I am delighted to connect with you all through the first issue of our newsletter in this financial year. FY 2017 has been an eventful year in many respects - demonetization announced by our PM on November 8, 2016 was the biggest external highlight. It was an extremely eventful year for us as an organization as well. Thanks to a strong management team and a committed workforce, we closed the previous financial year by crossing the landmark INR 1000 crore AUM with a portfolio of over INR 1216 Crs as on June 30, 2017.
We have expanded to seven low income states in India with Meghalaya and Chattisgarh added to our areas of operation. We serve over 7,74,398 micro borrowers, through a network of 285 branches, with an employee strength of over 2500. With a rights issue of INR 58 Cr from existing investors in January, 2017 and INR 97Cr equity infusion from a new investor MAJ Invest, the company now has a net worth of INR 345 Cr (inclusive of accrued profits) as on end of March, 2017. This makes Arohan one of the best capitalized NBFC-MFIs in its peer group. An upgrade on our bank loan rating to A- takes us into a select group of just six MFIs with an A category rating. CARE Ratings reaffirmed our rating at A- in January, 2017, after reviewing our buoyant performance post demonetization. In February, 2017, we were awarded a top notch MF1 grading which is the number one microfinance grading for our operations along with an SP2 rating on our Social Performance Management.
As Arohan enters the 11th year of its existence, we celebrate its coming of age through the various building block initiatives that we undertook as a company in FY 17. We scaled up our cross sell business with the launch of many new products and an android based mobile app called E-Bazaar catering close to 3 lakh accounts. We have won the SKOCH award for Additional Life Insurance (ALI) as one of the best 100 FI projects in India.
A new inorganic channel was facilitated which currently has an outstanding of ~INR 50 Cr and five partners. A new product called Sanitation Loan, to facilitate construction of toilets, has also been added to our offerings. We recently ventured into a unique alliance with payments bank licensee PayTM to facilitate on-boarding of customers on to a digital transactions platform
Each and every field officer in Arohan today is equipped with a tab which reduces the TAT significantly and helps us go paperless at the front-end. Arohan is the first among its peers to facilitate this process. In order to strengthen the back-end system, Arohan has signed up with FIS, a global leader in core banking system and implemented a state-of-the-art loan management system‘PROFILE’, a globally renowned core banking platform from FIS recently. We also rolled out ‘Predix’, a Centralized Digital Audit System. This makes Arohan the most IT enabled NBFC-MFI amongst its peers. Our efforts have been recognized and in the month of June'17, Arohan won the prestigious SKOCH ‘Order of Merit’ award, 2017 for ‘Best IT Implementation’ on mobility and CRM at the 47th SKOCH Annual Awards. Our Corporate Social Responsibility initiative has also gained more traction covering skill building, women's health and welfare through health camps, anti-trafficking measures etc. The Financial Literacy programme in association with ACCION and supported by FMO targets to reach out to 50,000 customers by the end of FY 18. In the month of May'17, Arohan has been the recipient of the CSR Excellence Awards, 2017 for the "CSR PRACTICE OF THE YEAR” at The India International CSR Conclave and Awards, held in Delhi.
I thank all our employees, investors, bankers, regulators, vendors for all the support and look forward to more in the years to come. I hope this newsletter will make for an informative read and help justify the confidence that you have placed in Arohan.
Warm RegardsManoj Kumar Nambiar, MD
Arohan raises INR 155.5 Crs from existing and new investors
Arohan has successfully completed a capital raise of INR 97 Crs from Maj Invest in March, 2017 and another INR 58.5 Crs from existing investors, Tano Capital, Swaminathan Anklesaria Aiyar and other individuals, and promoter group, Aavishkaar Venture Management Services, to the total capital raise of INR 155.5 Crs.. This not only help strengthens the company's net worth but also fuels its future growth. Maj Invest is one of Denmark’s leading asset management companies, managing assets for primarily institutional clients. This deal is demonstrative of the strength of the company. With this the company has acquired a net worth of INR 345 Cr as on end of March, 2017 making Arohan one of the best capitalized NBFC-MFIs in its peer group.
Read more:https://goo.gl/BXbNm7 India Today
RATE CUT: Arohan announced revised lending rate
With effect from April 1, 2017, Arohan announced a lower lending rate of 22.99% for its microfinance loans targeted at women customers from socio-economically disadvantaged backgrounds. This has been made possible due to the equity infusion of INR 97 Cr and lowering of borrowing costs in the past few months. The company had also added to its net worth with the successful completion of its rights issue of 58.09 crores.
