Vakrangee Ltd

Navigating the New Normal for sustained Growth

Dear Stakeholders,

It gives me immense pleasure to welcome you to our Annual Report FY2023. This year has been an emblematic testament to Vakrangee's resilience, innovation, and steadfast dedication to our entrepreneurial principles. Despite unprecedented circumstances, we not only upheld our operational efficiency but also seized upon new opportunities, driving performance through the entrepreneurial spirit of our Master Franchisees and Franchisee Network.

Seizing Opportunities: Vakrangee and the Indian Fintech Revolution

Reflecting on the previous year, the Indian economy has demonstrated exceptional resilience. The sector's growth trajectory suggests a staggering valuation of USD 2.1 trillion by 2030, presenting immense opportunities for those poised to seize them. Vakrangee, with its strategic positioning and expansive network, is well-equipped to ride the fintech wave and unlock unprecedented value for its stakeholders. The economic growth is not just an outcome of strategic government policies, but also a testament to the entrepreneurial spirit of the Indian fintech landscape.

As a leading player in India's fintech revolution, Vakrangee is perfectly positioned to leverage this growth, creating substantial value for its stakeholders. Our unique ‘one-stop-shop' model for financial services and extensive rural reach align perfectly with the current fintech growth trends.

Furthermore, as we strive to build one of India's largest last-mile distribution platforms, we are establishing ourselves as a physical plus digital ecosystem with a pan-India presence. This strategic initiative ensures that we remain at the forefront of industry developments and cater to the evolving needs of our customers. As part of our vision to drive innovation, we are actively working towards transitioning into a Neo Bank, capitalising on the advancements in digital banking. Through our

BharatEasy Mobile super app platform, we are set to launch Neo Banking services. This will allow us to offer a seamless O2O (Online to Offline) experience, providing our customers with the convenience of digital banking while also offering in-person assistance through our physical Kendra network. By combining the strengths of digital banking with the human touch, we are creating a unique and holistic banking experience.

Vakrangee is committed to creating unprecedented value for its stakeholders and contributing significantly to India's economic resurgence by harnessing the opportunities arising from this fintech revolution. As a key participant in this transformative journey, we are excited about the potential to further our mission of empowering the underserved and unbanked, thereby amplifying our positive societal impact.

The Strategic Demerger

In an important and value-accretive development for our company and shareholders, we are privileged to announce that the Hon'ble National Company Law Tribunal (NCLT) has approved the demerger of Vakrangee's E-Governance & IT Solutions Business. This judgment, dated May 19, 2023, paves the way towards the creation of two separate listed entities: Vakrangee Limited, our present listed entity, and VL E-Governance & IT Solutions Limited, which will debut as a separate entity on the stock exchanges.

This demerger marks a significant strategic milestone and brings clarity, focus, and independent growth paths to both business entities. With the demerger, Vakrangee Limited will continue to focus on our core business: the network of Vakrangee Kendra physical outlets and our innovative Digital platform, the BharatEasy Mobile Super app. These retail-centric and consumer-facing businesses, promising an asset-light, high-return model that's resilient and sustainable.

Unleashing the Power of Inclusion

Our journey at Vakrangee is marked by our financial accomplishments and our enduring dedication to serving and uplifting the communities in which we operate. The Vakrangee brand stands as a testament to community growth, fostering local entrepreneurship, and amplifying the concept of financial, digital, and social inclusion.

By harnessing the power of our extensive last-mile retail outlet network, we strive to fuel local economies, enhance the quality of life for individuals, and minimise poverty. The essence of our business strategy is deeply intertwined with our dedication to capacity building and job generation. In this regard, we ensure that we equip individuals with critical competencies through certifications for Banking and

Insurance Services. This not only improves their employability but also boosts their capacity to influence positive changes within their respective communities.

Vakrangee's role is integral to government initiatives such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Pradhan Mantri Mudra Yojana (PMMY). Our active engagement in these initiatives showcases how we align our business practices with the Government of India's vision of holistic social security.

OUR GROWTH IS CENTRED AROUND MASTER FRANCHISEES, WHO BRING FORTH THEIR ZEAL, DEDICATION, AND A CULTURE OF INNOVATION THAT SERVES AS THE DRIVING FORCE PROPELLING US TOWARDS SUCCESS.

The impact of our work extends beyond the direct beneficiaries of our services. By driving financial, digital, and social inclusion, we are empowering individuals to contribute to their local economies. Consequently, this promotes sustainable community development and national growth, fortifying Vakrangee's position as an active participant in India's social and economic evolution. Ultimately, our commitment is to creating an inclusive society where no one is left behind, affirming the immense power of Vakrangee's social impact.

Expanding our Presence: Leveraging Entrepreneurial Spirit for Accelerated Growth

At the heart of our growth and success is the entrepreneurial spirit that infuses our exclusive district-level master franchisees and franchisees network. Their zeal, dedication, and the culture of innovation they foster are the driving forces propelling us forward. As a result, we are poised to scale at an accelerated pace and expand our presence across India. As we gear up for another year of challenges and opportunities, we remain committed to driving performance through entrepreneurship and accelerating growth through our Master Franchisees and Franchisees

Network. We will continue building a brighter, inclusive, and prosperous future for all our stakeholders. We also believe that the core of our success lies in the hands of our greatest asset - our people. By nurturing an entrepreneurial environment, we inspire our employees to claim ownership, engage in innovative problem-solving, and bravely encounter challenges. The success story of Vakrangee is written by the collective effort and passionate pursuit of our dedicated workforce.

Committed to Sustainability

Our steadfast commitment to Sustainability remains unwavering, reflecting our enduring dedication to responsible corporate citizenship since our company's inception. We firmly believe that Sustainability is not only the right course of action, but also a critical business imperative. The health and well-being of the people and communities we serve directly impact our own success. In line with Vakrangee's sustainability vision, we have embraced global best practices to fuel aspirations and foster long-term value creation for all stakeholders. As one of India's largest network of last-mile retail outlets catering to underserved markets, we have a distinct opportunity to make a positive impact within the communities we proudly operate.

Driven by our unwavering commitment to establishing the highest standards of environmental, social, and governance (ESG) practices, our company has successfully benchmarked its performance across a comprehensive range of industry-specific criteria.

Our global recognition reflects Vakrangee's dedication to continually enhancing corporate governance and transparency standards. Through our extensive network of Kendra outlets, we are actively promoting financial and digital literacy, reaching the socio-economic base of the pyramid. By ensuring our products are accessible and affordable to all segments of society, we strive to facilitate economic inclusivity and bridge the urban-rural divide.

I am delighted to share that our company has received significant global recognition on various platforms for its exceptional ESG performance and long-term business sustainability. Notably, Vakrangee Limited has been honoured to be included in this year's esteemed Sustainability Yearbook 2022, published by S&P Global. We have earned the distinguished "S&P Global Bronze Class" position in the Corporate Sustainability Assessment (CSA) survey. This annual ranking showcases the sustainability achievements of the world's largest companies in each industry, as evaluated by their CSA scores. Additionally, I am pleased to announce that Vakrangee has been accepted as a signatory member of the United Nations Global Compact, aligning our sustainability initiatives with the United Nations Sustainable Development Goals.

A Word of Thanks

Finally, we would like to express our sincere gratitude to all our stakeholders - shareholders, employees, franchisees, partners, and customers - for their unwavering trust and support. Your belief in our mission fuels our commitment to fostering an inclusive future.

As we continue to harness the power of entrepreneurship, we are excited about the journey ahead. Let us continue to "navigate the course" and write the Vakrangee story together.

Best Regards,

Ramesh Joshi

Non-Executive Chairman