This document provides an investment memorandum for IGT Financial Services, a proposed social sector organization seeking equity investment. It outlines IGT's mission to improve quality of life for underprivileged communities. The organization will provide microfinance, microinsurance, and other services through a rural-focused NBFC-MFI model. Projections show the business growing to serve over 5 million customers within 5 years and generating annual revenue of over $90 million. The memorandum requests $2.3 million in seed funding and outlines plans for future funding rounds and exit opportunities.

1. IGT Financial Services (P) Limited
Impact | Growth | Transformation
Information Memorandum
Kolkata, 2016

2. Context
A group of young professionals seeking equity investment for setting up a new
age organization in the social sector. This presentation is prepared for the
prospective social oriented investors. The presentation will assist the prospective
investors to evaluate the investment opportunity. Investments will help the
promoters to translate their MISSION and VISION statements into reality.
“Creating a unique eco-system for improving the quality of
life in the underprivileged section of the society.”
“To be a preferred organization in terms of value creation
for all the stakeholders.”

3. Market/Business Opportunity
31%
64%
5%
Agriculture & Allied Activities Trading & Manufacturing Other Households
 Last year gross loan portfolio grew by 84%
and many MFIs were able to double their
portfolio
 Out of 25 Cr. (250 Mn.) households in India
MFIs able to reach 3.25Cr. (Mn.) households
 In terms of regions growth was 35% in
south, 25% in north & west and 15% in east
India
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
2.63 4.45
8.20
13.13
21.00
33.60
 At the end of next 3 years market size
would be $33.60 billion if the sector will
grow @ 60%
 Penetration level is still lower than 40% as
sector has reached only to 3.25Cr. (32.50
Mn.) households
 Portfolio mix shows that most of MFIs are
still urban and semi urban focused
Portfolio Growth
(In USD billion)
Portfolio Mix
Enormous opportunity lying in rural India , where 68% of our population is residing

4. SWOT Analysis
STRENGTH WEAKNESS
 Tested & reliable business model
 Strong support from lenders
 Scalable and growing industry
 Strong regulatory framework
 Low operating cost
 Social business
 High interest rate
 Unskilled field staff
 High attrition at field level
 Uninform penetration
 Lack of financial awareness
 Urban & semi urban focused
OPPORTUNITY THREAT
 Huge demand and supply gap
 Effective use of distribution network
 Availability of new age technology
 Favorable regulatory changes
 Treated as priority sector lending
 Govt.’s agenda for financial Inclusion
 New age banks
 Socio-political dependency
 Natural calamity
 Malpractices by others
 Regulatory changes
 Staff fraud
Rural presence, staff development & effective use of distribution network would be the key

5. Business Proposition
To grab the opportunity in rural India we will strive to create a unique eco-system
for delivering the following services under a single roof-
Micro Finance
Micro Insurance
Other
Setting up a rural focused NBFC-MFI for providing micro
loans. Also collect term deposit and savings on behalf of
banks.
Tie up with insurance company for micro
insurance which includes life as well as general
insurance
Using the distribution network for
facilitating education, health care support
and other income generation activities
Other non-financial assistance will be the segregator

6. Product/ Service Suite
FINANCIAL SUPPORT
MICRO INSURANCE
OTHER ASSISTANCE
• Micro-loans- INR 25K to 100K
with top up facility
• 2 years tenure with fortnightly
repayments
• Savings/Term Deposits
through BC arrangement
• Life and accidental insurance
bundle with micro loans
• Medical insurance with
monthly premium the bottom
• Running e-modules at branch
premises
• Connecting doctors through
internet
• Other income generation
activities
IGT will focus on simple yet innovative products at the BOP

7. Business Process
Financial Security
Term
Deposits
Savings
Micro
Loans
customer details will
be captured through
mobile application. On
the basis of date a
credit score card report
will be generated for
initial assessment.
Will be done by a
separate person. They
will physically visit
the household and
check the income
pattern as well as KYC
documents.
Verification report will
be submitted through
mobile application.
2 days group training
will be done by the
concerned field staff
for building
awareness about the
process, policies, and
also the terms &
conditions of loans.
During this period
phone verification as
well as formalities for
opening bank account
will be completed.
Customer will come to
the branch for loan
sanction.
A video will also be
shown to the customer
for building financial
awareness.
After verifying the
relevant information &
Credit Bureau report
loan will be sanctioned
by the branch
manager. After loan
sanction amount will
be disbursed through
bank accounts.
Customer
Registration
Household
Verification
Group
Training
Loan Sanction &
Disbursement
Repayment
Collection
# Business process for savings & term deposits will be developed according to the business process of our partner.
Repayment of loans
will be collected on
fortnightly basis from
the center.
Repayment as well as
attendance will be
authenticated through
biometric device.
Transactions will be
updated in the system
by swiping loan card
given to the customer.
Other monthly
payment like insurance
premium, savings &
term deposits will also
be collected with the
loan installment.
Effective use of technology and internal controls will ensure effective delivery of services

