### **Overview** CARE Ratings Limited, operating under the rebranded umbrella name **CareEdge Group**, is India’s second-largest credit rating agency, established in 1993. With over three decades of experience, the company has evolved from a traditional credit ratings provider into a **comprehensive knowledge-based analytical and fintech group**. It now spans **credit ratings, analytics, advisory, ESG solutions, and global sovereign risk assessments**, supported by a diversified network of domestic and international subsidiaries. The group has successfully transitioned into a tech-driven, vertically focused financial intelligence platform, reinforcing leadership not just in India but also in Africa, Nepal, and select Middle Eastern and African markets. The rebranding from "CARE Group" to **CareEdge** in 2024 reflects a strategic shift to position the company as an “analytical supermarket” and a trusted **knowledge purveyor** for investors, financial institutions, corporates, and regulators. --- ### **Business Segments & Subsidiaries** The CareEdge Group operates through an integrated structure of **six key subsidiaries**, each specializing in distinct financial services domains: | Subsidiary | Core Focus | |-----------|-----------| | **CARE Ratings Limited** | Domestic credit ratings across BFSI, infrastructure, manufacturing, SMEs, structured finance, REITs/InvITs, and public sector enterprises. | | **CareEdge Global IFSC Ltd.** | Sovereign and Global Scale Ratings (GSRs), headquartered in GIFT City under IFSCA license. Launched FY25 as India’s first credit rating agency in the global sovereign ratings space. | | **CARE Analytics & Advisory Private Limited** | AI-driven risk intelligence and consulting; operates as a fintech entity through its Gen-AI platform **EdgeAvira.ai**. Formed in Oct 2023 via merger of CARE ESG Ratings Ltd. and CARE Risk Solutions Pvt. Ltd. | | **CARE ESG Ratings Ltd.** | SEBI-registered ESG ratings provider; began issuing formal ESG ratings in FY25. | | **CARE Ratings (Africa) Pvt. Ltd.** | Provides credit ratings and analytical services in **Mauritius, Kenya, and South Africa**. Holds a Kenyan license and is awaiting regulatory approval in South Africa. | | **CARE Ratings Nepal Limited (CRNL)** | Licensed by Nepal’s SEBON; holds leading market share in initial and surveillance ratings in Nepal’s financial sector. | --- ### **Strategic Developments (FY25 – Jun 2025)** #### **1. Group Restructuring & Diversification** - **Shift to Vertical-Based Structure**: In FY25, the company transitioned from a geographically segmented model to a **sector-focused (verticalized) business development model**, enhancing domain expertise and client engagement across BFSI, infrastructure, manufacturing, and new sectors including private credit, AIFs, and industrial automation. - **Revenue Diversification**: Non-ratings businesses now contribute **10.5% of total revenue** (FY25), with strong topline growth and movement toward breakeven. - **Core Ratings Resilience**: Despite muted private investment in FY25, the core ratings business maintained stability, backed by strong corporate balance sheets and government-led infrastructure spending. #### **2. Global Expansion & Sovereign Ratings** - Launched **CareEdge Global IFSC Ltd.** in GIFT City, becoming **India’s first domestic agency authorized to issue Sovereign and Global Scale Ratings (GSRs)**. - Completed **sovereign ratings for 39 countries** and rated international bond issuances worth **USD 2 billion**. - Secured **regulatory approval from South Africa’s FSCA** to operate as a domestic credit rating agency for sovereign and currency ratings. - Expanded presence in **Africa** (Mauritius, South Africa, Kenya, potential SADC countries) and **Nepal**. CARE Africa reported a **48% YoY revenue growth** in FY25. #### **3. Fintech & AI Innovation** - **EdgeAvira.ai**, the Gen-AI powered risk intelligence platform under **CareEdge Analytics**, has been deployed in **over 100 financial institutions** across India, Sri Lanka, Bhutan, and is expanding into the **Middle East and Africa**. - Launched **SIRIUS**, India’s first on-demand, tech-enabled data platform integrating **company, industry, and ESG insights** with coverage of over **1,100 listed Indian companies**. - Developed in-house **ML/NLP tools** for automated extraction of financial data from corporate filings, improving data accuracy and reducing turnaround time. - Building a **next-generation AI-enabled credit rating platform** (cloud-native, AI/ML-based) using secure, agile development—currently in phased rollout. #### **4. ESG & Advisory Growth** - Received **SEBI registration** as an **ESG Ratings Provider (ERP)** in FY25; issued first formal ESG ratings. - ESG arm is active in both domestic and international markets, including green finance, Second-Party Opinions (SPOs), and ESG grading for AIFs, MFIs, and NGOs. - **CareEdge Advisory** offers sectoral research, strategic consulting, valuations, risk advisory, peer benchmarking, and techno-economic studies. - Growing client base includes **fund houses, PSUs, banks, municipal corporations, ADB, and World Bank**. #### **5. Securitization & Capital Markets Leadership** - Grew **securitization market volume by over 55% YoY** in FY25, building on a strong legacy in PTC and Direct Assignment structures. - Appointed by **SEBI as the monitoring agency for proceeds from equity issuances**, establishing **leadership in capital markets compliance and reporting**. - Increased market share in both public and private debt issuances. --- ### **Key Financial & Operational Highlights** - **Active Ratings**: Over **4,500 companies** rated as of Mar 2023. - **Total Debt Rated**: Cumulative of **₹180 lakh crores (USD 15.1 trillion)** since inception. - **Nepal Subsidiary (CRNL)**: Achieved **26% revenue growth** and **15% profitability increase** in FY25 amid macroeconomic challenges. - **Africa Subsidiary (CRAF)**: 48% revenue growth in FY25. - **International Footprint**: Profitable operations in **Mauritius, Nepal, and expanding in SADC and Middle East**. - **Technology Recognition**: CareEdge Analytics ranked among **Chartis Research’s RiskTech100** for three consecutive years. --- ### **Transformation Strategy: The Four Pillars** The group’s transformation is driven by a **four-pillar framework**: 1. **Group Approach**: Enhanced synergy across subsidiaries through a unified brand and operational integration. 2. **Technology**: Investment in AI, cloud-native platforms (EdgeAvira.ai, SIRIUS), automation, and next-gen rating systems. 3. **Talent**: Leadership restructuring and hiring of domain specialists in tech, ESG, and analytics. 4. **Branding**: Rebranded as **CareEdge** to reflect modern, diversified identity; strengthened visibility through media, webinars, and thought leadership.