Vakrangee Ltd Management Discussions

Global Economic Overview

In 2024, global economic activity remained subdued, reflecting the cumulative impact of persistent inflation, tight monetary conditions, and rising geopolitical tensions. World GDP growth, which had held steady at around 3.3% in both 2023 and 2024, showed further signs of moderation. The economic landscape was particularly strained by renewed trade frictions, notably the United States imposition of historic tariff increases, which disrupted crossborder trade flows and dampened investment sentiment. Considering these developments and the evolving global trade order, the World Trade Organisation (WTO) now projects a 0.2% decline in global merchandise trade volume for 2025—a sharp reversal from earlier estimates of approximately 3% growth.1

Inflation remained elevated globally, driven by sticky core prices and tight labour markets. In response, major central banks adopted a restrictive policy stance. Interest rates in advanced economies rose to multi-decade highs, such as the U.S. federal funds rate reaching 5.25-5.50% and the European Central Banks deposit facility peaking at 4%. Although inflation began to ease by late 2024, central banks remained cautious, prioritising price stability overgrowth acceleration.

According to the IMFs April 2025 World Economic Outlook, global GDP is projected to grow by just 2.8% in 2025, a notable downgrade from earlier forecasts and below the historical average of ~3.7% (2000-2019). Growth in advanced economies is expected to slow to 1.4%, with the U.S. at 1.8%, the Euro Area at 0.8%, and other mature markets facing subdued momentum. High inflation, restrictive financial conditions, and limited fiscal space are key constraints.2

Among emerging markets and developing economies (EMDEs), growth is estimated to ease to 3.7% in 2025, from 4.3% in 2024. Chinas post-pandemic rebound has lost momentum amid weakening external demand and ongoing challenges in the property sector. Emerging Asia, while relatively resilient, faced pressure from elevated global interest rates and slower export activity. Commodity exporters experienced mixed fortunes, with prices remaining range-bound, impacting their revenues.

India remained a bright spot, with real GDP expanding 6.5% in 2024, driven by robust domestic demand, manufacturing, and infrastructure investment. For 2025, Indias growth is estimated at 6.2%, supported by public capex and steady private consumption. Central banks in many emerging market and developing economies (EMDEs) focused on preserving financial stability. A noteworthy trend was the continued accumulation of gold reserves, over 1,045 tonnes added globally in 2024, led by countries such as China, India, and Turkey. Gold prices surged over 27% during the year, reflecting safe-haven demand amid global uncertainty.

Even though the global economy entered FY2025-26 on a weaker footing, with lower trade momentum, sticky inflation, and tighter financial conditions weighing on growth, underlying resilience remains in specific segments, notably India and services trade. The overall outlook calls for cautious policy navigation and strategic risk management.

Indian Economic Overview

Indias economy continued to demonstrate resilience in FY2024-25, achieving an estimated real GDP growth of 6.5%, following the remarkable 8.2% expansion recorded in the previous year. While growth moderated as the base normalised, the economy remained firmly on a high-growth trajectory, supported by robust domestic demand. Private consumption and public investment emerged as key pillars, offsetting the drag from global uncertainties and tepid export demand.

According to the National Statistics Office (NSO), the Sectoral performance remained broad-based. Agriculture and allied activities grew at a healthy 4-5%, aided by a normal monsoon and improved crop yields. The industrial sector reported a real Gross Value Added (GVA) growth of approximately 5.8%, driven by stable manufacturing activity and a notable increase in construction, which expanded by 8.6%. The services sector continued to drive overall economic momentum, growing by 7.3%. Financial, real estate, and professional services recorded a 7.2% growth, buoyed by sustained credit demand and urban infrastructure development.

Monetary Policy and Inflation

In FY2024-25, the Reserve Bank of India (RBI) maintained a cautious stance for most of the year, keeping the repo rate at 6.50% to anchor inflation expectations.

As inflation eased and growth moderated, the RBI initiated a rate-cutting cycle. It delivered two 25-basis-point cuts in February and April 2025, followed by a surprise 50-basis-point cut in June, bringing the repo rate down to 5.50%. The Cash Reserve Ratio (CRR) was also reduced by 100 basis points to 3.00% to inject liquidity into the banking system. The policy stance was revised to "neutral,” reflecting a shift to data- dependent decision-making.

Inflationary pressures receded sharply during the year. Headline CPI inflation averaged 5.0%, down from 6.7% in the previous year, and declined to 3.34% by March 2025, its lowest in over five years. Core inflation also eased to around 4%, aided by falling food prices and a favourable base. This decline in inflation created room for monetary easing to support growth amid global uncertainties.

Industrial Activity and Business Sentiment

Indias Index of Industrial Production (IIP) expanded by 4.0% in FY2025, down from 5.9% in FY2024. The moderation was partly due to normalising base effects and slower global demand. Manufacturing output remained steady, supported by consumer and investment demand. Electricity generation saw healthy gains, while mining activity was largely stagnant.

Despite some softness in headline IIP growth, forward-looking indicators remained strong.

The Manufacturing PMI consistently stayed in expansionary territory, averaging in the mid-50s.

It rose to 58.2 in April 2025, reflecting resilient domestic demand and rising export orders.

The Services PMI also performed robustly, surpassing 60 in May 2025, underscoring broad strength in service-oriented industries. These metrics indicate continued business optimism and suggest that momentum in the industrial and service sectors is likely to remain strong in the quarters ahead.

Exchange Rate and External Position

The Indian Rupee (INR) depreciated against the U.S. dollar during the year, reflecting global currency dynamics and cautious investor sentiment. The exchange rate weakened from T82-83 at the beginning of the fiscal year to above Rs. 86 by March 2025, with the rupee briefly touching an all-time low of 87.4/USD in February. This 4-5% annual depreciation made the rupee one of the underperformers in Asia.

A strong dollar, intermittent capital outflows, and expectations of domestic rate cuts drove the depreciation. Nonetheless, Indias external sector remained stable. A narrower current account deficit, along with solid services exports and higher remittances, provided support. The RBI intervened selectively to manage excess volatility while allowing broad exchange rate flexibility. Foreign exchange reserves stayed comfortable, offering adequate buffers.

Indian Fintech Industry Overview

Indias FinTech sector has emerged as a global powerhouse, ranking third worldwide, with over 10,000 active FinTech companies operating across diverse segments, including digital payments, lending, insurance, and wealth management. According to a joint report by FICCI and BCG, the industrys valuation is projected to reach USD 150-160 billion by 2025, underscoring its significant contribution to the nations economic growth. The sectors rapid expansion is driven by a confluence of factors, including a large and growing internet user base, supportive government policies, and a robust regulatory framework that fosters innovation and financial inclusion.

I Enabler of Viksit Bharat

FinTech has played a critical role in advancing the vision of Viksit Bharat by democratising access to finance. FinTech firms are facilitating financial inclusion, enabling underserved populations to access credit, savings, insurance, and investment services on a large scale. India has developed one of the most sophisticated digital public infrastructures (DPIs) globally, spearheaded by initiatives such as

I Aadhaar, Unified Payments Interface (UPI), DigiLocker, and Account Aggregators. These components have formed the foundation for FinTech-led innovation that bridges the financial divide.

1 According to the EY-DLAI report, FinTechs play a significant role in the Viksit Bharat 2047 vision, with over 63% of FinTechs in India focusing on Tier II and Tier III towns, illustrating a clear strategic pivot toward Bharat. Embedded finance and digital-first models have helped reduce customer acquisition costs and expand the reach of financial services beyond metro regions. The report also shows that nearly 50% of FinTech leaders view UPI and Aadhaar as the most transformative building blocks of Indias digital economy.

Sectoral Landscape and Contribution

Indias FinTech ecosystem spans diverse sub-segments:

• Payments: India has become the worlds largest real-time payments market. UPI processed 118 billion transactions in FY2024, with a transaction value exceeding INR 180 trillion, growing at over 60% CAGR over the past three years.

• Lending: The digital lending market reached approximately USD 45 billion in 2023, with FinTechs accounting for more than 30% of disbursements. Embedded lending, buy now, pay later (BNPL), and small and medium-sized enterprise (SME) lending are driving further expansion.

• Insurtech: Insurtechs are disrupting the traditional insurance model with AI-driven underwriting, digital distribution, and usage-based products.

The Insurtech market is projected to grow at a 57% CAGR and reach USD 88 billion by 2030 [EY-DLAI].

• Wealthtech: FinTechs have opened retail participation in capital markets. The number of demat accounts in India crossed 140 million in FY2025, and over 25 million users now access wealth platforms, primarily through mobile-first models.

• Regtech: Regtech players are streamlining compliance through AI/ ML-powered KYC, AML, and fraud detection solutions. Adoption is high among NBFCs and digital banks, as they seek to scale and achieve efficiency.

The FinTech sector contributes over USD 100 billion to Indias digital economy, supporting millions of jobs, both directly and indirectly. Importantly, FinTech innovation aligns with national objectives such as financial inclusion, digital literacy, and MSME enablement.

Driving Financial Inclusion

FinTechs have significantly enhanced access to credit for underserved populations. According to the EY-DLAI survey, over 55% of FinTech firms primarily serve first-time borrowers, including gig workers, micro-entrepreneurs, and rural women. Digital lending apps are using AI/ML-driven credit scoring to underwrite customers with thin or no credit histories. FinTechs have enabled loan ticket sizes as low as INR 500, making them suitable for micro-consumption and working capital needs.

In the insurance sector, micro-insurance products distributed through mobile apps and point-of-sale (POS) networks have enhanced penetration in rural markets. Several FinTechs have also partnered with government schemes, such as PMJAY and PMSBY, to offer affordable coverage. Similarly, in wealth management, digital platforms have enabled low-ticket SIPs, with investments starting at INR 100, thereby democratising access to mutual funds and the equity markets.

Regulatory and Policy Support

Indias regulatory ecosystem has played a crucial role in fostering the growth of FinTech. The RBI, SEBI, IRDAI, and other regulators have progressively introduced frameworks to ensure responsible innovation. Regulatory sandboxes, guidelines for digital lending apps, and Account Aggregator (AA) norms have been important milestones. According to EY-DLAI, over 65% of FinTech founders regard regulatory clarity and sandbox models as enablers of innovation, though a demand remains for harmonisation across regulators.

The governments emphasis on Digital Public Infrastructure (DPI) has also been pivotal. The India Stack and JAM trinity (Jan Dhan, Aadhaar, Mobile) have created rails that FinTechs can build upon. Initiatives like ONDC and OCEN are poised to open markets further and expand credit access. The DPI-first approach has helped India leapfrog in financial inclusion and transaction efficiency.

Global Attractiveness and Investment Trends

India remains a magnet for global FinTech capital. Between 2019 and 2024, the sector attracted over USD 37 billion in funding across more than 2,000 deals. Though funding moderated in FY2024 due to global macroeconomic factors, deal activity showed signs of revival in Q4. The EY- DLAI report identifies AI and embedded finance as the top investment themes for 2025, with investor interest shifting toward sustainable unit economics and profitable scale.

FinTechs are also expanding into global markets, particularly in the Middle East, Southeast Asia, and Africa, by exporting digital payment infrastructure (DPI) models and digital financial infrastructure. Several Indian players are participating in DPI-related projects globally, creating new growth avenues.

Innovation, Technology, and Future Trends

Innovation remains the core strength of Indian FinTechs. Key technology themes include:

• AI/ML and analytics: Used in underwriting, fraud detection, customer support, and personal finance management.

• Open banking and AAs: Enabling secure and consent-based financial data sharing.

