1. 1 A P2P marketplace for Microcredit http://www.micrograam.com
2. Microfinance Microfinance is not what you believe What is microfinance? What is not microfinance? A working economic model: Social business or “Philanthropy” A powerful tool of financial inclusion and economic development A new market, with new clients One of the fastest growing economic sector in the world Not charity nor philanthropy Not giving but lending Not a magical tool to eradicate poverty Not an exclusive financial investment for rich people Not as risky as it may appear (average repayment rate of 97%)
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7. Micro-Loans Borrower Profiles Borrower Profiles Investor invests on borrower(s) based on auction process Field Partners post borrower profiles and distribute investments Field Partners collect repayments and manage delinquency Borrowers are subject to Field Partner’s due diligence and credit processes
8. Micro-Portfolios Portfolio Profiles Portfolio Profiles Investor invests on Portfolio of Borrowers belonging to one or more NGO or Industry Field Partners post portfolio of borrowers and distribute investments Field Partners collect repayments and manage delinquency Borrowers are subject to Field Partner’s due diligence and credit processes
9. Micro-Ventures Venture Profiles Venture Profiles Investor invests / pre-pays artisan group Investor gets return & goods at end of term (in a few months) Field Partners post portfolio of borrowers and distribute investments Field Partners collect repayments and manage delinquency Field Partners also help organize and execute on deliverables Artisan Venture Unit -- 3 Artisan Venture Unit -- 2 Artisan Venture Unit -- !
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12. Risk Comparison Best In Class Thematic (eg. environmental) Micro Credit SME Investment Universe Large caps Multi-sectors Small & Mid caps Sector specific NGOs or financial institutions Small & Medium Enterprises Nature of Underlying Asset Listed Listed Almost entirely non listed Non listed (Private Equity) Categories of Investors Institutional & Retail Mainly retail High net worth individuals, institutional, potentially retail Sophisticated High Net Worth Individuals Profitability Similar to Benchmark Higher than Benchmark Small profitability High Profitability Volatility Limited by construction High Low (<1%) N/A Social & environmental contributions Medium High Very high High Risks Low Medium Low by experience High by perception and sector characteristic Very high
