Season’s Greetings,

I am delighted to connect once again with all of you through our quarterly newsletter.

Arohan, today, operates in 10 Low Income States across central, east and north eastern parts of our country serving close to 13 lakh clients through a network of 6 zonal, 20 regional and 494 branch offices manned by 3800 employees with a portfolio outstanding of INR 2474 Cr as of end June, 2018.

Post a good year ending in March, 2018, we have had an eventful Q1 of this financial year: I am pleased to inform you that Mr D.K Mittal, ex Secretary DFS, Government of India has joined us as the independent Chairman of the Arohan board of directors. He has been a distinguished IAS officer with exposure to banking, financial services and infrastructure amongst others and will bring a lot of value to the discussions at the board level and also our overall strategic vision for the business going forward.

Our quest to achieve a facility which is “paperless on the front and cashless on the back end” made us focus on auto-syncing all the tabs with our CSRs to our Profile, core banking system from FIS. This has eliminated data entry as a stage and has helped enhance the quality control focus on the front-end approval process. Our focus on cashless has helped us reach close to 60% on disbursements while we explore an appropriate ecosystem to start repayments as well. Our cross-sell, inorganic channel, BC and MSME lending verticals continue to grow and become significant USPs of our business model while we complete the roll out of the IT road map. Our MSME lending business through the Merchant Cash Advance and ACH model also uses a group fintech entity Tribe3 to explore machine based approvals for the INR 1 to 5 lacs ticket size - we are in 4 additional locations of Mumbai, Pune, Bengaluru and Hyderabad in this space

In 2013, after steadying the ship post our investment and consolidation, the senior management envisioned a 10 – 10 – 10 Vision for the next 5 years of our evolution: to be one of the top financial inclusion player in the 10 LIS serving over 10 lakh end clients while being in the top 10 places to work. I am happy to inform you that we have already entered our 10th LIS state Madhya Pradesh, are 7th the largest NBFC-MFI as of end March 2018 and serve close to 13 lakh end-clients today – we are making good progress on being in the Top 10 Places to Work with the GPW organisation and hope to be there soon.

Our fund raising ability is backed with good ratings and grading from agencies, good and diversified borrowing relationships and at 20.7% pricing to the end client, we are the third lowest nationally amongst all types of entities.

Our capital raise plan ‘Project Udayan’ is steadily moving ahead with the promoter group and key investors with the board looking at all options to strengthen the company’s capital base for future growth. The board is considering all options including a rights issue, infusion of primary capital by the promoter group/external investor and also a possible listing to achieve this objective.

I am also delighted to inform you that after being on the governing board of MFIN, the microfinance sector SRO from 2013, I have been re-elected for a three-year term starting end June 2018. The support from the primary members in re-electing me was overwhelming indeed.

I thank you all for the support and good wishes and look forward to more,

Warm RegardsManoj Kumar Nambiar, Managing Director

Customer Profile

Arohan is now 'Arohan Financial Services Limited'

Arohan has successfully converted into a Public Limited Company from a Private Limited Company. Arohan has received the new certificate of incorporation pursuant to the conversion of Arohan from Private limited company to Public limited company. With effect from May 25, 2018, the company’s name is "Arohan Financial Services Limited".

Arohan wins the prestigious "MFIN Microfinance Awards 2018 – In Pursuit of Excellence" for the Best Risk and Resilience Framework

Arohan is pleased to announce that it has won the prestigious "MFIN Microfinance Awards 2018 – In Pursuit of Excellence" for the Best Risk and Resilience Framework among NBFC-MFIs, awarded by MFIN in association with Dun & Bradstreet (D&B) at an event held in Delhi on May 24, 2018.


The first and the only bespoke microfinance awards in the country, it is a recognition of Arohan's commitment to promoting good governance and client-centric practices.

The award, handed over to Arohan by Mr. Giriraj Singh, Minister of State for Micro, Small and Medium Enterprises, Government of India, was received by Mr. Ranjan Das, Head of Risk and Credit and Ms. Shraddha Srimal, Head of New Products and Alliance Businesses. “This award is a culmination and an acknowledgment of Arohan's team effort, in the 'Pursuit of Excellence', in its true spirit. Arohan has now been formally recognized by the MFI industry for implementing the very best of risk management processes & tools in our endeavor to run a successful, balanced and sustainable business. We will continue to build upon our robust risk management culture across the organization, including our frontline branches, and continue to be the best in class in the industry,” said Mr. Das. "This award is a testimonial by the industry to our continued efforts over the last few years. Arohan has been a pioneer in risk management with best in class practices including a unique branch risk grading, organization level risk thresholds monitoring with a robust risk management framework culminating with rigorous board level risk reporting, helping the organization manage its risks effectively required for balanced growth," said Ms. Srimal who, earlier, headed the Risk Department.

