Finbud Financial Services Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the stub period ended 31 st July 2025 and the period ended 31 st March 2025, 31 st March 2024 and 31 st March 2023. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with the section titled "Restated Financial Information" on page 188 of the Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors " on page 24 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer to the chapter titled "Forward-Looking Statements" of this Red Herring Prospectus. Unless otherwise stated, the Restated Financial Information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ending March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Finbudfinancial services Limited with our Subsidiary, on a consolidated basis as on the date of this Red Herring Prospectus. Unless otherwise indicated, Restated Financial Information included herein are based on our Restated Consolidated Financial Statements for the stub period ended on July 31 2025 and the period ended 31st March 2025, 31st March 2024 and 31st March 2023 included in this Red Herring Prospectus beginning on page 188 of this Red Herring Prospectus.

BUSINESS OVERVIEW

Finance Buddha, founded in 2012 and promoted by Vivek Bhatia, Parag Agarwal, and Parth Pande, is one of Indias leading retail loan aggregation platforms. Initially started in Bangalore, the company has expanded its operations across the country, covering Multiple postal areas. It serves as a bridge between customers and lenders by offering a variety of loan products, including personal loans, business loans, and home loans, through partnerships with wide network of banks and non-banking financial companies (NBFCs).

The founders bring substantial expertise to the companys operations. Parag Agarwal has over 20 years of experience in investment management, having held senior roles in private equity, including Vice President of Investments at Masan Group and Investment Manager at Avigo. Parth Pande, with his background in digital business management, spent a decade at Citibank, where he managed a large retail asset franchise and a significant loan portfolio. Vivek Bhatia, an entrepreneur with experience in retail financial services distribution, has played a pivotal role in developing the companys operations, human resources, and agent network, particularly in South India. Together, their combined experience and leadership form the solid foundation of Finance Buddhas gr owth.

Finance Buddha operates with a hybrid customer acquisition strategy that integrates both digital channel and a wide network of external agents i.e., agent channel. This allows the company to reach a broad range of prospective borrowers. Once a customer expresses intent, the platform uses its matchmaking technology to compare loan offers from multiple lenders, advising customers on the most suitable options. The company guides them through the entire loan application process, ensuring a seamless experience until the loan is disbursed. While Finance Buddha doesnt take any credit risk (as the decision to approve or reject a loan re st with the lender), it earns a commission from lenders when a loan is successfully disbursed.

A key differentiator for Finance Buddha is its unique hybrid business model, which combines conventional lending with digital lending. This model allows the company to offer a broad range of loan solutions to different customer segments. The Agent model, which relies on a wide network of agents, enables the company to access a curated audience of customers, often with preliminary checks already completed, leading to higher conversion rates. The digital model aspect, powered by the companys proprietary tech platform, enables the processing and enrichment of customer data using both internal and third-party variables, which is then leveraged for future cross-selling and up-selling opportunities.

This hybrid approach offers a significant advantage over competitors. While many of Finance Buddhas peers focus exclusively on either agent or digital models, Finance Buddhas combination of both allows for better customer lifecycle management and more optimized margins. The Agent model focuses on acquiring a large number of customers with lower profits per loan, while the digital model targets fewer customers but with higher profitability. This balanced strategy allows Finance Buddha to grow and remain profitable in the long term, even as it navigates the competitive loan distribution market in India.

With a strong team, a widespread presence across the country, and an extensive network of sales agents, Finance Buddhas expansive reach and personalized service position it as a leader in the Indian loan aggregation space. Its seamless integration of traditional and digital channels, combined with a customer-centric approach, reinforces its role as a key player in the evolving landscape of retail lending in India..

FinBud employs a hybrid acquisition model that leverages both traditional (Agent channel) and digital (Digital channel) channels, which provides the flexibility and reach necessary to connect with varied customer demographics.

?€? Agent-Led Channel : The Agent model capitalizes on a large network of agents to attract customers. Agents conduct preliminary checks and engage with clients in person or over the phone, performing essential initial assessments and connecting them with relevant loan offers. This approach increases conversion rates, reduces customer acquisition costs, and optimizes lender resources.

?€? Digital Channel : FinBuds digital channel provides a data-driven, automated loan process that enables customers to explore loan products online through our website or mobile app. By leveraging digital marketing strategies and data analytics, we can pre-approve loan amounts for customers based on their financial profiles and streamline their applications.

Below are the details about the revenue in terms of Digital Channel and Agent Channel: (Standalone)

(Rs. In Lakhs)

Particulars	July 31 2025		March 31 2025		March 31 2024		March 31 2023
	Amount	In %	Amount	In %	Amount	In %	Amount	In %
Digital Channel	1,182.22	13.83%	3,238.05	14.54%	2,646.40	13.97%	1,647.30	12.21%
Agent Channel	7,364.50	86.17%	19,026.08	85.46%	16,303.40	86.03%	11,845.30	87.79%

This dual-channel model enhances FinBuds reach and profitability, balancing high-volume, lower-margin Agent channel sales with targeted, higher-margin digital channel sales.

Revenue Model

FinBuds revenue is generated primarily from commissions on loans disbursed by our partner banks and NBFCs. This commission - based model aligns FinBuds interests with those of its lending partners, encouraging high-quality lead generation and customer retention. Commissions are either a percentage of the loan amount or a fixed fee per disbursed loan, depending on our agreement with the lender.