• Blockchain: Gaining traction in KYC, cross-border remittances, and tokenised assets.

• Embedded finance: Integrating financial products into non-financial platforms (e.g. e-commerce, gig economy apps)

The EY-DLAI report reveals that more than 70% of FinTechs are leveraging AI/ML in at least one product or process, while 45% are actively exploring GenAI for customer engagement and automation. Looking forward, Open Finance, DPI exports, green finance, and decentralised identity are expected to shape the next wave of FinTech innovation.

Entrepreneurship and the FinTech Industry

Indias FinTech sector has emerged as a vibrant hub for entrepreneurial activity, reflecting the dynamism of the nations broader startup ecosystem. According to the EY-DLAI report, India ranks third globally in the number of FinTech companies, with over 10,000 firms operating across various segments, including digital payments, lending, insurtech, regtech, and wealthtech. This proliferation underscores the sectors role as a catalyst for innovation and economic empowerment.

Startup Surge and Innovation

Over the past five years, India has witnessed a significant surge in FinTech startups. As highlighted in the FICCI- BCG report, approximately 67% of the over 2,100 FinTech companies were established during this period, indicating robust entrepreneurial momentum.

This growth is fuelled by factors such as increased digital adoption, supportive regulatory frameworks, and a burgeoning demand for accessible financial services.

Democratising Financial Services

Entrepreneurs in the FinTech sector play a crucial role in democratising access to financial services. The EY- DLAI report emphasises that FinTech firms are leveraging digital public infrastructure, like Aadhaar, UPI, and DigiLocker, to extend services to underserved populations, particularly in Tier II and Tier III cities. This approach not only fosters financial inclusion but also opens new markets for innovative financial products.

Investment and Economic Impact

The entrepreneurial vigour in Indias FinTech sector has attracted substantial investment. According to the FICCI- BCG report, the industry has secured over USD 35 billion in funding between 2019 and 2023, across more than 2,000 deals. This influx of capital has enabled startups to scale their operations, innovate, and make significant contributions to the economy. The sectors valuation is projected to reach USD 150-160 billion by 2025, underscoring its economic significance.

Challenges and the Path Forward

Despite the impressive growth, FinTech entrepreneurs face challenges such as regulatory compliance, cybersecurity threats, and the need for sustainable business models. The EY-DLAI report notes that while regulatory sandboxes and guidelines have facilitated innovation, there is a call for greater harmonisation across regulatory bodies to streamline operations. Addressing these challenges is crucial for the continued success and stability of the sector.

Indian Banking Sector Overview

Indias banking ecosystem is anchored by a diverse mix of institutions, comprising 13 public sector banks, 21 private sector banks, 44 foreign banks, 12 Small Finance Banks, and an extensive network of regional rural banks and urban cooperative banks. The Scheduled commercial banks operate a comprehensive network of more than 165,000 branches as of September 2024. Complementing this reach is a steadily growing base of over 255,000 ATMs. Together, this physical infrastructure, combined with rapid digital transformation and government-led financial inclusion initiatives, forms the backbone of a resilient and accessible banking sector in India. This network is further enhanced by the introduction of the India Post Payments Bank (IPPB), which has an extensive network of 650 branches and over 1.63 lakh access points through the post office network.

As every bank continues to expand its branch network and strengthen its physical footprint, the demand for new ATMs is expected to rise significantly along with the replacement cycle, despite the growing adoption of online and digital banking channels. Physical banking infrastructure remains critical, especially in semi-urban and rural areas where in-person services are still heavily relied upon. Moreover, a substantial portion of the existing ATM infrastructure is approaching the end of its operational life, creating an additional need for replacements and upgrades. Regional Rural Banks (RRBs) and Urban Cooperative Banks are actively expanding their operations by adding new branches and deploying more ATMs to extend their reach and enhance service delivery, thereby contributing to the surge in demand for ATM installations nationwide.

Several structural and demographic factors underpin the sustained demand for ATMs in India. Despite the rapid rise of digital payments, a significant portion of the population, especially in rural and semi-urban areas, continues to rely on cash due to limited access to digital infrastructure and a preference for physical transactions. Government- led financial inclusion initiatives, growing banking penetration, and the push for 24/7 banking services are further reinforcing the need for widespread ATM deployment. Technological innovations, such as biometric-enabled ATMs and cash recyclers, are enhancing efficiency, while regulatory support for white-label ATMs is expanding market accessibility. Reflecting this strong foundation, the Indian ATM market was valued at USD 1.82 billion in 2024 and is projected to grow at a CAGR of 6.80%, reaching USD 3.45 billion by 2033, according to IMARC Group. Even non-traditional players are ramping up investment - for instance, India Post, which had 1,000 ATMs in operation as of January 2025, aims to double this number to 2,000 by the end of FY 2026, underscoring the continued relevance of physical cash access points across the country.

Company Overview

About Vakrangee Limited

Incorporated in 1990, Vakrangee Limited is a technology-driven company headquartered in Mumbai, India.

The Company has emerged as the "Go to Market Platform” for various Business verticals, including Fintech, E-Commerce and E-Health platforms. We are building Indias largest last-mile distribution Platform, emerging as a physical and digital ecosystem with a pan-India presence.

Vakrangee operates through its franchisee-based model of Vakrangee Kendras, which are One Stop Shop assisted digital convenience stores offering a wide array of services, including banking, financial services, insurance, ATM, e-commerce, and logistics. These Kendras are designed to provide citizens with products and services at competitive prices, ensuring uniformity in service delivery.

The companys operations are supported by a portfolio of key licenses and partnerships established over the past 25 years. Vakrangees asset- light, franchisee-based model enables scalability and efficient service delivery, with each Kendra equipped with advanced technological platforms to support multiple lines of services.

Vakrangees commitment to financial and digital inclusion is evident in its focus on serving Indias underbanked rural and semi-urban communities. By leveraging its extensive Kendra network and digital platforms, the company ensures broader access to essential financial products and services, empowering individuals in remote areas to participate more fully in the formal financial ecosystem.

Business Portfolio

Vakrangee Ltd. continues to accelerate its transformation into a tech-enabled platform focused on digital and financial inclusion, particularly in underserved rural and semi-urban areas. As of March 31, 2025, the company had established a physical presence across 609 districts and 5,835 postal codes in India, with services accessible through 22,986 operational Vakrangee Kendras and a digital footprint via the BharatEasy Super App.

Empowering Growth: A Strong and Scalable Last Mile Distribution Network Built through Master Franchisees & Franchisees

Our Company has emerged as the "Go to Market Platform” for various Business verticals, including Fintech, E-Commerce and E-Health. We are building Indias largest last-mile rural Distribution Platform, emerging as a physical and digital ecosystem with a pan-India presence.

Our distribution platform is driven by the Master Franchisee and Franchisee model, a cornerstone of our business strategy, which enables us to scale efficiently while delivering a diverse range of products and services across vast geographies. We are making steady progress towards establishing our last-mile presence across all postal codes, covering every Gram Panchayat in the country.

The Master Franchisee and Franchisee model is inherently scalable, allowing us to penetrate even the most remote and underserved regions. With a flexible, franchise-based approach, we can adapt to local market conditions while maintaining a unified operational standard across the entire network. This model provides the foundation for our ambitious growth plans, enabling nationwide coverage while minimising operational risks.

Together, master franchisees and franchisees create a seamless last-mile distribution network. This network is highly scalable because each franchise is an independent entity with a vested interest in success. Franchisee is a local village-level entrepreneur, taking ownership of day-to-day operations, customer satisfaction, and market penetration. Meanwhile, the master franchisee ensures they are fully supported with training, marketing, and operational guidance, creating a synergy that fuels growth.

We are delighted to announce the appointment of Master Franchisees in 546 districts across 32 States (as of March 31,2025), marking a significant milestone in expanding our nationwide network coverage.

Our ambitious goal for the end of this fiscal year is to achieve complete 100% district coverage through our master franchise network. By empowering local entrepreneurs, we not only drive our growth but also make a significant contribution to regional economic development and create opportunities for entrepreneurial success.

For FY2025, we have established a strong and expansive presence with a total of 22,986 Vakrangee Kendra outlets nationwide. This widespread coverage spans over 32 states and union territories, ensuring that our services are accessible to a broad customer base. Moreover, we have successfully established a presence in 546 districts and 5,835 postal codes, further strengthening our network. Notably, our commitment to serving underserved markets is evident as 83% of our outlets are in Tier 4-6 cities.

Furthermore, the Company has strategically ventured into sourcing and distributing private-label and white-label products. By leveraging the extensive Vakrangee Kendra network, which includes both Franchisee and Master Franchisee channels, we aim to distribute our proprietary, branded e-commerce products for consumers and retailers. Additionally, the Company has plans to diversify into other consumer and retail product categories, thereby expanding our footprint in the broader market.

Strategic partnerships also underpin Vakrangees growth model. In FY2025, the company entered multiple collaborations, including those with Kotak Bank, Canara Bank, Central Bank of India, Bangiya Gramin Vikash Bank, Aditya Birla Health Insurance Company Limited, Tata AIG General Insurance Company Limited, Star Health & Allied Insurance Co. Ltd., Future Generali India Insurance Company Limited, and Shriram Life Insurance Company Limited, Global One Enterprises Pvt Ltd (Max TV), thereby enhancing its offerings in banking, insurance, and e-Commerce services.

Vakrangees entry into the apparel segment in October 2024 marks a strategic diversification, expanding its private-label offerings in key districts and semi-urban markets. Vakrangee offers affordable, quality clothing in ready-to-wear and customised formats. This initiative strengthens its Kendras as multi-category rural commerce hubs, furthering its mission of financial and digital inclusion through diversified access.

Vakrangees commitment to inclusive growth is deeply rooted in its franchising model, where local entrepreneurs—Master Franchisees and Kendra operators—are incentivised through structured commissions and performance bonuses. This ecosystem approach not only ensures scale and reach but also contributes to local economic development by empowering grassroots entrepreneurs.

As India progresses towards becoming a digitally empowered society, Vakrangee is strategically positioned to play a critical role. With an integrated phygital model, a robust technology backbone, and a growing portfolio of essential services, the company remains committed to bridging the urban-rural digital divide and achieving sustainable growth.

New Horizons: Vakrangees ATM Play

Vakrangee Limiteds acquisition of Vortex Engineering Private Limited, now a subsidiary, is fully aligned with the companys long-term ambition to become a fully integrated, technology- enabled banking infrastructure provider. This strategic move supports backwards integration, creating new growth opportunities while tapping into cost synergies and leveraging advanced technological capabilities.

Vortex, an India-based technology pioneer incubated at IIT-Madras, is renowned for its expertise in low- power ATMs. The company operates from its Chennai headquarters, where it maintains an annual production capacity of over 12,000 ATMs and has successfully deployed over 14,000 ATMs across diverse geographies.

It holds nine patents in the ATM and cash dispenser space under the Make in India and Atmanirbhar Bharat initiatives. It has developed its cash dispenser units, which deliver the lowest lifecycle cost among its competitors.

Additionally, Vortex has created PERFO, a proprietary, advanced remote ATM monitoring software tool that is cross-platform and cross-vendor, strengthening its intellectual property portfolio.

This strategic acquisition enhances Vakrangees operational oversight and cost efficiency while opening a new B2B growth channel in both domestic and global ATM markets. With rising demand for secure, energy-efficient, and advanced ATM solutions, Vakrangee is well-positioned to scale operations, improve profit margins, and diversify its revenue streams. This initiative further accelerates Vakrangees transition from a distribution-focused service model to a comprehensive provider of digital financial infrastructure, expanding both its technological capability and geographic reach.

