A Financial Inclusion Platform for the next 100 Mn Households

MAR 2024
Strictly Private & Confidential. Not For Circulation.
Vision and Mission

Founders Vision
Make financial services affordable and accessible in a timely manner to 100 mm
un/underserved households in India

Team Mission
Usher in a new era of financial inclusion that brings financial empowerment &
livelihood sustainability at population scale powered by a digital first model.
Create a sustainable business balanced for impact & returns

Strictly Private & Confidential. Not For Circulation. 2

2
 Supported by a visionary board and marquee investors…
Board of Directors Investors

RATAN NAVAL TATA DR. VIJAY L. KELKAR NANDAN NILEKANI

FORMER CHAIRMAN, TATA GROUP FORMER CHAIRMAN, NIPFP CHAIRMAN & CO-FOUNDER, INFOSYS
FOUNDING CHAIRMAN, UIDAI

BINDU ANANTH SUKANYA KRIPALU SUBBU RAHUL GUPTA

CHAIR & CO-FOUNDER,
ANIRUDH SARDA
DVARA HOLDINGS
CEO, SUKANYA SUBRAMANIAM CEO, AVANTI FINANCE HEAD OF EQUITY
CONSULTING FORMER-CFO, TITAN INVESTMENTS (ASIA)
COMPANY

Strictly Private & Confidential. Not For Circulation. 3

 …And led by a strong management team
Lalitesh Sunil Kumar Nagaraj
Rahul Gupta Manish Thakkar
Katragadda Tadepalli Subrahmanya
Chief Executive Chief Product Chief Operating Chief Of Chief Risk
Officer Officer Officer Partnerships Officer

• Consumer Finance veteran with 20+ • Co-founded Google’s first International • 25+ years expertise in Financial • 22+ years experience across Industries • 20+ years experience in Financial
years experience in emerging & mature Engineering Centre, Created Google Services, specializing in M&A and deal in Leadership, Organization Services, Consumer Lending, Risk Mgmt
markets Mapmaker and held position as structuring Effectiveness, Strategy and Executive & Credit Governance frameworks
• CEO for HK & Singapore managing Google’s Head of India products Coaching
multibillion asset businesses • Actively involved in policy frameworks
• Growth & turnaround roles including for Digital India
profitable strategic exits of USD 1 Bn+

Swapnil Dixit Kunguma Sharmila Sashi Pandey

Vice President Chief Audit Partnerships

(Product) Officer Growth

• 14+ years experience in tech, consumer

behavior and development sector • 20+ years of experience in Internal • Fintech and strategy professional with
Audit, and Operational Risk working knowledge of India’s ag-tech
management and fintech sector

Strictly Private & Confidential. Not For Circulation. 4

Avanti - Reimagining financial services for the un/under served

Digital spine built Crowdsourced + ~10x AUM growth Catering to a large Management and
for population Hyperlocal in 3 years market through board
scale Products platform play
Technology entrenched Co-creating products 90+ live partners Connecting diverse Senior leadership
in each stage of focused on customer ranging from D2C pools of team has deep domain
operations allows for livelihood by matching tech platforms to MFIs capital/products to expertise and
paperless, presence- their cashflow and to social enterprises end user through an experience in
less and cashless end-use by across assisted model driving managing large
approach crowdsourcing data agri/agritech, holistic financial businesses and are
through 60+ partners livelihood, dairy and inclusion backed by stalwarts of
livestock Indian industry

Expanded to 26 API driven Tech stack

200+ Total Unique Governance + Vision
states in 4 years with INR 1,400 Cr of AUM enabling seamless
Products + Execution
~95 employees integration

* Retail portfolio

Strictly Private & Confidential. Not For Circulation. 5

Building a Neo Bank for rural India

Credit BUILDING AA
BUILDING Pure Platform Play
(NBFC/MFI)
NEO BANK
NEO BANK
Insurance PLATFORM
PLATFORM Consumer – Partner – Lender Ecosystem
(Co-create products with insurance providers Delivering Sachet
Delivering Sachet (Social, Commercial and Government)
and local experts) Customized
Customized Products
Products on the
on the fly
fly
Savings For the next Off B/S - Market Place Model
(Developing investment solutions for consumers (Shared and open infrastructure for lenders)
to save more, spend smarter)
100
For theMn
next
600 Mn
Payments Multiple Pools of Capital
(UPI Enabled) (Banks, MFIs, DFIs, P2P, depositors, philanthropic
funds)

Strictly Private & Confidential. Not For Circulation. Strictly Private & Confidential. Not For Circulation.
6
Community driven partnership model

PARTNERS CUSTOMERS
Who are our Partners?

