Project Horizon

Building the Largest Digital SME Platform

MT Discussion Document
June 17, 2019
Objective
PURPOSE
 To track progress against Business Ventures that have been to SCV Braintrust
 To update various stakeholders on a consistent set of questions (avoid repetition/duplication)
GUIDANCE
 Proposed slides cover – (a) what’s the venture about, (b) what are the deliverables and timelines
(c) what are the key risks and (d) how is money being spent and what is the expected ask
 Note the nuances in templates for seeded (i.e. $3-5m minimum approved) vs. pre-seeded
ventures (i.e. up to $0.5-1m for next stage)
 Apart from these common slides, venture leads should include any other relevant updates/ deep-
dives as they see fit e.g., client research, proposition, partnerships, tech architecture etc
 All ventures need appropriate project management discipline i.e. Excel tracker, MS Project,
Kanban method (Trello) etc – seeded ventures should consider formal PMO role
NEXT STEP
 Determine mini-VSG (Venture Steering Group) members. Suggestion is to include 1 relevant
business rep, 1 relevant regional/country rep. We will have appropriate SCV representation
 Set up monthly VSG meetings – please put them in calendar for next 3 months starting June –
mark Zoey Kok as optional so that we know when meetings have been set up

2
The Platform The Proposition

GROWTH.SIMPLIFIED

Access Connect Simplify

to finance with clients operations

A digital A community Integrating

financial for SMEs to with solution
marketplace connect with providers for
connecting local and cost effective
SMEs with FIs global and
for on-demand ecosystem convenient
and affordable operations
finance

7
 Risk Assessment

1 InfoSec / Cloud
Governance 2 Regulatory
3 Reputational /
Country
4 Operational
Risk

Key Risk Key Risk Key Risk Key Risk

- Cloud governance to protect - DIPP requirements on - Negative media based on - Regulatory compliant data
Solv subscribers’ data and Ecommerce platforms & the assets generated on sources
identity relationship with group Solv Platform - System integration and
- Vulnerability of internal companies - Country Risk of India availability
network - Regulatory guidelines on - Vendor Risk management
offering Insurance marketing
services on Solv
Mitigant Mitigant Mitigant
Mitigant
- Solv will be adhering to ISO 27001 - Solv will not be underwriting any - Reputed vendors being onboarded
- DIPP: Ministry has confirmed that
standards for information, data and credit risk - only developing - Legal fully involved in compliance
the respective requirements do not
cyber security. industry specific credit related matters
apply to Solv. Solv has submitted the
- Solv has empanelled Deloitte as formal request on Jun 14. recommendation models with - Strong technology team and
an advisor to define the controls, Experian to assist FIs in vendors in place
- Insurance: Opinion from Trilegal is
policies and toolsets to achieve this identifying probability of default
in favour of Solv for the proposed
by Q1’20 - Risk also mitigated by having an
structure.
- Firewall and infosec implemented independent brand and potentially
by Solv meets stringent standards getting strategic investors for
and is accredited by reputed venture
institutions. - Country Risk of India is well
established by group.

Risk Types Not Applicable: Credit, Liquidity, Market

2019 Project Roadmap

Jul – Aug 2019

Apr – Jun 2019

Operational Sep – Nov 2019 Dec 2019 – Feb 2020
Team setup, brand identity readiness for MVP MVP 2 – SCF Commercial
creation launch Design & development of SCF(Dealer Financing) Launch –
Key hires in place – Tech, B&M, Strategic with 2 anchors and 3 FIs ‘Access’,
Organisational readiness to
Alliances, Product, Program Management & start transactions, setup of ‘Simplify’ &
Risk. Brand & domain finalized. customer service operations, ‘Connect’
BI & data analytics

APR MAY JUN JUL AUG SEP OCT NOV DEC

Jun – Aug 2019 Aug – Oct 2019 Nov – Dec 2019

Apr – May 2019

MVP 1 – Business Loans MVP 3 – “Connect” MVP 4 – Build

Key partnerships
Tech build, data/service integrations, 1 Design & development of ‘Simplify’
Onboarding key aggregator, 1 FI integration Connect proposition Design & development of
vendors/partners/aggregators –
Commercial Insurance as a
finalizing legal contracts
service

13
Solv Organizational Structure
Lean and Delivery Focused
INDEPENDE
NT SOLV BOARD
Nandan Nilekani and Arun Sharma ADVISORS Alex Manson and Zarin Daruwala*

SOLV CEO
NITIN MITTAL

BRAND AND
ALLIANCES PRODUCT
CISO / CRO CTO COO MARKETING
HEAD HEAD
HEAD

PROGRAM
CREDIT DATA DESIGN FI
HR HEAD MANAGEME
MODELING ANALYTICS LEAD ALLIANCES
NT

FINANCE
TECH HEAD
OPS RISK
ARCHITECT
COMPANY
LEGAL & SECRETARY
COMPLIANC
On-board E HEAD
ADMIN HEAD
BUSINESS
Offer Accepted OPERATIONS
HEAD * Venture Steering Group including Prakash Subramanian,
Manish Jain, and other SCV members oversees Solv in
addition to Board
2019 Project Roadmap