This strategic acquisition enhances Vakrangees operational oversight and cost efficiency while opening a new B2B growth channel across domestic and international ATM markets. With rising demand for secure, energy- efficient, and advanced ATM solutions, Vakrangee is well-positioned to expand its scale, boost margins, and diversify its revenue base. The move also accelerates Vakrangees evolution from a distribution-focused service model to a holistic provider of digital financial infrastructure, extending its technological capabilities and geographic footprint.

The deal is especially timely given the optimistic outlook for the global ATM market, which was valued at USD 24.4 billion in 2024 and is expected to grow to USD 36.3 billion by 2033, registering a compound annual growth rate (CAGR) of 4.06% from 2025 to 2033. North America leads the market with a commanding 35.3% share in 2024; however, emerging economies in Asia and Africa offer high-growth opportunities, driven by expanding financial inclusion and the adoption of new technologies. Key global drivers include the rise of digital transformation, growing demand for accessible and convenient cash services, increased international tourism, and the integration of advanced features like biometric authentication. With Vortexs proven capabilities and Vakrangees established distribution network, the acquisition opens the door for Vakrangee to enter global markets as a competitive supplier of ATMs. This positions the company to tap into a massive international opportunity, capitalising on both organic and inorganic growth in a rapidly evolving financial infrastructure landscape.

In FY2024-25, Vortex demonstrated strong operational momentum, achieving 26.3% year-over-year revenue growth and shipping 1,596 ATMs. The company closed the year with a robust order pipeline of 5,000 ATMs scheduled for delivery in FY2025-26, laying the groundwork for an aggressive scale- up. With strategic capital support from Vakrangee, Vortex—currently holding a market share of around 2% in the Indian ATM industry—is aiming to increase this to 5% in the near term. Historically, capital constraints limited Vortexs ability to bid for large-scale tenders and expand marketing efforts. However, Vakrangees backing and its strong relationships with major banking institutions now enable Vortex to pursue opportunities more proactively across both domestic and international markets. Notably, Vortex is making inroads into the MENA region, Africa (including South Africa), and select Caribbean countries, aligning its go-to-market strategy to meet the growing global demand for reliable and affordable ATM solutions. FY2025-26 will witness a renewed commercial thrust, focused on strategic partnerships, international tender participation, and deeper integration with the Vakrangee Kendra network, unlocking meaningful synergies and future revenue potential.

Business Opportunity

Vakrangee sees a promising growth horizon driven by multiple market tailwinds. Indias domestic ATM base is projected to expand from approximately 250,000 to over 365,000 units by FY27, providing significant annuity revenue opportunities through the annual maintenance contract (AMC) business, ensuring a steady cash flow. Additionally, a large domestic ATM replacement cycle is underway, with over 100,000 machines expected to be upgraded in the next 24-36 months as banks refresh their infrastructure and transition from Windows 7 to Windows 10 systems.

Internationally, the global ATM market is growing at a CAGR of about 8.1% through 2027, with emerging markets demonstrating strong demand. Vortex is already an approved supplier in Africa and plans to expand further into Latin America and the Asia-Pacific region, tapping into high-potential geographies.

Product innovation is another growth lever, with Vortex launching Android-based ATMs and Mini ATMs equipped with advanced digital banking features, as well as plans for Digital Banking Unit (DBU) kiosks that serve as an alternative to physical bank branches. Furthermore, the multi-vendor ATM software segment, estimated to grow from approximately $1.1 billion in 2018 to $6 billion by 2026, presents significant opportunities for growth. The companys proprietary PERFO software is well-positioned to capture this high-margin, fast-growing market.

Vakrangees revenue outlook is robust, supported by the successful supply of 1,596 ATMs in FY2025 and a solid order book exceeding 5,000 ATMs for FY2026, providing clear visibility and predictability for future revenue growth.

Driving Financial, Digital and Social Inclusion across India

Vakrangee continues to serve as a vital enabler of financial, digital, and social inclusion in India. Through its extensive network of Vakrangee Kendras (VKs) across the country, the Company plays a crucial role in supporting financial inclusion by serving as the last-mile delivery point for various products & services. These Kendras are often the only accessible touchpoints for citizens in remote and underserved regions, helping bridge the gap between public services and rural communities.

By facilitating access to essential services, Vakrangee enhances transparency, efficiency, and inclusivity in governance. The Companys role aligns closely with the Government of Indias unwavering commitment to expanding financial and social inclusion. In recent years, various flagship schemes have been launched to address the needs of low-income and informal sector populations, thereby creating significant opportunities for Vakrangee to expand its outreach.

a) Pradhan Mantri Jan Dhan Yojana (PMJDY)

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, has been pivotal in transforming Indias financial landscape. This ambitious initiative aims to provide every household with at least one basic savings bank account while also promoting access to credit, insurance, remittances, and pension products. The scheme allows zero-balance accounts and provides a RuPay debit card, encouraging secure transactions. Eligible account holders may also access overdraft facilities and insurance benefits, supporting their financial security.

Vakrangee Kendras serve as key facilitation points for PMJDY, helping millions in rural and semi-urban areas open bank accounts, understand basic banking operations, and connect with the formal financial ecosystem. The scheme has been a game-changer in improving financial literacy and inclusion, particularly through the seamless delivery of Direct Benefit Transfers (DBT), which reduce leakage and enhance transparency.

The Companys reach also supports other essential welfare schemes, such as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) - insurance schemes targeting unorganised workers - and the Atal Pension Yojana (APY), designed to provide retirement security for economically vulnerable individuals.

As these government initiatives continue to evolve and expand, Vakrangee remains uniquely positioned to amplify their impact. The alignment between the governments mission of inclusive growth and Vakrangees ground- level presence creates a strong foundation for sustained socioeconomic transformation. Through its integrated service delivery model, the Company empowers individuals and makes meaningful contributions to Indias journey towards a more inclusive and digitally enabled economy.

Beneficiaries of Pradhan Mantri Jan-Dhan Yojana as on 28/05/2025

Bank Name / Type	Number of Total Beneficiaries	Deposits in Accounts (In Crore)
Public Sector Banks	43.03	1,99,341.46
Regional Rural Banks	10.45	49,790.23
Private Sector Banks	1.81	7,625.98
Rural Cooperative Banks	0.19	0.01
Grand Total	55.48	2,56,757.68

b) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Launched in 2015, the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed, one-year renewable term life insurance scheme aimed at enhancing life insurance penetration across India. Designed to provide financial protection to economically vulnerable families, the scheme offers a life cover of Rs. 2 lakh in the event of the policyholders death, regardless of cause, for a modest annual premium of Rs. 436.

The premium is automatically debited from the subscribers bank account each year, ensuring easy participation. The scheme is available to individuals aged 18 to 50 years with a savings bank account, and Aadhaar serves as the primary Know Your Customer (KYC) document. The coverage period runs from June 1st to May 31st, with annual renewal options.

PMJJBY is administered by both public and private life insurance companies in partnership with scheduled commercial banks, regional rural banks, and cooperative banks. Its simplicity, affordability, and broad accessibility have made it particularly effective in reaching the underbanked and low-income segments. By reducing barriers to life insurance, PMJJBY promotes financial inclusion and provides a critical safety net to millions of families across the country.

c) Pradhan Mantri Suraksha Bima

Yojana (PMSBY)

Launched in 2015, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an affordable accident insurance scheme designed to provide financial protection to low-income and vulnerable populations in India. For an annual premium of just Rs. 20, automatically debited from the subscribers bank account, individuals aged 18 to 70 years receive a coverage of Rs. 2 lakh in the event of accidental death or total permanent disability, and Rs. 1 lakh for partial permanent disability.

The scheme is simple, accessible, and easily renewable, making it a vital social security tool for individuals with limited access to traditional insurance. Though the coverage is modest, PMSBY plays a crucial role in mitigating the financial impact of accidents on economically weaker families. By offering essential risk protection at an extremely low cost, PMSBY supports the governments broader financial inclusion and social welfare agenda.

d) Atal Pension Yojana (APY)

Launched in 2015, the Atal Pension Yojana (APY) is a flagship government initiative aimed at providing retirement income security for Indias vast unorganised workforce. The scheme aims to foster a culture of long-term financia planning among low-income earners, particularly younger gig and informal sector workers, by promoting early enrolment.

To improve participation, the scheme continues to explore flexible contribution models that reflect the variable income patterns common in informal employment. Technology integration is also a key enabler: digital platforms and mobile applications are simplifying enrolment, enabling real-time contribution tracking, and supporting seamless payments through digital wallets. These enhancements are expected to make APY more accessible, particularly in rural and semi-urban areas.

Looking ahead, policy-level innovations such as inflation-linked returns and expanded spousal benefits could further strengthen the schemes impact by offering more comprehensive retirement coverage. Such features would help address rising living costs while supporting broader financial security for beneficiaries families.

As of March 2025, APY enrolments crossed 6.44 crore, with over 1.23 crore new subscribers added during the current financial year.

This impressive outreach reflects the collective efforts of banks and financial institutions across India in promoting pension inclusion among economically vulnerable populations.

Vakrangees Role:

Vakrangee plays a pivotal role in advancing the APY mission by bridging the last-mile gap in pension access. Through its extensive nationwide network of Vakrangee Kendras, the Company helps individuals enrol in essential social security schemes such as APY, PMJJBY, and PMSBY. These Kendras specialise in delivering convenient, assisted services, offering instant policy issuance with zero waiting periods. In FY2025, Vakrangee sold more than 14.8 Lakh Insurance and Pension Schemes. Vakrangee further simplifies the process by utilising digital transactions to eliminate paperwork and reduce friction for first-time users.

By bringing pension and insurance coverage to underserved and remote regions, Vakrangee is enabling millions of Indians to plan for a dignified and secure retirement, in line with the governments broader agenda for financial inclusion and social protection.

Inclusive Growth Through Digital Banking

As of June 2024, Indias banking system comprises 13 public sector banks,

21 private sector banks, 44 foreign banks, and 12 small finance banks, supported by a rapidly expanding digital infrastructure. The number of on-site ATMs and Cash Recycling Machines (CRMs) totalled 1,26,772. In the first four months of FY23 alone, banks installed 2,796 new ATMs, representing a notable increase over the 1,486 installed in FY22 and the 2,815 installed in FY21. Notably, 100% of new bank account openings in rural India are now conducted digitally, underscoring the sectors transformation.

According to BCG, digital payments are projected to account for 65% of all transactions by 2026. In 2024, total banking assets stood at Rs. 16,12,808 crore (US$1,861.72 billion) in the public sector and Rs. 10,95,245.8 crore (US$1,264.28 billion) in the private sector, with public sector banks commanding a 59.53% share of the total banking assets, including those of foreign banks. Interest income in 2024 reached Rs. 11,09,730 crore (approximately US$128.1 billion) for public banks and Rs. 8,29,049 crore (approximately US$95.7 billion) for private banks, reflecting healthy credit growth. Digital transactions, particularly those conducted through Unified Payments Interface (UPI), have experienced exponential growth.

By FY25 (up to June), UPI volumes stood at 2,762 crores, with 602 banks actively participating as of July 2024. Notably, India accounted for nearly 46% of the worlds digital transactions in 2022. According to the RBIs Scheduled Banks Statement, total deposits across all scheduled banks soared to Rs. 2,28,91,936 crore (US$2,626.13 billion) as on January 10, 2025, signalling robust financial intermediation and depositor confidence.

