Bkash is the revolutionary Mobile financial services provider in Bangladesh. We have shared the future growth prospect of the MFS industry in Bangladesh and an optimistic take on Bkash valuation .

1. BKASH KOREN

2. STORY OF RAHIMA

3. STORY OF MILLIONS

4. 30
MILLION
PEOPLE
TO BE EXACT…

5. PRESENTING BKASH
…VALUATION ESTIMATED AT $1,052 MM

6. Bkash AT A GLANCE
MFS-MOBILE
FINANCIAL SERVICE
SUBSIDIARY OF
BRAC
JOINT VENTURE OF
BRAC AND MONEY IN
MOTION

7. MACRO ECONOMY
Poverty
headcount
ratio at
National
Poverty Lines
20
%
40
%
60
%
80
%
100
%
Access
to
Electric
ity
Accounts at
formal
financial
institution
21
%
88
%
35
%
% %
Rural Urban
43
% 38
%
46
%
• MFS
CONTRIBUTION IN
THE TOTAL GDP
SHARE 7.8%
• EMPLOYMENT IN
THE MFS SECTOR
8,00000+

8. REVENUE MODEL
CASH OUT THROUGH
AGENT
OPERATING REVENUE
P2P
CASH OUT THROUGH
ATM
MERCHANTS-COLLECTION
MERCHANTS-
DISBURSEMENT
REMITTANCE
COMMISSION ON AIRTIME
PURCHSE

9. NON OPERATING REVENUE
FLOAT MONEY
INVESTMENT
NON REFUNDABLE
FUND
GRANTS

10. COST OF SERVICE
AGENT
COMMISSION ON
CASH IN
AGENT
COMMISSION ON
CASH OUT
DISTRIBUTOR
COMMISSION ON
CASH IN
DISTRIBUTOR
COMMISSION ON
CASH OUT
MOBILE NETWORK
OPERATORS
SERVICE CHARGE
ATM CASH
OUT
CHARGES
REMITTANCE
SERVICE COST

11. INVESTMENT THEME

12. BANK PENETRATION
VS
SIM PENETRATION

13. BANK PENETRATION
POPULATION HAVING
ACCESS TO FORMAL
BANKING-LESS THAN
15%
FINANCIAL
BARRIER
MAINSTREAM
BANKING SYSTEM
DON’T REACH OUT
TO 70% OF
THE POPULATION
ACCESS TO A BANK
BRANCH WITHIN 1
KM - 41%
ROUNDTRIP COST- MORE
THAN BDT 10
61%
ROUNDTRIP TIME- 30 MINUTES
32%

14. SIM PENETRATION
ROUNDTRIP COST- FREE
62%
ROUNDTRIP TIME- 30 MINUTES
87%
ACESS TO
SIM- MORE
THAN 90%
ACCESS TO
MFS AGENT
WITHIN 1 KM-
75%
ACCESS TO
INTERNET-
94.1%URBAN
HOUSEHOLD
85.2%RURAL
HOUSEHOLD
100%
INTERNET
PENETRATION
BY 2021

15. MARKET LEADER

16. MARKET SHARE BY SUBSCRIBERS AS
OF FEBRUARY 2015
1%
16.6%
2%
BKASH(80%)
80%
ROCKET(16.6%)
0.4%
UCASH(2%)
MYCASH(1%) OTHERS (1%)
HIGHEST
MARKET
SHARE OF
80%
FIRST MOVER
ADVANTAGE

17. Provider
Number of
agents Bank branches ATMs
bKash 7,87,000+ 176 500+
ROCKET 2.00,000+ 182 3,000+
mCash 1,OOOOO+ 310 470
MyCash 1,20,000+ 120 730
UCash 1,50,000+ 176 115
IFIC Mobile Banking 1,10,000+ 140 765
Trust Bank Mobile Money 30,000+ 170 170
STRONG DISTRIBUTION

18. POPULATION OF BANGLADESH

19. 28
66
6
0 10 20 30 40 50 60 70
0-14
15-64
64 above
Population segmentation by Age
0-14 15-64 64 above
TARGET SEGMENT

20. UPPER CLASS
LOWER CLASS
INCREASING THE MARKETING
PENETRATION BY BOTTOM UP APPROACH
HIGH TECHNOLOGY CONVERSION RATE

21. PARTNERSHIP WITH ANT FINANCIAL SERVICES GROUP

22. TECHNOLOGICAL
FUSION
HIGHER SECURITY
FOR USERS.
HIGHER TIER
INCOME SEGEMENT
PENETRATION.

23. RIGHT SET OF SPONSORS

24. BRAC BANK
ANT FINANCIALS
BILL & MELINDA
GATES FOUNDATION
IFC
MONEY IN MOTION

25. REGULATORY FRAMEWORK AND BLESSINGS

26. BANK BASED
MODEL AS
OPPOSED TO
TELCO
BASED
MODEL.
MFS
INDUSTRY
REGULATED
BY THE
CENTRAL
BANK.
MFS
PROVIDERS
ARE FREE TO
PRICE THEIR
SERVICE IN
THE
COMPETITIVE
MARKETS
BANGLADESH
BANK SETS THE
TRANSACTION
LIMIT AND
OVERALL CAP
FOR P2P
TRANSFERS.