Product and Product Range

Finance Buddha offers a diverse range of loan products, including personal loans, business loans, and home loans. Personal loans are unsecured and target salaried individuals for various personal needs, with an average ticket size of INR 10 lakhs. Business loans, also unsecured, cater to SMEs seeking capital for working capital, expansion, or inventory purchases, with an average ticket size of INR 20 lakhs. Home loans are secured loans for purchasing homes or mortgaging properties, with ticket sizes varying based on property value. The companys unique hybrid acquisition model, combining agent networks and digital channels, ensures broad customer reach and efficient acquisition. Advanced technological integration and data analytics enhance operational efficiency and customer experience. Finance Buddhas customer-centric approach focuses on offering personalized loan solutions, streamlined processing, and comprehensive post-approval support, ensuring a seamless and transparent borrowing journey.

Below are the details of revenue in terms of product category (Standalone):

(Rs. In Lakhs)

Particulars	July 31 2025		March 31 2025		March 31 2024		March 31 2023
	Amount	In %	Amount	In %	Amount	In %	Amount	In %
Personal Loan	7,109.11	83.18%	16,590.50	74.52%	13,791.10	72.78%	9,848.30	72.99%
Business Loan	1,207.15	14.12%	4,633.92	20.81%	4,215.70	22.25%	2,865.70	21.24%
Home Loan	169.44	1.98%	657.38	2.95%	721.80	3.81%	521.80	3.87%
Others	61.02	0.71%	382.34	1.72%	221.20	1.17%	256.80	1.90%

Key Performance Indicators

(In Lakhs)

Key Performance Indicator	31 July 2025	31 March 2025	31 March 2024	31 March 2023
GAAP Financial Measures
Revenue from operations	8,576.37	22,328.28	19,023.97	13,547.82
PAT	332.93	849.68	565.78	183.32
PAT Margin (%)	3.88%	3.81%	2.97%	1.35%
Net Worth	3,931.08	3,598.14	1,179.04	613.27
Non-GAAP Financial Measures
EBITDA	587.41	1,466.10	1,058.93	423.15
EBITDA Margin (%)	6.85%	6.57%	5.57%	3.12%
ROE (%)	8.47%	23.61%	47.99%	29.89%
ROCE (%)	12.19%	32.11%	49.85%	24.91%
Operational Measures
Trade Receivable Days	54	57	52	41
Trade Payable Days	8	7	24	23
Cash Conversion Cycle	46	50	28	19

Notes:

?€? Revenue from operations is the total revenue generated by our Company from the sale ofproducts.

?€? PAT is calculated as Profit before tax - Tax Expenses

?€? PAT Margin is calculated as PAT for the period/year divided by Revenue from Operations.

?€? Net worth has been computed as sum of share capital and reserves and surplus.

?€? EBITDA is calculated as Profit before tax + Depreciation & Amortization + Interest Expenses - Others Income

?€? EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

?€? Return on Equity is ratio of Profit after Tax and Shareholder Equity.

?€? Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as the Total Assets minus current liabilities.

?€? Trade Receivable Days are calculated by dividing the total trade receivables by the revenue earned during the period and then multiplied by number of days in the year/period.

?€? Trade Payable Days are determined by dividing the total trade payables by the revenue earned during the period and then multiplied by number of days in the year/period.

?€? Cash Conversion Cycle is determined by adding Trade Receivable Days and Inventory Days, then subtracting Trade Payable Days from the total.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL STATEMENTS

As per mutual discussion between the Board of the Company and Book Running Lead Manager, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months.

For more information, please refer to Capital Structure and Our Management beginning on page no 70 and 169 of this DRHP.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Annexure B2-1 of Restated Consolidated Financial Statements under "Restated Financial Information" beginning on page 188 of this Red Herring Prospectus.

REVENUE RECOGNITION METHOD

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and that the revenue can be reliably measured and is expected to be received. Revenue is disclosed net of taxes.

Revenue from services comprises service income from marketing of financial products of financial institutions including banks. FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors beginning on page 24 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

1. Our ability to successfully implement our strategy, our growth and expansion, technological changes.

2. Fail to attract, retain and manage the transition of our management team and other skilled & unskilled employees;

3. Our ability to protect our intellectual property rights and not infringing intellectual property rights of other parties;

4. Ability to respond to technological changes;

5. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

6. Inability to successfully obtain registrations in a timely manner or at all;

7. General economic and business conditions in the markets in which we operate and in the local, regional and Bombay economies;

8. Our ability to effectively manage a variety of business, legal, regulatory, economic, social and political risks associated with our operations;

9. Recession in the market;

10. Changes in laws and regulations relating to the industries in which we operate;

11. Effect of lack of infrastructure facilities on our business;

12. Our ability to successfully implement our growth strategy and expansion plans;

13. Our ability to attract, retain and manage qualified personnel;

14. Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial condition;

15. Failure to obtain any approvals, licensees, registrations and permits in a timely manner;

16. Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

17. Occurrence of natural disasters or calamities affecting the areas in which we have operations;

18. Conflicts of interest with affiliated companies, the promoter group and other related parties;

19. The performance of the financial markets in India and globally;

20. Any adverse outcome in the legal proceedings in which we are involved;

21. Our ability to expand our geographical area of operation;

DISCUSSION ON THE BALANCE SHEET ITEM

(In Rs Lakhs)

Particulars	31-Jul-25	31-Mar- 25	31-Mar- 24	31-Mar- 23
Long term borrowings	350.98	340.11	525.50	619.02
Short Term Borrowings	1,697.31	1,510.94	717.04	120.75
Trade Receivables	3,772.82	3,514.06	2,714.98	1,534.33
Trade Payable	574.60	450.13	1271.73	841.13
Inventories	-	-	-	-
Investments, including investment in subsidiaries, group companies- (Standalone)	504.20	504.50	204.50	204.50
Loans and advances	2,201.94	1,606.28	845.80	540.09
Contingent liability	-	-	-	-

