About My Mudra Fincorp Limited

Established in 2013, My Mudra Fincoro functions as a Channel Partner (DSA) for major Banks and NBFCs operating in India. Their business model integrates tele-calling, advertising, direct marketing, referrals, networking, and a combined physical and digital (physital) marketing approach to acquire customers for the banks and NBFC’s. Specializing in the distribution and sales of a diverse range of financial products as channel partner, they offer secured loans such as home loans and loans against property, unsecured loans like business loans and personal loans, professional loan as well as credit cards to the procured customers. Recently, they have expanded their services to include the distribution of insurance products. Through their dedication to offering exceptional financial solutions and consultancy services, they have distinguished themselves in the highly competitive and ever-evolving Indian financial services sector.

The Company serves a diverse clientele, including individuals, corporates, and professionals like Chartered Accountants (CAs) and Company Secretaries (CSs). As a trusted Direct Selling Agent (DSA), For individuals, they provide seamless access to funds for various purposes, from fulfilling personal aspirations to managing unexpected expenses. Their corporate clients benefit from tailored financing solutions designed to fuel growth and expansion, including Business loan, working capital financing and project funding. The Company provides specialized loans such as unsecured loan for professionals like Chartered Accountants (CAs), Company Secretaries (CSs), and architects. Loan amounts are based on their degrees and years of practice, with longer practice periods qualifying for higher amounts and minimal financial documentation. With a commitment to excellence and customer satisfaction, the Company empowers individuals, corporates, Business and professionals to achieve their financial goals with confidence and convenience.

They are proud to have established their presence in 8 states across India, namely Chandigarh, Delhi, Haryana, Maharashtra, Odisha, Uttrakhand, Rajasthan including our registered office and corporate office in New Delhi. They also have presence in other states like Bihar, Uttar Pradesh, Jharkhand, Gujarat, Goa, Telangana, West Bengal, Chhattisgarh etc. through their franchise or channel partners. Their network comprises 9 branches, more than 140 franchise/channel partners and Sub DSAs. Their expansion strategy is driven by a commitment to mitigating the financial challenges faced by individuals and corporates in remote areas. As part of this mission, they've extended their reach by setting up branches in these regions, ensuring financial services are accessible to all.

SERVICE INDUSTRIES IN INDIA
The services sector is not only the dominant sector in India’s GDP but has also attracted significant foreign investment, has contributed significantly to exports, and has provided large-scale employment. India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction. To enhance India's commercial services exports, share in the global services market from 3.3% and permit a multi-fold expansion in the GDP, the government is also making significant efforts in this direction. 

The service sector has over 50% contribution to India’s GDP, and it had witnessed a growth of 9.1% in 2022-23. Out of 8.12 million jobs in FY23, service sector companies in IT, banking, and finance accounted for almost half of the new jobs generated. The share of the services sector accounted for 57% of the total GVA in FY24 (April-September) as per advance estimates. The services category ranked first in FDI inflows, as per data released by the Department for Promotion of Industry and Internal Trade (DPIIT).

India is a unique emerging market in the globe due to its unique skills and competitive advantage created by knowledgebased services. The Indian services industry, which is supported by numerous government initiatives like smart Cities, clean India, and digital India is fostering an environment that is strengthening the services sector. The sector has the potential to open up a multi-trillion-dollar opportunity that might stimulate symbiotic growth for all nations. Service providers in India continued to signal positive demand trends in June, which underpinned a stronger increase in new business volumes and further job creation. 

In December 2023, services exports grew by 1.3% to US$ 31.6 billion, driven by software, business, and travel services. While Imports declined by 1.2%, resulting in a record high net earnings of US$16.0 billion. 

During October-December 2023, India experienced a 5.1% YoY to US$ 87.7 billion with a trade surplus of US$ 44.9 billion, growth in services exports, driven by software, business, and travel services.

India’s financial services industry has experienced huge growth in the past few years. This momentum is expected to continue. India’s private wealth management Industry shows huge potential. India is expected to have 16.57 lakh HNWIs in 2027. This will indeed lead India to be the fourth-largest private wealth market globally by 2028. India’s insurance market is also expected to reach US$ 250 billion by 2025. This will further offer India an opportunity of US$ 78 billion in additional life insurance premiums from 2020-30. 

India is today one of the most vibrant global economies on the back of robust banking and insurance sectors. The relaxation of foreign investment rules has received a positive response from the insurance sector, with many companies announcing plans to increase their stakes in joint ventures with Indian companies. Over the coming quarters, there could be a series of joint venture deals between global insurance giants and local players. 

The Association of Mutual Funds in India (AMFI) is targeting a nearly five-fold growth in AUM to US$ 1.15 trillion (Rs. 95 lakh crore) and more than three times growth in investor accounts to 130 million by 2025. 

India’s Fintech space is expected to further fuel this growth in various segments. India's mobile wallet industry is estimated to grow at a Compound Annual Growth Rate (CAGR) of 150% to reach US$ 4.4 billion by 2022, while mobile wallet transactions will touch US$ 388.8 billion (Rs. 32 trillion) during the same period. 

According to Goldman Sachs, investors have been pouring money into India’s stock market, which is likely to reach >US$ 5 trillion, surpassing the UK, and become the fifth-largest stock market worldwide by 2024.

CREDIT CARD INDUSTRY IN INDIA
According to Reserve Bank of India (RBI) data, in April 2023, over 8.6 crore credit cards were outstanding. This is a growth of about 15 percent from the 7.5 crore outstanding credit cards in April 2022. 

According to the RBI data, in April 2023, the industry average was Rs 5,120 per transaction. The industry average monthly spend per card was Rs 15,388. In April 2022, the industry average spend per card was Rs 14,070, and the average transaction was Rs 4,731.

MY MUDRA FINCORP LIMITED COMPETITIVE STRENGTHS
1. Strong portfolio and diverse range of products across consumer preferences
2. Diversified revenue from multiple locations and geographies of India
3. Capital efficient model with low operating costs
4. Strategic Partnerships with Banks and NBFCs
5. Experienced Leadership and Management

MY MUDRA FINCORP LIMITED LIMITED STRATEGIES
1. Broaden and deepen our Consumer reach in India
2. Product diversification
3. Continue to invest in our digital and technology infrastructure
4. Increasing Collaboration with Banks & NBFCs
5. Strengthening Customer Retention
6. Enhancing sales, promotional and marketing activities

MY MUDRA FINCORP LIMITED LIMITED RISK FACTORS & CONCERNS
1. The business is depended on their relationship with Banks & NBFCs.
2. A substantial portion of the revenue is generated from their banking partners and financial institutions.
3. Their top ten and top five customers contribute approximately 63.56% and 42.54% respectively of their revenues for the financial year ended March 31, 2024.
4. They have limited experience in one of their services related to distribution of Insurance Products and credit cards.
5. The Company has faced penal actions from Banks and NBFCs in the past.
6. They rely on end consumers using one or more of their services, and are thus vulnerable to changes in consumer preferences and behavior that could adversely affect their profitability and financial condition.