Over the last decade, Indias banking industry has undergone a profound transformation. Technological innovations, regulatory reforms, and an inclusive growth agenda have reshaped the sector, making it more accessible, efficient, and innovation driven. The proliferation of smartphones and rising internet penetration have accelerated the adoption of digital banking, even in remote regions. Services like AI- powered chatbots, cloud computing, and data analytics have enabled banks to personalise offerings, scale cost- effectively, and improve customer engagement.

In parallel, the rise of FinTechs has disrupted traditional banking models by introducing agile and innovative solutions across lending, wealth management, insurance, and payments. As a result, incumbent banks have intensified their digital transformation efforts to remain competitive and relevant.

Financial inclusion has been a core national priority. Government-led initiatives in partnership with banks have brought millions of unbanked and underbanked citizens into the formal financial system. However, the shift to digital also brings new challenges. Cybersecurity risks are escalating, necessitating more robust data protection frameworks. At the same time, financial literacy gaps—particularly in rural India—must be addressed to ensure users can engage safely and confidently with the growing array of financial tools.

Vakrangees Strategic Positioning

Vakrangee is well-positioned to align with the evolving banking landscape. Our phygital model integrates both physical infrastructure and digital platforms to deliver a broad portfolio of banking and financial services. We are not dependent on a single revenue stream, such as ATMs or banking products. Instead, we offer a diversified suite of services, including account opening, micro-loans, insurance products, fixed deposits, bill payments, demat account opening, loan recovery, healthcare, and e-commerce - all accessible through Vakrangee Kendras and the BharatEasy App.

The Company offers a wide array of services designed to enhance customer convenience and reduce dependency on any single product category. Its diversified non-cash banking portfolio includes account opening, loan facilitation, insurance distribution, fixed deposit mobilisation, and NPA recovery services. By maintaining a balanced mix, the Company effectively mitigates concentration risk traditionally associated with ATM- or banking- exclusive models. Beyond banking, Vakrangee offers an extensive suite of value-added services, including e-commerce, comprehensive healthcare solutions, utility and bill payments, travel bookings, mobile recharges, PAN card assistance, and online demat and trading account openings. Notably, the Company offers one of the most attractive commission structures in the industry, further incentivising participation and driving sustained partner engagement.

Our franchise-based model ensures entrepreneurial participation at the grassroots level, while our industry- best commission structure incentivises superior service delivery. By embracing next-gen technologies and building strategic partnerships, we are not only future-ready but also equipped to play a vital role in Indias digital and financial inclusion journey.

Expanding Horizons: Vakrangees Foray into Credit Enablement and Loan Recovery

Vakrangee is strategically expanding its role within the banking ecosystem by moving beyond liabilities facilitation, traditionally focused on aiding banks with Current and Savings Account (CASA) deposit mobilisation, towards active participation in the asset side of the business. In alignment with the Reserve Bank of Indias regulatory framework for Banking Correspondents (BCs) and Loan Service Providers (LSPs), Vakrangee is positioning itself as a key enabler in the credit value chain.

Leveraging its extensive physical network of Vakrangee Kendras and its digital super-app, BharatEasy, the Company is now poised to act as a digital loan aggregator-connecting borrowers, especially from underserved and rural geographies, with suitable lending institutions. The BharatEasy App will play a pivotal role in digital loan sourcing, enabling real-time discovery, application, and approval processes across a broad suite of loan products, including personal, MSME, education, and agri-credit. Vakrangee will generate commission-based income from successful loan disbursements, creating a scalable, high-margin revenue opportunity.

Furthermore, Vakrangee plans to expand its service suite to support loan collections and facilitate the recovery of delinquent and non-performing assets (NPAs) on behalf of partner banks and NBFCs. Its trusted presence in Tier IV- VI markets offers a strategic advantage in last-mile recoveries and financial counselling. This comprehensive approach to credit distribution and lifecycle management strengthens Vakrangees position as an integrated financial intermediary, empowering Indias financially excluded segments with better access to formal credit systems.

Indias ATM and WLA Landscape: Strengthening Banking Infrastructure

Indias ATM industry remains a critical pillar of the countrys financial infrastructure, providing vital access to cash and banking services for millions, particularly in semi-urban and rural regions. As of FY2024, India has an installed ATM base of approximately 250,000, which is expected to grow to over 365,000 by FY2027, reflecting strong demand for banking touchpoints in underserved areas. White Label ATMs (WLAs), operated by nonbanking entities in accordance with RBI guidelines, play a crucial role in expanding financial inclusion by complementing bank-owned networks and bridging last-mile banking gaps.

With a growing emphasis on cash recyclers, energy-efficient designs, and advanced security features, the Indian

ATM industry is undergoing a significant technology refresh. Over the next 24-36 months, an estimated 100,000 ATMs are projected to be replaced, driven by upgrades from Windows 7 to Windows 10 systems as well as enhanced compliance and security requirements. At the global level, the ATM market is forecast to expand at a CAGR of around 8.1% until 2027, supported by rising financial penetration in emerging markets across Africa, Asia-Pacific, and Latin America.

Despite the growth of digital payments, ATMs and cash infrastructure remain highly relevant in Indias socio-economic context, particularly for lower-income and rural segments that still rely on cash-based transactions. Maintaining and upgrading this ATM ecosystem is vital to ensuring uninterrupted access to financial services for all citizens.

Our Role

The strategic acquisition of Vortex Engineering positions Vakrangee firmly within this evolving landscape. Vortex, an industry pioneer in low-power and cost-efficient ATMs with proprietary cash dispensers and nine patents, brings substantial technological and manufacturing capabilities to the table. The company recorded 1,596 ATM shipments in FY2024-25 and has an order pipeline exceeding 5,000 ATMs for FY2025-26. With Vakrangees financial backing, Vortex is now poised to aggressively expand its participation in large-scale tenders, domestic replacement cycles, and international opportunities, including markets in MENA, Africa, and the Caribbean.

By integrating Vortexs ATM solutions into our vast Vakrangee Kendra network, we aim to deliver a comprehensive and modern banking infrastructure that enhances customer access while improving operational efficiencies and margins. Furthermore, our presence in both cash-based and digital financial services enables us to offer a comprehensive suite of banking solutions, thereby strengthening our position as a one-stop provider of financial empowerment.

Through this synergy, Vakrangee is poised to make a meaningful contribution to Indias mission of financial inclusion while simultaneously tapping into global ATM demand, unlocking sustainable growth opportunities well into the future.

Driving Insurance Inclusion Across Bharat

Indias insurance industry is one of the most dynamic sectors in the countrys financial ecosystem, ranking 10th globally and 2nd among emerging markets in terms of total premium volume. As of March 2023, the sector includes 57 insurers, comprising 24 life insurers, general insurers, standalone health insurers, and reinsurers, all overseen by the Insurance Regulatory and Development Authority of India.

Market Landscape and Growth Momentum

Amid evolving regulatory developments in FY2024-25, life insurers reported a 5.13% year-on-year increase in new business premiums (NBPs), reaching Rs. 3.97 trillion. This marks an improvement over the 2% growth recorded in the previous fiscal year, when NBPs stood at Rs. 3.77 trillion, as per data from the Life Insurance Council.

In March 2025, public sector general insurers reported a 5.5% year-over-year increase in gross direct premiums, primarily driven by growth in retail health insurance, which offset the weakness in commercial lines. In contrast, private sector general insurers saw a decline during the same period. Specialised insurers reported a sharp 36.2% decline in premiums in March 2025. However, for the full fiscal year (FY25), the segment saw only a marginal contraction of 0.7%, a notable improvement from the steep 29.3% drop in FY24, primarily due to a shift in crop insurance premiums away from the Agriculture Insurance Company of India Ltd. Standalone Health Insurers (SAHIs) experienced moderated growth of 11.1% in March 2025, down from the previous year, mainly due to regulatory changes such as the implementation of the 1/n rule in the latter half of the fiscal year. Despite this slowdown, SAHIs continued to gain market share, even as private general insurers experienced a decline in market share.

Technology as a Key Enabler

The next decade, coined the "techade” by McKinsey, is set to redefine the Indian insurance industry. With smartphone penetration exceeding 70% and digital literacy improving even in rural belts, technology is no longer a differentiator but a necessity. Insurers are now integrating AI/ML algorithms to streamline underwriting, personalise product recommendations, and reduce fraud risk.

Digital transformation is also driving customer acquisition. Over 90% of policy purchases among new-age customers are now initiated online. McKinsey estimates that 40-50% of insurance distribution will be digital by 2030, with embedded insurance, digital platforms, and InsurTech partnerships playing a key role.

Innovation and the Role of Ecosystems

The industry is shifting focus from mere scale to value- driven growth. New business models are emerging that are built around digital ecosystems, offering a mix of insurance, wellness, and financial services. For example, health insurers are combining wearable tech and preventive care platforms to create integrated wellness packages. This customer-centric approach aims to increase stickiness and unlock lifetime value beyond premium collections.

Indias regulatory environment is also supporting innovation. The IRDAIs "sandbox approach”, which allows companies to pilot new products and technologies with limited regulatory compliance, is helping startups and incumbents alike to test and scale innovative models without regulatory burden.

Future Outlook

By 2030, Indias insurance market is projected to become the worlds sixth largest. This journey will be led by digitally native insurers, tech-powered customer journeys, and integrated service ecosystems. However, challenges remain, including low financial literacy, trust gaps, and the need to ensure data privacy and cyber resilience in the face of rising digital transactions.

Nevertheless, with concerted efforts from the government, regulators, and the private sector, Indias insurance industry is well-positioned to become not only larger but also more innovative, inclusive, and customer centric.

Our Role:

Vakrangee has partnered with leading insurance providers to bring simplified, accessible, and reliable insurance solutions to underserved segments of the population. By digitising the entire insurance journey - from paperless onboarding to instant policy issuance - the Company has positioned itself as a key enabler of insurance inclusion in rural and semi-urban India. With its widespread Vakrangee Kendra network and technology-driven approach, Vakrangee continues to bridge the protection gap, ensuring last-mile delivery of critical risk mitigation tools to millions of Indians.

During FY2024-25, Vakrangee strategically expanded its insurance portfolio by strengthening tie-ups with leading life, general and health insurance companies. These partnerships enabled the Company to offer a broader range of affordable, paperless insurance products across its pan-India Vakrangee Kendra network. By integrating with established insurers, Vakrangee ensured faster policy issuance, improved customer trust, and enhanced access to critical insurance services for underserved rural and semi-urban populations.

E-commerce: Bridging Urban-Rural Divide

Indias e-commerce landscape is undergoing a transformative evolution, driven by increasing internet penetration, widespread smartphone usage, and the availability of low-cost data. Online shopping has become a widely adopted behaviour across demographics, with platforms now offering an expansive range of goods - from groceries and electronics to fashion and home essentials - delivered to even the remotest parts of the country. Flexible payment options, including digital wallets and cash-on- delivery, have further broadened the appeal of e-commerce by catering to diverse user preferences.

The emergence of social media commerce through platforms like Instagram and Facebook Marketplace is expanding access for small businesses and individual entrepreneurs, stimulating grassroots-level innovation and expanding reach. Government-led initiatives, such as Digital India, have played a catalytic role in narrowing the digital divide and fostering broader participation in the online economy.

Yet, challenges remain. Strengthening last-mile delivery infrastructure in rural India is crucial, as are continued efforts to mitigate risks such as counterfeit products and cybersecurity threats. Promoting digital literacy is equally important to empower consumers to navigate online marketplaces with confidence and awareness.

