Skip to content

10.3 Scenario C — ₹30 Cr own + ₹300 Cr co-lent

  • Own AUM (avg): ₹30 Cr.
  • Co-lent partner AUM (avg): ₹300 Cr (across 3 – 4 partners at 80:20).
  • Total live AUM: ~₹330 Cr.
  • Annual disbursement: ~₹1,320 Cr.
LineAnnual ₹
Interest on own share (19% × ₹30 Cr)₹5.70 Cr
Processing fee on own disbursals (1.5% × ₹120 Cr)₹1.80 Cr
Processing fee on partner share (1.0% × ₹1,200 Cr)₹12.00 Cr
Servicing fee from partners (1.0% × ₹300 Cr)₹3.00 Cr
Servicing on own line (0.25% × ₹30 Cr)₹0.075 Cr
Penal / other₹0.20 Cr
Gross revenue₹22.78 Cr
LineAnnual ₹
Cost of funds (₹20 Cr × 12.5%; assume cost-of-funds reduces slightly to ~11% at this scale)₹2.20 Cr
Operating cost (2.5% × ₹330 Cr; ratio improves with scale)₹8.25 Cr
Tech + vendor cost (0.6% × ₹330 Cr)₹1.98 Cr
DSA / channel payout₹3.00 Cr
Total operating cost₹15.43 Cr
Credit cost own share (2.5% × ₹30 Cr)₹0.75 Cr
DLG instrument funding cost (across pools)₹1.50 Cr
Total cost₹17.68 Cr
LineAnnual ₹
Gross revenue₹22.78 Cr
Less: total cost₹17.68 Cr
Pre-tax profit₹5.10 Cr
Tax (25%)₹1.28 Cr
Net profit₹3.82 Cr
RatioValue
Gross revenue / total AUM~6.9%
Pre-tax profit / total AUM~1.5%
Pre-tax profit / own equity (~₹15 – 20 Cr by now)~25 – 34%
Cost-income ratio~68%
MetricABC
Total AUM₹30 Cr₹100 Cr₹330 Cr
Gross revenue₹7.7 Cr₹11.2 Cr₹22.8 Cr
Pre-tax profit₹2.3 Cr₹2.4 Cr₹5.1 Cr
Headcount~25~60~150
Engineering / vendor cost₹0.5 Cr₹0.8 Cr₹2.0 Cr
Own equity used~₹10 Cr~₹10 Cr~₹15 – 20 Cr
ROE~23%~24%~25 – 34%
  • The fee P&L scales with disbursement, not own equity. From B to C, disbursement scales ~3.3×; fee revenue scales similarly; own equity scales only ~1.5 – 2×.
  • Operating leverage — cost-income ratio improves from 78% (B) to 68% (C).
  • The break-even point is around ₹150 – 200 Cr blended AUM — below that, fixed costs dominate; above that, fees dominate.
  • ROE meaningfully expands once the model scales — co-lending is the strategic lever.

See 10.4 Sensitivity.

  • Multi-partner reconciliation breakdowns — one partner with sustained recon disputes can paralyse a quarter.
  • Concentration on one large anchor / partner / channel — single failure points become material at ₹300 Cr+.
  • NPA pile-up without proportional collections capacity → real losses.
  • Talent gap150 people without strong operational management is chaos.

Scenario C is the target operating shape for year 3. It generates real profits, supports a credible team, and creates options for productisation. The path from B → C is ~18 months of disciplined execution.