Social businesses, NGO’s, BC’s,

Agtech players, FI’s, Foundations
Open network of Hyperlocal Flexible loan Ability
execution partners customization at products with to get loan Deep linkage to livelihood value
product level respect to size, within 15min chains
tenure & repayment of application
PLATFORM
to reach the next Locally trusted
600 Mn
Paperless, No asset loss due Community based
Presenceless, to local credit governance Vast outreach to financially
Cashless mechanism excluded communities

Ability to support credit

operations at scale
90+ 650K ₹ 28 Bn+
Live Partners Curated User Base Disbursements

Partnership model helps digitize “trust” via community based governance mechanism

Strictly Private & Confidential. Not For Circulation. Strictly Private & Confidential. Not For Circulation.
7
Layered for innovation & scale

Paperless Presenceless Cashless

Digital Digital onboarding Partner Assisted + Disbursements & Collections Frictionless
and loan agreement Self Serve model through e-NACH, UPI & e-
Spine execution Mandate

Proprietary technology
platform to deliver Scalable Flexible Configurable Population
hyper flexible solutions
Built to cater to Partners enabled to Minimalist design,
through real time LMS
co-create loan products
Scale
wrapped in a smart the next 600 Mn simple API driven
interface users in real-time interface

Strictly Private & Confidential. Not For Circulation. Strictly Private & Confidential. Not For Circulation.
8
Enabled by a digital spine entrenched across operations
Proprietary tech stack built for India at scale

CO – CREATION OF LOAN PRODUCTS HYPERLOCAL ACCESS FOR FIS

with Partners enables flexibility in tenure, Enables capital providers to choose geography, product
purpose, ticket size and repayment terms terms and target audience

API FACTORY LOCALIZATION OF THE EXPERIENCE

makes integration easier, faster and more flexible with Incorporating Indic Language in the App commonly
capital providers and partners used by the locals

DATA WAREHOUSING
TRUST SCORE
Allows for report building, operational efficiency,
Based on the confidence of the community and tacit
asset base impact reporting and compliance

VERSATILE LOAN AGREEMENT DIGITAL PAYMENTS & COLLECTIONS

generated instantly for all products, dynamic inclusion Instant digital money transfer through API, e-collect,
and exclusion of clauses UPI, e-Mandate

Proprietary tech stack built for - Population Scale + Hyperlocal Access + Platform Approach

Strictly Private & Confidential. Not For Circulation. 9

Partner assisted underwriting & collections

Partners with deep competence in livelihood chains Avanti Approval Stage: Why is Avanti’s Underwriting Better?
can tap previously inaccessible social signals
Partner admin
Basic Checks evaluation Customized loan products to borrower
cashflows
KYC check
Social collateral via local partners
End use of Savings Credit history Asset & Document availability
livelihood loan and bank livestock (AADHAR, PAN, bank
linkages passbook)
Social signals gauge intent to pay
Pre-due diligence
(income, asset, trade,
location) Informal & formal credit history

Monthly/Fortnightly
Family members Age group Migration Literacy levels
checks
Status (for insurance claims)

Building Cashless Partners facilitate livelihood value chains to

Low Probability
the users benefit
Collections of Default

Social signals provide additional layer into users profile….critical input for low data segment

Strictly Private & Confidential. Not For Circulation. Strictly Private & Confidential. Not For Circulation.
10
A unique decisioning capability for customers that are data dark

Digital underwriting models leveraging AI, ML plus unique social trust signals

Customer Information Community Information Financial Information

• Income (Social Trust) (Data via Android App)
• Geography • Neighborhood views • Bank transaction data
• Employment type • Community Expert opinion • # of credits / debits
• Asset information • Livelihood confirmation • Telecom and Bill Pay Data
• Work Experience / Education • Other Loan payments
• Family Members
• Past performance

Access to Data Risk Control

Rich User Data Technologies Matrix
Financial, lifestyle & AI, ML and statistical Efficient collection and
behavioral data techniques disbursement process

Strictly Private & Confidential. Not For Circulation. Strictly Private & Confidential. Not For Circulation.
11
Lending reimagined

Banks / NBFCs/ MFIs

Consumption led and collections focused; not aligned with Mission aligned partners with deep competence in livelihood
income value streams of the people value chains

Lack of Infrastructure leading to higher TAT and unpredictability Digital infrastructure increases partner efficiency, predictability in
in services service delivery leading to low TAT

Expensive procedure, complicated formalities and the Simplified UX, Indic language compatibility enables easy remote
inconvenience in visiting remote branches processing