The Open Network for Digital Commerce (ONDC), a government- backed initiative, is poised to be a game-changer in Indias digital retail ecosystem. By unbundling traditional e-commerce models and allowing small sellers direct access to customers without reliance on dominant platforms, ONDC aims to democratise online commerce. It promises increased competition, wider product availability, and better prices for consumers.

Indias e-commerce industry, valued at Rs. 10,82,875 crore (US$125 billion) in FY24, is projected to grow to Rs. 29,88,735 crore (US$345 billion) by FY30, reflecting a compound annual growth rate (CAGR) of 15%. According to a joint report by real estate consulting firm ANAROCK and retail news platform ETRetail, the sector is further expected to reach Rs. 47,64,650 crore (US$550 billion) by FY35, driven by increasing digital adoption and evolving consumer behaviour.

The Indian Beauty and Personal Care (BPC) market is experiencing rapid growth, projected to reach a Gross Merchandise Value (GMV) of Rs. 2,60,610 crore (approximately US$30 billion) by CY27. This represents 5% of the global beauty industry. The market is expanding at an annual growth rate of around 10%, making it the fastest- growing BPC market among major economies.

Our Role in Indias E-commerce Journey

Vakrangee is actively empowering rural and underserved communities by enabling seamless e-commerce participation through its extensive network of Vakrangee Kendras. These Kendras offer assisted online shopping services, effectively bridging the digital divide and helping customers in remote regions to access a diverse portfolio of branded products and services.

Through partnerships with major players like Amazon, Decathlon, and

Digify on the BharatEasy Mobile Super App, customers can conveniently shop for goods online. Additionally, Vakrangee Kendras facilitate access to telemedicine and online pharmacy services via DocOnline, ensuring affordable healthcare reaches the last mile. Customers can also use these Kendras for bill payments, mobile/DTH recharges, and subscription-based OTT plans through MAX TV and Bharat BillPay, streamlining their essential financial transactions.

Vakrangee has strengthened its travel services offerings by collaborating with partners like Yatra and RedBus, enabling assisted bookings for bus, flight, and hotel reservations. In the agri-services segment, alliances with platforms such as BigHaat provide farmers access to quality agricultural products and solutions.

In addition to enabling these third- party partnerships, Vakrangee has strategically moved into sourcing and distributing its private label and white- label consumer and retail products. The Company has started with the Apparel Segment, leveraging its pan-India franchise and master franchise network. The company is well-positioned to distribute these offerings efficiently and at scale.

Collectively, these initiatives are transforming Vakrangee Kendras into truly comprehensive, multi-category commerce hubs, advancing the companys mission of financial, digital, and social inclusion across India.

Empowering Bharat with Accessible E-Health Solutions

Indias e-health sector is experiencing accelerated growth, driven by rising internet penetration and widespread smartphone adoption. Digital healthcare services are gaining momentum, especially in remote and underserved regions, where telemedicine is bridging the gap between patients and healthcare professionals. Virtual consultations enable timely medical advice, while e-pharmacies offer the convenience of home-delivered medications, enhancing both accessibility and efficiency.

Nonetheless, challenges persist, including ensuring quality and affordability of care, safeguarding patient data, and closing the digital divide in rural areas. Government-led initiatives focusing on digital health literacy and telemedicine infrastructure are pivotal in fostering a more inclusive and robust healthcare ecosystem.

Indias digital health sector is undergoing a remarkable transformation, driven by a convergence of technology, government initiatives, and growing healthcare demands.

As of 2024, the market is valued at USD 14.33 billion and is projected to grow significantly, reaching USD 52.40 billion by 2030. This reflects an impressive compound annual growth rate (CAGR) of 24.4% from 2025 to 2030, positioning India as one of the fastest-growing markets globally.

In 2024, tele-healthcare emerged as the dominant segment, accounting for approximately 58% of total market revenue. It also stands as the fastest- growing area within the digital health space. Other vital segments include:

• mHealth (mobile health applications and services),

• Healthcare analytics (data-driven insights and diagnostics), and

• Digital health systems (electronic health records and connected infrastructure

On a global scale, the digital health market was valued at USD 285 billion in 2024 and is projected to grow to

USD 937 billion by 2030, at a CAGR of 22.3%. India currently represents around 5% of the global digital health market, and its rapid growth rate highlights its increasing influence, particularly within the Asia-Pacific region.

Our Role:

Vakrangee has proactively responded to the growing demand for digital health services by forging strategic partnerships with trusted names, including DocOnline and Corival Lifesciences/Biogetica. Through our assisted total healthcare services model, we offer customers access to virtual consultations with qualified medical professionals, including doctors, nurses, dietitians, and behavioural health experts, at affordable prices.

Leveraging our extensive Vakrangee Kendra network, we enable customers to order, pay for, and collect both prescription and over-the-counter medicines with ease. Additionally, we facilitate home-based blood testing and doorstep delivery of essential healthcare products through our partner ecosystem.

Expanding further, Vakrangee has collaborated with Biogetica to deliver a unique blend of traditional and modern healing solutions, offering a holistic approach to wellness. This integration of technology with comprehensive healthcare services positions us to empower millions of Indians with reliable and accessible health support.

Indias Logistics Landscape: Driving Growth and Connectivity

Indias logistics market in 2024 is characterised by strong momentum, driven by rapid economic growth and digital transformation. The surge in e-commerce has intensified the demand for swift and reliable logistics, catalysing the development of an extensive last- mile delivery ecosystem.

The countrys growing stature as a manufacturing hub further reinforces the need for seamless domestic and international freight movement. Strategic infrastructure initiatives, such as the Dedicated Freight Corridors (DFCs) and the Baramulla project, are enhancing connectivity and are expected to significantly reduce transport costs, providing a solid foundation for sustained growth in the logistics sector.

Technological integration is reshaping operations, with automated warehousing, innovative inventory systems, and advancements in route optimisation and real-time tracking enhancing supply chain efficiency and visibility. The sector is also exploring emerging technologies, such as drones and electric vehicles, for sustainable and accelerated urban deliveries.

To fully realise its potential, the Indian logistics industry must address key challenges such as infrastructure deficits, workforce skilling, and greater formalisation. Achieving these goals will not only strengthen logistics capabilities but also make a meaningful contribution to Indias economic advancement.

According to IMARC, the Indian logistics market was valued at USD 228.4 billion in 2024 and is projected to grow to USD 428.7 billion by 2033, expanding at a compound annual growth rate (CAGR) of 6.50% between 2025 and 2033. The rapid expansion of the e-commerce sector, combined with supportive government policies and a growing manufacturing base, drives this robust growth. Among the various modes of transportation, roadways continue to dominate the market due to their extensive reach and flexibility. Regionally, West and Central India account for the largest market share, reflecting their strong industrial and infrastructural presence.

Our Role:

Vakrangee has partnered with Delhivery to scale its courier and last-mile delivery services, leveraging the extensive Vakrangee Kendra network across India. This collaboration ensures reliable and cost-effective service delivery to both urban and rural customers. With a reputation built on trust and consistency, our logistics operations are enhancing accessibility and convenience for millions across the country.

Business Risks and Opportunities

Risk Management Framework

In compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013, our Board of Directors has adopted a comprehensive Risk Management Policy. This policy is designed to establish a robust framework for identifying, assessing, and mitigating risks in alignment with regulatory expectations, with the overarching goal of ensuring sustainable business growth and organisational stability.

To operationalise this vision,

Vakrangee has instituted a systematic, structured, and proactive approach to risk management. This includes the implementation of robust decision-making processes related to risk identification, analysis, and mitigation.

A dedicated Risk Management Committee, comprising primarily members of the Board of Directors, has been formed to oversee and evaluate the Companys risk management practices. This Committee holds overall responsibility for supervising risk mitigation efforts across the organisation.

Our risk assessment methodology follows a structured process that considers threats, vulnerabilities, likelihood of occurrence, severity of impact, and exposure across various scenarios. These protocols also comply with the Reserve Bank of Indias guidelines on risk management for banking correspondents and white-label ATM operations, as well as Regulation 21 of the Securities and Exchange Board of Indias Listing of Securities (LODR).

The Board ensures the continued effectiveness of the risk management framework through ongoing evaluation and assessment. Department heads are accountable for implementing the risk management framework within their functions and report regularly to the Board and Audit Committee.

Vakrangee integrates forward-looking insights with a comprehensive risk strategy to identify and manage potential business risks, thereby supporting resilient and sustainable growth.

Roles and Responsibilities of the Board in Risk

Management

To ensure a holistic and practical risk management approach, our Board of Directors assumes the following responsibilities:

• Accountable for establishing, overseeing, and ensuring the implementation of the risk management plan.

• Ensuring that all departments and business verticals adopt globally recognised best practices in their standard operating procedures (SOPs), align with ESG principles and UN Sustainable Development Goals (SDGs), and effectively address both business and legal risks.

• Defining the roles and responsibilities of the Risk Management Committee, delegating monitoring and evaluation functions, and allocating additional duties as needed.

• Implementing appropriate risk management mechanisms organisation wide.

• Engaging Independent Directors to provide unbiased perspectives during Board discussions, thereby strengthening the defensibility of the Companys risk profile.

• Maintaining a high level of awareness regarding strategic risk management and ensuring continuous monitoring.

• Establishing systems and controls to mitigate less significant risks, creating clear accountability structures, and embedding risk management into Board-level reporting and disclosures.

• Convening specific Board Committees as required to address particular risk concerns.

Composition of the Risk Management Committee

The Risk Management Committee is composed primarily of members from the Board of Directors. The composition and roles of this Committee are disclosed in the Corporate Governance section of this Annual Report.

Through this structured approach, Vakrangee aims to build a resilient, agile, and forward-thinking risk management ecosystem that supports long-term business continuity and value creation.

Risk Management Committee Mr. Hari Chand Mittal - Chairman Ms. Divya Dinesh Nandwana - Member Mr. Sandeep Gaware - Member Ms. Savita Keni - Member

The Committee has easy access to management and pertinent management information. It is mandated to meet at least once a year and may reach out to external experts or consultants as needed.

Furthermore, the Committee annually assesses all policies to verify their alignment with legislative mandates and organisational requisites. Information is officially communicated to all stakeholders once the risk management committee has assessed risks.

Driving Economic Empowerment

At Vakrangee, we not only work towards proactively mitigating risks but also strive to transform them into economic opportunities that drive profitability and deliver societal value. Our commitment to national development is evident through the deployment of essential services, such as banking and ATM access, across more than 22,900 locations via our Vakrangee Kendras. These centres serve as vital last-mile business correspondents, particularly instrumental in facilitating the distribution of government subsidies to Jan Dhan account holders in rural and underserved areas across India.

Embedding Sustainability into Risk Management

Sustainability is a foundational pillar of our risk management philosophy. Our framework has been designed to provide a structured and forward-looking approach to identifying, assessing, and mitigating risks while supporting sustainable and stable business growth.

To institutionalise this approach, our Board of Directors, along with Business and Department Heads, ensure that every business vertical develops Standard Operating Procedures (SOPs) that reflect global best practices.

These SOPs are aligned with Environmental, Social, and Governance (ESG) standards and the United Nations Sustainable Development Goals (UN-SDGs), enabling the efficient mitigation of sustainability-related operational anc legal risks.

We have also established a dedicated ESG Committee at the Board level to focus on key environmental, social, and governance issues relevant to our operations. This Committee plays a central role in strengthening our ESG credentials and guiding the Company toward leadership in responsible business practices.

Quarterly reviews are conducted to ensure continuous monitoring and evaluation of key strategic decisions and ESG-related initiatives. The ESG Committee is entrusted with the following responsibilities:

• Review ESG Initiatives and Benchmarks:

Evaluate outcomes from ESG investor initiatives, global benchmarks, and surveys; oversee the implementation of recommended improvements.