8. Proposed Area of Operations
The operational area will be LIS in eastern, north-eastern & central India managed from
Kolkata Corporate Office. The benefit for selecting the regions are mainly-
The areas of operation have high overlaps with top
underserved regions with regards to health care facilities
(Source: Ministry of Health & Family Welfare, GOI)
In terms of Educational Development Index (Upper Primary
Level) the ranking of all selected states are in double digits.
The need of financial Inclusion is higher in the selected states.
Further credit penetration is also lower compared to the other
regions.
The demand supply gap of the selected region makes it a perfect candidate for all the services
PortfolioMix
South India 35%
North India 25%
West India 25%
East India 15%

9. Technology Backbone
Core Banking Solution
Customer Enrollment
Middleware
Credit Bureau
Check
Household Verification
Reports
Biometric
Micro Loans
Savings
Term Deposit
Other Transactions
Biometric Attendance
RepaymentCollection
Phone Verification/ SMS
Acknowledgement
M
I
S
Use of cutting edge technology makes the organisation stand out from its peers

10. Business Architecture
INFRASTRUCTURE OFFER CUSTOMER
KEY PARTNER
 Banks/NBFCs
 Financial Institutions
 BC Partners
 Small MFIs
/NGOs/Sec.25
 Grant Agencies
 Industry Association
KEY RESOURCE
 Motivated Field
Staff
 Advanced IT
system at field level
 Innovative &
energetic
managementTeam
KEY ACTIVITIES
 Credit appraisal & Loan management
 Fund raising & Treasury Management
 Cash & Bank account management
 Building financial awareness
 Training & developmentof field staff
VALUE
PROPOSITION
 Micro credit
 Micro insurance
& Pension
 Savings/Term
deposits
 Other non-
financial services
CUSTOMERRELATIONSHIP
 Lower Installment & Fortnightly interaction
 Opening savings/term deposit account
 Small monthly premium for
insurance/pension
 Other non-financial services
DISTRIBUTION
CHANNEL
 MFI branch
situated in rural
areas
 Local and payment
banks
 Small Finance
Banks
CUSTOMER
SEGMENT
 Financially under
served household
 Household mainly
at the bottom of
pyramid
 Residing in rural
& semi-urban
areas
COST STRUCTURE REVENUE STREAMS
 Borrowing
 IT Infrastructure
 Employee
 Operating
 Interest Income
 Commission
 Interest on FDs
 Fee & other income
PROFIT MODEL

11. Key Differentiators
Competition would not be a major issue because of the huge market potential. However
considering long term approach we want to differentiate ourselves from others from day
one. Our differentiators are-
Inorganic Growth
Credit Appraisal
Simple Product
Partnering with other small MFIs and using their distribution
network is allowing us to grow at a faster rate and also facilitate
risk diversification.
On spot credit appraisal on the basis of credit score card,
5 levels check before loan disbursement, standardization
of field level communication by using audio visual.
2 years loan with fortnightly collection
reduces installment amount. Other non-
financial products will also differentiate
We would differentiate ourselves from day one as we want to be unique

12. People
People form the core of any successful business venture. The management team has almost 75 years of
professional experience amongst themselves in several domains like Field
operation, IT, Funding, Accounts, Risk management, Internal Audit and Marketing.
The IGT team is led by Mr. Amit Dutta.
Amit is a chartered accountant by profession and have been associated with the financial sector in
India for the last 14 years. He is also a MBA from Xavier Institute of Management, Bhubaneswar.
In his last assignment he headed the Accounts, Compliance and Funding verticals at Arohan, a
leading Micro-finance organization in India.
Amit is a veteran in Arohan and has had experience to manage 5-6 departments simultaneously.
He joined Arohan in 2008, as the head of Accounts, Finance and IT. Later the management felt the
necessity of quality control and due diligence, and as a result he was asked to set up a new
department called Internal Audit from scratch. In the meanwhile he also got an opportunity to set
up the Risk management vertical in association with IFC. He returned to finance as the CFO in
2014.
His core expertise includes fund raising, budgeting, financial modeling and designing key
processes and policies. He was also an integral part of the strategic decision making body at
Arohan. His key achievements include the setting up of 5 departments from scratch, raising more
than $ 150 Mn. debt, establishing relationship with 40 lenders, introducing a robust audit and risk
grading system and also implementing a robust core banking solution.
A very popular figure at Arohan, Amit has seen many of his subordinates graduate from being
new to responsible middle level managers.
IGT’s biggest strength is its team which is vastly experienced

13. Angel Investor/Advisor
Mr. Prabuddha Chaudhuri Mr. Somak Ghosh Mr. Rabin Das
Mr. Dharmesh TarvechaMr. Kanchan Dutta
The IGT team is proud to be backed by experienced professionals

14. Our Requirement
In 5 years of operation we strive to :
- Touch more than 5 million lives & have 5000 plus colleagues
- Create a portfolio more than INR 2000Cr/$ 300 million
- Generate revenue more than INR 575Cr/ $ 90 million
- Create opportunities for INR 200Cr/$ 30 million equity investment
To achieve above milestone initially we are seeking INR 15Cr./$
2.3 million equity investment out of which founder’s contribution
would be 10%.
The minimum ticket size for prospective investor would be -
- Angel Investor INR 25 lakh (USD 38000)
- Institutional Investor INR 150 lakh (USD 230,000)
An opportunity for social investors to earn return while ensuring smiles for the sections

