Co-Branded Advertisement Campaign - Amazon & Vakrangee :

https://www.youtube.com/watch?v=MPtZ_c62 Odg

https://www.youtube.com/watch?v=- AJarKHI94c

NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES

UNIQUE FEATURES OF ASSISTED ONLINE SHOPPING

Own The World’s Biggest E-mall : More than 1 Crore+ products

Monopolistic Offering of Marketplace

Zero Working Capital Requirement*

POTENTIAL EARNING OF Rs. 1,00,000+ per month

High Quality Products at Competitive Prices

*Applicable only for Amazon service Source: Company

Zero Inventory Model

NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES

BFSI & ATM SERVICES

(White Label ATM License)

•

ATM Cash Withdrawal Non-Financial Transactions

• Money Transfer •

Lead Generations of Personal/Home/ Business Loans

• • •

• •

•

Life Insurance General Insurance Health Insurance

Account Opening Cash Withdrawal/ Deposit services Other Banking services

FORMATS OF NEXTGEN VAKRANGEE KENDRA

NEXTGEN VAKRANGEE KENDRA: GOLD, SILVER AND BRONZE MODEL

Update on Nextgen Vakrangee Kendra Model:- • As the Bouquet of services have increased over the last few years , the viability of the kendra has

•

increased on a standalone basis resulting into an Exclusive store format. Key Mandatory features have been added in the Nextgen Model – ATM, CCTV, Digital Signage & Pinpad device for all kind of payment mode.

• Nextgen Vakrangee model includes standardized Look & Feel and Branding as designed by

renowned Store Brand consultants Lewis & Hickey.

Gold Kendra

Silver Kendra

Bronze Kendra

Minimum area of 300 sq. ft. Four counters, owner desk and ATM

Minimum area of 100 sq. ft. Two counters and ATM

Minimum area of 65 sq. ft. One counter and ATM

KEY FEATURES – NEXTGEN VAKRANGEE KENDRA

KEY FEATURES

STORE EXCLUSIVITY & CONSISTENT BRANDING

MANDATORY ATM IN EACH OUTLET

CENTRALIZED MONITORING SYSTEM

DIGITAL ADVERTISING

PIN-PAD DEVICES

•

• •

• • •

•

• •

•

Exclusive store model with same service level and same Customer experience Standardized layout & design by L&H (Lewis & Hickey) Uniform and Consistent Branding for Higher brand recall and visibility

ATM at each store and located within the store Potential to enhance the footfalls significantly Additional stream of revenues for both the Franchisee and the company

Centralized CCTV system Better Security at the store Full compliance with RBI guidelines to maintain more than 90 days video recording back up

Digital Signage to enable centrally monitored advertisement campaigns To enhance the interaction between Customers and Partners Focus to initiate advertising revenue

To enable various kinds of payment modes at any Vakrangee Kendra Integration in process to start accepting RuPay / Debit / Credit card payments

NEXTGEN VAKRANGEE KENDRA MODEL

Vakrangee Limited

HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL

POPULATION

1.21 BILLION

TOTAL NO OF VILLAGES

6,54,424

TOTAL OUTLET POTENTIAL

3,69,977

RURAL OUTLET POTENTIAL

2,94,442

URBAN OUTLET POTENTIAL

75,535

ADVANTAGE VAKRANGEE : OUR STRENGTHS

Tie up with Strong Partners & Access to Key Licenses

Technology & Integration Expertise

On Ground Field Presence till the Block Level

Size and Scale with Strong Franchisee Model

•

Portfolio of key Licenses & Partnership empanelment's built over last 20 years

Have built a strong bouquet of products and services

•

Over two decades of System Integration Capabilities

Interoperable banking - Integration with the Core Banking servers of the Banks

Pioneer in Aadhaar based biometric enabled banking

•

Field Level Hierarchy till Block level

Continuous Handholding and support to Franchisee to maintain smooth Operations and drive sales

•

Robust store Economics leading to strong growth in stores

Scale leading to emerge as a Partner of choice

STORE ECONOMICS OF A NEXTGEN KENDRA

NextGen Outlet Estimated Revenue Per Store

NextGen Outlet Estimated Commission Sharing Ratio

NextGen Outlet Estimated Profit Margins %

NextGen Outlet Estimated Capex for Franchisee & Breakeven

Avg. Revenue per Month Rs. 0.1 mn *

Ranging from 65:35 to 80:20 based on Service Type

Vakrangee Margins Operational Gross Level – 18-20% Sustainable EBIDTA Level – 15-16%**

Total Capital Employed for Franchisee – Rs. 1.0 – 1.5 mn Breakeven Period In Months – 18-24

Note: * - Estimate Based on a mature store. Maturity is considered as more than 12 months old outlet. ** - EBIDTA Margins calculated on basis of reaching an Operating leverage of minimum 10,000 operational stores.