• Monitor Emerging ESG Risks: Track and assess new ESG-related developments that may impact long-term value creation, ensuring organisational preparedness.

• Evaluate Strategic ESG Alignment: Examine business strategies through an ESG lens to ensure alignment with our sustainable development agenda.

• Support SDG Integration: Oversee the incorporation of Sustainable Development Goals into new initiatives, ensuring a positive contribution to global sustainability efforts.

• ESG-linked Performance Review: Assist the Nomination and Remuneration Committee in assessing senior management performance based on ESG deliverables.

• Track GHG Reduction Efforts: Monitor the execution and progress of the Companys greenhouse gas (GHG) reduction strategies, reinforcing our commitment to climate action.

Through this integrated and accountable approach, Vakrangee continues to uphold its commitment to economic inclusion, environmental stewardship, and longterm value creation for all stakeholders.

Pillar	Responsibilities
Environment	- Oversee implementation of environmental sustainability initiatives, monitor performance, identify challenges, and explore opportunities.
	- Supervise disclosures related to climate change and greenhouse gas (GHG) carbon emissions.
	- Collaborate with the Board Risk Management Committee to assess the adequacy of strategies for identifying and mitigating environmental and climate-related risks.
Social	- Monitor execution of social sustainability commitments across the Company, assess outcomes, address challenges, and explore avenues for positive social impact.
	- Oversee strategies and procedures for stakeholder engagement, ensuring alignment with the expectations of franchisees, customers, and suppliers.
	- Evaluate the effectiveness of programmes supporting human rights and diversity within operations and the supply chain.
	- Collaborate with the Board Remuneration Committee to oversee the inclusion, diversity, and cultural practices, including relevant frameworks.
Governance	- Evaluate the reputational impact of the Companys strategies and operational decisions.
	- Ensure policies and initiatives include appropriate safeguards for ethical and fair dealings with external stakeholders, including capital partners and suppliers.
	- Review and approve the Governance Management Framework for submission to the Board.
	- Annually assess and endorse the Sustainability Performance Pack, Corporate Governance Statement, and ESG achievements and goals for Board presentation.

By carrying out these duties, the Board ESG Committee plays a pivotal role in steering the Company towards sustainable and responsible practices that align with investors expectations and global ESG benchmarks.

Business Risks

Risk is defined as the effect of uncertainty on objectives, measured by its potential consequences and the likelihood of those consequences occurring. It is an intrinsic aspect of all internal and external business operations and administrative activities.

As such, managing risk is a continuous responsibility shared across all levels of the organisation. Today, structured and formalised risk management has become an essential component of business best practices.

At Vakrangee, we take a proactive approach to navigating a dynamic environment by turning potential risks into opportunities for sustainable value creation. Our risk mitigation strategies are based on disciplined, methodical processes designed to address both developmental and stakeholder-related risks.

Our risk management framework includes detailed assessments aimed at identifying, analysing, and mitigating threats, vulnerabilities, and exposures that may impact the organisation. The process is structured into the following key steps:

• Risk Identification: This foundational step involves detecting and recognising potential risks, understanding their nature, and outlining the possible impact on the organisation.

• Risk Analysis: Once risks are identified, a detailed analysis is conducted to evaluate the likelihood of occurrence and the potential extent of consequences. This provides a deeper understanding of the risks possible influence on organisational goals.

• Risk Evaluation: In this phase, the significance of each risk is assessed by weighing its likelihood against the severity of its outcomes. Risks deemed unacceptable are escalated for mitigation through suitable strategies.

• Risk Treatment: Appropriate responses are developed and implemented to reduce identified risks to tolerable levels. These may include measures to eliminate or minimise risks, while also leveraging opportunities that may arise in the process.

• Risk Monitoring and Review: Following the implementation of treatment plans, the Company continually monitors risks and the effectiveness of mitigation strategies in place. Regular evaluations ensure adaptability to evolving scenarios and reinforce the effectiveness of the risk management system.

Through this comprehensive and iterative approach, Vakrangee maintains a resilient operational foundation, supporting sustainable business growth while safeguarding the interests of its stakeholders.

Risk Identification and Mitigation

Risk	Significance	Mitigation Measures	Linkages with Capital
Changes in Government Policies	Our business is closely aligned with government policies related to financial inclusion in semi-urban and rural India. Any change in these policies may significantly affect our operations.	We maintain a proactive stance by engaging with stakeholders, monitoring government policy changes, and participating in trade bodies.	Financial, Social and Relationship
Rapid Technological Transformation	Our operations rely on technologies such as the Internet of Things (IoT) and biometric systems. Disruptive innovations could affect profit margins.	We have adopted a next-generation digital model, implemented a unified payment platform, and continue to invest in advanced technologies, including digital and mobile platforms such as BharatEasy Super Mobile App.	Intellectual, Natural, Financial
Rise in Digital Payments and Cashless Economy	As India becomes increasingly cashless, traditional services such as ATMs and AEPS may face declining relevance.	We have diversified our offerings beyond cash-based services, including loans, insurance, e-commerce, and bill payments, to ensure long-term sustainability.	Intellectual, Financial
Heavy Dependence on Franchisee Model	Franchise expansion increases scale but may expose the brand to operational or reputational risks.	We may explore revenue-sharing models and alternatives, such as White Label ATMs, to mitigate risk.	Human, Manufactured, Social and Relationship, Financial
Legal Risk	Non-compliance with laws and regulations could expose the Company to legal liabilities.	Contractual compliance is ensured by experts who identify and effectively mitigate risks.	All Capitals
Financial Reporting Risk	Frequent regulatory changes can lead to ambiguity and compliance challenges.	We maintain high governance and transparency standards to navigate evolving norms.	Financial, Social and Relationship, Human
Corporate Accounting Fraud	Fraud risks include fund misuse, revenue misstatement, and expense suppression.	Measures include adherence to legal requirements, risk assessment, a whistleblower policy, internal controls, and the auditors independence.	Financial, Social and Relationship, Human
Cyber Security Risk	Cyber threats, such as data breaches and hacking, can compromise stakeholder trust.	Security practices include endpoint validation, encryption, digital signatures, MAC, audits, and antiskimming.	Financial, Social and Relationship, Human, Intellectual
Theft of Physical Assets	Franchise outlets and ATMs face risks of theft and damage, which can impact company assets.	We provide comprehensive insurance for assets and offer bundled ATM maintenance and insurance services.	Financial, Social and Relationship, Human, Manufactured

 

Risk Identified	Mitigation Strategy
Adapting to the evolving landscapes in the post-pandemic world and sustaining visibility with the customers	Launched BharatEasy Mobile Super App (Hybrid O2O), combining physical Kendras with online services; continued franchisee training and support; implemented CCTV, helpdesks, and offered doorstep banking during lockdowns.
Ensuring the security and safety of franchisees and their outlets, including ATM maintenance	A comprehensive insurance policy covers ATM and cash transactions up to Rs. 10 lakhs; ATM maintenance is supported through bundled services.
Incomplete activation of digital payment mechanisms such as QR code and UPI in Kendras	A Unified Payment Platform has been introduced to support card, UPI, AEPS, Aadhaar Pay, and QR payments. Kendras can now accept multiple payment methods, making them pioneers in AEPS banking along with UPl-enabled features in ATMs for Cash Withdrawal.
Dependency on government policies for financial inclusion in semi-urban and rural areas	Proactive stakeholder engagement, policy monitoring, and trade body representation; risk deemed low due to the governments push for inclusion.
Indias transition to a cashless economy and reduced reliance on cash transactions	Diversified offerings beyond cash transactions: insurance, loans, healthcare, shopping, bill payment, trading accounts; highest commissions in the sector.
Rapid technological advancements are disrupting existing business models	Continuous tech evaluation and investment in cutting-edge systems; procurement aligned with regulations and upgrade readiness.
Risks arising from a franchisee-based business model	Option to shift to revenue-based models or integrate White Label ATMs if required.
Legal risks from non-compliance with laws and regulations	Team of experts ensures compliance, assesses contract risks, and limits liabilities to mitigate legal exposure.
Uncertainties due to evolving accounting and governance regulations	Strict corporate governance standards; regular compliance with SEBI and listing rules to mitigate ambiguity and cost.
Corporate accounting fraud involving misstatement or misdirection of financial data	Enforced code of conduct, risk assessments, whistle-blower system, internal controls, and cross-verification of key transactions.
Cybersecurity risks, including data leakage and privacy breaches	MAC, encryption, real-time monitoring, SSL, endpoint validation, key management through HSMs; compliance with ISO and PCI DSS.
ATM skimming attacks	Installed anti-skimming card readers on all ATMs to safeguard user data from fraud.

Risk Monitoring & Mitigation Framework

We have established a robust system to identify and monitor emerging risks proactively:

• Risk Monitoring Tool: We conduct detailed audits of network logs to identify and mitigate cyber threats. Data classification and provenance help ensure authenticity and access control.

• Periodic Audits: Regular audits ensure operational compliance with policies and regulatory standards.

• Training Programmes: Ongoing training for staff, ATM custodians, and operators promotes operational efficiency and risk awareness.

• Surveillance: CCTV systems at all Kendras provide 24/7 monitoring, supported by staffed outlets during business hours for added security.

Upon detection of risks, the Risk Management Committee escalates findings to the Managing Director or Compliance Officer, with critical issues reported directly to the Board for prompt action.

Business Opportunities

Vakrangee Kendra: A Sustainable and Profitable Model

As India transitions toward a cashless economy, cash-dependent services, such as ATMs, face limitations on their growth. Vakrangee is well-positioned with a diversified, digital-first model that offers non-cash banking services (e.g., loans, insurance, deposits), as well as essential services such as healthcare, online shopping, PAN card applications, bill payments, and more, all supported by the industrys highest commission rates.

Digital Vakrangee Kendra - BharatEasy App

We launched the BharatEasy App, a mobile super app that integrates our broad service suite and leverages our strong Kendra network. This "phygital” (physical + digital) model enhances customer engagement, lowers acquisition costs, and supports scalable, last-mile service delivery in rural and semi-urban areas.

ONDC Integration

We are developing a buyer app on the ONDC platform to provide rural users with a seamless e-commerce experience and plan to list our services through the ONDC seller app. A dedicated seller app for local vendors near our Kendras is also in progress to improve visibility and service reach.

Vortex Acquisition: Strategic Entry into ATM Manufacturing

Our acquisition of Vortex Engineering, a Swadeshi Make in India Company, unlocks a timely opportunity amid industry-wide ATM supply disruptions caused by import restrictions under Indias Make in India policy. With banks and financial institutions struggling to source ATMs, Vortex strengthens our vertical integration by enabling in-house manufacturing capabilities, cost efficiency, and faster deployment. This complements our Vakrangee Kendras, supports our expansion into underserved regions, and positions us as a key player in bridging the nations ATM gap, with global scalability and revenue growth potential.

Financial Performance

(? in Lakhs except as stated)

1 Particulars	FY24	FY25	Change -
Total Income	21492.1	25902.6	20.52%
EBITDA	2872.1	2812.3	-2.08%
EBITDA Margin (%)	13.36%	10.86%	- 250 bps
Profit Before Tax	586.3	959.9	63.72%
PBT Margin (%)	2.73%	3.71%	98 bps
Profit After Tax	435.3	639.0	46.80%
PAT Margin (%)	2.03%	2.47%	44 bps

Financial Analysis

Vakrangee Ltd. demonstrated a strong topline performance in FY2024-25, with total income rising by 20.52% from Rs. 21,492.1 Lakhs in FY2023-24 to Rs. 25,902.6 Lakhs in FY2024-25. This growth reflects the continued expansion of its service offerings and geographic footprint, driven by deeper rural penetration. We expect this trend to continue due to the introduction of new services, new verticals, including apparel retail and Vortex ATM manufacturing.

