Vakrangee Limited — Investor Presentation 2021

Jul 2, 2021

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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``

July 02, 2021

To, Bombay Stock Exchange Limited P.J. Towers, Dalal Street, Fort, Mumbai - 400 001.

To, Corporate Relationship Department National Stock Exchange Limited Exchange plaza, Bandra Kurla complex, Bandra (E),Mumbai 400051

Sub: Launch of Strategy 2.0 Document : Our next 5 year growth plan

Dear Sir/Madam,

With reference to the above mentioned subject and pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are glad to share with you that we have launched Strategy 2.0 Document : Our next 5 year growth plan . Please find enclosed the document”.

The launch event can be viewed on the below mentioned link.

Link of the event: Launch of Strategy 2.0 Document

This is for your information and record.

Thanking you,

Yours Faithfully,

For Vakrangee Limited

Digitally signed by JAY MEHUL BHANSALI DN: c=IN, o=Personal, cn=JAY MEHUL BHANSALI, JAY MEHUL serialNumber=f3c0ad2cd7929c7af95192ce04fd2bb75e111cd4f7b41f40c9bfb3abd2 f10368, postalCode=400092, BHANSALI 2.5.4.20=7e2c077d99682ca30c48f8dcf25c6b1af0a2794488f885d8396640d2021f0ed 0, st=Maharashtra Date: 2021.07.02 17:58:43 +05'30'

Jay Bhansali Company Secretary (Mem. No.: A48251)

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VAKRANGEE LIMITED : CORE BUSINESS : PHYSICAL NETWORK PLATFORM

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STRATEGY 2.0

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About Vakrangee

Vakrangee is a technology-driven company, focusing on creating India’s largest network of last-mile retail outlets. We have emerged as a “one-stop shop” digital convenience store providing a variety of services such as banking, insurance, ATM, e-governance, e-commerce, logistics and

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11,700+ Nextgen Kendras*

• Successfully transitioned the Business from Non Exclusive Store in Store Format to Exclusive Branded Format

• One of India’s largest franchisee network of Exclusive Branded Format stores

30+ Years

• Founded in the year 1990

• Vakrangee has 30+ years of service excellence

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30 +
Years
and counting…
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Debt-free Company

• Have Successfully Built a Scalable Asset Light Franchisee based Model

• Scale leading to emerge as a Partner of choice

• As of 31st March 2021, - 11,700+ Operational Outlets

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VAKRANGEE CORE BUSINESS - PHYSICAL NETWORK 5-YEAR GROWTH STRATEGY : (FY21-22 TILL FY25-26)

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FY 2025-26 E FY 2025-26 E
ANNUAL GMV THROUGHOUT NO. OF OUTLETS
USD 50 BN 75,000
Vakrangee 2.0
FY 2025-26 E FY 2025-26 E
NO. OF ANNUAL TRANSACTION STRONG FINANCIAL GROWTH
TAKE RATE (Revenue COMM %) : ~1.2-1.5%
PAT MARGIN % : 10%-12%
1 BILLION+
TARGET CASH ADJUSTED ROE : 35%+
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THIS DOES NOT INCLUDE ANY CONTRIBUTION FROM THE DIGITAL PLATFORM – MOBILE APP

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VAKRANGEE CORE BUSINESS – PHYSICAL NETWORK 5-YEAR GROWTH STRATEGY

No .of Exclusive Branded Outlets GMV / Gross Transaction Value Throughout (US$ BN) No. of Transactions (mn) No. of Active Customers (mn) No. of Exclusive Branded Outlets GMV / Gross Transaction Value Throughout (US$ BN) No. of Transactions (mn) No. of Active Customers (mn)		For Financial Year 2020-21 A Apr-20 - Mar-21	Apr-21 - Mar-22 For Financial Year 2021-22 E	Apr-22 - Mar-23 For Financial Year 2022-23 E
		11,730 5.15 126.8 20-25 For Financial Year 2023-24 E Apr-23 - Mar-24	25,000 10 300 25-35 Apr-24 - Mar-25 For Financial Year 2024-25 E	35,000 18 400 35-45 Apr-25 - Mar-26 For Financial Year 2025-26 E
		50,000 28 600 50-60	65,000 40 800 60-80	75,000 50 1,000 80-100