OUR PROPRIETARY TECHNOLOGY PLATFORM

Technology

Internet Connectivity

• Technology platform integrated with CBS of

•

Seamless connectivity through V-SAT or Broadband Internet

various banks, delivering real-time & interoperable banking access

• Biometric authentication enabling quick KYC

and paper less banking

•

Integration with all partner systems across E- Commerce, E-Governance, Insurance and Logistics

• Technical Support Available - Resources at block level trained to handle day-to-day IT glitches and troubleshooting

Security Specifications

• Defined User Policy -Authentication required for each and every user of the server;

Secured and safe transactions

FRANCHISEE FOCUSED TEAM STRUCTURE

Relationship Manager

Dedicated support directly from Head Office to franchisee for all type of Operations

Corporate Head Office Team

Relationship Manager

State Operations Head

State Marketing Head

Dedicated support directly from Head Office to franchisee for all type of Operations

Continuous support to Franchisee to drive Operations

Field Operations Team (Division and District)

Field Sales Team (Division and District)

Continuous support to Franchisee to drive Sales

Block Area Manager

Franchisees

WHITE LABEL ATM – OPPORTUNITY

2,728

2,206

ATM per Mn Population

1,688 1,657 1,609

1,276 1,157 1,048

911 968

Korea

Canada

Austria Portugal

Russia

Japan

Brazil

Italy

China

666 664

217

Singapore

India

South Africa

Benefits of Vakrangee WLAs Over Other Players

•

India rank’s is 145 in the world in terms of ATM Density

Low ATM Penetration in Tier 3, 4, 5 and 6 cities ~ Huge opportunity for WLAs to bridge the gap between Urban and Rural India

As on September 2020, India had ~ 249,000 ATMs

Vakrangee is 3rd largest ATM Deployer in Rural India

RBI WLA license to Vakrangee –

• Minimum of 1000 WLAs to be deployed per year

• Maintain ATM deployment ratio of 1:2:3 (Metro / Urban

: Semi Urban : Rural)

Sr. N o.

Operating Cost

Vakrangee

Peers

Rent Expense

Civil Work & Interiors

Internet Connectivity

Cash Management Charges

ATM Operational Costs

Security Guard

COMPETITIVE ADVANTAGES VAKRANGEE MODEL

COST SYNERGIES

• No requirement of security guard as the ATM is located inside the Vakrangee Kendra & monitored through centralized CCTV

• Sharing of Civil Work, Internet

Connectivity, Rent and Electricity expenses

• CRA activity performed by Franchisee. No additional CRA Cost and dependency for First Line of Maintenance (FLM) calls

UPDATE ON AWARDS & RECOGNITION

AWARDS & RECOGNITION

 Vakrangee makes history by setting GUINNESS WORLD RECORDSTM title for the Most stores launched simultaneously on 14th January 2019

 Launches 1107 Nextgen Vakrangee kendra stores across the country at 11.07 Am on the same day

 Overall the Company launched 3,300+ stores on a

Pan India basis

 This is the highest number of stores opened

anywhere in the world

 Vakrangee has been awarded as the best

‘FINANCIAL SERVICES RETAILER OF THE YEAR’ at the Indian Retail Awards 2019.

 Award recognises company’s ‘Nextgen Vakrangee Kendras’ growth and customer satisfaction in 2018-19.

 The objective of the Indian Retail Awards is to recognize the Retailers who are closing the gap between operational reality and consumer expectations with great retailing practices.

AWARDS AND CERTIFICATIONS

• Vakrangee has been nominated in the ‘India’s Top 100 Franchisees’ list by the Franchisee India

Magazine in the January 2020 edition.

• Guinness World Records Title for the Most Stores Launched Simultaneously on 14th January 2019. Launches 1107 Nextgen Vakrangee Kendra stores across the country at 11.07 am on the same day

• Awarded as the best ‘Financial Services Retailer of the year’ at the Indian Retail Awards 2019

• CA Entrepreneur Path Breaker Award 2017 by Institute of Chartered Accountants of India

• Selected in the Fortune 500 Companies – Fortune India 2017

• Selected in the Super 50 Companies – Forbes India 2017

• Selected in the Top 50 BSE 500 Companies by Growth in M-Cap - Forbes India 2017

