Scaling India’s fastest growing digital bank.

Company Overview
December 2020

CONFIDENTIAL / Do not distribute

This is Capital Float.

 Founded in 2013 in Bangalore.

 Vision to be a digital bank for young, middle income India.

 Focused early on credit as the core monetization driver. 2.0MN

CUSTOMER
 In 2017, acquired Walnut, India’s top personal finance app, and FRANCHISE
partnered with Amazon to scale buy now pay later.

 Robust risk management capability, enabled by a mix of vintaged credit

models & in-house collections infrastructure.
4.2MN
 Built a strong team. Raised $110mn in equity from blue-chip investors: # PURCHASES
FINANCED
Sequoia, SAIF, Ribbit, Amazon, Aspada, Creation.

 Navigated through a full lending cycle and IL&FS-led credit crisis;

now seeing BNPL-led momentum through Covid.
$
1.2BN
CREDIT
ORIGINATED
We are growing two interconnected digital finance assets.

BUY NOW PAY LATER PERSONAL FINANCE

E-Commerce Credit (cash line)

Travel Budgeting & savings

Expense tracking
D2C brands

Ed-tech Bill reminders

Health Co-lending marketplace Insurance

Scale up of customer franchise through multiple economic cycles.

CUSTOMER
2,500 BASE ACROSS PRODUCTS
000s

DeMo IL&FS COVID

2,000 2.0 MN Total customer franchise

INSURANCE

1.6 MN KYC-ed credit customers

1,500

344K Transacting (last 8 months)

1,000

PFM
10% Using 2 or more products

500

BNPL
CREDIT
-
Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Oct-20 Dec-20
FY17 FY18 FY19 FY20 DEC 2020
Our customers are the next frontier for financial products in India..
2.3 MN CUSTOMER FRANCHISE

52% 20% 35%

No credit card Thin file CF only lender*

$
2k – 5k $
380 $
530
Annual income Median credit limit Avg. bank balance
Rekha Patel, age 32,
customer since 2019. Shops
on Amazon, tracks
household bills on Walnut,
and took a personal loan last
year for a healthcare
procedure
40% living in tier 2 or 60% regular online 95% users of digital
3 cities shoppers payments
A significant number are self-employed.
2.3 MN CUSTOMER FRANCHISE
Examples:

Tax consultant
60% Training center
Jewelry shop
Yoga instructor

40% Ice cream parlor

Franchisee
IT developer
Doctor
Vegetable shop
20% Pharmacist
Electronics store
Photographer Gagan Sharma, age 28,
General store customer since 2017.
Uses a cash line on
Technician Walnut to manage
Web designer working capital for his
Tailoring shop store and books work
trips via MMT on credit
Hardware trader
Self-employed Running a biz Seeking credit
India’s leading “buy now pay later” provider.

.
1.4MN 4MN $
270MN .
HOW INDIA USED
US TO SHOP IN
CUSTOMER PURCHASES GMV DIWALI 2020
ONBOARDED FINANCED

. . .
. ..
. . .
.. .
. . . . .
.
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.
..
.
. . ..
.
. . .
. .
..
. .
150K . ..
. . .
1.10
$

..
MONTHLY NEW CAC
CUSTOMERS
Rapid growth in customers and purchases through Covid.

FY21: Bank co-lending live, re-expansion to

FY18: Launched in offline stores FY19: Online launch, NBFC crisis FY20: Shift to fully online
more categories

Customers on-boarded Active customers Purchase volume GMV financed

(‘000) (‘000) (‘000) ($ MN)

113
1,375
515 97
4,900

72

166
123 1,153 27
229
179 49
49 194
49
FY18 FY19 FY20 FY21P* FY18 FY19 FY20 FY21P*
FY18 FY19 FY20 FY21P* FY18 FY19 FY20 FY21P*
#1 onboarding experience at checkout.

Capital Float logo displayed at start of Only NBFC flow with instant eKYC, 70% approval rate at checkout (prop. Flexible & transparent repayment
product journey powered by bank co-lending model models + merchant data) options at every transaction
Robust trends in customer activity and engagement.

