### **Company Overview** **Capri Global Capital Limited (CGCL)** is a **retail-focused, systemically important Non-Banking Financial Company (NBFC)**, listed on both the BSE and NSE, and a constituent of the **NIFTY Smallcap 250 Index**. The company specializes in extending **secured credit** to **underserved and underbanked populations**, particularly in **Tier 2, Tier 3, and rural markets** across India. As of September 30, 2025, it manages **over ₹27,000 crores in Assets Under Management (AUM)**, serving more than **590,000 customers** through a robust network of **over 1,200 branches** and a workforce of **12,000+ employees**. CGCL operates through a **hybrid “touch & technology” model**, combining a high-touch field presence with digital innovation to serve self-employed non-professionals (SENPs), MSMEs, first-time homebuyers, and low- and middle-income borrowers who are often overlooked by traditional banks. --- ### **Core Business Segments** Capri Global’s business is anchored across **four core secured lending verticals**, with an increasing emphasis on **fee-based income generation**: 1. **MSME Loans** - Focus: Financing small businesses like retail stores, workshops, and manufacturing units with informal income. - AUM (FY25): ₹52,789 million (~₹5,279 crores) - Portfolio Yield: 15.4% to 16.5% - Avg. Loan Size: ₹1.32–₹1.48 million - Loan-to-Value (LTV): ~51.7% - Serves >40,000 customers - Uses **Micro LAP (Loan Against Property)** for sub ₹10 lakh loans to first-time borrowers. 2. **Gold Loans** - Fastest-growing segment with **130.4% YoY AUM growth in FY25** - AUM (FY25): ₹80,422 million (~₹8,042 crores) - Portfolio Yield: 19.9% (highest-yielding segment) - Avg. Loan Size: ₹130,000 - LTV: 64.7% (within regulatory 75% cap) - 803+ exclusive branches in 10 states; ~10% in Tier 5/6 and rural areas. - Fully digital, paperless process with **under 30-minute disbursal**. - Operational Efficiency: AUM productivity of ₹100+ crore per branch. 3. **Construction Finance** - Target: Small and mid-sized real estate developers focused on **affordable housing**. - AUM (FY25): ₹41,329 million (~₹4,133 crores), showing **57.7% YoY growth**. - Avg. Ticket Size: ₹147 million - Portfolio Yield: 17.3% - Low Risk: GNPA of **0.2%**, NNPA of **0.1%** - Security: **1.5x+ asset cover**, escrow mechanisms, construction-linked disbursements. - Focus: Metro and Tier 1 cities including Ahmedabad, Bangalore, Hyderabad, Pune, NCR. - Specialized team of 75+ professionals across 5 key regions. 4. **Housing Loans (via wholly-owned subsidiary: Capri Global Housing Finance Ltd. – CGHFL)** - Focus: Middle- to lower-income **first-time homebuyers** in Tier 2/3 cities. - AUM (FY25): ₹52,019 million (~₹5,202 crores) - Disbursements (FY25): ₹19,501 million - Avg. Ticket Size: ₹2.0 million - LTV: 57.3%; Portfolio Yield: 12.7% - GNPA: 1.4%, NNPA: 0.9% - Fully digital, paperless system; supports home purchase, renovation, plot, and home equity. - Co-lending model: CGCL funds 20%, banks fund 80%. - Leverages PMAY 2.0 and focuses on financial inclusion. --- ### **Fee-Based & Asset-Light Businesses** CGCL has successfully diversified into **non-interest income streams**: - **Car Loan Distribution (via subsidiary Capri Loans Car Platforms Pvt. Ltd.)