Presentation to investor about small size loan providing organization. Startup to help SMEs in India

1. ShubhDin
“Have a good day”
TEAM - 1
Bharath
Lee
Ravindra
Vipul

2. Modi:
1) 35 Year Old, Farmer in Saurashtra,
Owns 4Acr Land
2) Illiterate, Not earning much mainly
because of middle man
3) Urge to start side business
4) Needs capital, but does not know
sources
Gets an advice to go to
1) Microfinance Institute
2) Banks
3) Local Private Agencies
His experience at following institutes:
1) Microfinance Institute – Don’t provide the amount of money he needs
2) Banks - Tedious process and has limited access being far from home
3) Local Private Agencies – High interest rates and short payback
period
Market Segment: Farmers in Saurashtra who owns static property like land
or home and wants to start Agri allied business which costs in range of $2000
to $20000

3. Facts

India’s population reached over 1.3 billion
As per Ministry of MSME
 MSME contributes 45% of manufacturing output &
40% of exports of India
 Employ about 69 million persons over 26 million
MSME units
 50% of the MSMEs are owned by disadvantaged
group of society
 Key bottlenecks by MSMEs are:
 Lack of finance
 Marketing & Procurement
 Skill Development & Training

4. Demand & Market Validation
 Farmers constitute at least 30% of those 26M MSME
 Our market research comprised of online survey and direct calls
 We got responses from customers and the results are as follows:
90
90
1
89
78
72
74
76
78
80
82
84
86
88
90
Percentage of Customers willing to use Bundle of our both Credit and BDA Services
Percentage of Customers who don't have BDA Service Providers
Percentage of Customers willing to use only BDA Services
Percentage of Customers willing to use only Credit Services

5. Customer relationship
 Trusted Advisors
Value Proposition
 Loan
amount ranging
from $2000 to $20000
 Door
step services
 Advisory
Services

6. Business
Model
Partners
Financial Products
Investors
Relationship Manager
Shubhdin
Banks
Business Development
Services
Government &
Other agencies

7. Revenue Model
Revenues:

Interest on Loans

Processing Fee
Cost Structure:

Cost of funds

Loan loss due to defaults

Admin & HR costs
Revenue
Range of revenue/cost
Rate of interest collected from
21% - 24%

Revenue Generation
customers
Average revenue/cost
22%
Processing fee collected
Total Revenue
1%
1%
23%
8% - 10%
9%
2% - 5%
6% - 8%
3%
7%
19%
Expenses
Interest on Borrowings
Loan loss provision
Cost of operations
Total Cost
Profits/Loss
4%

9. Capital requirements
$
2 million USD capital required
Key Ratios
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
No. of
Branches
2
5
8
12
17
23
29
35
No of Staff
22
52
83
126
179
245
317
395
No. of
Customers
Loan O/s
270
1.6
898
5.4
1,821
10.7
3,161
18.5
5,036
29.2
7,562
43.5
10,671
61.0
14,327
81.2
Operational
Self Sufficiency 64.3%
ROE
-7.4%
100.3% 106.0% 108.7%
0.2%
6.8%
8.7%
110.2%
10.4%
111.5% 119.4% 125.3%
12.4% 22.0% 24.2%