FISCAL 2025 COMPARED WITH FISCAL 2024 Long-term borrowings

Long-term borrowings decreased from ?525.50 lakhs in FY 2024 to ?340.11 lakhs in FY 2025. This change is attributable to a reduction in the term loan from banks, which declined significantly from ?61.69 lakhs in FY 2024 to U2.08 lakhs in FY 2025, a nd a decrease in inter-corporate borrowings from ?350.00 lakhs to ?180.00 lakhs over the same period. However, this was partially offset by an increase in term loans from NBFCs, which rose from ^113.80 lakhs in FY 2024 to ?158.04 lakhs in FY 2025.

Short-term borrowings

Short-term borrowings increased significantly from ?717.04 lakhs as on March 31, 2024, to ?1,510.94 lakhs as on March 31, 2025. This increase was primarily due to a rise in secured short-term borrowings from banks, which grew from U223.50 lakhs to ?509.81 lakhs, indicating greater reliance on working capital facilities. Unsecured loans from related parties also increased from ?3 51.78 lakhs to ?466.54 lakhs, reflecting continued financial support from promoters or group entities. The current portion of term loans from banks declined from ?90.42 lakhs to ?59.62 lakhs, owing to scheduled repayments, while the current portion of term loans from NBFCs increased from ?51.34 lakhs to ?104.98 lakhs. Additionally, the Company availed inter-corporate borrowings amounting to ?370.00 lakhs in FY 2025, compared to nil in FY 2024.

Trade Receivable

Please refer to the Object of the Issue chapter page no 90 of the DRHP for clarification. Trade Payable

Please refer to the Object of the Issue chapter page no 90 of the DRHP for clarification. Investments

The Companys investment in its wholly owned subsidiary, LTCV Private Limited, a registered Non-Banking Financial Company (NBFC), increased from U204.50 lakhs as on March 31, 2024, to ?504.50 lakhs as on March 31, 2025. During FY 2025, the Company subscribed to an additional 30,00,000 equity shares, increasing its total holding from 20,45,000 shares to 50,45,000 shares. This

incremental investment of ?300.00 lakhs reflects the Company s continued commitment to support its lending operations, regulatory requirements, and future business expansion.

Loan and advances

The Companys long-term loans and advances increased from ?142.47 lakhs as on March 31, 2024, to ?293.01 lakhs as on March 31, 2025, reflecting an increase of ?150.54 lakhs. These primarily include advances classified under "Others (Considered Good)," and the increase may indicate extended funding or deposits given for long-term operational or strategic requirements.

Short-term loans and advances also witnessed a significant rise from ?703.33 lakhs in FY 2024 to ^1,313.28 lakhs in FY 2025, registering an increase of ?609.95 lakhs. This increase was mainly driven by:

?€? A substantial rise in advances to suppliers, which increased from ?357.37 lakhs to ?854.00 lakhs.

?€? Loans and advances to employees also rose from ?72.22 lakhs to ?87.53 lakhs.

?€? Balances with government authorities, such as GST or TDS credits, increased from ?157.96 lakhs to ?269.89 lakhs.

?€? However, unsecured loans (considered good) decreased slightly from ^115.79 lakhs to ?101.85 lakhs.

FISCAL 2024 COMPARED WITH FISCAL 2023 Long-term borrowings

Long-term borrowings decreased from ?619.02 lakhs in FY 2023 to ?525.50 lakhs in FY 2024. These borrowings comprise term loans from banks, term loans from NBFCs, and inter-corporate borrowings. The overall decline was primarily due to a reduction in term loans from banks, which fell from ?101.09 lakhs in FY 2023 to ?61.69 lakhs in FY 2024, and a decrease in inter-corporate borrowings from ?425.00 lakhs to ?350.00 lakhs during the same period. This was partially offset by an increase in term loans from NBFCs, which rose from ?92.93 lakhs in FY 2023 to ^113.80 lakhs in FY 2024.

Short-term borrowings

Short-term borrowings increased significantly from ?120.75 lakhs as on March 31, 2023, to ?717.04 lakhs as on March 31, 2024. This sharp rise was primarily driven by an increase in secured short-term borrowings from banks, which rose from ?1.13 lakhs to ?223.50 lakhs, reflecting increased utilization of working capital facilities. Unsecured borrowings also saw substantial growth, with loans from related parties increasing from ?18.78 lakhs to ?351.78 lakhs. The current portion of term loans from banks incre ased from ?73.63 lakhs to ?90.42 lakhs, while that from NBFCs rose from ?27.21 lakhs to ?51.34 lakhs. There were no inter-corporate borrowings during FY 2023 and FY 2024. The overall increase in short-term borrowings reflects the Companys growing scale of operations and its increased working capital requirements during the year.

Trade Receivable

Please refer to the Object of the Issue chapter page no 90 of the DRHP for clarification. Trade Payable

Please refer to the Object of the Issue chapter page no 90 of the DRHP for clarification. Investments

There was no change in the Companys investment in LTCV Private Limited, its wholly owned NBFC subsidiary, during FY 2024 compared to FY 2023. As of both March 31, 2023, and March 31, 2024, the Company held 20,45,000 equity shares amounting to ?204.50 lakhs.

