Vakrangee Limited — Earnings Release 2023

Feb 3, 2023

Vakrangee Limited “Vakrangee Corporate House”, Plot No.93, Road No.16, M.I.D.C. Marol, Andheri (East), Mumbai - 400093. Maharashtra, W: www.vakrangee.in | L:+91 22 2850 3412/+91 22 6776 5100 F: +91 22 28502017 | CIN: L65990MH1990PLC056669``

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February 03, 2023

To,

Department of Corporate Relationship BSE Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai - 400001	Corporate Relationship Department National Stock Exchange of India Ltd. Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra(East),Mumbai - 400 051

Dear Sir/Madam,

Sub. : Press Release titled “ REVENUE INCREASES BY 20.16% ON YOY BASIS AND 7.12% ON QOQ BASIS”

Ref.: Scrip Code – 511431/VAKRANGEE

With reference to the captioned subject and pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith Press Release titled “REVENUE INCREASES BY 20.16% ON YOY BASIS AND 7.12% ON QOQ BASIS”.

Thanking you,

Yours faithfully,

For Vakrangee Limited

KHANDEKAR SACHIN TUKARAM Digitally signed by KHANDEKAR SACHIN TUKARAM DN: c=IN, st=Maharashtra, 2.5.4.20=9b8c16b6d2ea4521ca3fc63913c039dabc80651029f00c28ea4ca75e666ec3c2, postalCode=400069, street=3097A Shri Sai prasad sra chsl sai wadi n s, phadke road,andheri east, pseudonym=0ed49c8385f773630df2f59c1809287a, serialNumber=d0ee1a6f46e34aa2c42edac2de47e7873c65431b6bfe84a88768657f9458d264, o=Personal, cn=KHANDEKAR SACHIN TUKARAM Date: 2023.02.03 16:08:39 +05'30'

Sachin Khandekar Company Secretary (Mem. No.: A50577)

Encl.: A/a

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VAKRANGEE LIMITED

PRESS RELEASE VAKRANGEE Q3 FY2022-23 FINANCIAL RESULTS

REVENUE INCREASES BY 20.16% ON YOY BASIS AND 7.12% ON QOQ BASIS

• Appointed Master Franchisees in 113 Districts across 21 States across the Country. Master Franchisee to provide on-ground operational support to the existing franchisee outlets as well as drive new franchisee acquisition

• Quarterly Gross Transaction Value (GTV) crossed Rs. 130.68 Billion, increased by 4.12% on YoY basis

• Quarterly No. of Transactions crossed 32.91 Million

MUMBAI, February 3, 2023: Vakrangee Limited (VL), announced its unaudited Financial Results for the quarter ended December 31, 2022.

- KEY FINANCIAL HIGHLIGHTS FOR Q3 FY2022 23 (CONSOLIDATED)

• ➢ Revenue from Operations stood at ` 250.73 crore in Q3FY2022-23, increased by 20.16% on YoY basis and 7.12% on QoQ basis due to increase in Number of outlets (YoY basis) as well as services becoming normalized and fully operational.

• ➢ PAT has reduced by 92.7% on QoQ basis. Profitability has been impacted as we are reinvesting our Operational cash flows for enhancing Franchisee incentives as well as building a Pan India district level Master Franchisee network. The Profitability and margin Impact shall be there for the next quarter, post which profitability shall be improving in the subsequent quarters.

• ➢ Our Current Focus has been on Expanding our Presence through Building Master Franchisee network & to Strengthen our First Mover Advantage. We are currently Building a Pan India District level Master franchisee network which would result in strong on-ground operational management as well as better scalability in future.

• ➢ Number of outlets remained stable at 24,887 as we are upgrading the existing outlets to New NextGen 2.0 format especially the outlets opened during the pandemic period.

• ➢ Demerger Update : NCLT has paved the way towards creation of two separate listed entities viz. Vakrangee Limited and VL EGovernance & IT Solutions Limited. The Hon'ble NCLT, by way of its order dated January 20, 2023 ("Order") has inter alia directed the Company to convene a meeting of its equity shareholders. Due to demerger process in final stages, we have currently abated the E-Governance and IT/ITES business for the next quarter which shall result into Lower revenue and profitability in the next quarter, post De-merger completion the growth shall get normalized.

• ➢ Further, we have introduced New attractive pricing which would help us scale at a much faster pace and thereby achieve our Long-Term targets well ahead of targeted timelines.

KEY HIGHLIGHTS FOR Q3 FY2022-23:

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KEY HIGHLIGHTS: PERFORMANCE UPDATE

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DEMERGER UPDATE:

• ➢ The Company has received the approval for demerger from Stock Exchanges and other stakeholders.

• ➢ NCLT paves the way towards creation of two separate listed entities viz. Vakrangee Limited and VL E-Governance & IT Solutions Limited.

• ➢ The Hon'ble NCLT, by way of its order dated January 20, 2023 ("Order") has inter alia directed the Company to convene a meeting of its equity shareholders on Friday, 3[rd] March, 2023 at 11.00 am & unsecured creditors on Friday, 3[rd] March, 2023 at 02.00 pm.

• ➢ Demerger to unlock the potential of the Core Vakrangee kendra Business in the current Listed entity.

• ➢ Current Listed Entity “Vakrangee Limited” to consist of existing business of Vakrangee Kendra physical outlets as well as Digital platform of BharatEasy Mobile Super app.

• ➢ Vakrangee Kendra Business is Retail centric Consumer facing business. It is an Asset Light, High return on capital business and thereby will get the proper representation post the Demerger.

• ➢ The Demerger will enable both the Companies to enhance business operations by streamlining operations, more efficient management control and outlining independent growth strategies.

STRATEGY UPDATE:

• ➢ Launch of NextGen Vakrangee Kendra 2.0 : New Look & Feel

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• ➢ LAUNCH OF MASTER FRANCHISEE INITIATIVES

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• Launch of new attractive Master Franchisee Scheme : A Unique Lifetime Earning Opportunity whereby the Master Franchisee is eligible to earn a % of active franchisee’s earnings on an on-going perpetual basis.

• District level Master Franchisee being appointed. This initiative would lead to help us scale at a faster pace and expand on a Pan India basis.

• Master Franchisee shall be responsible for end to end monitoring and ensuring operational compliances for their respective franchisees.

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About Vakrangee Limited (BSE Code: 511431; NSE Code: VAKRANGEE)

Incorporated in 1990, Vakrangee has emerged as one of India's largest Last Mile Distribution Platform with a Physical as well as Digital Eco-system in place with a PAN INDIA Presence. We are delivering real-time banking & Financial Services, ATM, insurance, e-Governance, e- Commerce (including Healthcare services) and logistics services to the unserved rural, semiurban and urban markets and enabling Indians to benefit from financial, social and digital inclusion.

Vakrangee has emerged as the “Go To Market Platform” for various Business verticals including Fintech and Digital platforms. The Assisted Digital Convenience stores (Physical Outlets) are called as “Vakrangee Kendra” which acts as the “One-stop shop” for availing various services and products and Digital platform is called as BharatEasy Mobile Super app.

For further information, please contact at: Email: investor@vakrangee.in