Digital platform for utility products
To help its customers gain access to utility products at affordable cost, Arohan has launched a new ecommerce platformin the form of a mobile application for cross sell products. Named as “E-Bazaar”, the application is a first of its kind. It is powered by Inthree BoonBox and is an exclusive rural assisted e-commerce platform that reaches out to the doorsteps of customers to offer a wide range of utility product categories.
Arohan wins "Order of Merit" at the 47th Skoch Award 2017
On June 19, 2017, Arohan won the prestigious SKOCH “Order of Merit” award, 2017 for ‘Best IT Implementation’ on MOBILITY and CRM at the 47th Skoch Annual Awards. Arohan, through its technological interventions in the last financial year, has taken significant strides to incorporate an IT led infrastructure at various levels. A mobility solution called “Gravity” for Loan Origination including real time Credit Bureau check and auto updating of data from Aadhar, together with the consolidation of regional data processing into a Central Hub and a Customer Relationship Management (CRM) solution for customer service has enabled an overall IT transformation for the company making it the best among its peers in the industry. The entire gamut of solutions are all so integrated, that it lays the platform for stability, security, scalability and diversification.
Arohan to merge lending operations of promoter firm IntelleCash with itself
Manoj Kumar Nambiar, MD, Arohan, made an exciting announcement about launching a new product line called Merchant Cash Advance (MCA), adding to our existing product range. MCA is currently serviced by our group company IntelleCash which Arohan intends to merge into itself during the course of this financial year. This new product is pegged at ticket sizes of INR 5 lakhs to 75 lakhs, enabling Arohan to reach out to new SME urban customers besides serving the existing microfinance customer base that it currently caters to.
Arohan on-boards new inorganic partners in Odisha - enables them digitally
In the first quarter of this financial year, Arohan has entered into strategic sourcing and collection partnerships with two Odisha based institutions of repute, Adhikar and Swayamshree Micro Credit Services. These new partnerships are an addition to our existing partnerships in Odisha, Bihar and West Bengal and a testimony of the company's long term commitment to support the growth of peer institutions. Arohan, in its effort to enable digitization of operations and thus enhance the efficiency of its partners institutions has committed itself to provide tablets to the staff of its partners and train them on this mobility solution by conducting workshop programmes, introducing them to tablet based, paper-less sourcing and collection.
Arohan’s Corporate Social Responsibility initiatives bag ‘Excellence Award’
In May, 2017, Arohan received the Jury Award for CSR Practice of the Year 2017, part of the CSR Excellence Awards at The India International CSR Conclave and Awards, held in Delhi.
Arohan trained and provided placement assistance to over 500 youths in IT/ITES and retail skills in its areas of operation, trainings were conducted for the youths in Jorhat & Guwahati in Assam, Patna and Muzaffarpur in Bihar and Kolkata, Mednipur and Durgapur in West Bengal. As part of its Shiksha programme, Arohan also distributed school bags to more than 1200 primary school children in marginalised communities in Assam, Bihar and West Bengal. More than 800 women across Jharkhand, West Bengal and Odisha benefited from the Health camps conducted by Arohan. In an innovative effort, Arohan has also utilizedindigenous art form, “Patachitra” from West Bengal, for conducting programmes on health awareness.
Mass Awareness Campaigns on Financial literacy benefits many
Arohan Financial Services Private Limited launched its first Mass Awareness Campaign on Financial Literacy (FinLit) on April 19, 2017. A part of the FMO funded FinLit project, the campaign was initiated near Kuakhia branch in Odisha. Nukkad Natak formed the medium of the mass awareness campaign and conveyed the importance of being financially literate in great form and style. Arohan aims to reach out to 15000 beneficiaries across four states by conducting 50 mass awareness campaigns in the next six months through an engaging mix of media such as magic shows, street plays, puppet shows etc.
Prem Shila Devi is Arohan's fourth cycle loan customer from Patna, Bihar. Her first Saral Loan amount was of INR 15000, at a time when she had just two sewing machines to support her family’s income needs. With the help of our loan, her business grew and she invested in a shop. Prem Shila now runs an electronic shop along with her husband and also manages to save a good amount from her sewing business. Overall, she can support her family with an improved living standard. She is thankful for the support provided to her by Arohan in her hour of need which made her capable of supporting her children’s dreams of pursuing graduation. “I am very happy with Arohan’s services”, says Prem Shila.
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