15. Return on Investment
1st Round
2nd Round
3rd Round
Mezzanine
Strategic
Investors
Seed Early Expansion Late IPO
Growth
Financing Stage
Year 1 Year 3 Year 4 Year 5 Year 6-8Year 2 Year10
$ 2.3 Mn.
INR 20
(-21.6%)
$ 5.4 Mn.
BV x 1.75
12.9%
$ 9.2 Mn.
BV x 2.5
18.0%
$ 9.2 Mn.
BV x 3.75
27.8%
$30– 50 Mn.
BV x 5
30-35%
$ 4.6 Mn.
BV x 1.25
0.7%
4th Round
Capital Requirement
Price
ROE
IPO
Capital
Market
Exit Options
BV = Book Value
Growth Stage
Return would be maximum for early stage investor

16. Financial Projection – Balance Sheet
YEAR Year 1 Year 2 Year 3 Year 4 Year 5
Capital 2.31 7.69 13.08 22.31 31.54
Reserve & Surplus (0.45) (0.42) 0.69 3.48 10.93
Net Worth 1.86 7.27 13.77 25.79 42.47
Borrowing Outstanding 6.85 21.76 45.28 92.75 154.93
Current Liabilities 0.24 1.63 4.81 8.96 18.47
Total 8.94 30.66 63.85 127.51 215.88
Fixed Assets 0.47 0.69 0.96 1.26 1.42
Gross Loan Portfolio 7.89 35.32 82.22 170.15 316.67
Less: Managed Portfolio 0.81 6.14 19.45 50.83 113.84
Less: Securitized Portfolio - 4.10 12.33 15.98 33.58
Net Portfolio 7.08 25.08 50.44 103.33 169.26
Cash In Hand 0.41 1.33 2.56 4.88 8.40
Cash Collateral 0.80 2.95 9.04 16.47 33.19
Other Current Assets 0.17 0.60 0.85 1.56 3.61
Total 8.94 30.66 63.85 127.51 215.88
CRAR 24.0% 27.6% 26.3% 24.3% 24.4%
Qualifying Asset 91.7% 95.1% 96.5% 97.3% 97.1%
Debt Equity Ratio 3.69 2.99 3.29 3.60 3.65
Return on Equity -21.6% 0.7% 12.9% 18.0% 27.8%
SOURCE OF FUND
APPLICATION OF FUND
KEY RATIOS
Conversion Rate 1 $ = 65 INR
USD Million
Highly competitive ROE (22%) ensured by unique business model

17. Financial Projection – Profit & Loss Account
YEAR Year 1 Year 2 Year 3 Year 4 Year 5
Revenue from operation 0.49 4.28 11.42 22.93 43.57
Profit on Securitization - 0.25 1.04 1.92 2.90
Other Income 0.08 0.25 0.52 0.88 1.65
Total 0.57 4.78 12.99 25.72 48.11
Employee cost 0.51 1.82 4.09 8.00 13.14
Administrative cost 0.19 0.70 1.46 2.77 4.22
Financial cost 0.18 1.86 5.22 9.74 18.15
Provision & write offs 0.07 0.20 0.29 0.60 0.77
Depreciation 0.07 0.15 0.25 0.36 0.50
Total 1.02 4.73 11.30 21.47 36.79
PROFIT BEFORE TAX (0.45) 0.05 1.68 4.25 11.33
Income Tax - 0.02 0.58 1.46 3.88
PROFIT AFTER TAX (0.45) 0.03 1.11 2.80 7.45
Yield 25.6% 25.5% 25.8% 24.9% 24.2%
Financial Expenses 13.8% 16.0% 16.4% 15.7% 15.2%
Operating Income/Total Asset 12.8% 24.1% 27.5% 26.9% 28.0%
Operating Exp/Total Asset 22.9% 23.9% 23.9% 22.4% 21.4%
Net Margin -10.1% 0.2% 3.6% 4.5% 6.6%
Operating Self Sufficiency 56% 101% 115% 120% 131%
INCOME
EXPENSES
KEY RATIOS
USD Million
Conversion Rate 1 $ = 65 INR
Operating self sufficiency will improve over the period of operation
# Revenue from other non-financial services has not been considered

18. Financial Projection – Operation Highlights
YEAR Year 1 Year 2 Year 3 Year 4 Year 5
No. of Branches 30 66 132 276 420
No. of CSR 180 396 792 1,656 2,520
Live account 26,700 118,085 294,160 573,905 1,026,545
Live account/Branch 890 1,789 2,228 2,079 2,444
Live account/CSR 148 298 371 347 407
Account Disb. 26,700 97,600 196,560 377,345 649,200
Account Disb./Branch 890 1,479 1,489 1,367 1,546
Account Disb./CSR 148 246 248 228 258
Organization structure will be optimized from 3rd year onwards

19. Thank You!
You can reach us at:
igt.financialservices@gmail.com
Amit Dutta +91 9836353131