### **Overview** Inditrade Capital Ltd (BSE: 532745), originally incorporated as JRG Securities Limited in 1994, transitioned under new management in 2015 following its acquisition from Barings Private Equity. Since then, the company has evolved into a digitally-driven, diversified non-banking financial company (NBFC) focused on **"Impact Lending"**—providing financial inclusion to underserved and marginalized segments across India. The company operates through a **phygital (physical + digital) model**, combining field presence with proprietary technology platforms to deliver accessible, scalable, and responsible financial services. Its strategic mission is *“Let’s Progress”*, reflecting a collaborative journey toward economic empowerment. --- ### **Core Business Segments & Key Initiatives** #### **1. Microfinance (Dominant Segment)** - **Portfolio Share:** 78% of total portfolio as of Feb 2024 (INR 745.56 crore total, including INR 468.85 crore managed). - **Model:** Joint Liability Group (JLG) lending, primarily targeting women for income-generating activities. - **Average Loan Size:** INR 30,000. - **Geographic Reach:** Operates in **9 states** through **158+ branches**, serving approximately **181,000 active borrowers**. - **Performance:** Cumulative disbursements of **INR 1,906 crore** since inception (April 2017); collection efficiency consistently above **98%**. - **Strategic Milestone:** In November 2022, announced the merger of **Inditrade Microfinance Limited (IMFL)** with **Janakalyan Microfinance** on a share-swap basis. The merger—effective July 1, 2022 and completed with regulatory approvals—is transformative, adding strong footprints in **Bihar (34%) and West Bengal (56%)**, where Inditrade previously had minimal presence. - Post-merger, IMFL operates across **13 states and UTs** with a balanced portfolio: West Bengal (18.5%), Kerala (15.6%), Bihar (14.9%), Tamil Nadu (14.6%), Karnataka (11.7%). #### **2. Agri-Commodity Finance** - **Focus:** Short-term (1–6 months) secured financing against **non-essential, exchange-traded commodities** (e.g., soya, pepper, cardamom, rubber). - **Key Features:** - Up to **95% funding against commodity value** (vs. 70–80% by banks). - Faster disbursement and competitive interest rates. - Collateral held in **recognized warehouses**, with loans issued against electronic/physical receipts. - Mandatory hedging in futures markets aligned with loan tenures to mitigate price risk. - **Operations:** Major presence in **Southern and Central India**, active in key agricultural mandis; serves traders, processors, and buyers nationally. - **Growth:** Launched in 2016; **cumulative disbursements exceed INR 1,180 crore**. - **Technology Edge:** Fully digitalized e-auction platform powered by globally customized software; launched mobile app for real-time bidding. Recognized with *Finnoviti Award 2019* for innovation. #### **3. MSME Finance** - **Loan Size:** INR 5 lakh to INR 30 lakh (up to INR 50 lakh in some cases), tenures of 12–36 months. - **Target Clients:** Small proprietorships, partnerships across wholesale, retail, services, pharma, FMCG, and e-commerce. - **Product Offerings:** - **InCash**: Collateral-free digital loans disbursed within **72 hours** via alternative underwriting (GST, PoS, e-commerce data). - Merchant Cash Advance (INR 5–50 lakh), repayable via ACH/POS. - **Repayment Models:** Daily, weekly, fortnightly, or monthly. - **Operations:** Active in Tier I and Tier II cities across **6–7 Indian states** (including Mumbai, Pune, Bengaluru, Hyderabad, Delhi). - **Scale:** Approximately **487–652 active borrowers**, cumulative disbursements of **over INR 450 crore** since 2018. - **Team:** Managed by 30–40 professionals with specialized industry expertise. #### **4. Digital & Technology-Led Platforms (Scalerator and Boonbox)** ##### **a) Scalerator (Launched August 2020)** - **Model:** Digital financial distribution platform connecting underserved customers with business, personal, gold, and healthcare loans from **multiple lenders**, including