However, EBITDA witnessed a marginal decline of 2.08%, reducing from Rs. 2,872.1 Lakhs to Rs. 2,812.3 Lakhs. This decline, despite higher revenues, suggests an increase in operating expenses due to investments in new initiatives, network expansion, technology enhancements, and marketing efforts. Consequently, the EBITDA margin contracted by 250 basis points, from 13.36% in FY24 to 10.86% in FY25, pointing to the transitional phase of scaling operations and onboarding new business verticals.

Notwithstanding the decline in operating margins, the Company delivered a strong recovery in profitability. Profit Before Tax (PBT) increased by 63.72%, rising from Rs. 586.3 Lakhs to Rs. 959.9 Lakhs. The corresponding PBT margin improved by 98 basis points, from 2.73% to 3.71%, driven by better control over non-operational costs and possible gains from optimising resource utilisation and revenue diversification.

In line with the PBT trend, Profit After Tax (PAT) rose by 46.80%, increasing from Rs. 435.3 Lakhs in FY24 to Rs. 639.0 Lakhs in FY25. PAT margin improved by 44 basis points, reaching 2.47%, as the Company benefited from better fiscal discipline and tax management.

Vortex Engineering delivered a strong operational performance in FY2024-25, achieving 26.3% year-on-year revenue growth. The company shipped 1,596 ATMs, marking a 36.6% increase over the previous year. This surge highlights the rising demand and Vortexs increasing role in bolstering Vakrangees ATM-led service portfolio.

Strong Balance Sheet and Robust Liquidity Position

Vakrangee Ltd. concluded FY2024-25 with a strong and resilient balance sheet, underscoring its ability to pursue strategic expansion while maintaining financial discipline. The Company reported a net worth of Rs. 21,166.9 lakh, reflecting a robust 30.6% year-on-year growth over FY2023-24 (Rs. 16,211.1 lakh).

Notably, Vakrangee is now completely debt-free, having fully repaid its total debt of Rs. 1,205.7 lakh from the previous year. This positions the Company with a clean capital structure, providing greater financial flexibility and lowering interest burden, which is crucial for sustaining long-term profitability and navigating macroeconomic uncertainties.

The Companys liquidity position remains solid, with cash and cash equivalents rising to Rs. 8,188.2 lakh, a significant increase from Rs. 4,868.0 lakh in FY2023-24. Coupled with an improvement in net current assets to Rs. 8,435.9 lakh (up from Rs. 4,947.8 lakh), Vakrangee has ample internal resources to fund its upcoming growth initiatives, including deeper rural penetration, digital transformation through the BharatEasy Super App, the apparel and ONDC retail push, and scaling up its ATM and technology operations via the Vortex acquisition.

Ratio Analysis

S. No.	Particulars	FY 2024-25 (%)	Remarks
1	Debtors Turnover (%)	1.03	Indicates the number of times we collect our average accounts receivable during the year. Based on the ratio between average trade receivables and revenue from operations (assumed to be all credit sales net of returns).
2	Inventory Turnover (%)	0.42	Measures how often inventory is sold and replenished during the year and is calculated as the ratio of revenue from operations to average inventory for FY 2024-25.
3	Interest Coverage Ratio (%)	3.95	Reflects our ability to cover interest expenses with operating earnings.
4	Current Ratio (%)	0.96	Measures our ability to meet shortterm obligations with short-term assets, indicating strong liquidity.
5	Debt Equity Ratio (%)	0.00	Debt free Company. Compares total debt with shareholders equity, indicating the leverage level.
6	Operating Profit Margin (%)	15.21	Computed using EBIT (excluding exceptional items), indicating core profitability.
7	Net Profit Margin (%)	4.48	Shows the percentage of revenue remaining as net profit after all expenses and taxes.
8	Return on Net Worth (%)	4.97	Measures profitability to shareholders equity; improvement is driven by higher net profit.

* The above figures and calculations are on a standalone basis.

Manufactured Capital

We have made significant headway in realising our vision of delivering essential services across every corner of the country, ensuring accessibility and inclusion for all. Our widespread presence in remote and underserved regions, coupled with the continuous evolution of our service offerings, has played a pivotal role in advancing financial, digital, and social inclusion. By embracing a distinctive hybrid model that blends physical outlets with digital platforms, we have enhanced our service delivery, enabling greater convenience and reach.

As of FY2025, we operate 22,986 active transacting Vakrangee Kendras across 32 States and Union Territories. To support and expand this growing network, we have appointed Master Franchisees in 546 districts. These franchisees play a crucial role in supporting existing outlets and driving new franchise acquisitions, thereby enhancing operational scalability and efficiency.

Our network also extends into some of Indias most underserved geographies, including Left-Wing Extremist (LWE) regions, tribal areas, and Aspirational Districts. Within these regions, we have established 5,648 Kendras, ensuring access to high-quality services in deeply rural and economically marginalised zones. Notably, more than 83% of our centres are in Tier IV, Tier V, and Tier VI towns and villages, spanning 32 states, 609 districts, and 5,835 postal codes—reinforcing our commitment to inclusive, last-mile service delivery.

Our dedication to quality and continuous improvement is reflected in our ISO 19600:2014 certification. This globally recognised standard underscores our implementation of practical Compliance Management Systems (CMS) and our unwavering focus on compliance managment and operational excellence.

Furthermore, we are aligned with ISO 20400 standards, which guide sustainable procurement practices. As an ISO 20400-compliant organisation, we follow a structured, internationally recognised framework to integrate environmental, social, and ethical considerations into our procurement processes. While the standard does not impose direct requirements on suppliers, it empowers us to enhance our internal sustainability practices and contribute meaningfully to the development of a responsible and transparent supply chain.

Human Capital

At Vakrangee, we are committed to fostering a culture that is rooted in inclusivity, continuous improvement, and equal opportunities for all employees. By encouraging collaboration, teamwork, and entrepreneurial thinking, we empower our workforce to leverage their strengths, pursue innovation, and access the resources needed to excel in their roles.

Recognising our employees as key stakeholders, we place a high priority on their professional development and growth by continually investing in skill enhancement and knowledge-building initiatives. With a dedicated workforce of over 555 individuals across Vakrangee Group, we demonstrate an unwavering commitment to nurturing talent.

Our sustained investment in human capital has yielded higher productivity, enhanced employee loyalty, and a more motivated workforce. By valuing and empowering our people, we cultivate an environment that enables them to reach their full potential and contribute to our shared vision.

We uphold ten principles of United Nations Global Compact (UNGC), which cover human rights, labour, environment, and anti-corruption, integrating these values into our culture, strategy, and daily operations.

The key drivers of our human capital approach include:

1. Organisational Culture: We cultivate a meaningful workplace through continuous engagement, merit-based decision-making, equal treatment, and transparent processes.

2. Technological Leverage: We prioritise digital innovation, process automation, and advanced tools to manage field operations and business activities efficiently.

3. Human Rights: We strictly adhere to labour laws, promote awareness, ensure equal opportunities, maintain a harassment-free environment, and operate a robust grievance redressal mechanism.

4. Diversity and Inclusion: We prohibit discrimination on any grounds and actively foster diversity through inclusive recruitment, mentorship, and retention programmes.

6. Targeted Recruitment: We aim to recruit top talent from diverse backgrounds nationwide, reinforcing our commitment to inclusivity.

7. Mentorship: We offer structured mentorship to support professional growth, complemented by training in ISO standards and behavioural skills.

8. Training and Development: Our comprehensive programmes cover technical skills, induction, and behavioural training to upskill employees.

9. Talent Retention: Our low voluntary attrition rate of 2.80% in FY 2024-25 reflects our efforts to retain skilled employees.

10. Employee Satisfaction: We conduct surveys and engagement activities and provide in-house support to maintain high employee satisfaction levels.

11. Health and Safety: We prioritise well-being through the Employee Assistance Program, wellness initiatives, yoga, fire safety training, and regular emergency drills.

12. Grievance Redressal: A dedicated team of qualified professionals ensures effective resolution of stakeholder concerns.

Together, these initiatives strengthen Vakrangees commitment to creating a resilient, engaged, and high-performing workforce.

Social and Relationship Capital

At Vakrangee, we place high importance on cultivating strong and transparent relationships with our stakeholders. Our approach to Social and Relationship Capital centres around consistent engagement and mutual trust. By actively listening to the expectations of our stakeholders, including franchisees, customers, business partners, suppliers, shareholders, and local communities, we aim to build long-term, meaningful partnerships.

Transparency forms the foundation of our interactions with stakeholders.

We foster collaboration through well- defined communication channels and engagement strategies tailored to each groups specific needs. To reinforce this commitment, we have implemented a range of policies, including the Sustainable Sourcing Policy, the Green Procurement Policy, the Corporate Social Responsibility (CSR) Policy, the Political Involvement Policy, and the Shareholder Engagement Policy. These frameworks guide our actions and help align our operations with the evolving needs of stakeholders.

Shareholders

We maintain active communication with our shareholders through investor presentations, press releases, roadshows, and General Meetings. These sessions are recorded and made available on our website to ensure transparency and accessibility.

Franchisees

Our franchise partners are the backbone of our service delivery model. We support them through initiatives that promote rural entrepreneurship, employment generation, and skill development. We have also introduced doorstep banking services, specifically designed to assist senior citizens and pensioners. Additionally, telemedicine services included in our Total Healthcare offering allow patients to consult with qualified doctors remotely, eliminating the need for in-person visits.

Suppliers and Vendors

We work closely with our suppliers to uphold social and environmental standards. During the year, we assessed four vendors for their ESG performance and conducted regular meetings and internal audits to monitor compliance with our sustainability guidelines.

Customers

Our core mission is centred on enabling inclusive growth through a sustainable business model. We aim to bridge the gap in financial, digital, and social access for underserved populations, offering them an integrated suite of services through our Vakrangee Kendras and digital platforms.

Government and Regulatory Authorities

While we do not engage directly with government entities, we operate under a licence from the Reserve Bank of India (RBI) to deploy and manage White Label ATMs. We are currently the third-largest operator of rural ATMs in India. We also serve as a Corporate Business Correspondent to several nationalised banks. We are active members of recognised industry associations, including the Confederation of ATM Industry (CATMi), Business Correspondent Federation of India (BCFI), and National Payments Corporation of India (NPCI).

Local Communities

We contribute to the well-being of the local community through our CSR initiatives. These include sponsoring events, such as marathons, to promote active lifestyles among employees and the broader community. We also operate a multi-speciality hospital in Kota, offering a wide range of treatments— such as cardiology, neurology, and general surgery—on a no-profit, no-loss basis, ensuring accessible healthcare for all.

To demonstrate our commitment to responsible business practices and stakeholder well-being, we have attained multiple ISO certifications that reflect our adherence to quality, sustainability, and ethical conduct.

Intellectual Capital

At Vakrangee, growth and innovation remain at the core of our strategy. Despite the challenges posed by the pandemic, we continued to enhance our service delivery.

We remained steadfast in our mission to bridge the urban-rural divide through robust last-mile connectivity. Our investments in advanced technologies have not only improved operational efficiency but also empowered our franchise network, enabling both new and existing partners to elevate their service levels.

During FY2024-25, we achieved several key milestones that reflect our commitment to technological excellence, operational resilience, and customer trust.

