Technology Platform

enabling Financing to
MSMEs & their Value Chain

Investment Teaser
October 2023

Strictly Private and Confidential

 RAMSUN NETWORK SNAPSHOT

A robust Platform that has facilitated Financing for MSME Value Chains since 2021

➢ Building the deepest

B2B2C Platform for
20+ $15+ Mn 10x
MSMEs in India
MANAGED AUM DISBURSEMENTS*
➢ Managing supply chain finance LENDERS GROWTH
SEP 2023
solutions for corporates using May’23 VS May’22
strong lender network from across
India in one place to address the
MSME financing gap
10x ~$92+ Mn
➢ Pan India Presence 20+ MANAGED AUM
DISBURSEMENTS
ANCHORS GROWTH
➢ Service Offerings TILL SEP 2023
May’23 VS May’22
• Lending as a Service
• Other ancillary services

8+ Products Offered covering ~$40 Mn $40 Mn+

➢
entire value chain APPROVALS/
PROJECTED 0%
MANAGED AUM NPA
IN PIPELINE
➢ Bootstrapped FY 24

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*Cumulative Disbursements
 MSME SECTOR SUFFERS FROM A MASSIVE CREDIT GAP OF $530 BN IN INDIA

Traditional lenders are unable to cater to this credit gap due to high operational cost

Problems Faced by Traditional Lenders Problems Faced by MSMEs

Unable to Cater to MSME’s Credit Demand Huge Credit Gap of $530 Bn in the MSME ecosystem

Limited Visibility into MSME Finances High Turnaround Time

• Most MSMEs don’t maintain financial records, such as tax • Bank’s delayed credit impacts MSMEs as they have small
filings, P&L statements, balance sheets, etc. financial margins & require urgent working capital

Difficult Underwriting of Low-Ticket Size Loans High Borrowing Cost

• 95% of the viable debt gap is from micro & small • The limited available credit is at high interest costs as
enterprises MSMEs are considered risky borrowers

High Geographical & Product Diversification Cost Long term Credit Challenge
• Banks have to hire sales professionals & open new branches • Even if MSMEs demonstrate a good credit track record, long
term credit lines are yet unavailable

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Source(s): Financial Express, Yubi Report
 RAMSUN NETWORK’S VALUE CHAIN APPROACH

Ramsun Network is working to effectively plug this gap & unlock this sector’s potential
a
RAMSUN
NETWORK
Corporate
Employees One-Stop Solution Lending as a Service
Anchors
(LaaS)

Value Chain

Tier 1 Suppliers Employees Distributors Employees

b Banks /
NBFCs

Tier 2
Tier 2 c
Suppliers Employees Retailers Employees
Ramsun Network’s Value Add
➢ Banks & NBFCs:
a Sourcing high quality corporates based on their strong relationships & network • Access to High Quality Lending Opportunities
• Product & Geographic Diversification
• First-hand Credit Assessment Report
b Credit risk assessment report is sent to the lender using underwriting system ➢ MSMEs & their Value Chain:
• Easy Financing Options at One Place
• Competitive Interest Rates
c Cross-selling other products like insurance by capturing data of the entire value chain
• Access to Products like Personal Loans, Insurance, etc.

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 CURRENT MARKET SCENARIO & HOW IS RAMSUN DIFFERENT

Very few prominent players exist in the Tier 2 segment of the MSME Value Chain
SAM – $530Bn
Ramsun’s Value Proposition
Tier 2*
1. Tier 2 Focus
• Bigger market
• Higher margins
• Lesser competition

Tier 1 2. Experienced team with In-house Tech

• ~45 years of collective industry experience of founders
• Strong relationship & network of lenders & corporates
• Consistently provided zero delinquency to the lenders

• Most existing players try to avoid Tier 2 due to

▪ Low ticket size loans
3. FLDG
▪ Difficulty in underwriting • Increased margins by having their own skin in the
▪ Lenders don’t have comfort game (FLDG based lending arrangement)
• Provides comfort to the lender
• Thereby, huge white space exists for Ramsun to
address
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*(Tier 2 excludes Tier 1 from the total market)
LAAS PLATFORM OFFERINGS

A single dashboard allowing lenders visibility of all loans & loan performance

Platform Features
• Smart & intuitive dashboard
• Readily integrable with all leading ERP & with banking/NBFC
systems
• Limit set up, limit tracking, limit renewal or deferral management
• Secured & certified system
• Straight Through Process (STP) feature for operational efficiency

