1. September 2017

2. FOUNDER PROFILES ROHIT SEN : CEO/ Co-Founder
12 years in finance as a trader
Worked at Bank of America, Merrill Lynch and Goldman Sachs.
Holds degrees from Oxford University and the London School of Economics.
NUPUR GUPTA : Co-Founder
5.5 years in finance as a quantitative analyst and structurer. Worked at Citigroup and Goldman Sachs.
Holds degrees from IIT Delhi and University of Waterloo, Canada.

3. THE PROBLEM
More than 90% of Indians do not have access to credit through the formal system (World Bank) People are forced to turn to informal channels including money lenders, who often charge very high interest rates.
Financial exclusion sharply limits the ability of people to save, invest, and improve their circumstances (Nilekani & V. Shah)

4. EXISTING LENDERS NEGLECT THE “MASS MIDDLE”
High
Low
Good Borrowers
Bad Borrowers
Formal Lenders
MFI’s
Good borrowers across income levels
High operating costs make small loans unviable for banks
MFIs don’t usually offer loans to individuals
Income

5. THE SOLUTION….GO DIGITAL.
Use of alternative (digital) data allows us to score people that banks cannot.
If borrower score is sufficiently high, then we can offer them credit.
Digital process dramatically reduces on-boarding costs.
User accesses NIRA through our app: quick, easy and convenient.

6. OUR VISION: A world where everyone has access to fast, frictionless finance, at a rate that is fair. OUR MISSION: Promote financial inclusion by creating simple, transparent products that empower individuals to live a life of choice and freedom.

7. WHY NOW? Growing Economy Regulatory Environment Digital Infrastructure
7%+ GDP growth expected for at least the next 5 years (IMF)
Smartphone penetration rising rapidly due to falling costs of handsets & data..
Younger consumers are much more willing to take debt
Indian govt. has built strong infrastructure (Aadhaar, India Stack)
Financial inclusion is a key objective for the Indian govt.
Growing Economy
Regulatory Environment
Digital Infrastructure
Smart
Phones
Consumer Attitudes

8. MARKET OPPORTUNITY: India’s Emerging Middle Class
250mm middle class today. Rising to 570mm in 2025 (McKinsey)
400mm addressable market by (Nilekani)
Wages may increase 4x between 2013 and (KPMG)
mm smartphones in use by 2020 (Credit Suisse)
Consumer lending to grow from $420bn in 2016 to $2.1trn in (Credit Suisse)
$420bn of market value creation is “up for grabs” in next 10 years. (Credit Suisse)

9. Initially target urban salaried millennials:
GO TO MARKET STRATEGY
Initially target urban salaried millennials:
Digital Footprint
No credit score
Willingness
to take debt
Have a high adoption rate of new technologies
Will share their experiences with their friends and peers
Willing to share their personal data in exchange for a product or service (Omidyar Network)
Start in Bangalore due to large graduate workforce before rolling out to other cities.
Urban
Millennial

10. TYPICAL CUSTOMER Profile Expected Use Cases
Graduates in the early part of their careers.
Earning 2.5 to 6 lacs per year ($3,700 to $8,000).
Salaried employee, paid monthly.
Living in rented accommodation with other graduates.
Active user of smartphone and social media.
Expected Use Cases
Consumer durable purchases e.g. laptop, smartphone
Educational courses
Travel / Experiences
Emergency contingencies e.g. unforeseen medical expenses

11. PRODUCT DESCRIPTION
Line of credit: Rs. 10,000 to Rs. 100,000 ($150 to $1,500)
Repayment term: 3 to 12 months
Interest rate: 1.5% to 2.5% per month
Drawdowns and repayments electronically to user bank a/c
Can use for online and offline purchases
No need for repeated applications

12. BUSINESS MODEL
Loan Disbursal
Application + Credit Appraisal
Application + Drawdown
FUNDER
NIRA
USER
Performance Data
Notifications
Repayment
Partnership with Bank or NBFC: use their licence and balance sheet.
Risk sharing arrangement with Funder. Potential for referral programme.
Revenues derive from loan margins to the Funder and referral fees.

13. FOLLOW US… www.facebook.com/nirafinance www.instagram.com/nira.finance