Commenting on this prestigious win, Mr. Manoj Nambiar, Managing Director said, "This is a very happy moment for all of us at Arohan to have been recognized for our state-of-the-art Risk and Resilience framework by MFIN, our SRO. Our growth, as a team, is an outcome of best-in-class risk management practices. I congratulate the team for leading us to this win".

Arohan graded at top notch MFI 1, second year in a row

Arohan has been awarded the highest rated MFI 1 grade from CARE Ratings based on the grading assignment conducted in the month of March, 2018, for the second year in a row. The grading is assigned on an 8-point scale with "MFI 1" being the highest. Arohan is the only NBFC-MFI in the East and North-east to be rated with the top-notch MFI1 and enables it to retain its position among the elite league of MFIs in India that are graded as MFI1.

This makes Arohan the only NBFC-MFI in the East and North-east to be rated as MFI1 and enables it to break into the elite league of MFIs in India. The grade reflects the highest level of competence to undertake microfinance activity. It shows that Arohan operates with a high level of transparency, has a robust operational set-up, has the scale, a diversified outreach and is a sustainable entity, both financially and operationally.


Arohan enters Madhya Pradesh, achieves key milestone

On June 23, 2018, Arohan Financial Services Limited successfully crossed the landmark of being operational in Madhya Pradesh.Commenting on the feat Mr. Manoj Nambiar, MD, Arohan said, "It is an extremely happy moment for us. Of our 10 - 10 - 10 Vision, we have crossed the 10 lakh clients and have now successfully expanded our operations to Madhya Pradesh. We hope to be in the top 10 places to work for, in the next 2 to 3 years time. I feel happy to congratulate all for their tireless efforts and hard work".

Arohan Inducts Shri D.K Mittal as Independent Director and Chairman to the Board


Arohan Financial Services Limited, one of the leading NBFC-MFIs in India announced induction of Shri DK Mittal, Ex-Secretary, Department of Financial Services, Government of India as Independent Chairman to its Board of Directors. As part of the Aavishkaar-Intellecap Group, Arohan is serving the Group Vision of "Building businesses with or for the Other 3 Billion".

Sharing his thoughts Shri D.K Mittal said, "India needs to harness its latent entrepreneurial potential to build a sustainable and equitable society. The idea of guiding Arohan, which is nurturing micro women entrepreneur at grassroots, enabling inclusion by using technology, is both challenging and rewarding. Arohan has parentage from the Aavishkaar-Intellecap Group which offers me unique insights in the economics of impact given the width of their engagement with the marginalized through equity, debt and advisory".

Vineet Rai, Founder, Aavishkaar-Intellecap Group said, "We are indeed privileged to have Mr Mittal join as an Independent Chairman to the board at Arohan. His presence gives us confidence that we have a visionary leader guiding us as we scale responsibly and serve one of the most marginalized parts of our country".

Welcoming Shri D.K Mittal to the Board, Manoj Nambiar, Managing Director, Arohan Financial Services Limited said, "We are delighted to have Mr. Mittal join us at the board. He has been an administrator of repute and his exceptional leadership across various organisations makes him a valuable asset to the Board. His acceptance to join us is gratifying and we look forward to his guidance as we embark on our journey forward".

D.K Mittal is a former Gold Medallist Indian Administrative Service (IAS) Officer of 1977 batch (UP cadre) and has served the Government of India in various capacities. Mr. Mittal was Secretary, Department of Financial Services responsible for overseeing Banking, Insurance and Pension policies of India. During his tenure, he worked very closely with the RBI and was on the Board of the RBI, LIC, State Bank of India, IIFCL and IIFCL (UK). Previously as Secretary, Ministry of Corporate Affairs, he has worked closely ICAI, ICSI and ICWAI.


Microfinance Institutions Network (MFIN) announces the induction of Mr. Manoj Kumar Nambiar to its Governing Board

Arohan is pleased to announce that Mr. Manoj Kumar Nambiar, Managing Director, has been re-elected to the Board of the Microfinance Institute Network (MFIN), the microfinance industry Self-Regulatory Organization on June 28, 2018. It's a prestigious honour as he represents the organization on the Board of MFIN for the second time.

