### **Overview** SG Finserve Limited (SGFL), formerly known as Moongipa Securities Limited, is a **RBI-registered, technology-driven Non-Banking Financial Company (NBFC)** headquartered in Delhi-NCR. Since its strategic rebranding in 2022, the company has focused exclusively on **end-to-end supply chain financing** for MSMEs, corporates, and channel partners across India. SGFL operates as a **one-stop, digital-first platform** enabling working capital optimization for dealers, distributors, vendors, retailers, and logistics partners of large corporate “anchor” clients. Listed on the **BSE**, SGFL combines deep industry expertise with **AI-powered digital lending infrastructure**, robust risk controls, and a pan-India field presence to deliver fast, collateral-free financing solutions. The company's scalable business model, anchored in strategic partnerships with leading Indian conglomerates, supports its vision to become India’s preferred supply chain finance partner. --- ### **Leadership & Expertise** - **Mr. Lalit Gupta**, a seasoned banking and financial services leader with **over 27 years of experience**, leads the company as a senior executive. - Former leadership roles at **Axis Bank, Barclays, HDFC Bank, and SBI**. - Instrumental in scaling **one of India’s top two supply chain finance portfolios at Axis Bank**, and building **Barclays’ corporate and investment banking presence in North and East India**. - Previously led growth at **Vayana Network** across India, the US, and Singapore, establishing sales teams and bank/NBFC partnerships. - Brings deep domain expertise in **corporate banking, trade finance, and supply chain financing**, driving SGFL’s strategic expansion and anchor-led growth model. --- ### **Business Model & Strategic Focus** SGFL operates on a **unique, anchor-first supply chain financing model**: - Partners with large corporate anchors (e.g., Tata Group, Adani Group, Vedanta, Oppo, Ashok Leyland, JSW, APL Apollo) to access their **dealer, distributor, vendor, and transporter networks**. - Provides **non-collateral, end-use-backed working capital loans** (typically 11–14% p.a.) with quick disbursements (within 15–30 minutes) via a fully digital platform. - Financing is **disbursed directly to the anchor corporate**, ensuring strict control over fund usage and reducing credit risk. - Serves as a **fifth lender option** for MSMEs, competing effectively against banks and larger NBFCs through speed, convenience, and deep supply chain integration. #### **Core Value Proposition:** - Enables **MSMEs** to access formal credit (only 10–14% currently do), bridging a **$530 billion working capital gap**. - Helps **corporate anchors** reduce debtor days, improve cash cycles, and strengthen supply chain resilience. - Offers **fully digital onboarding, loan origination, and monitoring**, eliminating physical branch dependency. --- ### **Technology & Innovation** SGFL’s competitive edge is anchored in **cutting-edge technology and automation**: - **Proprietary Loan Origination System (LOS) and Loan Management System (LMS)** integrated with: - **GST and Income Tax portals** – for real-time borrower assessment. - **Anchor ERP systems (e.g., SAP)** – enabling automated invoice capture and disbursement. - **Partner banks (HDFC, Axis, ICICI, Yes Bank)** – for instant collections and disbursements. - **AI-powered tools**: - **LIVE Scoring Engine**: Anchor-specific credit rating model for real-time borrower assessment. - **AI-based GST Monitoring Tool**: Launched Q3 FY26 (Sep 2025) to detect early risk signals via transaction and GST data. - **Digital onboarding** completed in **~48 hours**, including e-KYC and paperless documentation. - Plans for **24/7 banking operations**, allowing disbursements and collections at any time. --- ### **Growth & Financial Performance** SGFL has demonstrated **strong growth** and profitability since launch: | Metric | Data | |--------|------| | **Loan Book (AUM)** | ₹2,878 crore (as of Q2 FY2026) | | **Growth (CAGR)** | ~52% (from ₹975 crore in FY23) | | **Q1 FY2026** | ₹2,504 crore (+28% H1 growth) | | **Q2 FY2026** | ₹2,878 crore (15% sequential growth) | | **AUM Target** | ₹4,000 crore by FY26; ₹6,000 crore by FY27 | | **FY25 AUM Growth** | 