10. Unit economics and financial model
Three scenarios
Section titled “Three scenarios”| Page | Scenario |
|---|---|
| 10.1 Scenario A — ₹30 Cr own | Pure own-book NBFC, no co-lending |
| 10.2 Scenario B — ₹30 Cr own + ₹70 Cr co-lent | Own + first co-lending partner |
| 10.3 Scenario C — ₹30 Cr own + ₹300 Cr co-lent | Own + multi-partner scale |
| 10.4 Sensitivity analysis | Sensitivity to NPA, churn, fees, cost-of-funds |
Common assumptions
Section titled “Common assumptions”Used across all scenarios unless overridden:
| Parameter | Value |
|---|---|
| Avg ticket | ₹30 lakh |
| Avg tenure | 90 days |
| Implied capital turn | ~4× per year |
| APR (borrower-paying) | 21% blended |
| Yield (interest) | 19% |
| Processing fee | 1.5% per disbursal (annualised across 4 turns = 6% of avg book) |
| Servicing fee (from partner) | 1% per annum on partner-share |
| Cost of funds (own NBFC debt) | 12.5% |
| Operating cost (ex tech) | ~3.5% of avg book |
| Tech + vendor cost | ~1.0% of avg book |
| Credit cost (ECL) — base case | 2.5% of avg book |
| Tax rate | 25% |
| Tier-1 capital | ₹15 Cr |
| CRAR floor | 15% |
Why these assumptions
Section titled “Why these assumptions”- Ticket ₹30 lakh is the midpoint of the wedge (₹20–50 lakh range).
- Tenure 90 days is the centre of the WC working-capital cycle (60–180).
- APR 21% is competitive for unsecured SME WC; below 18% loses margin; above 24% loses borrowers.
- Yield ~19% with PF ~6% annualised = APR ~21% (rough; actual APR computation includes timing).
- Cost of funds 12.5% is typical for an early-stage NBFC borrowing from banks; lowers over time.
- Operating cost 3.5% is leaner than mid-NBFC averages because of platform automation; assumes CA / Tally distribution.
- Credit cost 2.5% is mid-range expectation for unsecured SME WC with rigorous underwriting; can be lower (
1.5%) with strong anchor / repeat-borrower mix.
Adjust to your actuals.
Reading the scenarios
Section titled “Reading the scenarios”Each scenario page provides:
- AUM and disbursement at steady state.
- Full P&L (gross revenue → EBITDA → pre-tax profit).
- ROA and ROE.
- Sensitivity to key drivers.
- Notes on what could go wrong.
The aggregate picture from Scenarios A → B → C shows why co-lending is the scaling lever — fee revenue scales ~3 – 5× from A to B without proportional equity, and again from B to C.