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FOCUSSED TO BUILD PAN-INDIA PRESENCE COVERING 100% POSTAL CODES

FY 2025-26

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- 19,000 + Postal codes - ~70% Tier V & VI

- 75,000+ Outlets - 36 States / UTs - 740 + Districts

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FY 2020-21

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• 11,700+ Outlets

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• 27 States / UTs

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• 510+ Districts

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• 4,580 + Postal codes

• 70% Tier V & VI

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With Exclusive Branded Format Stores, Consistent Service Experience & Strong Brand Recall

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LAUNCH OF MOBILE SUPER APP UPDATE

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Vakrangee has recently launched an online digital platform to enable seamless services for the consumer at the comfort of their homes. Through this, company has evolved into the unique O2O (Online to Offline) platform, whereby there is Assistance available through the Physical Kendra network along with Digital Online Services.

The company has Initiated this Unique Hybrid proposition with launch of first Digital service of Total Healthcare services. The company plans to make many more existing Vakrangee services live through this platform.

The Company is now launching an All in one : “BharatEasy” Mobile Super App based business platform.

By downloading a single Vakrangee’s BharatEasy Super App mobile application, our customers would get access to a wide array of Products and Services which would significantly reduce their requirement to switch between multiple apps. This would lead to superior customer experience and convenience for the customer.

The Mobile super app platform would be offering various consumer products and services under one umbrella. Consumers would use it every day because our app would offer a seamless, multi-service, integrated, contextualized and efficient experience.

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OUR BUSINESS MODEL : UNDERSTANDING OUR UNIQUE OFFERING

Customer

Unique Convenience Features : Leveraging the Vakrangee Eco-System Store Pick Up Facility Pay at Store (Cash) Order Return facility Courier Pick up / Drop Facility Physical Assistance Available Grievance / Helpdesk Facility

Strong Value Proposition All in One Super App Platform Access to Physical Store network - Trust & Comfort for Customers especially in Rural India

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Service Partners

Vakrangee Kendra Network

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Super App : Multi Category Offering

• Online Shopping

• Total Healthcare

• Banking / Insurance / Money Transfer

• Bill Payments / Recharges

• Store Network FY21 – 11,700+ outlets

• Loan Products / Mutual Funds

• Store Network FY26 E – 75,000 outlets

• Travel / Entertainment / Events

• FY21 Gross Transaction Value - US$5.2 BN

• FY26E Gross Transaction Value –US$ 50 BN - FY21 No. of Customers – ~30 MN

• Agri Products

• Courier Services

• FY26E No. of Customers - ~80-100 MN

• Online Education

BUSINESS MODEL : UNIQUE COMPETITIVE ADVANTAGES

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Convenience : All-in-one platform for all Customer needs

Strong Technology Expertise : Technology and product-first approach to business

Unique Proposition of Digital along with Physical: “Phygital”

Vakrangee is a strong consumer brand recognized across the length and breadth of India

Sustainable Advantages over the standard benchmarks apps

Rural Focused Loyalty Program for transition to Mobile Super App

• Store Pick Up Facility

• Order Return Management

• Pay at Store Option

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Unique Referral program for Vakrangee Franchisee network : To Help scale faster and reduce customer acquisition costs

• Courier Pick up / Drop Facility

• Physical Assistance Available

• Grievance / Helpdesk Facility

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KEY INITIATIVES : SUSTAINABILITY IMPACT & ESG

Being Responsible & Social Conscious Company

Being UNGC Signatory Member

Independent ESG Risk Assessment & Integrated Report Assurance

Being one of the largest franchisee based, multi-service retail network, Vakrangee is focused on creating India’s extensive network of last-mile retail outlets at every postal code in the country, enabling Indians to benefit from financial, social and digital inclusion.

