Making intuitive financial management accessible to urban workers Pitch Deck, 2023 PROBLEM: Information gaps lead to use of inefficient financial products • How much will I have by the time Anu goes to college? • How much will I need then? • How do I bridge the gap – which credit and/or investment schemes to choose? 2. Lack of information also forces customers to high interest loans from informal operators; vicious cycle as no formal credit history is built • NBFCS • Banks • Fintechs • Chit funds • Pawn shops • Money lenders Require good credit score; decline OR higher interest Higher interest than formal providers % Informal Credit Formal Credit 1. Limited access to information makes portfolio tracking, management and planning for future goals hard ₹ 37,000 in the Bank ₹ 1,200 monthly contribution. LIC Balance? ₹ 500 monthly contribution SSY Balance? 2 ▪ Assisted Do It Yourself platform that offers personal recommendations ▪ Not a marketplace ; curated set of financial service partners and products based on fit for our customers’ needs ▪ Revenue Model : commissions on distribution of wealth products, credit and contextual digital goods ▪ Assistance offered via: Customer care executives ▪ GTM: via enterprise partners and a C2C Refer and Earn Program for customers and agent networks Vernaculars Voice navigation अ Made with in & for Bharat on India Stack: Enabling the next 150mn HHs to Manage , Leverage & Grow their portfolios Digital Platform Highlights Foundation 3 Account Aggregator Framework No more cancelled - cheque & net - banking hassles No more manual entry or scan copy uploads IPPB – A/C Opening Registrar services Bank accounts exist, build services on - top One stop shop for managing finances, planning for long term goals Grow Manage Access affordable credit by pledging your LIC policy, MFs, FD or PPF holdings; lower rates than money lenders, pawn shops, etc. We curate the best funds for your budget and context. Easily set up daily, weekly or monthly SIPs towards your goals. Leverage Your financial health insights at your fingertips. No more updating passbooks, paper folders. Start making better financial choices! 4 WHO: Mass premium segment who work hard for their life goals They have long term financial goals... 2 LIFE GOALS 8 0% 20% 40% 60% Business Retirement Marriage Home Education COMPLEX FINANCIAL LIVES 8 ... & are ripe for supportive access to efficient financial products 3 1 Factory workers: >12.8mn 1 Security staff: 12mn 2 Food & Hospitality: 9mn 3 Gig workers: 6.8mn 4 All blue collar est. 300 - 450 mn 5 3.4mn retired + 56k retiring each year 6 >500k special forces 10.8mn 7 61% in T1 - 2 cities 1. Statista 2019,. 2. NSDC estimate for 2022 largely urban, 3 Niti Ayog, 2022. 4. BCG and MSDF estimates 2021, 5. TOI, 2022 6 . D GR data per Business Today 7. NSDC and KPMG 2021 estimate 8. n=101 interviews conducted by the Mera Kal team, June – Aug 2022. Those interviewed were 2/3 working in Bangalore and 1/3 fro m other cities. 50 mn+ workers across gig, blue collar, informal sector, jawans ... NEAR TERM ADDRESSABLE 5 1. Customers juggle a range of sub - optima l instruments to meet goals • Chit Funds • Gold Shop Saving Schemes 2. Demonstrated willingness and ability to invest for the long term as shown via LIC, SSY penetration 1. Various myths around financial instruments, ex. Requires a lock - in, “not for me” 1. Willingness to try new things, ex. Crypto, digital gold, etc. SIZE: ~$450bn AUM opportunity across investments & credit against portfolio 6 1. MFIN data 2022, 2. LIC IPO Prospectus, 2022 , National Savings Institute , 2023 3. Mint KuCoin estimate, August 2022, Economic Times, Jan 2022, Mint Dec2022 on betting 4. All India Association for Chit Funds, Business Standard Dec 2022 5. Economic Times, Nov 2022 AUM $55bn - $100bn+ with >115mn users 3 Betting, Crypto Inputs to build future house AUM $10bn via banks 5 alone, plus NBFCs, pawn shops, etc. Gold Saving & Loans AUM $500bn 290m policy holders 2 $20bn in FY’23 in SSY LIC & SSY AUM >$200bn 4 with ~95% via unregulated operators Chit Funds AUM $ 35 bn, 60 m borrowers 1 Microfinance Institutions Wallet currently split across a range of financial instruments Loans against these assets offer a tremendous opportunity... ..$400bn potential loan book from LIC alone Switching a small share of investments to formal financial assets... ...$40 - $50bn AUM from 10% of chits, gold savings REVENUE MODEL: Compounds with our customers’ portfolios over time By year 10, we could be ~$1bn in revenue Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Customers 35,000 1,50,000 8,00,000 20,00,000 32,00,000 45,00,000 60,00,000 INR Revenue @ 3k SIP scenario 75,60,000 6,34,80,000 35,13,60,000 1,40,77,80,000 4,02,69,50,000 9,11,11,00,000 19,13,43,20,000 USD $ 94,500 $793,500 $4.5 mn $16 mn $50 mn $114 mn $239 mn Assumes: • The average customer AUM growth is that of one contributing INR 3,000 per month, without any lump sum payments, and draws on the line of credit 3 times, takes a 3L loan by year 5. • Revenue is 1.2% on a blended basis on the investment portfolio, 1.2% on the line of credit and 2% on the larger ticket loans. VA S services earn a referral fee of 10% • Figures are net of churned customers • Gifts and one - time investments off - set skipped SIPs 7 HOW: Multiple approaches to go to market, building on the network effect Organizations C2C Influencers ▪ Earn INR 50 for referring friends, colleagues and family to a Mera Kal Saathi for a consultation ▪ Earn another INR 100 for each friend who then begins a portfolio on the app ▪ Influencers are enabled by content, infographics, videos and FAQs in vernaculars, to share across their social media groups Influencers ▪ Mera Kal offers employers, NGOs and Associations the tools and resources to help their employees and members feel more financially secure. ▪ Digital access is supported by in person support from our Saathis and India Post. Lending Personal Finance Management Insurance Payments Wealth For the next 150mn HHs, very few players offer targeted solutions; large white space in personal finance management COMPETITION: fragmented market split across channels, apps, providers A/C 9 Chit Funds Chit Funds Pawn Shops Savings Gold Shops Early Wage Access LEADERSHIP: We have the experience & passion to execute well at scale Founder, CEO Mera Kal 15 years in microfinance and mass market fintech across India and Africa Devyani Parameshwar Mohit Garg Co - Founder, CTO Mera Kal 7 years across startups in tech roles across EdTechs and B2B e - commerce. 10 Raghavendra Badaskar Co - Founder, CPO Mera Kal 15 years across inclusive finance & SaaS, 3 rd time entrepreneur $1mn Ask 1 1 FUNDING: we’re looking to raise $1mn / INR 8 Cr for the next 18 months Complete build of v1 of the product Hire leadership across investment operations and sales (BD & field team mgmt.) Build tech team to accelerate in - house development capacity Build the service team (WhatsApp, calls and field agents) Add to the library of GTM video explainers, FAQs Leadership 22% Tech 22 % Saathi Team 14% Product Resources 7% GTM Content 4% Core Team 24% Licenses, Rent, etc. 7% THANK YOU Questions? founders@merakal.in