Loan and advances

The Companys long-term loans and advances increased from ?74.29 lakhs in FY 2023 to ?142.47 lakhs in FY 2024, showing a growth of ?68.18 lakhs. This reflects a progressive increase in long-term funding classified under other operational categories.

Short-term loans and advances grew from ?465.80 lakhs in FY 2023 to ?703.33 lakhs in FY 2024, an increase of ?237.53 lakhs. The increase was primarily due to:

?€? Advances to suppliers, which rose from ?149.61 lakhs to ?357.37 lakhs.

?€? Loans and advances to employees also grew from ?48.92 lakhs to ?72.22 lakhs.

?€? Balances with government authorities increased from ?132.21 lakhs to ?157.96 lakhs.

?€? However, unsecured loans (considered good) declined from ?135.06 lakhs to ^115.79 lakhs.

DISCUSSION ON THE RESULTS OF OPERATIONS

(In Lakhs)

Particulars	31- July-25	% of Revenu e	31-Mar- 25	% of Revenu e	31-Mar- 24	% of Revenu e	31-Mar- 23	% of Revenu e
Income
Revenue from operations	8,576.3 7	99.94%	22,328.2 8	99.90%	19,023.9 7	99.98%	13,547.8 2	99.93%
Other income	5.42	0.06%	22.12	0.10%	3.91	0.02%	8.98	0.07%
Total Income	8,581.7 9	100.00 %	22,350.4 1	100.00 %	19,027.8 8	100.00 %	13,556.8 0	100.00 %
Expenses
Employee benefits expenses	853.39	9.94%	2,253.69	10.08%	1,815.17	9.54%	1,445.29	10.66%
Finance costs	76.69	0.89%	141.20	0.63%	115.38	0.61%	98.38	0.73%
Depreciation and amortisation expenses	44.31	0.52%	151.88	0.68%	145.06	0.76%	90.42	0.67%
Other expenses	7,135.5 8	83.15%	18,608.4 9	83.26%	16,149.8 7	84.87%	11,679.3 8	86.15%
Total Expenses	8,109.9 7	94.50%	21,155.2 6	94.65%	18,225.4 8	95.78%	13,313.4 7	98.21%
Restated Profit/(Loss) before tax	471.82	5.50%	1,195.15	5.35%	802.40	4.22%	243.33	1.79%
Tax expense
Current tax	138.58	1.61%	367.62	1.64%	253.89	1.33%	42.28	0.31%
Deferred tax (benefit)/charge	0.31	0.00%	(22.15)	(0.10%)	(17.23)	(0.09%)	17.72	0.13%
MAT Credit Entitlement	-	-	-	-	(0.05)	(0.00%)	-	-
Total tax expense	138.89	1.62%	345.47	1.55%	236.61	1.24%	60.00	0.44%
Share of minority in profit	-		-	-	-	-	-	-
Restated Profit/(Loss) after tax	332.93	3.88%	849.68	3.80%	565.78	2.97%	183.32	1.35%

Key components of the companys profit and loss statement:

Revenues

Revenue from operations

Our revenue from operation comprises of commission earned from Banks and NBFCs on distribution of 3 primary products - personal loan, business loan and home loans. There are marginal revenues from distribution of other loan products like credit cards, auto loans and insurance cross sell as well.

(Rs. In Lakhs)

Particulars*	July 31 2025		March 31 2025		March 31 2024		March 31 2023
	Amount	In %	Amount	In %	Amount	In %	Amount	In %
Personal Loans	7,109.11	83.18%	16,590.50	74.52%	13,791.10	72.78%	9,848.30	72.99%
Business loans	1,207.15	14.12%	4,633.92	20.81%	4,215.70	22.25%	2,865.70	21.24%
Home Loans	169.44	1.98%	657.38	2.95%	721.80	3.81%	521.80	3.87%
Others	61.02	0.71%	382.34	1.72%	221.20	1.17%	256.80	1.90%

*Standalone

Finance Buddha is operating in two models - 1) Agent channel which is primarily agent led and marginal sales (less than 5% of agent sales) being contributed by internal sales team 2) Digital Channel where almost entire sales (~98%) is contributed by internal sales teams.

(Rs. In Lakhs)

Particulars*	July 31 2025		March 31 2025		March 31 2024		March 31 2023
	Amount	In %	Amount	In %	Amount	In %	Amount	In %
Digital Channel	1,182.22	13.83%	3,238.05	14.54%	2,646.40	13.97%	1,647.30	12.21%
Agent Channel	7,364.50	86.17%	19,026.08	85.46%	16,303.40	86.03%	11,845.30	87.79%

*Standalone

Other income

Other income primarily comprises interest income received on income tax refunds and interest income on fixed deposit.

Expenses

Expenses comprise: (i) Employee Benefit Expenses,

(ii) Finance Costs ?€” covering interest expenses;

(iii) Depreciation and Amortization Expenses; and

(iv) Other Expenses ?€” such as commission, insurance, power and fuel, professional fees, office expenses, rent, repairs, rates and taxes, travel expenses, miscellaneous costs, communication expenses, marketing and promotion, printing and stationery, subscription charges, and hiring fees.

Employment benefit expenses

Employment benefits include salaries and wages, provident fund and other contributions, staff welfare, and gratuity.

Finance costs

Finance costs covering interest expenses and bank charges.

Depreciation and amortization expenses

Depreciation and amortization expense includes depreciation on Computer and Accessories, Office Equipment, Electrical items, Furniture and Fixtures, Motor Vehicle, as well as amortization of software.