Jul – Aug 2019

Apr – Jun 2019

Operational Sep – Nov 2019 Dec 2019 – Feb 2020
Team setup, brand identity readiness for MVP MVP 2 – SCF Commercial
creation launch Design & development of SCF(Dealer Financing) Launch –
Key hires in place – Tech, B&M, Strategic with 2 anchors and 3 FIs ‘Access’,
Organisational readiness to
Alliances, Product, Program Management & start transactions, setup of ‘Simplify’ &
Risk. Brand & domain finalized. customer service operations, ‘Connect’
BI & data analytics

APR MAY JUN JUL AUG SEP OCT NOV DEC

Jun – Aug 2019 Aug – Oct 2019 Nov – Dec 2019

Apr – May 2019

MVP 1 – Business Loans MVP 3 – “Connect” MVP 4 – Build

Key partnerships
Tech build, data/service integrations, 1 Design & development of ‘Simplify’
Onboarding key aggregator, 1 FI integration Connect proposition Design & development of
vendors/partners/aggregators –
Commercial Insurance as a
finalizing legal contracts
service

13
Appendix

14
 D &B Client Research
200 SMEs 12 Industries 8 Regions 28- 50 yr Age 3- 40 yr Business age

Traders, manufacturers, service providers and retailers Diverse Education profile

MSMEs in India – inherent struggle for

growth and business challenges

Focus areas
• FundingFinancing
- limited access to Business services
finance Skill enhancement and • Lack of resources: Do it
• Less than optimum funding Business diversification yourself
training
• High administrative burden • Complex business
for processing and Business data & processes management
maintenance of loan Customer acquisition information – for decision • Dependency on word of
accounts making mouth for any new services
• Current scenario: Co- Business process • Current scenario:
Ease and access to
operative banks and improvement – support & Prioritization towards
financing
informal sector for continuous guidance urgent over critical tasks
financing
15
SME Pace in India

16
Aggregators landscape
Cross Logistics & Health &
Category Hospitality warehousing Interiors Fashion Pharma

Online

Offline

17
Predictive credit models (with Experian)

Data Sources Feature Engineering Machine learning Automated Risk and

(Traditional and Alternate) (360 degree view on customer) algorithms Business Rules Engine1
Data Cleansing Segmentation Credit Decision
Operational Feature Creation (e.g. sector)
Business Credit Line / Loan
Financial Data Parameters
Feature Engineering Credit/ Fraud Scores Amount
Deep Link Analytics Risk and Sector
Business Big Social Based Pricing
Data Data Data
Cross sell and Top up
strategy
Consumer Commercial
Credit Bureau Bureau Pre-Select/Pre-
Approval Decision
Collection Strategy

Self Learn Models > AI based process

1. Horizon will only build capabilities and scorecards, final risk decisions are with financial institutions 18
Data Sources
Financial statements
Leverage, capital ratios
Goods & service tax network
Turnover estimation basis sales data; eligibility calculation
Social
Customer reviews, public & social media data
Income tax returns
For eligibility(income estimation)
Ongoing transactional data
Behavioral patterns and analytics
Telco data
Telecom data for NTC customers
CERSAI
Property charges and C-KYC data
Aggregators
‘Cash fencing’; additional credit mitigant
Ministry of Corporate Affairs
Company information and financials
Accounting / ERP data
Triangulation; field survey
Litigation data
Data from Indian courts
Credit bureau
Historical credit behavior
Psychometric data
Intent to repay
Bank statements
Cash flow based eligibility calculation
Depositories
Securities data
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FINANCIAL PLAN – FY ’19 - ‘20
EXPENSE FORECASET Q2 Q3 Q4 Q1 FY20
Product and technology
MVP operational cost 700 300 300 300 1,600
Solv platform design and built 1,050 1700 1,950 2,100 6,800
Integration cost with third parties - 600 600 600 1,800
Third party data service usage - - 100 200 300
Third party data service provider onboarding 65 100 100 150 415
Total 1,815 2,700 3,050 3,350 10,915

Brand and marketing

Launch expense - 100 100 - 200
Brand and media agency 115 50 100 50 315
ATL (outdoor branding & print media) - - 125 200 325
Digitial channels - - 75 150 225
FS discount promotion for smes - - 400 600 1,000
BS discount promotion for smes - - 150 200 350
Total 115 150 950 1,200 2,415

Other operating costs

Staff salary and recruitment costs 698 1,727 1,888 2,100 6,413
Premises rentals 75 150 150 150 525
Assets purchase and rentals 153 75 135 140 503
Travel expenses 50 90 100 100 340
Legal and compliance expenses 134 100 125 95 454
Other direct expense 25 85 90 90 290
Total 1,135 2,227 2,488 2,675 8,525

Grand total 3,065 5,077 6,488 7,225 21,885