Bringing easy credit to theeasy underbanked Bringing credit to the underbanked January 2024 April, 2023 Problem Consumer credit is either not available or too expensive 1 in 5 people 1 in 220 people have a formal financial account have a credit card Low Financial Inclusion Rate: 21% 1 Million Unique Credit Cards vs. 220 Million People 1 Rupee borrowed = Informal lenders tend to be 4 Rupees paid back exploitative Consumption Lending Priced as High as 300% Loan sharks exploit people through invasive processes and high cost loans How are we solving it? Empowering the underbanked through a digitized lending platform, unlocking new opportunities for financial inclusion How? Offering a streamlined, secure, and efficient solution or credit accessibility through our digital first process Mitigating risk through due diligence and ensuring customers are not over indebted Enabling digital payments with zero cash involvement Pakistan’s Leading Shariah Aligned Digital Lending Platform What are we offering? Rasayi Streamlining credit access for productive assets & services Customers • B2C, B2B2C and B2B: productive assets procurement Taleem Buy Now Pay Later Removing the financial barrier for education Breaking one-time payments into interest-free easy monthly instalments • B2C servicing for student loans, lent to the parents • B2C transactions via our E-Commerce Merchants online Instalment Plans • 3, 6, 9 and 12 months instalments plans • 3,6 and 9 months instalment plans • 3 monthly instalments Credit Limits • Up to PKR 1M credit limit • Up to PKR 0.5M credit limit • Up to PKR 15,000 to begin with Products • Smartphones, laptops, tech gadgets, • Semester fee, upskilling courses, • Consumer products & services Umrah, and Travel online independent education The Opportunity? Pakistan's underbanked population accounts for more than 70% of the total population. 40M + ~ 2.9 M $4.1B enrollment market market 200+ >12,000 Universities registered stores 18% 2.91% 20% Growth in Enrollment YoY Growth devices every year $15B+ year-on-year growth Opportunity: Opportunity: Opportunity: Large underbanked market that is not Only 2 major Financial Institutions Low credit card penetration in this catered by the banks focused on education financing, the market Tech Economy - (Tech Exports, market is largely untapped Engineers, Freelancers, Gig workers) How Customer selects the product External Credit Reports from Credit Bureau Order confirmation & fulfilment e-KYC Internal Credit Scoring Works Automated data extraction from ID Card Facial Recognition KalPay Credit Scoring (back-end) Merchant settlement Collections & Recovery Revenue Model Discount on device: 2 to 7% We charge the customer by incorporating a fixed profit on the price - 40 to 55% annualized We charge the student by incorporating a fixed profit on the fee challan - 40 to 45% annualized 0% for the consumers Merchants are charged 7 - 12% on every transaction Competitor Analysis Competitor BaadMay QisstPay EduFi KistPay QistBazaar Traditional Lenders Education BNPL Tech Gadgets Travel & Umrah Shariah Compliant Affordable Pricing B2B Timeline and Partners Traction 1 OCTOBER OCTOBER NOVEMBER 2021 JANUARY 2022 MVP Launch NOVEMBER KalPay Mobile Launched OCTOBER SEPTEMBER 400 brands Agreement Agreement DECEMBER 100 brands JUNE MAY APRIL JANUARY Agreement Product Launch GMV PKR 50M GMV PKR 100M APRIL Pre-Seed Round Closed AUGUST OCTOBER NOVEMBER DECEMBER DECEMBER UCP MoU Knowledge Streams MoU 2023 GMV PKR 400M KalPay Taleem Launch Umrah Financing Agreement Debt Fund 1 Traction 2 YoY ‘22 -> ’23 128% 95% 19% Revenue GMV Transactions Monthly GMV (PKR) Split between Verticals Accumulative GMV - USD Traction 3 $1.9M+ $1.57M+ $186k+ GMV till Date Annualized GMV ARR 35,000+ 19,000+ $99 Customers Lives Impacted AoV 465+ 30+ ~48% Parnter Merchants (BNPL) Corporate Partners Repeat Customers (BNPL) In The News Traction 4 https://propakistani.pk/2022/11/17/foodpanda-partners-with-kalpay-to-help-ride rs-buy-smartphones-on-easy-installments/ https://www.brecorder.com/news/40225185/kalpay-taleem-finance-sign-mouto-facilitate-education-financing KalPay, LUMS and TFCL Sign MoU to Facilitate Education Financing https://propakistani.pk/2022/09/28/kalpay-collaborates-with-muawin-to-strengthen-dig ital-lending/ We are backed by Equity Investors Debt Partners PKR 55M+ Debt Raised Taleem Finance Company Muawin Frim Ventures Yaser Saeed Alghamdi Private Investors & Companies Our Team Shershah Hasan Saad Riaz Hasan Mubarak CEO + Founder CTO CCO + Founding Member More than 5 years of experience; prior to KalPay built his e-commerce startup and scaled it to PKR 1M in monthly GMV & built and also scaled a marketing and growth studio. Shershah has his background in finance, and previously worked at Habib Bank and EY. Currently, he looks after Strategy, Finance and Investor Relations at KalPay. Shershah was featured in the Forbes 30 Under 30 Asia list in 2023 With more than 8 years of experience, Saad started his career as the Co-founder of Healthwire, a health-tech startup in Pakistan, he was also the founder of BECS Pakistan, a leading bloodbank startup and recently was leading the full-stack engineering team at Wellster in Germany. He currently leads and manages the tech team at KalPay. Hasan has more than 13 years of professional experience, he was previously at Finja, where he was Head of Institutional Sales, and also headed their recovery and collections departments. He previously worked at Vopium across multiple countries. Hasan has his MBA from LUMS. At KalPay, he heads partnerships and businesness development. Additional board-level directors and advisors Samir Ahmed Imran Noon Kenneth Cheung Michael Schneider Director Director Advisor Advisor MSc from London Business School and more than 30 years of experience in financial markets. Served as Director of Pakistan Stock Exchange, and CEO of Pakistan Merchantile Exchange and Knightsbridge Capital Group. 30 years of experience spanning diverse areas, including banking operations, corporate banking, asset management and private banking. Served as director at ABN Amro, LGT Bank and Credit Suisse. Senior Growth Manager at Orbit Startups, Ken has more than 10 years of experience advising, mentoring and working for global startups, with 3 successful exits. He is also an active angel investor. Michael is a serial Founder with two Exits. He is also the founder at Seedraisrs, former Operator & Venture Builder, Mentor at Techstars, Founder Institue and VC Scout. Brings more than 14 years of experience. The ask We are looking to raise $1M (50% closed) Use of funds Payroll Marketing & Growth Tech Softwares (tools, AWS etc) Rent & Office Supplies Advisory & Professional Services Misc. (Insurance, Credit Reports etc) Payroll Marekting & Growth Tech Softwares Rent & Advisory & Office Supplies Prof. Services Misc. Thank You! shershah@kalpayfinancials.com https://calendly.com/shershah-kalpay/meet Appendix - https://shorturl.at/dghjS