INVESTMENT OPPORTUNITY

Empowering NBFC

PROPRIETARY INVESTMENT MEMORANDUM | HYDERABAD, TELANGANA

LEVERAGING DIGITAL INDIA TO HELP MICRO ENTERPRISES GROW IN SMALL CITIES AND TOWNS

Impact-Focused NBFC ₹478 Mn+ AUM (FY25) 32 Clusters Across Telangana

Corporate Overview

Empowering NBFC is an impact-focused NBFC aiming to be India's most trusted and preferred financial partner of micro-enterprises. Operating through a feet-on-street model leveraging ML Algorithms and an end-to-end digital process, the company serves small cities and towns across Telangana.

Mission

Empowering Nano-enterprises with a daily turnover of ₹8k–₹30k — businesses with no formal books of accounts, lack of documentary proof of income, and low or limited credit history.

Business Model

Target Segment

Micro Enterprises (Nano Category)

Product Segment

Unsecured ₹70k–₹4L; Secured ₹5L+

Distribution

Feet-on-Street + ML Algorithms

Primary Geography

Small Cities & Towns, Telangana

Customer Mix

Trading 91%, Service 8%, Mfg 1%

Loan Classification

Priority Sector Lending (PSL)

Key Customer Types

Retail Trading

Kirana Stores, Cloth Stores, Fancy Stores, Footwear

Services & Ancillaries

Auto & Ancillaries, Electrical Business, Pharmacy

Construction & Others

Building & Construction Materials

Financial Performance (FY21 to FY25)

Portfolio & Operational Overview

Total AUM (FY25)

₹478 Mn

Cumulative Disbursements

₹1,920 Mn+

Loan Accounts (Cumulative)

11,400+

Active Clusters

32

Year-on-Year Growth Summary

Particulars	FY21	FY22	FY23	FY24	FY25
No. of Clusters	21	27	32	32	32
Disbursements (₹ Mn)	79.4	162.9	427.3	574.7	555.1
Total AUM (₹ Mn)	80.4	113.6	333.7	437.3	478.4
Managed Gearing	2.6x	3.9x	3.6x	3.9x	2.9x

Financial Strength: Consistent AUM growth from ₹80 Mn (FY21) to ₹478 Mn (FY25) — a 6x increase in 5 years. Disbursements peaked at ₹574.7 Mn in FY24. Managed Gearing kept disciplined at 2.9x in FY25. Fixed cost breakeven achieved at ₹550 Mn AUM in FY24, demonstrating operating leverage and scalability.

Key Milestones

From NBFC licensing to ₹1,920 Mn+ in cumulative disbursements — a journey of disciplined execution, impact, and resilience.

✓FY20 — Inception

Received NBFC License and commenced operations
Raised first impact debt from OikoCredit in Q4 FY20

✓FY21 — Market Launch

Professionally run and managed by core team
Launched in 15 clusters in Telangana targeting micro-enterprises

✓FY22 — Scale-Up

Crossed AUM of ₹100 Mn across 27 clusters

✓FY23 — Growth Acceleration

Achieved milestone of ₹500 Mn+ in cumulative disbursements
Raised $1 Mn (₹7 Cr) equity investment
Over 63 employees and operations expanded to 32 clusters

✓YTD Jun-25 — Current Position

Core team vintage of 6+ years
₹1,920 Mn+ cumulative disbursements across 11,400+ loans
13 active debt partnerships + 2 BC/Co-Lending arrangements
Managed Gearing of 2.2x as of June 2025

                Proven Resilience
                6 years of resilient operations through COVID pandemic and over-leveraged industry crises
Fixed cost optimized for breakeven at meagre ₹550 Mn AUM — achieved in FY24
Proven track record of maintaining low NPA levels even in challenging macro environments

            

Strong Focus on Impact Generation & Ethical Practices

ESG Framework at Empowering NBFC

Environmental Performance

Board-approved negative list of business segments. ESG considerations embedded into credit analysis, lending, and underwriting processes promoting responsible and sustainable lending.

Social Performance

Code of Conduct, Whistleblower & POSH policy in place. Emphasis on financing first-time borrowers and underdeveloped communities. Detailed client feedback for continuous product improvement.

Corporate Governance

Strong risk management and internal audit system. ESG policy adopted by Board to commit to positive societal impact. Board constituted per Companies Act, 2013.

Impact at a Glance

New to Business Credit

20%

First-Generation Entrepreneurs

80%

From Low-Middle Income HH

>85%

Total Businesses Served

8,000+

                Commitment to UN Sustainable Development Goals
                SDG Target 8.10 — Universal Access to Banking, Insurance and Financial Services
SDG Target 9.3 — Increase Access to Financial Services and Markets

            

Investment Highlights

Empowering NBFC presents a compelling investment opportunity for strategic or financial investors seeking exposure to India's rapidly growing MSME lending sector through an impact-focused, technology-enabled NBFC.

01 — Impact-Focused NBFC Targeting Underserved MEs

Disbursed over 11,400+ loans to about 8,000+ businesses in small cities and towns. Borrowers struggle with access to organized lending due to no proof of income, lack of collateral and remoteness.

02 — ₹1,920 Mn+ Disbursed Cumulatively Across 32 Clusters

Present across major small cities and towns across Telangana. June-25 AUM of ₹396 Mn. Strong on-ground presence in existing clusters and best positioned to capture growth opportunity.

03 — Quality Portfolio with Low NPA Levels

Current NPA levels are low as compared to other peers operating at atleast 2x. Unique business model combining feet-on-street with ML Algo and Image Analytics-led underwriting.