# of repeat purchases by transacting customer cohort* Repeat customer share of GMV financed

14.7

11.2480040
722285

73%

FY19 FY20 SEP 2020

M

M
J
J

M
J
J
S

S
A

A
A

O
FY19 FY20 SEP 2020

Key Enablers #1 OPTION 60% $

15 - 800 70% 99%
Approval at checkout No cost to customer Flexible ticket sizes Approval rate Payment success rate
Establishing a strong beachhead to capture this opportunity.

E-COMMERCE TRAVEL OTHER

Horizonal, vertical, D2C OTAs. accommodation Ed-tech, food, ride-hailing, gaming
114
Market growth
($ Bn) 30 36

32
16
13

FY20 GTV FY25E GTV

FY20 GTV FY25E GTV FY20 GTV FY25E GTV

Established
#1 embedded BNPL option covering
partners
~30% of India internet opportunity (+
targeting next wave of middle-income
Market share 26% 50%+ users)

New partners
Walnut is India’s most loved personal finance app.

10MN 400K 150K $

0.30
APP INSTALLS MAU MONTHLY NEW CAC
USERS

36%
DAU TO MAU
Deep data insights drive engaging products and features.

4MN $
390MN 10MN $
11MN 40K
Lifetime users with rich Savings balances tracked Bills & payments tracked Spends managed daily Insurance renewals
credit data monthly monthly tracked monthly

CREDIT SAVINGS* BILL PAYMENTS EXPENSE INSURANCE*

TRACKING
Credit is our core business.

$
1.2BN $
40MN
CREDIT LIFETIME
ORIGINATED DEFAULTS

$
0.2BN $
1.0BN 70K 80% ~40%
BUY NOW PAY CASH LINES / LIFETIME VIA UPSELL & USING FOR
LATER LOANS BORROWERS CROSS-SELL BUSINESS
 Evolution towards granular, fully digital credit lines.

FY15-18: Large loans, offline sourcing FY19: Gradual shift to granular, FY20: Product consolidation, FY21: Double-down on fully digital,
with tech, wide experimentation automated lines; IL&FS crisis investments in risk & collections proprietary acquisition

Avg. credit advances o/s Customers with credit o/s Average ticket size Credit pricing
($mn) (#) (Rs. LAC) (IRR)

134 133
25,263 10.3
23,159 21.0%
8.4 20.8%
105
99

10,683 18.6%
9,598 3.9
18.3%

1.5

FY18 FY19 FY20 FY21* FY18 FY19 FY20 FY21*

FY18 FY19 FY20 FY21* FY18 FY19 FY20 FY21*
Risk DNA = Growth muscles, tested over a full economic cycle.
Hybrid funding model with strong domestic capital relationships.
Uniquely positioned to capture LTV of a growing customer base.
UE / B-Plan
Competition slide
Experienced team with the right balance of fin + tech.
Co-Founders
Sashank Rishyasringa Gaurav Hinduja
• Co-leader. Focuses on product & tech, risk, • Co-leader. Focuses on partnerships, sales,
and capital markets. collections and ops.
• Ex-McKinsey & Company, New York. • Ex-COO, Gokaldas Exports.
• Stanford M.B.A, Princeton A.B. • Stanford M.B.A., Christ College.

Product
Amit Bhor & Patanjali Somayaji
• Chief Product Officer & Chief Technology Officer.
• Integrated Walnut into CF, scaled buy now pay later, drove shift to more
granular, fully automated digital cash lines
• Ex: Co-founders of Walnut, Azingo, Motorola, Google.

Sales Risk Funding

R. N. Murthy Ankit Satsangi Akshay Sarma
• Chief Sales Officer. • Chief Risk Officer. • Head Capital Markets.
• Scaled credit portfolio from $2 Mn to • Optimized asset quality over 5+ years of • Raised $500Mn+ across debt &
$100 Mn+ AuM over 5+ years. growth and a downturn marketplace over 4+ years.
• Ex: Janalakshmi, Indiabulls, StanC. • Ex: Fullerton, Barclays, Citi. • Ex: Deutsche, Cambridge MBA.