Zero Down Payment Mobile Phones

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• September 2017

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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.
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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)
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EXISTING LENDERS NEGLECT THE MASS MIDDLE
High Low

• Good borrowers across income levels
• High operating costs make small loans unviable
  for banks
• MFIs dont usually offer loans to individuals

Income
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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.

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• 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.

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WHY NOW?
Growing Economy
Regulatory Environment
Digital Infrastructure
Smart Phones
Consumer Attitudes
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MARKET OPPORTUNITY Indias Emerging Middle Class
400mm addressable market by 2020. (Nilekani)
Wages may increase 4x between 2013 and 2030.
(KPMG)
250mm middle class today. Rising to 570mm in
2025(McKinsey)
600-700mm smartphones in use by 2020 (Credit
Suisse)
Consumer lending to grow from 420bn in 2016 to
2.1trn in 2025. (Credit Suisse)
420bn of market value creation is up for
grabs in next 10 years. (Credit Suisse)
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GO TO MARKET STRATEGY
Initially target urban salaried millennials
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
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TYPICAL CUSTOMER
Profile

• 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

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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
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BUSINESS MODEL
Loan Disbursal
Application Drawdown
Application Credit Appraisal
NIRA
USER
FUNDER
Notifications
Performance Data
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.

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FOLLOW US
www.medium.com/nira