Arohan Financial Services Limited | Annual Report 2022-23

S&C helps small and mid-size MFIs to grow their books without any capital allocation, thus creating a win-win situation. Through this vertical, Arohan works with over 20 partners across its areas of operations benefiting not just customers who are situated in remote geographies, lacking access to interventions diversified credit products, get continued access to credit, but also grass-root level institutions in getting financial, as well as technological and operational support through focused consultation and training interventions from Arohan. Arohan has been an industry thought leader in driving this vertical, while creating a differentiator growth model for itself, well-suited for its journey ahead. Differentiator Models ArohanPrivilege Digital Lending Arohan is focused on driving innovation and differentiation through its products and processes with an aim to expand its outreach while serving customers better. In FY 2023, Arohan has steered the launch of a historic, first-in-the industry Digital Lending platform for microfinance customers – ArohanPrivilege. Arohan has been quick to adapt to the rapidly changing customer behaviour, post the pandemic, where it was challenging to bring them back to a centre discipline. ArohanPrivilege Digital Lending is an alternate channel to address this issue, while also a vehicle to achieve Arohan’s Vision 2027. This service is specific to gold standard microfinance customers. ArohanPrivilege is a unique first-in-the-industry initiative that gives such customers the facility of receiving and serving their loans through 100% digital and cashless means, through Arohan’s proprietary apnaArohan app from the comfort of their homes. The benefits for ArohanPrivilege Customers are as follows: • Money in the account withinminutes of a successful loan application • Unparalleled user experience with easy-to-use In FY 2023, Arohan added new services such as the Dwelling Insurance product and the Telemedicine Rider on the Hospicash product, to the thriving bouquet of products catering to the varied needs of a customer. The Company is attempting to capture the right product demand of the right customer during the right phase of her journey with Arohan. Throughenhancedcustomerexperienceandservice processes, Arohan is focused on reducing customer delinquency and increasing customer retention. Arohan is engaged with leading brands in the financial, as well as non-financial Cross Sell space to ensure that its customers get access to a wide variety of products. This asides, renowned brands also ensure best-in-class post-sale service and claim settlement experience. To this effect, Arohan is engaged with brands such as Bajaj Allianz Life Insurance, Kotak Mahindra Life Insurance, HDFC Life, Future Generali, and Care Health Insurance in the financial space and finances products of Samsung, Vivo, Prestige, Maharaja, Crompton, Hero, d.light and other leading brands in the non- financial space. Going forward, Arohan, through its Cross Sell business, aims to focus on onboarding more customers and further improving customer experience. To this effect, the business will focus on capturing active and latent demand of ArohanPrivilege customers (the industry’s first Digital Lending platform for microfinance customers, by Arohan), offering financial and non- financial Cross Sell portfolio to potential customers of Arohan who do not have an active Primary Loan with the Company, offering financing facility to customers on e-commerce platforms and reducing manual operational dependencies by introducing more system-driven interventions. Inorganic Business Arohan is one of the few NBFC-MFIs which extend loans to other smaller MFIs for the creation of microfinance portfolios in low-income states. Term loans range from INR 1 Cr to INR 25 Cr. Arohan also enters into exclusive Sourcing & Collection (“S&C”) arrangements with other microfinance institutions to help them grow their portfolio off-book. Under the S&C arrangement, the partner sets up exclusive branches for Arohan to extend microfinance loans and collects repayment. The loan is written on the books of Arohan and the partner gets a share in the collection of interest. 39 | Annual Report 2022-23