Arohan Financial Services Limited | Annual Report 2022-23

Fo u n d e r & Gr o u p Cha i r p e rs o n ’s Ad d r e ss Dear Shareholders, Colleagues and Friends, We are delighted to share our Annual Report for FY 2023 of Arohan Financial Services Limited, Non- Banking Finance Company – Micro Finance Institution, an Aavishkaar Group company. Creating sustainable impact has been at the core of our business and operations at Aavishkaar Group, and we launched the Aavishkaar Impact Report 2022, which captures the journey of diverse businesses and the context of their impact, with Arohan playing a significant role. 2022 has been a milestone year for us in many ways as we completed 10 years of Arohan becoming a part of Aavishkaar Group and under the wonderful leadership of Manoj Nambiar and his colleagues, taking forward the vision of building a responsible, respectable microfinance institution that is obsessed about continuous enhancement of customer experience and is willing to go the extra mile in delivering quality to its end clients, across the remotest geographies in India. The year has also been significant as were able to invite three reputed and respectable investors TIAA-Nuveen, FMO, and IFU to join us as shareholders. We expanded operations and entered three new states Rajasthan, Haryana and Uttarakhand. Addressing the credit requirements of the missing middle segment, we launchedMicro-Enterprise Loans, under our ‘Bazaar’ product, for the higher segment customers with ticket sizes ranging from INR 1,05,000 to INR 1,50,000. With a clear focus on pushing our portfolio and enhancing customer connect, our Business & Collection and the Debt Receivable Departments have played key roles in optimising efficiencies and getting our monies back. Reserve Bank of India’s historic pricing deregulation and credit harmonisation aptly defines the way forward for the industry and has played a pivotal role in restoring normalcy in business activities in the year 2022-23. These are evidenced by a strong year-on-year growth in the portfolio of the Company recorded in FY 2023 and improvement on all our key metrics in the positive direction. As I have iterated on many occasions earlier, our long term vision for Arohan is to unleash the potential of the Company technology-enabled financial inclusion entity, that will enable millions of customers to participate in the economy of the future. Therefore, amongst all the developments that the Company 3 | Annual Report 2022-23