Vakrangee Limited has been accepted as a Signatory of the United Nations Global Compact.

We are now part of a global network of over 9,500 companies and 3,000 non-business participants that are committed to building a sustainable future.

Globally ranked No.1 in the Sustainalytics ESG Risk rating rankings out of the 816 companies assessed in the Software and Services industry across worldwide.

Achieved “B” Score from CDP for Environmental Practices, Better than the Industry’s Average (Asia regional average of D, Global Average of C).

Independent Assurance of Integrated Annual report of FY20 by Grant Thornton.

We have mapped our sustainability initiatives with the United Nation’s Sustainable Development Goals. Our aim is to efficiently adopt these goals and address the global challenges, which includes poverty, inequality, climate, environmental degradation, prosperity, peace and justice.

SUSTAINABILITY ESG PERFORMANCE UPDATE

Global recognition reflects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability.

SUSTAINABILITY ESG PERFORMANCE UPDATE Global recognition refects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability.	SUSTAINABILITY ESG PERFORMANCE UPDATE Global recognition refects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability.	SUSTAINABILITY ESG PERFORMANCE UPDATE Global recognition refects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability.	SUSTAINABILITY ESG PERFORMANCE UPDATE Global recognition refects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability.
Company has been successful in benchmarking its performance on a wide range of industry specifc economic, environmental, governance and social criteria that are relevant to the growing focus on Business sustainability and fnancially relevant to the corporate success. Sr. No. ESG Assessment & Rating platform Vakrangee Ranking
1	Sustainalytics ESG Risk Assessment Rating	Globally ranked No.1 in the Sustainalytics ESG Risk rating rankings out of the 668 companies assessed in the Software and Services industry across worldwide
2	CDP Score - Climate Change 2020	Achieved “B” Score from for Environmental Practices, Better than the Industry’s Average (Asia regional average of D, Global Average of C)
3	CDP Score - Supplier Engagement Rating 2020	Achieved “A-” Score from CDP for Suppliers Engagement, Better than the Industry’s Average (Asia regional average of B-, Global Average of C)
4	SAM Corporate Sustainability Assessment (CSA) – S&P Global	Globally ranked No. 13 Company in the global industry ranking and ranked No. 9 in the Corporate Governance global industry raking based on RobecoSAM – S&P Global ESG Score
5 8	Bloomberg Gender Equality Index (BGEI)	Included in the Bloomberg’s 2021 Gender-Equality Index (GEI). The 2021 Bloomberg GEI comprises of 380 companies across the world with a combined market capitalization of USD14 Trillion Headquartered in 44 countries and Regions across 11 sectors

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VAKRANGEE LIMITED COMMITS TO SET SCIENCE-BASED EMISSIONS REDUCTION TARGETS

Commits to set science-based emissions reduction targets across all relevant scopes in line with 1.5°C emissions scenarios.

Commits to set a long-term target to reach net-zero value chain emissions by 2035.

INTEGRATED ESG PERFORMANCE TARGETS

ENVIRONMENT IMPACT– SAVINGS IN CARBON EMMISSIONS

	Minimum Maximum
Carbon Emissions (Kg CO2) No. of Footfall Per day per Outlet No. of Days Exisiting Operational No. of Outlets Targeted No. of Outlets Till March, 2022 Targeted No. of Outlets Till March, 2026 Carbon Emissions - Per day per outlet (Kg CO2)	0.908 50 365 11,750 + 25,000 75,000 45.4 3.859 80 365 11,750 + 25,000 75,000 192.95
Carbon Emission Savings – Targeted outlets per year (Kg CO2)- FY22	41,42,75,000 1,76,06,68,750

Carbon Emission Savings – Targeted outlets per year (Kg CO2)- FY26E 124,28,25,000 5,28,20,06,250

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INTEGRATED ESG PERFORMANCE TARGETS

SOCIAL IMPACT– EMPLOYMENT GENERATION & SKILL DEVELOPMENT

FY 21-22 FY 25-26 Total Number of Targeted Outlets 25,000 75,000

No of Employees per Outlet - 2 2 Employment Generation

Target - Direct Employment Generation

50,000

1,50,000

All Employees undergo Training and this leads to skill development since they clear Banking certification and Insurance IRDA certification.

