### **Company Overview** Emerald Finance Limited is a Chandigarh-based **non-deposit-taking NBFC** (NBFC-ND), registered with the Reserve Bank of India under Section 45-IA of the RBI Act, 1934. Originally incorporated in 1983 as *Emerald Leasing Finance and Investment Company Limited*, the company has evolved into a **digital-first financial services provider**, blending its legacy in retail and MSME lending with cutting-edge fintech innovation. Emerald operates through a dual business model: 1. As a **direct lender** via its own NBFC, focusing on medium-ticket business loans and Earned Wage Access (EWA). 2. As a **loan syndication and origination platform** through its wholly-owned subsidiary, **Eclat Net Advisors Private Limited**, which partners with over 40 banks and NBFCs to source and distribute financial products. The company emphasizes a **technology-driven, asset-light, and low-risk operating model**, enabling high-margin potential and scalable growth in India’s rapidly expanding fintech and financial inclusion landscape. --- ### **Core Business Segments & Offerings** Emerald Finance offers a diverse portfolio of financial products tailored to individuals and businesses: - **Business Loans** (MSME and corporate) - **Personal Loans** - **Home Loans** - **Working Capital Loans** - **Education Loans** - **Invoice/Bill Discounting Services** - **Earned Wage Access (EWA)** – flagship digital product #### **Key Product: Earned Wage Access (EWA)** - Launched in **2023**, the **fully digital EWA platform** (branded as *Emerald EWA*) enables salaried employees to access a portion of their earned wages before payday. - Operates through **employer partnerships**, with repayments processed via **automatic salary deductions**, significantly reducing default risk. - Inspired by successful models in the **US and Europe**, the product addresses short-term liquidity needs affordably, offering a responsible alternative to high-cost credit like payday loans or credit card debt. - As of **May 2025**, the EWA product had onboarded **62 corporate clients**, growing to **145+ by October 2025**, with a strategic target of **250 corporates by March 2026** and **1,000 long-term**. - **EWA App** enables mobile-first access, allowing instant disbursement and enhancing user engagement and transaction frequency. --- ### **EWA Business Model & Risk Management** - **Revenue Model:** - Charges a **service fee of up to 30% per annum** on the advanced amount. - Processes transactions with fees ranging from **1.5% to 2%**, generating an **annual IRR of ~24%**. - EVAP (in-house EWA platform) achieves **2.5–3% monthly returns (36% annualized)** with **zero delinquency** over the past six months (as of Jun 2024). - **Risk Mitigation:** - Repayments are **automatically deducted via payroll**, ensuring high recovery rates. - Delinquency risk arises primarily if an employee **exits without serving notice** and the employer **does not process full and final settlements**. - The company targets only corporates with **strong HR systems** and robust exit processes. - Maintains a **zero-NPA record** (as of May 2025), supported by a disciplined credit underwriting framework and risk controls. - **Customer Acquisition & Expansion:** - EWA acts as a **gateway product** to build user credit history, enabling cross-selling of **personal loans, credit cards, and future salary-linked products**. - Over **10–15% employee adoption rate** in partner corporates, growing organically through word of mouth. - Targets **4,000 monthly transacting users** by FY26. - **Distribution & Onboarding:** - Scales through a **DSA-led model** and a network of **50+ agents** across India. - Leverages **HR tech partnerships and HRMS integrations**. - Onboards employers with up to **2,000 employees in under 30 minutes** via digital onboarding. --- ### **Strategic Initiatives & Growth Drivers** #### **1. Expansion of EWA and Digital Lending** - Strategic focus on **scaling the EWA platform** as a core growth engine. - Plans to launch **unsecured personal loans for EWA users**, repayable via salary deductions over 3–6 months, with stricter underwriting and higher pricing. - Development of future **salary-linked products**: gift vouchers, invoice discounting, micro-insurance. #### **2. Invoice/Bill Discounting for SMEs** - **Partnership with Baya PTE Limited (Singapore)** to deliver bill discounting services to SMEs supplying large corporates such as: - JSW Steel - Delhivery - PVR INOX - Reckitt & Coleman - Haldiram - Targets verified merchants on Baya’s platform with **6+ months of invoice settlement history**. - Focuses only on **high-credit-rated anchor buyers**, minimizing risk. - Operates under RBI-compliant structure with a **Small Loan Default Guarantee (SLDG)**. #### **3. Technology & Digital Transformation** - Developed **in-house EWA platform (EVAP)** after acquiring expertise following **Rainpay’s exit from India (Dec 2022)**. - Achieved **RBI regulatory clearance** after audits, affirming platform compliance and operational robustness. - Investing in **digital automation**, reducing manual processes and improving net margins. --- ### **Financial Performance (Latest as of FY24)** - **Total Consolidated Income**: ₹13.32 crore - **EBITDA**: ₹7.06 crore - **Profit After Tax (PAT)**: ₹4.14 crore - **Loan Book (Oct 2025)**: ~**INR 9,500 crores** - **EWA Contribution**: - ₹9+ crore in salary advances in FY25. - Disbursement goal: **₹2 crore/month (FY25)** → **₹15 crore/month (±10%) by Mar 2026**. --- ### **Funding & Capital Raising** - **May 2025**: Raised **₹10.2 crores** via **preferential allotment** of 7.6 lakh equity shares at ₹131/share. - Subscribers: Promoters, **Saint Capital Fund (Mauritius)**, and **Baya PTE Ltd** (through Indian subsidiary). - **Use of Proceeds**: - Expand EWA program - Scale operations - Enhance technology infrastructure - Strengthen financial offerings for inclusion --- ### **Operational Scale & Market Reach** - Operates in **200+ cities** across India - Serves **625,000+ customers** - Subsidiary **Eclat Net Advisors** facilitates loans for **40+ financial institutions**, including Kotak, Axis, ICICI, and HDFC Bank - Processes **₹40+ crore in salary advances** cumulatively (as of 2024) --- ### **Management & Strategic Vision** - Promoters bring **31+ years of financial services experience**, with deep expertise in credit risk and client relationships. - Focus on **organic, sustainable growth** with a digital-first approach. - Believes EWA is a **key driver of financial inclusion**, particularly in **urban and underserved markets**. - Positioned to become a **leading player in India’s Earned Wage Access and SME fintech space**.