Arohan Annual Report FY 20-21

customers in case of the unfortunate incident of illness resulting in hospitalization of the customer or her spouse. In addition, in order to support customers in the common fight against the global pandemic, Arohan through its partners, is able to provide a COVID-19 related insurance policy to customers in addition to their regular health insurance. This has been well-received by customers across all areas of Arohan’s presence. Non-Financial products: Arohan offers a range of utility products to its customers at affordable costs. These productsmay also be financed by Arohan through secondary loans for eligible customers. Current products available under non-financial products include but are not limited to solar lamps, agricultural products, home and kitchen appliances, consumer durables and bicycles, made available in association with various third parties. The products offered to customers are those that provide value to the customer’s life or livelihood, enhancing her and family’s quality of life in the process. The ApnaBazaar platform Arohan cross-sells products to its customers via a Technology Platform called ‘ApnaBazaar’, developed in-house, on which various products are made available to all Field Staff on their mobile or tablet devices. Customers and field staff are able to see which products are available at which location, place orders and find out estimated delivery times. COVID-19 Special Product Package In order to address customers’ needs during a challenging external environment, Arohan came up with several product interventions to assist customers, regular, overdue and delinquent. DIVERSIFIED BUSINESS MODEL WITH INORGANIC GROWTH Arohan is one of the very few microfinance organisations to provide loans of amounts ranging from INR 10,000 to INR 250 Mn, including Term Loans to small MFIs operating in remote parts of various Low Income States or financially underpenetrated states in India. Arohan’s Inorganic Portfolio comprises of loans sourced through the Company’s partnerships with small MFIs. These partnerships include the provision of Term Loans and also Sourcing and Collection arrangements. Through this vertical, Arohan works with over 30 partners across its areas of operations creating a win-win-win model: i. Customers situated in remote geographies, lacking access to diversified credit products, get continued access to credit ii. Grass-root level institutions get financial, as well as, technological and operational scale through focused consultation and training interventions, allowing such organisations to incubate towards growth iii. Last but not the least, Arohan achieves diversification and strengthening of portfolio. Since its introduction, the Inorganic Vertical has traversed a robust growth journey, reaching out to underserved customers in remote geographies in India. Since inception, the vertical has maintained a portfolio with high quality and negligible Portfolio at Risk (PAR), which increased in FY 2020-21 due to a challenging external environment. INNOVATIVE CUSTOMER OFFERINGS Arohan’s management is focused on driving innovation and differentiation through its products and processes with an aim to serve customers better. Following the COVID-19 pandemic and the ensuing payment moratorium, Arohan introduced additional innovative products Management Discussion & Analysis 43