Other expenses

Other expenses include Commission, Insurance, Power and fuel, Professional fees, Office expenses, Rent, Repairs others, Rates and taxes, traveling expenses, Miscellaneous expenses, Communication expenses, Marketing and business promotion, Printing and stationary, Subscription charges, Bad debts, and Provision on standard assets.

Primary contributions to other expenses include following:

?€? Commission includes payments made to agents for the agent business. These agents source customers on behalf of the Company and upon successfully disbursal of loan are paid commission by the Company on the loan amount.

?€? Marketing and business promotion expenses include payments to freelancers who assist in sourcing customers for the Company. These freelancers are typically smaller market players who depend significantly on the Company for file processing and coordination with various parties.

?€? Subscription charges are payments made to vendors for availing various services which are integral in customer management and interaction and thereby resulting in better lead sourcing for the digital segment. These services include dialing costs, SMS services, and WhatsApp communication. In addition, it also includes payments made for AWS storage, website/email hosting charges etc.

?€? Rent includes rent paid for offices used by the company for its business operations. For more information, please refer Our business chapter page no 136.

?€? Professional fees include payments made to vendors for availing technology platforms like CRM, marketing automation platforms, statutory audit fee and payments to advisors for undertaking compliances, statutory filings, accounting assistance.

?€? Repairs others include repairs and maintenance of office premises, computers and other accessories.

?€? Rates and taxes include interest on late payment of statutory dues, payments towards municipal taxes for certain office premises.

?€? Power and Fuel includes electricity expenses for the offices used by the Company.

?€? Communication expenses include telephony expenses for outbound calling undertaken by the tele sales executives

?€? Traveling expenses includes local and national travel expenses undertaken by the employees for business purposes

?€? Printing and Stationary includes expenses for purchase of printing items like cartridges and office stationary items

?€? Office expenses include expenses for office housekeeping

?€? Miscellaneous expenses include on various miscellaneous items

?€? Insurance includes premiums paid for insurance policies

SUMMARY OF MAJOR ITEMS OF INCOME AND EXPENDITURE FISCAL 2025 COMPARED WITH FISCAL 2024 Revenue from Operation

Our revenue from operations for the period fiscal 2025 stands at Rs 22,328.28 lakhs increased by 17.37% as compared to Fiscal 2024 that is Rs 19,023.97 lakhs. In fiscal 2025 Digital Channel contributed 14.54% increased by 22.36% as compared to fiscal 2024, Agent Channel contributed 85.46% increased by 16.70% as compared to Fiscal 2024.

Rationale for Increase in the Revenue from Operation for the financial year ended March 31, 2025:

The increase in revenue from operations can be primarily attributed to 2 factors:

1. Agent increase - The Agent base has increased from 2722 to 3239. This has helped the Company to increase its geographical footprint and customer outreach which has resulted in increased revenue.

2. Lender Addition - The company has increased its lender empanelment from 121 to 141. At any given point in time the Company will always have a segment of existing database which is not serviced by the existing list of empanelled lenders. With addition to new lenders some of this database becomes potentially attractive. In addition, ability to showcase more lenders to customers who are in the pipeline increases the approval rates and thereby results in higher revenue with existing infrastructure

Other Income

In fiscal 2025 other income stands for Rs 22.12 lakhs increased by 465.82% as compared to fiscal 2024 that is Rs 3.91 lakhs. The increase was on account of interest on fixed deposit maintained with Banks.

Employee Benefit Expenses

Employee benefit expenses for Fiscal 2025 totalled Rs 2,253.69 lakhs, accounting for 10.08% of the companys revenue, reflecting a 24.16% increase from Rs 1,815.17 lakhs in Fiscal 2024. This increase is primarily due to general increase in the salaries of employees. Key factors contributing to the rise include a Rs 387.26 lakhs increase in salary expenses, driven by higher compensation for both new hires and existing employees, and a Rs 8.14 lakhs increase in contributions to provident and other funds. Staff welfare expenses rose by Rs 41.53 lakhs, reflecting efforts to improve employee benefits, while gratuity expenses increased by Rs 1.59 lakhs, in line with long-term employee benefits commitments.

For more information, please refer to the Our Business chapter page no 136 of this DRHP.

Finance Costs

In fiscal 2025, finance cost Rs 141.20 lakhs as compared to Rs 115.38 lakhs in fiscal 2024, saw an increase by Rs 25.82 lakhs in this fiscal year. The increase in interest expense by Rs.25.82 lakhs in Fiscal 2025 as compared to Fiscal 2024, reflects additional borrowings which have increased from Rs 1242.54 lakhs to Rs 1,851.05 lakhs. The increase in borrowing was to support higher working capital requirements due to increased business volumes and higher net working capital days requirement to sustain business volumes and higher net working capital days requirement to sustain business volumes.

Depreciation and Amortization Expenses

In fiscal 2025, the depreciation and amortization expense were Rs 151.88 lakhs, a 4.70% increase compared to Rs 145.06 lakhs in fiscal 2024. This rise was due to the addition of Rs 167.86 lakhs in tangible assets.

Other Expenses

In fiscal 2025, other expenses amounted to Rs 18,608.49 lakhs, marking a 15.22% increase from Rs 16,149.87 lakhs in fiscal 2024. This rise reflects several key changes:

?€? Commission increased by 17.41%, which is the major contributor towards offline sales. The increase in commission expenses is almost proportionate to the increase in offline sales by 16.70%

?€? Insurance decreased by 66.33% due to the fall in insurance premiums.

?€? Power and fuel increased by 2.97% due to normal price increase.