Reacting to the closely fought election results at the AGM in Bhubaneswar last week, Mr. Manoj Kumar Nambiar said "It feels wonderful to be back on the Governing Board of MFIN, the industry SRO which we had a role in helping set up in 2009. I am overwhelmed with the majority support of the primary members most of whom have had some relationship with the Aavishkaar-Intellecap Group such as capital raising, borrowings, investments etc. I am happy to be on the board and contribute to it when the sector is undergoing far-reaching changes in its structure".

Microfinance Institutions Network (MFIN) is the industry association for the microfinance sector in India. It was the first SRO licensed by the RBI in the financial services space in India. Its primary member organisations constitute the leading microfinance institutions and associates include the other players like SFBs, Banks etc. in the country. MFIN works closely with regulator RBI and other key stakeholders, and plays an active part in the larger financial inclusion dialogue through the medium of microfinance.


Enabling financial inclusion on a digital platform – An article by Manoj Kumar Nambiar and Arvind Murarka in CIO Insider

Mr. Manoj Kumar Nambiar, Managing Director, and Mr. Arvind Murarka, VP and Head IT, Arohan Financial Services Limited write about enabling financial inclusion on a digital platform for CIO Insider magazine.
In the article they talk about technology, innovation and knowledge becoming the key drivers of growth for the microfinance industry today. "Emerging technologies have the potential to revolutionize the customer experience, especially at the ‘last mile’ by providing greater levels of personalized service and greatly improving the back-office efficiencies at financial institutions, thus playing one of the most significant roles in the objective of financial inclusion", quotes the article.


Arohan wins Award for CSR Project of the Year - Water


Arohan is pleased to announce that it has won the Jury Award for the CSR Project of the Year - Water, as part of the CSR Excellence Awards, 2018 at The India International CSR Conclave and Awards, held in Delhi.
The CSR Excellence Awards is the most inclusive and diverse awards of its kind that acknowledges big businesses for responsible and sustainable practices. It is about rewarding change; building platforms to learn, share and progress ideas; and encouraging the development of engaged and ethical business practices. Companies are screened by an eminent jury across two rounds as part of the excellence awards.

The award recognises the Arohan funded integrated water sanitation unit implemented by South Asian Forum for Environment (SAFE) in the Rajpur-Sonarpur Municipality region adjoining Kolkata. The unit has the capacity to provide WHO quality purified water daily to the local community benefiting up to 500 families. The award was collected by Ms. Meghna Dass, Corporate Social Responsibility.

Commenting on this prestigious win, Manoj Nambiar, Managing Director said, "We at Arohan believe in integrating our business with the lives of our clients on the ground. The water sanitation unit was our contribution towards amplifying the efforts of Swachh Bharat Abhiyan and making people self-sustainable. This award is an acknowledgment of the approach we have taken".


Bag distribution in Lucknow

Arohan, as a part of its CSR activities, had launched the Arohan Shiksha programme to provide educational aids to students from marginalised communities. As a part of the programme, Zone V, distributed school bags to primary school children of a government-aided school in Lucknow. Our team in Uttar Pradesh, led by Zonal Business Head Mr. Bharat Singh and Zonal HR Prakash Dutta, organised the school bag distribution in Primary School of Javaripur, Masoli, Barabanki, Lucknow to the delight of all the children in attendance.

Old cloth for environment

On the occasion of World Environment Day on June 5, the CSR department of Arohan in association with SAFE conducted an old clothes donation campaign, for the employees at HO, under the programme 'Resolve Trash2Cash', an urban climate initiative on integrated solid waste management. Employees actively participated in the campaign. Clothes collected will be recycled into hand-made paper, dresses for underprivileged children/infants and cloth bags encouraging its use over plastic bags.

Every contribution helps the livelihood of women workers involved in recycling and makes a sustainable difference.


Arnnapurna Dey - Arnnapurna began her journey with Arohan in the year 2015 with a loan amount of INR 15000 to set up a small grocery shop next to her home. She gradually developed her business and grew with a helping hand from Arohan year after year. Arnnapurna has now been offered her third cycle loan of INR 45000 and a refrigerator for her shop which speaks volumes about her business credentials. She is an independent woman supporting her family with income of upto INR 400 a day.

Arnnapurna is blessed with two girls, and takes pride in providing for their entire educational cost. "I am thankful to Arohan for their services. I feel overwhelmed to be a part of their customer group", says Arnnapurna.

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Kolkata 700 091

Phone: +91 33 40156000