04 — Committed Management with 15+ Decades of Combined Experience

Proven track record. 6 years resilient through COVID and over-leveraged crises. Fixed cost optimized for breakeven at meagre ₹550 Mn AUM — achieved in FY24.

                Growth Opportunities
                Expand into new geographies beyond Telangana leveraging existing playbook
Scale AUM through additional BC/Co-Lending partnerships with banks and large NBFCs
Deepen product suite — introduce secured lending at scale for growth micro-enterprises
Leverage Digital India infrastructure (UPI, AA Framework) for deeper customer penetration

            

Management Team

A professionally managed organization led by a seasoned leadership team with over 15 decades of combined experience across financial inclusion, BFSI, risk management, technology, and operations.

Leadership

Name	Role	Experience
Shamik Trehan	Founder Director	Over 2 decades in financial inclusion and improving well-being of low-income communities at scale
Anindya Sen	Director	Ex-VP (Eastern Zone) at Axis Bank; Over 4 decades experience in BFSI and Risk Management
PN Srinivasa Rao	Director & COO	Over 2 decades across strategy & operations in international non-profit and social enterprises
Dipesh Arya	Head – Finance	15+ years in Corporate Finance, Regulatory Compliance, Systems, and M&A; Qualified CA & CS
Akash Mittal	Head – Credit & Risk	Over a decade in Lending, Credit Policy, Underwriting, and Risk Management; Qualified CA, CS & FRM
Rami Reddy P	Head – IT	15+ years across IT Operations, Infrastructure Management, and Application Development
Konda Reddy	Head – Collections	Over a decade in Collection, Legal activities, Admin & Procurement Department
Purnima	Head – HR	Over a decade driving and executing HR policies and processes
Divya Sarda	Company Secretary	Over a decade in Infra & NBFC sectors; expertise in Company Law & Regulatory Compliance; Qualified CS

Debt & Lending Partners

13 active debt partnerships + 2 BC/Co-Lending arrangements including: OikoCredit, Hinduja Leyland Finance, Caspian Debt, Northern ARC, Electronica Finance, Vivriti Capital, InCred Finance, Ashv (Aavishkaar Group), REVX Capital, SMC, N+1 Capital, Real Touch Finance, Eclear Leasing & Finance, and MAS Financial Services.

Strategic Partnership Opportunity

Vreedhi is seeking strategic partners and equity investors aligned with its vision of financial inclusion and high-yield micro-enterprise lending in underserved markets.

Ideal Partner Profile

Person(s) looking to start a NBFC, or startups/organizations keen to diversify into lending

Minimum Capital Infusion

Capital infusion starting ₹5 Cr

Opportunity Cost Advantage

Do not want to lose on high yield lending interest rate as opportunity cost by blocking the initial ₹10 Cr in FD with 4%–5% (minimum as required by RBI Master Directions)

Day-1 Operations

Start business from Day 1 instead of building foundational systems, processes, and meeting compliance requirements from scratch

                Customer Satisfaction Credentials
                99% of customers rated Vreedhi as Best in Customer Service
~90% of customers rated Vreedhi as Best in Loan Processing Time
Checks and balances via satisfaction surveys, complaint systems, and timely resolution of issues

            

Valuation Summary

The investment opportunity includes an equity stake in a growing, impact-focused NBFC with demonstrated AUM growth and quality portfolio. Exact valuation and equity terms to be agreed at actuals.

Component	Description	Value
Business Value & Goodwill	Existing NBFC license, operations, and future business potential Technology platform (ML Algorithms, Image Analytics, end-to-end digital process) 32 active clusters and established customer relationships (8,000+ businesses) 13 active debt partnerships and 2 BC/Co-Lending arrangements IT infrastructure, ERP systems, and compliance framework	To be mutually agreed
Net AUM (Jun-25)	Total AUM as of June 2025: ₹396 Mn Quality portfolio with low NPA levels vs. industry peers operating at 2x 11,400+ cumulative loan accounts across 8,000+ businesses Cumulative disbursements of ₹1,920 Mn+ since inception	₹396 Mn (Jun-25)
Capital Infusion (Minimum)	Minimum equity infusion starting ₹5 Cr Exact equity stake and valuation to be agreed at time of finalization	₹5 Cr+
Strategic Investment Opportunity		Equity Stake in a Licensed, Operating NBFC + Day-1 Business

Investment Note: This is a blank teaser document. Exact valuation, equity dilution, and financial terms will be shared under NDA upon expression of interest. Empowering NBFC is seeking strategic partners with aligned vision for financial inclusion and micro-enterprise lending in India.

Confidentiality Note: This presentation is strictly confidential. Recipients must not circulate, copy, or rely solely on its content for investment decisions. It constitutes neither an offer nor a binding agreement but serves as an invitation to explore collaboration.

NEXT STEPS: STRATEGIC M&A INQUIRY

We look forward to partnering with you to unlock this investment opportunity in India's micro-enterprise lending space.

CA DHIRAJ OSTWAL & Co.

Your Vision, Our Expertise— Seamless M&A Solutions.

Email Contact

dhiraj.ostwal@gmail.com

Direct Phone

70200 45454

Website

www.cadhirajostwal.com

M&A Advisory Office (Pune, Maharashtra, India)

2nd Floor, Shree Krishna, 7, Shirole Lane, Near Anna Hotel, opposite of Fergusson College Road, Shivajinagar, Pune, Maharashtra 411004

**Private & Confidential:** This document contains confidential information and is not an offer for sale. Recipients must not circulate, copy, or rely solely on its content for investment decisions.