?€? Legal and Professional fees increased by 20.96%. The increase was primarily on account of fund raising expenses.

?€? Office expenses increased by 40.78% due to opening up of new offices and general price increase.

?€? Bad debts incurred Rs. 16.77 Lakhs. This represents amounts deemed unrecoverable from customers.

?€? Rent increased by 26.88% due to new offices being opened and regular rental increase clauses in the agreements.

?€? Rates and taxes decreased by 25.07% due to significant reduction in delays in filing various statutory returns.

?€? Traveling expenses increased by 45.74% driven by higher travel costs by employees and intercity travels

?€? Communication expenses decreased by 7.47% due to better cost rationalisation

?€? Marketing and business promotion increased by 2.07% which is the second biggest contributor towards offline sales. It is to be noted that the increase is much lesser than the overall growth in offline sales due to economies of scale and better efficiencies

?€? Printing and stationary increased by 35.76% to sustain higher business volumes.

?€? Subscription charges increased by 54.83% which is primarily driven due to further adoption of efficient automated customer communication and management tools like whatsapp, SMS, IVR etc. These services has helped us significantly in scaling up our digital revenues by increasing customer reach and conversions.

Tax Expenses

In fiscal year 2025, our total tax expense surged by Rs 108.86 lakhs, representing a 46.01% increase from Rs 236.61 lakhs in fiscal year 2024 to Rs 345.47 lakhs in fiscal year 2025. This was primarily due to increase in current tax expenses during the year which got increased from Rs 253.89 lakhs in fiscal year 2024 to Rs 367.62 lakhs in the fiscal 2025 and decrease in deferred tax from Rs (17.23) lakhs in fiscal 2024 to Rs (22.15) lakhs in fiscal 2025.

Profit after Tax

For the various reasons discussed above, and following adjustments for tax expense, we recorded an increase in profit; from profit of Rs 565.78 lakhs in fiscal 2024 to profit of Rs 849.68 lakhs in fiscal 2025. Profit after tax as a percentage of total revenue stood at 3.80% for Fiscal 2025 versus 2.97% for Fiscal 2024.

Rational for Increase in the Profit after Tax for the Fiscal Year 2025:

?€? Robust Revenue Growth: Revenue increased by 17.46%, indicating strong demand, and successful expansion strategies that contributed to higher sales. The increased revenue was driven by higher customer acquisition, expansion in agent/freelancer network, and increase in lender empanelment. This growth in top-line revenue allowed the Company to benefit from economies of scale, leading to improved margins and better absorption of fixed costs

?€? Enhanced Profitability through Operational and Financial Efficiency: Our core profitability has significantly improved, with the EBITDA margin rising from 5.57% to 6.57%, driven by effective cost control and operational enhancements. Furthermore, the EBIT margin increased from 4.80% to 5.88%, largely due to a decrease in depreciation as a percentage of revenue, which allowed a larger share of revenue to contribute to operating income.

?€? Enhanced Contribution from Digital Channel-The contribution from the digital channel grew by 22.36%, accounting for 14.54% of total revenue. Digital operations typically have lower marginal costs, thereby positively impacting overall profitability and improving PAT margins.

FISCAL 2024 COMPARED WITH FISCAL 2023

Revenue from Operation

Our revenue from operations for the period fiscal 2024 stands at Rs 19,023.97 lakhs increased by 40.42% as compared to Fiscal 2023 that is Rs 13,547.82 lakhs. In fiscal 2024 Digital Channel contributed 13.97% increased by 60.65% as compared to fiscal 2023, Agent Channel contributed 86.03% increased by 37.64% as compared to Fiscal 2023.

Rationale for Increase in the Revenue from Operation for the financial year ended March 31, 2024:

The increase in revenue from operations can be primarily attributed to 3 factors:

1) Manpower increase - The Company has invested heavily in building its manpower in the digital team as well as hiring channel managers and backend processing teams for Agent business. The employee strength has increased from 191 to 251. This almost 30% increase is one of the reasons for revenue increase.

2) Agent increase - The Agent base has increased from 2411 to 2722. This has helped the Company to increase its geographical footprint and customer outreach which has resulted in increased revenue.

3) Lender Addition - The company has increased its lender empanelment from 107 to 121. At any given point in time the Company will always have a segment of existing database which is not serviced by the existing list of empanelled lenders. With addition to new lenders some of this database becomes potentially attractive. In addition, ability to showcase more lenders to customers who are in the pipeline increases the approval rates and thereby results in higher revenue with existing infrastructure

Other Income

In fiscal 2024 other income stands for Rs 3.91 lakhs decreased by 56.45% as compared to fiscal 2023 that is Rs 8.98 lakhs. The decrease was on account of lower interest on income tax refund as the income tax refund was processed earlier compared to previous financial year.

Employee Benefit Expenses

Employee benefit expenses for Fiscal 2024 totalled Rs 1,815.17 lakhs, accounting for 9.54% of the companys revenue, reflecti ng a 25.59% increase from Rs 1,445.29 lakhs in Fiscal 2023. This increase is primarily due to the addition of new manpower as part of the companys growth strategy, along with a general increase in the salaries of existing employees. Key factors contributing to the rise include a Rs 313.33 lakhs increase in salary expenses, driven by higher compensation for both new hires and existing employees, and a Rs 2.25 lakhs increase in contributions to provident and other funds. Staff welfare expenses rose by Rs 46.53 lakhs, reflecting efforts to improve employee benefits, while gratuity expenses increased by Rs 7.76 lakhs, in line with the growing team and longterm employee benefits commitments. For more information, please refer to the Our Business chapter page no 136 of this DRHP.