** - FY25 Originations: ₹105,519 million (~₹10,552 crores) for **100,743 vehicles** - Net Fee Income: ₹963 million - Pan-India presence in **814+ locations** across 31 states/UTs - Partnerships with HDB Financial Services, Mahindra Finance, and others. - Digital platform: **"Car Lelo"**, used for comparison, lead generation, and doorstep services. - **Insurance Distribution (Corporate Agency License from IRDAI)** - Partners with **18 insurers** (life, health, general) - FY25 Total Premiums: ₹1,289 million - Policies Issued: ~406,000 lives - Claims Serviced: 1,493 - Digital Platform: **"Bima Saral"** – enables online issuance in 5–10 minutes. - Cross-selling via lending customer base to grow **customer lifetime value**. --- ### **Business Model & Strategy** **1. Target Market** - Focuses on **"Aspiring segment"** with annual family income of ₹0.5–1 million. - Serves **97% self-employed non-professionals (SENPs)** in MSME and housing loans. - Strong presence in **Rajasthan (36.2% MSME AUM), Madhya Pradesh, and Gujarat**. **2. Technology & Digital Edge** - Full digital lifecycle: from **onboarding (Pragati Sales App, e-KYC)** to **disbursal, collections (CollectXpress), and customer engagement (Capri Loans App)**. - Proprietary systems: **Loan Origination System (LOS), Hawkeye data warehouse, AI/ML underwriting models**. - Real-time dashboards for delinquency monitoring and risk analytics. - Technology center in **Gurgaon** with 150+ engineers and data scientists. - Investments in **generative AI, Microsoft Clarity, and Oracle FLEXCUBE LMS** to enhance efficiency. **3. Distribution & Branch Network** - Operates **1,200+ branches** as of Sep 2025, added 176 in recent period. - **Hub-and-spoke model** enabling low-cost penetration in semi-urban and rural areas. - Expanding into **Tier 3/4 towns and rural areas** with DSAs, local agents, and business correspondents. - Gold loan and Micro LAP branches are key expansion drivers. **4. Diversified & De-risked Portfolio** - Over **80% retail-focused**, 100% secured lending. - No single product exceeds **35% of AUM**; no single state >25% exposure. - Granular strategy: small-ticket loans, diversified geographies, and customer segments. **5. Co-Lending & Risk Sharing** - Active co-lending partnerships with **11+ banks** (SBI, Bank of India, Union Bank, etc.). - AUM under co-lending: ~18.3% of total (Q2 FY25). - Retains 20–30% of loans; earns servicing fees and spreads. - Improves **capital efficiency, return on equity (ROE)**, and scalability. --- ### **Growth Trajectory & Financials (FY25)** | Metric | Value | |-------|-------| | **Consolidated AUM** | ₹27,000+ crores (Sep 2025) / ₹247,528.31 Mn (Jun 2025) | | **Customer Base** | 590,000+ | | **Branch Network** | 1,200+ | | **Employees** | 12,000+ | | **NIM (Net Interest Margin)** | ~8.9% | | **Portfolio Yield (Avg)** | ~16.0–17.0% | | **RoE Target (FY28)** | 16–18% | | **RoAA Target (FY28)** | 4.0–4.5% | | **AUM Target (FY28)** | ₹50,000 crores | *Note: FY26–FY28 growth expected from expansion in MSME, housing, gold loans, and scaling fee-based businesses.* --- ### **Risk Profile & Asset Quality** | Segment | GNPA | NNPA | |--------|------|------| | **MSME** | 3.9% | 2.0% | | **Gold Loan** | 0.8% | 0.7% | | **Housing Finance** | 1.4% | 0.9% | | **Construction Finance** | 0.2% | 0.1% | - Strong **risk governance** with multi-level credit approval, AI-based early warning systems, and in-house collections. - AI/ML used for **repayment behavior analysis, CIBIL triggers, and predictive NPA management**. --- ### **Recent Expansions & Initiatives** - **New Product Launches (Past 5 Years):** Gold Loans, Micro LAP, Car Loan Distribution, Insurance. - **Digital Platforms:** Car Lelo, Bima Saral, Capri Business Partner App, Hawkeye (data warehouse), AI bots for collections. - **Geographic Expansion:** Entered Southern India, increased penetration in Tier 3+ cities. - **Sustainability:** Launched **rooftop solar financing projects**; partnered with fintechs for last-mile distribution. - **Co-lending Scaling:** Targeting gold loan co-lending in FY25–26. - **Used Car Financing:** In pipeline to diversify vehicle lending.