Inditrade. - **Presence:** Strong **Southern India footprint** (Tamil Nadu, Karnataka, Andhra Pradesh, Telangana), operating in **306 towns and 400+ planned locations**. - **Scale:** Disbursed over **INR 215 crore via 1,057 retail partners**, served 3,250+ customers (as of Jul 2022); now profitable (PBT ~INR 73 lakhs reported in Feb 2022). - **Differentiator:** Uses **big data, analytics, and customer segmentation** to co-create products and provide GTM strategies for financial institutions. - **Structure:** Acquired from **Sistema Scalerator India** in Aug 2020; operates as an asset-light, partnership-driven model. ##### **b) Boonbox (Launched November 2020)** - **Model:** **Rural assisted e-commerce platform** delivering consumer durables (mobiles, appliances, TVs, FMCG) to **300,000 villages across 16 states**. - **Target Market:** Aspirational rural households with annual incomes **below INR 1 lakh** (~120 million household TAP). - **Key Services:** - End-to-end delivery, installation, and first-level customer support. - Innovative third-party financing solutions facilitated via NBFCs, banks, and MFIs. - Zero-inventory model (back-to-back supplier fulfillment). - **Partnerships:** Collaborates with brands (Samsung, LG, Whirlpool) and rural networks (MFIs, NGOs, banking correspondents). - **GMV:** INR 78.42 crore generated (Jul 2022); monthly breakeven achieved by Mar 2021. - **Social Impact:** Addresses **last-mile access and affordability**, enhancing rural consumption aspirations. --- ### **Insurance Broking Business** - **Focus:** Corporate and group insurance distribution (life, health, general insurance). - **Operations:** Key hubs in **Kochi, Delhi, and Bengaluru**, with plans to expand to multiple locations in North and South India. - **Key Metrics (FY22–23):** - Over **5,000 policies issued**. - Covered **205,000+ lives** under group schemes. - Generated **INR 39.05 crore in premiums**. - Serviced over **4,700 claims**. - **Synergy:** Serves as a **strategic risk mitigation tool**—mandatory life and health insurance for micro and MSME borrowers enhances credit discipline and reduces loan loss. --- ### **Subsidiaries & Group Structure** Inditrade operates through a diversified network of subsidiaries and associates: - **Inditrade Microfinance Limited** (core microfinance operations). - **Inditrade Fincorp Limited** (MSME and micro lending). - **Inditrade Scalerator Limited** (digital distribution). - **Inditrade Rural Marketing Limited** (operates as **Boonbox**). - **Inditrade Business Consultants Limited**, **Inditrade Technologies Limited**. - **Inditrade Insurance Broking Private Limited** (associate company; key role in cross-selling insurance with loans). --- ### **Funding & Lending Strategy** - **Total Portfolio (Feb 2024):** **INR 745.56 crore** (63% managed, 37% owned), indicating capital-efficient growth. - **Funding Mix:** Historically reliant on NBFCs (85% of cost of funds), but actively shifting toward **lower-cost bank funding** (eligible since 3-year track record and BBB+ rating). - **Interest Rates:** Declining—current agri lending at **7.7–8.5%**, MSME below **10%**. - **Securitization Activity:** Completed multiple DA/PTC transactions with banks (ICICI, Kotak, IDFC) and NBFCs (Poonawalla, MAS, Belstar). --- ### **Technology & Innovation** - **Digital Core:** In-house IT team of ~25 members (IIT-trained engineers) customizing and developing proprietary platforms. - **Lending Tech:** - **Robocash** adapted and enhanced for Indian market. - Algorithmic credit assessment using **GST, UPI, e-commerce, PoS, and social data**. - Five-tier digital filtering system with alternate credit and social scoring. - **E-Auction Platform:** Patent-like digital solution for agri-commodity auctions; enables just-in-time funding and price discovery. --- ### **ESG & CSR Initiatives** - **Inditrade Community Foundation:** Engaged in education initiatives for underprivileged children and disaster relief. - **Note:** CSR activities are acknowledged but do **not qualify as business differentiators** under ESG exception criteria.