Finance Costs

In fiscal 2024, finance cost at Rs 115.38 lakhs as compared to Rs 98.38 lakhs in fiscal 2023, saw an increase by Rs 17.00 lakhs in this very fiscal year. The increase in interest expense reflects additional borrowings which have increased from Rs 739.77 lakhs to Rs 1242.54 lakhs. The increase in borrowings was to support higher working capital requirements due to increased business volumes.

Depreciation and Amortization Expenses

In fiscal 2024, the depreciation and amortization expense were Rs 145.06 lakhs, a 60.43% increase compared to Rs 90.42 lakhs in fiscal 2023. This rise was due to the addition of Rs 169.73 lakhs in tangible assets.

Other Expenses

In fiscal 2024, total expenses amounted to Rs 16149.87 lakhs, marking a 38.28% increase from Rs 11679.38 lakhs in fiscal 2023. This rise reflects several key changes:

?€? Commission increased by 42.84% which is the major contributor towards offline sales. The increase in commission expenses is almost proportionate to the increase in offline sales by ~37%

?€? Insurance decreased by 6.09% due to the fall in insurance premiums.

?€? Power and fuel increased by 23.72% due to opening up of new offices. The company had a net addition of 10 offices in FY24 which contributed towards higher electricity charges.

?€? Professional fees increased by 11.08% led by higher digital/online revenues.

?€? Office expenses increased by 87.29% due to increased manpower and opening up of new offices as highlighted earlier

?€? Rent increased by 32.50% due to new offices being opened and regular rental increase clauses in the agreements

?€? Rates and taxes increased by 73.23% due to a one time interest on late fee payment of statutory dues and ineligible GST input credit expenses

?€? Traveling expenses increased by 84.04% driven by higher travel costs by employees and intercity travels

?€? Communication expenses increased by 16.49% to sustain higher business volumes

?€? Marketing and business promotion increased by 16.19% which is the second biggest contributor towards offline sales. It is to be noted that the increase is much lesser than the overall growth in offline sales due to economies of scale and better efficiencies

?€? Printing and stationary increased by 13.15% to sustain higher business volumes

?€? Subscription charges increased by 383.35% which is primarily driven due to further adoption of efficient automated customer communication and management tools like whatsapp, SMS, IVR etc. These services has helped us significantly in scaling up our digital revenues by increasing customer reach and conversions.

Tax Expenses

In fiscal year 2024, our total tax expense surged by Rs 176.61 lakhs, representing a 294.33%increase from Rs 60.00 lakhs in fiscal year 2023 to Rs 236.61 lakhs in fiscal year 2024. This was primarily due to increase in current tax expenses during the year which got increased from Rs 42.28 lakhs in fiscal year 2023 to Rs 253.89 lakhs in the fiscal 2024 and decrease in deferred tax from Rs 17.72 lakhs in fiscal 2023 to Rs (17.23).

Profit after Tax

For the various reasons discussed above, and following adjustments for tax expense, we recorded an increase in profit; from profit of Rs 183.32 lakhs in fiscal 2023 to profit of Rs 565.78 lakhs in fiscal 2024. Profit after tax as a percentage of total revenue stood at 2.97% for Fiscal 2024 versus 1.35% for Fiscal 2023.

Rational for Increase in the Profit after Tax for the Fiscal Year 2024:

?€? Robust Revenue Growth: Revenue increased by 40.35%, indicating strong demand, and successful expansion strategies that contributed to higher sales.

?€? Enhanced Profitability through Operational and Financial Efficiency: Our core profitability has significantly improved, with the EBITDA margin rising from 3.12% to 5.57%, driven by effective cost control and operational enhancements. Furthermore, the EBIT margin increased from 2.46% to 4.80%, largely due to a decrease in depreciation as a percentage of revenue, which allowed a larger share of revenue to contribute to operating income. In addition, finance costs were effectively managed, this resulted in an increased EBT margin from 1.73% to 4.20%, demonstrating our ability to optimize financing expenses in relation to our expanding revenue base.

?€? Realization of Economies of Scale: Higher sales volumes enabled a reduction in per-unit fixed costs, resulting in economies of scale that boosted profitability.

Cash Flows

(Rs. in Lakhs)

Particulars	July 31 2025	March 31 2025	March 31 2024	March 31 2023
Net Cash from Operating Activities	(249.17)	(1333.08)	(209.76)	268.82
Net Cash from Investing Activities	(60.27)	(145.74)	(165.83)	(145.90)
Net Cash used in Financing Activities	120.54	2,036.73	387.39	82.92

Cash Flows from Operating Activities

For the financial year ended March 31, 2025

Our net cash used from operating activities was Rs (1333.08) Lakhs for the financial year ended March 31, 2025. Our operating profit before working capital changes was Rs 1,498.59 Lakhs for the financial year ended March 31, 2025, which was primarily adjusted against increase in trade receivables by Rs 815.85 lakhs, increase in loans and advances by Rs 760.48 lakhs, increase in other current assets by Rs 240.95 lakhs, decrease in non-current assets by Rs 22.15 lakhs, decrease in Trade payables by Rs 821.60 lakhs, increase in other current liabilities by Rs 43.00 lakhs, increase in short term provisions by Rs 105.96 lakhs and increase in long term provisions by Rs 25.86 lakhs.