Rigid ticket size, tenure and pricing Crowdsourced, co-created, hyperlocal products

Upfront commissions led to disbursement mindset hurting Aligned interest as commissions are payable on collections /
portfolio quality repayment

Strictly Private & Confidential. Not For Circulation. Strictly Private & Confidential. Not For Circulation.
12
The Avanti Platform… hyperflexible and versatile
Co-lending
Pure Digital 438K+
In advanced discussions with multiple Active borrower base
credit providers
Paperless, Cashless, Presenceless
Top Partners 26
Hyperlocal, Crowdsourcing, India Stack States covered
Existing partners will contribute to
What we are 80% business for FY23
On BS Lenders

Diverse Pools of Capital Assisted model

Customers
90+ Live Partners

How capital providers' benefit Role we Play Why these partners How customers benefit
Underwriting & Monitoring Large customer base

Access to large Profitable for low ticket

Digitizing Customer Data Deep knowledge of local customer Flexible loan True risk-based
customer base and small tenor loans
products pricing
Avanti underwrites & Partners lack technology to
Avanti credit platform to be
maintains ownership of cater to the diverse
launched in three months
customer requirements of customer Frictionless Quick access

Strictly Private & Confidential. Not For Circulation. 13

With data driven underwriting at customer level
1,000+ Continuously updated features Automated underwriting process Individual customer level result

Credit Bureau
Loan Type Mix / Indebtedness
Past Repayment Behaviour Risk Assessment
Length of Credit History Module
AI / ML based risk models Approve / Decline
Credit Hunger Indicators

Customer Data
Assets and Income
Livelihood Sources Fraud Model
Location / GIS / Satellite imagery Automated fraud engine

Agri / Agri-related outputs True pricing based on

individual risk*
Partner
Social / Commercial Partner
Community Connect Pricing Module
Collection Capability True risk-based pricing

Past Performance *especially relevant given recent RBI regulations

on risk-based pricing for MFIs
Crowdsourcing data and build machine learning tools to create digital underwriting models

Strictly Private & Confidential. Not For Circulation. 14

Completely digital onboarding journey
Simple UX at every stage masking platform sophistication and workflow complexity from users

Personal Profile User Lifestyle Approval Stage

Approval
from Partner
& Avanti

Personal
info

Assets Info

Work and
residence
details

Personal details
Account Aggregator Data: Assets of the Livestock Neighborhood Agents onboard Borrowers which are approved at
(name, address, phone
Bank, Telecom & Bill Pay Borrowers Information Views Avanti and Partner Stage
number, age, gender)

Each screen self-customizes and minimizes its view in real-time enabling loan application TAT of 15 min

Strictly Private & Confidential. Not For Circulation. 15

 What we have achieved
Scale
Robust credit quality
Unique partner network
Multiple capital pools
Versatile & agile platform

Strictly Private & Confidential. Not For Circulation.

Avanti platform today…product market fit established, ready for scale

650K+ 360+ 200 +

Borrowers through Districts covering Customized Loan
90+ Partners 26 States Products

₹ 28 Bn+ ₹ 14 Bn+ BBB+

Disbursement AUM CRISIL Credit
Rating

Strictly Private & Confidential. Not For Circulation. Strictly Private & Confidential. Not For Circulation.
17
Our customer
Building sustainable livelihoods for our customer segment
Customer Profile

~48%
~90% Women Engaged in livelihood value
Rural and Semi-Urban NTC and
Borrowers chain activities
Underserved*

Challenges

Limited access to banks Rigid ticket High customer acquisition

and other financial size, tenure Lack of infrastructure and
cost, complicated
institutions and pricing unpredictability in services
formalities

Strictly Private & Confidential. Not For Circulation. 18

* NTC: Thin file customers ; Underserved : High Risk and Very High Risk
Mission aligned partners enabling rapid expansion
90+ Live Partners in 24 States Advantages to Avanti

Access to large pool of Ability to scale rapidly with pan-

On ground support
Avanti target population India presence

Deep understanding of customer

segment to curate tailored products
Curating products tailored to
and tap social signals
customer requirements

Partners deeply entrenched in livelihood chains

Tap social signals valuable
Agri / Agritech Dairy / Livestock Other Livelihood for underwriting - an
otherwise data dark customer

Build Avanti Brand

Value chain partnerships to drive financial inclusion at scale

Strictly Private & Confidential. Not For Circulation. 19

 Way forward
Robust Portfolio Quality
Exponential growth
Self-serve model
New products and segments

Strictly Private & Confidential. Not For Circulation.

 Thank You
Strictly Private & Confidential. Not For Circulation. 21