Already accepted by Marquee Lenders/Partners

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 OTHER ANCILLIARY OFFERINGS

PROBLEMS IN THE ECOSYSTEM THE RAMSUN SOLUTION

Streamlines the loan lifecycle by automating the entire process from application
FOR LENDERS to closing
When developing & implementing in-house software E-invoicing & Digital Signatures
systems
Loan Management System (LMS)
– SCF, Term Loan, Business Loan
1 Significant Lead Time To Market
Loan Origination System (LOS) Receivable Management Solution

2 Sizeable Capital Expenditure

ADVANTAGES
• Seamless one-time integration

3 High Downtime Deployment • Holistic automated solution which facilitates entire cycle from invoicing to
financing

• Reconciliation made easy through digital platform

4 Limited scope for scaling up
• Easily adaptable supply chain finance solutions with changeable products to
suit needs
5 Below Par Customer Experiences
• Easily implementable; No major upfront capex costs

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 JOURNEY SO FAR & WAY FORWARD
Start-up
(Feb 2020-March 2021)
Basic Set Up
• Basic Set up of Entity
• Development of Platform
• Value-Added Tech
Solutions
• Initial Lenders & Corporate
Tie-up
• Partner Channel Tie-up
Estimated Fund
Investment 0.72 Cr
Scale up Expansion Leverage
(Apr 2021 – Sep 2023) Expansion
(Oct 2023 – Sep 2024) (Oct 2024 onwards)
(Post current funding round)
Without Risk Sharing FLDG Based Model Evolved Full Fledged Model Offering
Model evolved
• Establish SCF Marketplace • Improvise SCF Marketplace • Set up own NBFC to
• Create a Large network of with further leverage the Network
Anchor Corporates, features/offerings already created & offer
full automated SCF model
Vendors/Dealers & • Tap into FLDG based Deep
Lenders Tier Financing (Lower Ticket • Expand the model to
Size SCF based financing) Multi-geography
• Non-FLDG based larger
ticket size SCF financing • Use Credit Assessment &
• Develop Manual Risk Monitoring Automation
Assessment & Monitoring along with transaction
Mechanism patterns for risk evaluation
• Development of Credit
Assessment Automation
Tool (LOS)
1.50 Cr 15.0-35.0 Cr
WHY NBFC?

Sustainable, stable & scalable business through NBFC licensing

Data Established Client Increased Revenue Co-Lending Model

Acquisition Base Margins
▪ Easy access of customer ▪ Access to a large ▪ Putting their own skin in ▪ Launch of NBFC will
data by regulated number of corporates & the game by lending enable Ramsun Network
entities as per digital their entire value chain through own book, will to start co-lending
lending guidelines through its LaaS enable Ramsun Network arrangement
▪ This will allow Ramsun Platform to increase revenue ▪ This will enable end to
Network to store & margins through a end automated process
mine customer data & diverse range of products for customers & better
cross sell products risk sharing model
beyond SCF instead of FLDG

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 Combined experience of around 45 years in technology implementation &
MEET THE FOUNDERS operations in Lending domain

Sunil Kumar Ramesh Bisht

Managing Director Chief Executive Officer
B.E. (Computer Engg.) – DIT/NSIT Chartered Accountant

25+ years of experience in building & running large enterprise applications 19+ years of experiences as a Strategy & Leadership expert
in BFSI Globally

• Have been a founding member & held CXO position for India’s
leading Invoice Discounting platform TReDS platform,
• Envisaged the overall technical solution benefitting 3000+
MSMEs & led & scaled the business & technology operations
successfully for 3+ years
• Rolled out large scale & complex Global product implementations
(>$200 Mn) for 20+ Domestic & International Banks, Global
Custodians & Fintech companies
Relevant Expertise
• Expert in Trade Finance, Retail & Wholesale Banking & Capital
Markets
• A developer at heart & can write efficient code as full stack
developer, in multiple programming languages for financial
products without external dependencies
• Part of initial 3-member TReDS core team; Conceptualized the
overall framework to set up & ran the India’s first TReDS
platform, to bridge the MSME gap
• Have been instrumental in getting the In-principal & Go-Live
license from RBI for TReDS. Acted at CXO position in Go-Live
scenario & enabled the scaling up TReDS platform from INR 0
to INR 500 Cr throughput per month
• Analysed & approved new product pricing, reviewed business
strategies of UK & European entities
Relevant Expertise
• Has led & scaled up new businesses/verticals right from zero in
addition to scaling already set up business verticals
• Experience of 8+ years of running & scaling the Online Marketplace
for bill discounting

Prior Experience Prior Experience

 THANK YOU
For further queries, kindly contact:

Varun Chauhan Panika Jain

vvchauhan@ashikagroup.com panika@ashikagroup.com

Corporate Office: Ashika Capital, 1008, Raheja Centre, 10th Floor, 214, Nariman Point, Mumbai - 400 021, Maharashtra, India
Visit us at: www.ashikagroup.com

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