For the financial year ended March 31, 2024

Our net cash used from operating activities was Rs (209.76) Lakhs for the financial year ended March 31, 2024. Our operating profit before working capital changes was Rs 1066.65 Lakhs for the financial year ended March 31, 2024, which was primarily adjusted against increase in trade receivables by Rs 1180.65 lakhs, increase in loans and advances by Rs 305.71 lakhs, increase in other current assets by Rs 209.36 lakhs, increase in non-current assets by Rs 17.23 lakhs, increase in Trade payables by Rs 430.60 lakhs, increase in other current liabilities by Rs 11.10 lakhs, increase in short term provisions by Rs 206.42 lakhs, and increase in long term provisions by Rs 25.10 lakhs.

For the financial year ended March 31, 2023

Our net cash used from operating activities was Rs 268.82 Lakhs for the financial year ended March 31, 2023. Our operating profit before working capital changes was Rs 428.44 Lakhs for the financial year ended March 31, 2023 which was primarily adjusted against increase in Trade receivable by Rs 328.23 lakhs, decrease in loans and advances by Rs 263.19 lakhs, increase in other current assets by Rs 10.51 lakhs, decrease in non-current assets by Rs 17.72 lakhs, increase in trade payable by Rs 113.25 lakhs, decrease in other current liabilities by Rs 128.11 lakhs, decrease in short term provisions by Rs 44.85 lakhs and increase in long term provisions by Rs 17.94 lakhs.

Cash Flows from Investment Activities

For the _ financial year ended March 31, 2025

Our net cash flow from investing activities was (145.74) lakhs. This was mainly on account of Purchase of Property, plant and equipment of Rs. 167.86 lakhs and interest received of Rs. 22.12 lakhs.

For the financial year ended March 31, 2024

Our net cash flow from investing activities was Rs (165.83) lakhs. This was mainly on account of Purchase of Property, plant and equipment of Rs 169.73 lakhs, Interest Received of Rs 3.91 lakhs.

For the financial year ended March 31, 2023

Our net cash flow from investing activities was Rs (145.90) lakhs. This was mainly on account of the Purchase of Property, plant and equipment of Rs 154.87 lakhs, Interest Received of Rs 8.98 lakhs.

Cash Flows from Financing Activities

For the financial year ended March 31, 2025

Our net cash flow from financing activities was Rs 2,036.73 lakhs. This was on account of proceeds from equity share capital of Rs 0.01 Lakhs, proceeds from Preference Share Capital of Rs.0.17 lakhs, Proceeds from Security Premium of Rs. 1569.24 lakhs, Proceeds from Short Term Borrowings of Rs.793.90, Repayment of Long Term Borrowings of Rs(185.38) and Interest paid of Rs 141.20 lakhs.

For the financial year ended March 31, 2024

Our net cash flow from financing activities was Rs 387.39 lakhs. This was on account of repayment of long-term borrowings of Rs 93.52 lakhs, proceeds from Short-term borrowings of Rs 596.29 Lakhs and Interest paid of Rs 115.38 lakhs.

For the financial year ended March 31, 2023

Our net cash flow from financing activities was Rs 82.92 lakhs. This was on account of Proceeds from Long-Term borrowings of Rs 266.56 Lakh, Repayment of Short-term borrowings of Rs 85.26 lakhs and Interest Paid of Rs 98.38 lakhs.

INFORMATION REQUIRED AS PER ITEM (II) (C) (I) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:

1. Unusual or infrequent events or transactions

Except as described in this Red Herring Prospectus, Our Company has not engaged in any transactions or events during the periods under review that, in our best judgment, would be considered unusual or infrequent.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations

Other than as described in the "Risk Factors" beginning on page 24 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations

Other than as described in this Red Herring Prospectus, particularly in the sections "Risk Factors" on pages 24 , respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations.

4. Income and Sales on account of major product/main activities (Standalone):

(In Lakhs)

Particulars	July 31 2025		March 31 2025		March 31 2024		March 31 2023
	Amount	In %	Amount	In %	Amount	In %	Amount	In %
Personal Loans	7,109.11	83.18%	16,590.50	74.52%	13,791.10	72.78%	9,848.30	72.99%
Business loans	1,207.15	14.12%	4,633.92	20.81%	4,215.70	22.25%	2,865.70	21.24%
Home Loans	169.44	1.98%	657.38	2.95%	721.80	3.81%	521.80	3.87%
Others	61.02	0.71%	382.34	1.72%	221.20	1.17%	256.80	1.90%

For a detailed breakdown of the revenue by major products and main activities, please refer to the " Our Business" chapter on page 136 of this Red Herring Prospectus.

5. Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by the growth of the industry in which we operate.

6. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices.

Increases in our revenues are by and large linked to increases in the volume of business.

7. Status of any publicly announced new products or business segments

Our Company has not announced any new products, services, or business segments that are separate from our ongoing operations, as detailed in the "Our Business" section on page 136 of this Red Herring Prospectus. However, it is pertinent to note that Our Company regularly engages in research and product development and improvements so as to meet customer needs and market trends.

8. The extent to which the business is seasonal

Our business is subject to seasonality. We see an increase in our business before Diwali, wedding seasons, and during end of season sales. For a detailed understanding please refer to the "Risk Factor" on page 24 of this Red Herring Prospectus.

9. Any significant dependence on a single or few suppliers or customers

Our Company is significantly dependent on a few suppliers. For further details, refer to the chapter titled "Riskfactors" on page 24 of Red Herring Prospectus.

10. Competitive Conditions

Competitive conditions have been discussed in sections titled "Our Business" and "Our Industry on pages 136 and 123 of this Red Herring Prospectus.