• Vakrangee has been features in 11 Indian companies, up from an all-time low of eight last

year by Forbes Asia’s Best Under a Billion list for 2015

• ET-500 Companies for 2013 as published by ET

• Nominated (top 5) for the best CEO (IT & ITes) by Business Today in January 2014

• 26th in the Deloitte Technology Fast 50 companies in India, 2012

• 18th in the Deloitte Technology Fast 50 companies in India, 2011

• 226th rank in Deloitte Fastest 500 growing Asia Pacific companies in 2011

• CA. Business Leader - SME (3rd Rank) of the Year Award, 2008 to the Chairman by Institute of

Chartered Accountants of India

• Economic Times ET 500 best companies in India in 2006-07

CASE STUDIES

CASE STUDIES : NEXTGEN TOP PERFORMERS

“I have earned Rs. 76,186 From BFSI – Banking Services in just 1 month”

NAND LAL SWAMI RAJASTHAN TIER 5 LOCATION AGEING OF OUTLET – 21 MONTHS

Number of Accounts Opened

Total Transaction Value

₹ 2,55,27,850

CASE STUDIES : NEXTGEN TOP PERFORMERS

SHASHI JAIN RAJASTHAN TIER 3 LOCATION AGEING OF OUTLET – 23 MONTHS

“I have earned Rs. 1,45,460 From BFSI – ATM Services in just 1 month”

Number of Financial Transaction

11,591

Total Transaction Value

₹ 96,78,600

CASE STUDIES : NEXTGEN TOP PERFORMERS

“I have earned Rs. 41,262 From BFSI – Domestic Money Transfer Service in just 1 month”

DEEPALI ANDHARE MAHARASHTRA TIER 1 LOCATION AGEING OF OUTLET – 23 MONTHS

Number of Transactions

Total Transaction Value

2,491

₹ 66,30,608

CASE STUDIES : NEXTGEN TOP PERFORMERS

“I have earned Rs. 1,13,815 From Assisted Online Shopping in just 1 month”

SANTIDEV BAG West Bengal TIER 5 LOCATION AGEING OF OUTLET –12 Months

Number of Orders

802

Total Sale Value

₹ 17,22,950

CASE STUDIES : NEXTGEN TOP PERFORMERS

“I have earned Rs. 48,326 From Assisted Online Pharmacy in just 1 month”

SUPARNA RAJE WEST BENGAL TIER 2 LOCATION AGEING OF OUTLET – 23 MONTHS

Number of Transaction

Total Transaction Value

3,279

₹ 3,22,207

BOARD OF DIRECTORS TEAM

BOARD OF DIRECTORS

Strong Board of Directors

RAMESH JOSHI Non Executive Chairman

• Has about 40+ years of business experience. He has held several leadership positions in the Reserve Bank of India and has been Nominee Director on behalf of RBI on the Boards of Various Banks, and retired as an Executive Director of SEBI.

• He is also on the Panel of Arbitrators for NSE, BSE and MCX. • Holds a Bachelor’s degree in Arts from the University of Nagpur and a Bachelor’s degree in Law from the

University of Nagpur.

DINESH NANDWANA Managing Director & Group CEO

DR NISHIKANT HAYATNAGARKAR Director – R&D

• Has about 27+ years of business experience. Main functions and areas of responsibilities in the Company include policy formulation and decision making. • Has received a memento from the former Honorable President of India, Late Shri Shankar Dayal Sharma in 1996. • Recipient of the ‘CA Business Leader - SME (3rd Rank)’ award by the Institute of Chartered Accountants of India for the year 1997. • Holds a Bachelor’s degree in Commerce from Rajasthan University & is a certified Chartered Accountant from the Institute of Chartered Accountants of India.

• Has about 25+ years of business experience in the information technology sector. • Main areas of responsibility in the Company include software development, information technology compliance and technical support. Holds a Doctorate in Computer Science from the Indian Institute of Technology, Mumbai

STRONG BOARD OF DIRECTORS

AVINASH VYAS Non Executive Independent Director

SUNIL AGARWAL Non Executive Independent Director

B. L. MEENA Non Executive Independent Director

Ranbir Datt Nominee Director

SUJATA CHATTOPADHYAY Non Executive Independent Director

H.C. MITTAL Non Executive Independent

• Has wide experience in Audit Certification for externally aided projects funded by foreign agencies such as World

Bank and its extended arms

• Holds a Bachelor’s Degree in Commerce and is LL.B (professional) which adds to his business acumen.

• Has over 25+ years of experience in business administration. He is an entrepreneur with varied business interests

in the mining industry in Rajasthan.

• Holds a Bachelor’s degree in Commerce from the University of Rajasthan.

• Has about 28+ years of experience, having served in various Government departments. A former Chief

Commercial Manager, North Western Railways.