27. FUTURE PROSPECTS

28. SME
RESTAURANTS
AND
SHOPPING
STORES
TUITION
FEES
UTILITIES
RIDE
SHARING
APPS
FIN TECH DIAGNOSTIC
CENTRES

29. COMPARISON WITH PEERS

30. DOMESTIC-
• ROCKET
• mCASH
• UCASH
• OK BANKING
• HELLO
INTERNATIONAL-
• M-PESA
• WECHAT
• GOOGLE PAY
• PAYPAL

31. PEER COMPARISON
Mobile
Financial
Services
bKash
DBBL
Mobile
Banking
Hello
IFIC Mobile
Banking
mCash MYCash OK
Banking
Trust Bank
Mobile Money
UCash
Account
opening
Free Free - Free Free Free Free Free Free
Cash-in at an
agent
Free 0.9% or BDT 5
(whichever is
higher)
1% 0.80% or BDT
3 (whichever is
higher)
Free Free 1%or BDT 5
(whichever is
higher)
0.5% or BDT
5 (whichever
is higher)
Free
Cash-in at
bank
branch
N/A BDT 10 - 0.80% or BDT
3 (whichever is
higher)
Free N/A N/A Free N/A
Cash-out from
an agent
1.85% 0.9% or BDT 5
(whichever is
higher)
1% 0.8% or BDT 3
(whichever is
higher)
1.80% General:
1.85%;
Salary: 0.925%
1%or BDT 5
(whichever is
higher)
1%or BDT 5
(whichever is
higher)
1%
Cash-out from
ATMs
2%
(minimum with-
drawal amount:
BDT 2000
Free - Free General: 1.00% or
BDT 5 (whichever
is higher);
Salary: Free
General: 2.00%;
Salary: Free
- N/A N/A
Cash-out from
bank
branches
N/A BDT 10 - 0.8% of BDT 3
(whichever is
higher)
General: 1.80% or
BDT 5 (whichever is
higher); Salary:
0.30% orBDT 5
(whichever is
higher)
0.925% - Free N/A
P2P transfer BDT 5 BDT 5 BDT 5 BDT 3 BDT 4 BDT 5 BDT 5 BDT 5 BDT 5

32. Interest on
savings
1.50%-4.00%
(depending on
minimum daily
balance)
N/A - N/A 3.5%
(referred to as
interest)
N/A N/A 6% 4%
Bill and
merchant
payments
(cost to
customer)
Free Free - Free Free Free - Free Free
Merchant
Payment (cost
to merchant)
1.30%-1.80% 1% - - 1.5% 1.5% - BDT 0
– 10 per
transaction
1%- 2%
B2P
disbursement
0.5%**
(negotiable)
Free BDT 5 or
negotiated
percentage
(whichever is
higher)
0.8% or BDT 3
(whichever is
higher)
Free Free - - Free
Collection
settlement fee
1.5%
(negotiable)
1%or BDT 5
(whichever is
higher)
- 0.8% 1.3%
(negotiable)
0.25%
(negotiable)
- 0.5% 1%- 2%
(negotiable)
Minimum
balance
requirement
N/A BDT 20 - N/A BDT 20 N/A - N/A N/A

33. COMPETITIVE ADVANTAGE
• MFS VS BANKS
• THREAT OF NEW ENTRANTS:LOW
• THREAT TO SUBSTITUTES:
MEDIUM TO HIGH
• BARGAINING POWER OF SELLERS.

34. WHY IS CASH A PROBLEM?

35. • SECURITY
• ‘CHANGES’ IN TRANSACTION
• EXAMPLES- GOOGLE PAY, PAYPAL, WECHAT
PROBLEMS WITH CASH

36. RISKS AND CHALLENGES
• REGULATORY RISK
• COMPETITION
• FRAUD CASES

37. MITIGATIONS
• AGILITY OF THE COMPANY IS HIGH
• PENETRATING HIGHER TIER INCOME ESTABLISHING TIES
WITH ANT FINANCIALS
• ASCERTAINING HIGHER SECURITY PROTOCOLS TO REDUCE
FRAUD CASES

38. C
FINANCIALS

39. VALUATION
VALUATION FOR BKASH STANDS AT $1,052 MM OR BDT
88,402 MM

40. REVENUE PROJECTIONS
381.613233
3171.645151
5731.505706
8586.537349
12088.67811
14258.34356
17386.48423
20822.84796
24781.18521
28347.16485
-148.165604
-375.433175
188.538532
237.561722
335.152471
487.817716
512.3536782
1012.273052
1679.205559
2185.342702
-123.301534
-495.126566
74.761558
201.303691
72.019165
539.581419
1033.795627
628.5370992
1670.222039
1575.50201
255.608875
979.201985
2019.250346
2256.812068
2591.964539
3079.782255
8234.420537
9246.693589
10925.89915
13111.24185
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Sales Net Income FCFF SE

41. NET INCOME PROJECTION

42. EQUITY PROJECTION
0
5000
10000
15000
20000
25000
30000
35000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
SALES AND SHAREHOLDERS'
EQUITY
Sales SE

43. FREE CASH FLOW PROJECTION
-1000
-500
0
500
1000
1500
2000
2500
3000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

44. THANK YOU