We have obtained multiple ISO certifications that establish our adherence to internationally recognised standards for process management, data security, and business continuity:

• ISO/IEC 27001:2013 - Information Security Management System: This certification ensures the protection of sensitive corporate and customer data, reinforcing our cybersecurity posture.

• ISO 27701 - Privacy Information Management System: It supports compliance with regulatory, legal, and ethical requirements for privacy and risk management.

• ISO 22301 - Business Continuity Management System: This framework equips us to prepare for, respond to, and recover from disruptive events, ensuring service continuity.

In line with our digital-first strategy:

• All 22,986 franchisees and employees have been trained in advanced technology tools, building a digitally competent workforce.

• Zero data breaches were recorded across corporate offices and retail outlets, underscoring the robustness of our cybersecurity practices.

• 100% of our franchisees, including all 6,000+ ATM partners, are now equipped with IoT-enabled systems and electronic surveillance tools for improved security and performance monitoring.

• We introduced contactless payment options at Next-Gen outlets to improve convenience and hygiene.

To further enhance customer interaction and efficiency, we integrated emerging technologies:

• Our AI-powered Chatbot Interface, supported by Natural Language Processing (NLP), enables contextual and intuitive customer conversations, streamlining communication and service delivery.

• We deployed Virtual Assistants to provide an immersive and spatial service experience, simulating physical interactions remotely.

• Through the Internet of Things (IoT), we offer remote device control and monitoring, enhancing convenience and efficiency.

• By implementing Blockchain technology, we ensure secure, transparent, and traceable transactions within our operational network.

• With the use of Big Data analytics, we extract actionable insights from large datasets to support strategic decision-making.

• Our adoption of Augmented Reality (AR) and Virtual Reality (VR) solutions allows customers to preview products and services virtually, enriching the pre-purchase experience.

These initiatives reflect our unwavering commitment to building a future- ready enterprise that leverages digital innovation to deliver inclusive, secure, and high-quality services nationwide.

Natural Capital

At Vakrangee, we believe that true success extends beyond financial performance—it is equally defined by the positive environmental and social impact we create. As part of our commitment to sustainable development and responsible business practices, we have launched initiatives that reflect our dedication to environmental stewardship.

We go beyond regulatory compliance, actively seeking ways to conserve resources, adopt cleaner technologies, and reduce our ecological footprint. Our sustainability efforts are spearheaded through focused programmes such as the National Capital Chapter, which champions initiatives that benefit both our organisation and the environment.

We continuously integrate renewable energy, efficient waste management, and eco-friendly technologies across operations to foster a greener future. These efforts are deeply embedded in our business model, supported by well-defined corporate policies that provide direction on conducting business responsibly.

Key Impact Highlights

• Paperless Transactions: We have introduced paperless ATMs under our Go-Green Initiatives, reducing the need for physical receipts and minimising waste.

• Biometric-enabled Banking: Our biometric-based, paperless banking services at Vakrangee Kendras significantly reduce paper usage and streamline ecofriendly financial inclusion.

• Rural Expansion & Carbon Reduction: By expanding our Kendra network in remote areas, we reduce the need for long-distance travel, thereby cutting down on fuel use and greenhouse gas emissions.

• Sustainable Office Infrastructure: Our corporate offices are designed in line with Green Building standards, featuring energy-efficient layouts, rooftop solar installations, and the use of recycled materials.

• Green Mobility Practices: We encourage employees to use carpools, vanpools, bicycles, and public transport to lower transportation-related emissions.

• Minimal Ecological Disruption: By leveraging existing structures for our Kendras, we avoid land clearing and reduce disturbances to biodiversity, conserving both water and energy resources.

• Clean Water Access: All Kendras are equipped with clean drinking water facilities, which primarily benefit rural populations and reduce dependence on single-use plastic bottles.

• Waste Circularity & Reduction: We adopt circular waste management systems by recycling and promoting ecofriendly disposal methods, including replacing plastic bottles with reusable glass alternatives in offices.

• Emission Reduction & Energy Efficiency: We are committed to reducing our carbon footprint through renewable energy adoption, digitisation of services, and promotion of energy-saving practices.

• Certified Environmental Management: Our ISO certifications in Environmental Management, Sustainable Procurement, Energy Management Systems demonstrate our alignment with global environmental standards and reinforce our commitment to responsible growth.

Through these comprehensive efforts, Vakrangee continues to make strides towards sustainable progress, ensuring that environmental responsibility remains integral to our growth journey.

Driving Inclusive Growth through ESG

We have aligned our sustainability initiatives with the United Nations Sustainable Development Goals (UN SDGs), which serve as a global framework for building a better and more inclusive future. By integrating digital transformation with physical infrastructure, we aim to address critical global challenges, including poverty, inequality, climate change, and environmental degradation, while promoting peace, justice, and economic prosperity.

Our Environmental, Social and Governance (ESG) framework is built on the principles of holistic development. ESG considerations are embedded into our core business processes, enabling us to drive sustainable growth while promoting financial, digital, and social inclusion across India. Through both physical outreach and digital platforms, we empower underserved communities, bridging the urban-rural divide in terms of access to essential services.

We support national financial inclusion efforts through initiatives such as the Pradhan Mantri Jan-Dhan Yojana (PMJDY) and other social security schemes, facilitating access to banking, insurance, pensions, and government subsidies via Direct Benefit Transfers (DBT).

Beyond inclusion, we are committed to fostering entrepreneurship and innovation. Our goal is to establish a presence in every district and postal code across India, making essential services accessible within proximity or via digital means. Our "phygital” approach-blending physical presence with digital capabilities-enables entrepreneurs to offer a diverse suite of services under one roof, transforming each outlet into a hub of economic activity.

By empowering franchisees and local entrepreneurs with training, tools, and technology, we aim to build a vibrant entrepreneurial ecosystem. Through our flagship motto "Sab Kaam Ek Dukaan” (Now, the Whole World is Nearby), we inspire innovation, drive employment, and unlock nationwide economic development.

Our strategic focus is clear: to deliver impact at scale by combining sustainability, inclusivity, and entrepreneurship, creating a truly transformative business model for Indias future.

The Vakrangee Effect

At Vakrangee, we have pioneered a transformative model, "The Vakrangee Effect,” that combines economic, social, and governance principles to deliver sustainable growth and inclusive development. By embracing a unique phygital model-integrating physical and digital infrastructure—we have successfully empowered large sections of society that were previously excluded from mainstream economic activity.

Our business strategy is fully aligned with the United Nations Sustainable Development Goals (SDGs). Through strategic partnerships with government bodies and the corporate sector, we strive for financial, digital, and social inclusion, particularly in rural India. Our mission is deeply rooted in addressing pressing global challenges, including poverty, inequality, environmental degradation, and climate change, while promoting peace, prosperity, and justice.

Our efforts aim to foster stronger community participation, which in turn fuels industrial growth, agricultural development, and market expansion for essential products and services. This, in turn, amplifies the contribution of rural India, representing more than half of the nations GDP, towards national economic progress.

A cornerstone of our strategy is the Master Franchisee Model, currently operational in 546 districts across 32 states and UTs, which provides vital on-the-ground operational support and drives franchise expansion. Our goal is to achieve 100% district coverage by March 2026. This decentralised approach strengthens our support system, enhances service delivery, and ensures deeper rural penetration.

Fuelling Growth through Entrepreneurship

In FY2025, we are placing a greater emphasis on entrepreneurship as a key driver of growth. By empowering master franchisees and local Kendra operators, we foster a scalable and resilient distribution model. These entrepreneurs bring local insight, ownership, and agility to our operations, ensuring customised service delivery and sustainable network expansion.

We incentivise performance through structured commissions and rewards, nurturing a culture of excellence and continuous improvement. Master franchisees play a pivotal role in ensuring compliance, supporting franchisee operations, and accelerating network growth across regions.

This entrepreneurial ecosystem not only propels our business objectives but also generates socio-economic benefits for the communities we serve. By enabling local businesses, promoting digital access, and delivering government services, we are laying the foundation for a more inclusive, connected, and economically vibrant India.

Vakrangees long-term vision is to ensure universal access to essential services— both physical and digital—across every district and postal code in India. As we continue to evolve into Indias leading retail access platform, our focus remains on innovation, sustainability, and inclusive progress.

Bridging Indias Socio-Economic Divide through Vakrangee Kendras

At Vakrangee, our commitment to inclusive development extends across every dimension of social, financial, and digital empowerment. Through our innovative phygital (physical + digital) model and Next-Gen Kendras, we are bridging the gap between urban and rural India, bringing opportunity, convenience, and essential services to the most remote corners of the country.

1. Enhancing Skills and Employment: Our inclusive approach prioritises skill development, hiring individuals from diverse socio-economic backgrounds and equipping them with comprehensive training and certifications in Aadhaar and banking services. With every Kendra, we are mandated to employ at least 1-2 local staff. Our franchise-led model generates significant employment at the grassroots level, amplifying economic security in underserved regions.

2. Strengthening E-Governance: We empower citizens with identity recognition and access to government welfare schemes by facilitating e-governance services. Our Kendras act as direct touchpoints for Aadhaar enrolments, benefit transfers, and other welfare programmes, significantly improving service delivery and public reach.

3. Advancing Financial Inclusion: Through biometric- enabled banking, insurance, and pension services, we bring formal financial systems to those who are unbanked. Direct Benefit Transfers (DBT) are streamlined through our infrastructure, ensuring last- mile delivery of subsidies and fostering participation in Indias economic progress.

4. Driving Digital Empowerment: Vakrangee Kendras are transforming digital accessibility. Our realtime interoperable banking, e-commerce solutions, and assisted digital services extend digital literacy and access to marginalised populations, enabling participation in the digital economy.

5. Reducing Urban-Rural Disparities: With our "Ab Poori Duniya Pados Mein” concept, we deliver equal service quality, pricing, and access in both rural and urban markets. Our One-Stop Digital Convenience Stores ensure that people in LWE-affected regions, tribal belts, and aspirational districts receive the same services as those in metropolitan areas.

6. Promoting Economic Growth through Local Entrepreneurship: Franchise-led operations are a central component of our model. By training and empowering local entrepreneurs, we not only create jobs but also enable them to run their successful businesses.

These franchisees gain access to digital and financial infrastructure that would otherwise be out of reach, propelling economic mobility.

7. Supporting Rural India with Seamless Services: Serving the 1.3 billion people in rural India, we tailor our service delivery to local needs. From banking and e-commerce to healthcare, insurance, and travel bookings, our Kendras are at the forefront of bringing convenience to rural doorsteps, supported by government incentives promoting digital payment systems.

8. Building a Self-Sustaining Financial Ecosystem:

With our expanding ATM network, AePS infrastructure, and insurance partnerships, we create a holistic ecosystem for financial empowerment. Our Kendras reduce the need for long-distance travel and deliver a comprehensive range of products and services under one roof.

Through this integrative model, we are not just bridging gaps - we are transforming rural India into a digitally and financially included society, empowered by local entrepreneurship. Vakrangee is building a future where every Indian, regardless of their geographical location, enjoys equitable access to services, opportunities, and growth.

Cautionary Statement

The statements in the Management Discussion and Analysis that describe the Companys objectives, projections, estimates, and expectations are "forwardlooking” as defined by applicable securities laws and regulations. These projections are not guarantees of future performance and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Key factors that could influence the Companys operational results include varying economic conditions that impact demand, supply, and prices in domestic and international markets where the Company operates, changes in government regulations, tax laws, and other statutory modifications, as well as other incidental factors.