• Holds a Master’s degree in Arts from the University of Rajasthan and a Bachelor’s degree in Law from the

University of Rajasthan

• Nominee Director (representing the Life Insurance Corporation of India) of our Company. •

Joined LIC as Assistant Administrative Officer in 1984. Worked as Head of various channels in LIC of India viz., Deptt of Pension & Group Superannuation, Banking Assurance, Micro Insurance, Office Service & Estates etc. Presently Mr. Datt is Executive Director of Corporate Planning /New Projects.

•

Fellow member of the Institute of Cost Accountants of India and the Associate member of the Institute of Company Secretaries of India.

• Has over 26+ years of experience across various industries and geographies - Choice Capital Advisors Private Ltd,

Polygenta Technologies Ltd, Arysta LifeScience India Ltd, Steel Exchange India Limited.

• Mr. Mittal is a postgraduate and a certified associate from Indian Institute of Bankers. In his long and illustrious

career of more than 37 years with Union Bank of India, he has held several leadership positions.

• He possesses vast exposure and experience in various fields of banking administration across segments ranging from

MSME, Retail, Agriculture, Import / Export & Financial Inclusion.

ANNEXURES

KENDRA EVOLUTION

PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER

PHASE 1: CSC & E-MITRA MODEL

Services Offered : • E-Governance

OUTLETS WERE PRIMARILY TERMED AS “COMMON SERVICE CENTRE - CSC” OR “E-MITRA KENDRA” :-

• NON-EXCLUSIVE STORE MODEL

•

SINGLE LINE OF SERVICE PRIMARILY E-GOVERNENCE SERVICES

• NO STANDARDIZED DESIGN LAYOUT &

BRANDING

• KIRANA STORE MODEL

KENDRA EVOLUTION

PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER

KENDRA EVOLUTION

PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL

PHASE 2 : BANKING BC POINT MODEL

COMPANY RECEIVED THE BUSINESS CORRESPONDENCE BANKING MANDATE AND STARTED THE BC POINT SERVICES THROUGH THE KENDRA –

• NON-EXCLUSIVE

• DUAL LINE OF SERVICE - E-GOVERNENCE &

BANKING SERVICES

• NO STANDARDIZED DESIGN

•

INITIATED STANDARD BRANDING IN TERMS OF BASIC SIGNAGE & HOARDINGS

Services Offered : • E-Governance • Banking

KENDRA EVOLUTION

PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL

KENDRA EVOLUTION

PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL

PHASE 3 : MULTI-SPECIALITY STORE MODEL

EVOLVED INTO A MULTI SPECIALITY STORE MODEL :–

• PLANNED AS AN EXCLUSIVE STORE MODEL

• MULTI-LINE OF SERVICES – BANKING, E-

GOVERNENCE, INSURANCE, E-COMMERCE & OPTIONAL ATM SERVICES

•

STANDARDIZED DESIGN

INITIATED STANDARD BRANDING IN STORE LAYOUT AS WELL AS SIGNAGE

• PARALLEL EFFORTS TO ACTIVATE VARIOUS SERVICES ACROSS ALL OUTLETS AND CONVERSION TO EXCLUSIVE MODEL

Services Offered : • • •

E-Governance • Banking • E-Commerce

Insurance ATM (Optional)

KENDRA EVOLUTION

PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL

KENDRA EVOLUTION

PHASE 4: E-GOVERNANCE PLAYER TO AN EXCLUSIVE NEXTGEN ASSISTED DIGITAL CONVENIENCE STORE

PHASE 4 : NEXTGEN KENDRA MODEL – ASSISTED DIGITAL CONVENIENCE STORE

EVOLUTION INTO AN EXCLUSIVE ASSISTED DIGITAL CONVENIENCE STORE MODEL –

•

EXCLUSIVE STORE MODEL

• MULTI-LINE OF SERVICES – BANKING & FINANCIAL SERVICES, E-GOVERNENCE, INSURANCE, E-COMMERCE, LOGISTICS & MANDATORY ATM SERVICES

•

STANDARDIZED LAYOUT & DESIGN BY L&H (LEWIS & HICKEY)

STANDARD BRANDING IN STORE LAYOUT AS WELL AS SIGNAGE

• ATM MANDATORY

Services Offered : • • •

E-Governance Banking & Financial Services E-Commerce

• • •

Insurance ATM (Mandatory) Logistics

• DIGITAL SIGNAGE & CCTV MANDATORY

•

PINPAD DEVICES TO ENABLE ALL KIND OF PAYMENT MODES ACROSS SERVICES

Thank You

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