39% YoY (₹2,326 crore), with 48% surge in Q3–Q4 | | **Q4 FY25 Income** | ₹56.7 crore (33% QoQ growth) | | **PAT (Q1 FY25)** | ₹23.69 crore (68% YoY increase) | | **Cumulative Disbursements (since Oct 2022)** | Over ₹30,000 crore | | **Return Metrics (FY25)** | RoA: 5.36%, RoE: 8.82% | | **Target RoA/ROE (FY27)** | >4% ROA; 18–20% ROE | --- ### **Key Partnerships & Anchors** SGFL has established a robust anchor network, critical to its growth strategy: - **45+ corporate anchor partners**, including: - **Tata Group, Adani Group, Vedanta, Ashok Leyland, Oppo, JSW, APL Apollo, Jindal Steel, Kajaria, Bajaj Electricals, ArcelorMittal, AMNS, Polycab, Whirlpool, Dorset, Nivea, Havel.** - **Total MOUs with Anchors**: **₹6,550 crore** (as of Oct 2025), up from ₹6,400 crore in Jul 2025. - **New anchor added in Q1 FY2026**: **Somany**. - Anchors provide lead flow, operational data integration, and **stop-supply control** in case of default. --- ### **Operational Strengths** - **Pan-India presence** across **14 states**, with regional hubs in **Mumbai, Delhi-NCR, Kolkata, Bengaluru, and Chennai**. - **61-member team** of Relationship Managers (RMs) with local market knowledge. - **Expansion plans**: Double physical footprint by FY26; evaluating entry into **Tier II towns**. - **Shift to localized operating model** – each employee focuses on smaller geographies to deepen relationships and risk oversight. --- ### **Risk Management & Asset Quality** SGFL maintains **best-in-class asset quality**: - **Zero Gross NPAs** since inception. - **>80% of loan book secured** against inventory and receivables. - **Stop-Supply Arrangements** with anchor clients to immediately halt goods supply in case of default. - **ERP/SAP integration** provides real-time transaction monitoring. - **Credit Ratings**: - **CRISIL AA (CE) / ICRA AA** for long-term debt - **CRISIL A1+ / ICRA A1+** for short-term instruments - Reflects strong capitalization, risk discipline, and repayment track record. --- ### **Capital Structure & Funding** - **Equity Base**: ₹1,015 crore (AA-rated), with **₹338 crore in convertible warrants** (total ₹1,353 crore). - **Bank Sanctioned Lines**: ₹1,465 crore from **14 bank partners**. - **Consolidated banking limits**: ~₹2,600 crore approved. - **Debt-to-Equity (FY23)**: 0.7x – strong, low-leverage balance sheet. - Plans to leverage **2.5x on net worth of ₹1,500 crore by FY27** to scale AUM. --- ### **Product Offerings** SGFL offers a **comprehensive suite of supply chain financing solutions**: - **Distributor & Dealer Finance**: Working capital loans for sales growth. - **Vendor Invoice Discounting**: Early payment against supplier invoices. - **Logistics & Transporter Financing**: Funding for freight and logistics partners. - **Purchase Order (PO) Backed Funding**: Disbursement within 15–30 minutes of PO generation. - **Program Lending**: Customized finance programs for anchor ecosystems. --- ### **Future Roadmap (FY26–FY27)** 1. **Scale AUM to ₹6,000 crore by FY27** through: - Deepening penetration in existing anchor networks. - Adding new tier-1 corporate anchors. 2. **Expand to Tier II towns** based on anchor demand. 3. **Extend to Tier 2 supply chain** – launching **retailer financing** for top-tier distributors (e.g., APL Apollo network). 4. **Launch 24/7 banking services** – real-time disbursements and collections anytime. 5. **Upgrade customer mobile app** with **iOS support and multilingual interface**. 6. **Enhance AI capabilities** for predictive risk monitoring and fraud detection. 7. **Maintain quality-led growth**, prioritizing **credit discipline over rapid expansion**. --- ### **Competitive Advantage** - **Niche Focus**: Only 100% dedicated NBFC in India focused on supply chain finance for corporate channel partners. - **Speed & Efficiency**: 15-minute disbursement via SAP integration vs. weeks for traditional lenders. - **Tech-Driven Risk Control**: AI, real-time GST monitoring, and stop-supply mechanisms. - **Proprietary Credit Models**: Anchor-specific scoring enhances accuracy and speed. - **Parent Group Legacy**: 35-year manufacturing footprint (Apollo Group) provides deep MSME understanding and trust — though SGFL operates independently with **no corporate guarantees**.