- Live AUM (avg):
₹30 Cr of revolving WC lines.
- Avg ticket:
₹30 lakh.
- Avg tenure:
90 days.
- Active borrowers (avg):
~100 (since avg book ₹30 Cr ÷ avg outstanding per borrower ~₹30 lakh).
- Annual disbursement:
~₹120 Cr (4× book turn).
- Disbursals per year:
~400 (assuming ₹30 lakh avg ticket).
- Capital deployed:
₹30 Cr of which ~₹10 Cr equity, ~₹20 Cr debt.
| Line | Annual ₹ |
|---|
Interest (yield 19% × ₹30 Cr) | ₹5.70 Cr |
Processing fee (1.5% × ₹120 Cr disbursal) | ₹1.80 Cr |
Servicing / annual fee (line fee at 0.25% × ₹30 Cr) | ₹0.075 Cr |
| Penal / other fees | ₹0.10 Cr |
| Gross revenue | ₹7.68 Cr |
| Line | Annual ₹ |
|---|
Cost of funds (12.5% × ₹20 Cr debt) | ₹2.50 Cr |
Operating cost — sales, credit, ops, collections (3.5% × ₹30 Cr) | ₹1.05 Cr |
Tech + vendor cost (1.0% × ₹30 Cr + fixed) | ~₹0.50 Cr |
DSA / channel payout (assume 60% of book via DSA at 0.75%) | ~₹0.55 Cr |
| Total operating cost | ₹4.60 Cr |
Credit cost (ECL at 2.5% × ₹30 Cr) | ₹0.75 Cr |
| Total cost | ₹5.35 Cr |
| Line | Annual ₹ |
|---|
| Gross revenue | ₹7.68 Cr |
| Less: total cost | ₹5.35 Cr |
| Pre-tax profit | ₹2.33 Cr |
Tax (25%) | ₹0.58 Cr |
| Net profit | ₹1.75 Cr |
| Ratio | Value |
|---|
| Yield + fees / book | ~25.6% |
| NIM (yield - cost of funds, weighted) | ~12.7% |
| Cost-income ratio | ~67% (op-cost / total revenue) |
| Pre-tax ROA | ~7.8% of book |
ROE (pre-tax, on ₹10 Cr equity) | ~23% |
- Healthy in steady state but very small absolute numbers —
₹2.33 Cr pre-tax can’t sustain a ~25-person team’s salaries (typically ₹4 – 6 Cr p.a.).
- Year-1 reality: most teams lose money — book is ramping, fixed costs front-loaded, cohorts not yet matured.
- The unit economics are proof-of-concept that the business model works; the challenge is scale.
- Yield compression — if competitive pressure pushes APR to
18%, gross revenue falls ~10%; profitability collapses.
- NPA spike — if credit cost rises to
5% from 2.5%, pre-tax flips to ~₹0.55 Cr from ₹2.33 Cr.
- Slow book ramp — if
₹30 Cr takes 18 months instead of 12, year-1 P&L is sharply worse.
Own-book at ₹30 Cr is viable as a foundation but not a sustainable business. The team’s existence depends on either:
- Layering co-lending fast (Scenario B).
- Raising more equity to grow own book to
₹75+ Cr.
Both are time-bounded — at ₹30 Cr you have ~18 – 24 months of runway with reasonable equity to either scale or pivot.