SOCIAL IMPACT –COMMUNITY IMPACT : BENEFIT FOR FINANCIAL, SOCIAL & DIGITAL INCLUSION

Total Number of Targeted Outlets

Minimum No. of Families in a Village

Target – Community Families

FY 21-22 FY 25-26 25,000 75,000 500 500 12,500,000 37,500,500

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VAKRANGEE KENDRA – ENVIRONMENTAL INITIATIVES

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Technology Innovation:

• We make use of disruptive technology such as e-KYC, interoperability, and real-time transactions. • Advanced features that are environment-friendly, such as paperless banking, and biometric evaluation.

• Being digital and paperless in nature, our Kendras generate negligible paper waste and zero plastic waste.

Reducing carbon footprint:

• Our Vakrangee Kendras contribute towards reducing carbon footprint. We cater to our customers by offering them a bouquet of products and services within walking distance, which is time effective and saves fuel cost.

• Our Kendras our also helping towards saving substantial carbon emissions by being located at walkable distances.

Responsible Consumption:

• We have adopted ‘Go Green’ initiatives. Our banking processes run on AePS model. Moreover, ATM transactions do not generate printed receipts. The transaction acknowledgments are sent via SMS.

• Our Kendras also minimise hazardous waste by using refillable ink cartridges. Minimal generation of waste prevents exposure of community members to hazardous and non-hazardous waste.

Sustainable sourcing & Procurement:

• Incorporated environmental considerations in procurement decisions related to purchase of products to minimize the environmental impact which we or our franchisees procure.

• Entire Hardware Kit is procured as per our Green procurement policy. Our KDB Design manual enlists the approved list of vendors and products which are aligned to our Sustainable sourcing policy.

VAKRANGEE KENDRA – SOCIAL INITIATIVES

Social Equalizer:

• We are taking the financial and digital literacy to the bottom of the socio-economic pyramid and serving as the last-mile link to connect India’s unserved and underserved rural and urban citizens

• Offering them the same products and services at the same time, competitive price and same service levels.

• We are acting as the biggest equaliser by bridging the gap between the urban and rural population in India.

Financial Inclusion:

• We are driving the Financial Inclusion initiatives of the Government by providing access to basic Banking and Insurance services.

• Vakrangee kendra enables transfer of Government subsidies directly into the bank accounts of citizens through the Government’s Direct Benefit Transfer (DBT) scheme.

Decent Work. Economic Growth & Skill development:

• We are driving rural consumption and rural growth through our Kendras.

• Our franchisees create local work opportunities by hiring resources and undertaking skill development, with certification for banking and insurance services. We make people contribute to India’s economic growth to achieve fair globalisation and poverty reduction.

Work Opportunities for Underrepresented Groups:

• We provide equal and right opportunities to people – to get work that is productive, stable, and wellpaid.

• Special Preference to Women Entrepreneurs, Ex-military Professionals and Individuals with special abilities.

• No discrimination on the basis of race, sex, colour, national or social origin, ethnicity, religion, age, disability, sexual orientation, gender identification or any other status protected by applicable law.

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DISCLAIMER

This Document has been prepared by Vakrangee Limited (“Vakrangee” or “VL” or the “Company”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose. The information contained in this document does not constitute or form any part of any offer, invitation or recommendation to purchase or subscribe for any securities in any jurisdiction, and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with any transaction. The information contained in these materials has not been independently verified.

Any forward-looking statements in this document are subject to risks and uncertainties that could cause actual results to differ materially from those that may be inferred to being expressed in, or implied by, such statements. Such forward-looking statements are not indicative or guarantees of future performance.

The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives accepts liability whatsoever for any loss howsoever arising from any information presented or contained in these materials.