WeGro Financial Model

Analysis

Visual Representation of Transaction Flow

Table of Content
Section Subsection Page No
1.1 Project & Input Business Model
1.0 Business Model Overview 1.2 Project & Input Cash Flow Breakdown 3-6
1.3 Trading Business Model
2.1 Sources of Fund
2.0 Funds Overview 2.2 Visual Representation of Funding Flow 7-10
3.3 Fund Utilization
3.1 Revenue Build Up
3.2 Cost of Revenue
3.0 Understanding Income 3.3 Opex - Expenses related to GTV (Financing Business)
11-18
Statement 3.4 Operating Expense
3.5 Depreciation & Amortization Expense
3.6 Pro Forma Income Statement
4.1 Understanding Working Capital
4.2 Asset Breakdown
4.0 Understanding Balance Sheet 19-24
4.3 Liabilities Breakdown
4.4 Pro Forma Balance Sheet Statement
Annex

2
Business Model Overview
01 | Project & Input Business Model
02 | Project & Input Cash Flow Breakdown
03 | Trading Business Model

33
Project & Input Business Model

Farmers Cash Flow Breakdown

■WeGro accumulates funds from
crowdsourcing and financial Analysis
Farmer Centers Direct Project Assumptions
institutions Capital Requisition
■The entire project is insured at Z% 1)Farmers
Regio
of total portfolio n a)Amount of capital requirement
■After getting the return, fund is 1 b)Expected yield rate
disbursed to retail investors and FIs c)Expected tenure till harvest
Credit Assessment
d)Actual yield rate
Portfolio Management Working Capital
2)Farmer Center
Operation Expense
Fund a)% of allocation to each farmers for
Distribution
Regio working capital
n b)% of allocation to purchase raw
2 materials from input business
Principal +
Return
c)Effective lead time to allocate the
funds and raw materials

3)WeGro (Portfolio Management)

a)Amount of capital raised to finance
Regio
n the project
3 b)Estimated cost of investment raised
c)Actual cost of insurance total project
d)Expected return of the portfolio
■Farmers visit farmer centers to request
e)Actual return of the portfolio
capital for their farming projects
■Farmer centers perform credit
Indirect Project Assumptions
assessments and share funding details
1.Farmer center operating expenditure
with WeGro
in the project (Total Opex/No of
■After receiving funds from WeGro, Farmer
projects)
Centers allocate X% for operating Input Business Insurance 2.Transportation expense from raw
expenses to farmers and Y% to source raw
material delivery
materials from input businesses
4
Project & Input Cash Flow Breakdown

Capital Requirement Amount Amount

Expected Portfolio Return Percentage

Pre-Project Period
Capital Raised Amount

Lead Time to Raise

Time
Capital

Allocation to Farmer Opex % of Capital Raised

Allocation to Raw
% of Capital Raised
Materials
Project Inception
Lead Time for Allocation Time

Insurance Cost Amount

Actual Portfolio Return Total Production Amount

Post-Project
Period
Distribution of Fund Amount

Opex per Project Amount/No of Projects

Indirect 5
Assumptions
Transportation Expense Amount
Trading Business Model

Cash Flow Breakdown Analysis

Source of Funds:
1.WeGro facilitates funds to farmer
centers to purchase post-harvest
Farmer Center
products.
Provides capital to Inventory
purchase end product 2.Funds can be sourced from WeGro's
WeGro Farmers financial arrangements.

Farmer Centers Operational Stage:

3.Farmer centers operate at the field
Hold products in
inventory for a better
level and maintain direct relationships
Post harvest products
margin with farmers.
4.They collect post-harvest products
Buys products directly Sell the product in the resulting from WeGro's conducted
from farmers marketplace projects and also purchase from non-
WeGro farmers.
Marketplace
Cash Inflows:
Non-Wegro 5.Cash inflows primarily come from the
Farmers sale of post-harvest products to
designated marketplaces.
6.Revenue is generated from both WeGro
Key factors to consider project products and products
Inventory Management: purchased from non-WeGro farmers.
1.Farmer centers have the option to keep inventory for a certain period to potentially achieve better
margins over time. Cash Outflows:
2.Balancing inventory levels is crucial for optimizing cash flow and ensuring products are sold at the right 7.Cash outflows occur when funds are
time. facilitated by WeGro to farmer centers
for product purchases.
Marketplace Transactions: 8.Operational expenses may include
3.Farmer centers sell products either directly to designated marketplaces or through intermediary channels. logistics, storage, and other costs
4.The timing and efficiency of these marketplace transactions impact cash flow. associated with maintaining the farmer
6
centers.
Working Capital:
Funding Overview
01 | Sources of Fund
02 | Visual Representation of Funding Flow
03| Fund Utilization

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Sources of Fund
Funding Assumptions Amount of Funding Capital Rationale
Channels
Offshore USD Number of Investors Offshore Institutional Funds - BDT This source leverages offshore institutional funds
(Collateralized) collateralized in BDT , providing flexibility in the
Avg. Amount Invested per investor - Amount of Investment (USD) * Currency number of investors or a fixed investment amount.
USD Exchange Rate
The choice depends on the investor landscape and
Fixed amount of Investment risk appetite.
Amount of Investment in USD
1) Number of Investors * Avg Amount/Investor
Or
2) Fixed Amount of Investment

Crowd Number of Investors Amount of Crowd Sources Funds Crowdsourcing offers a dynamic approach, allowing
Sourced 1) Number of Investors * Avg flexibility in the number of investors or opting for a
Amount/Investor
Funds Or
fixed investment amount. The rationale depends on
Avg. Amount Invested per investor 2) Fixed Amount of Investment the platform's reach and the desired level of
Fixed amount of Investment diversification.

Onshore Amount based on Multiple used as Amount of Onshore Institutional Leveraging onshore institutional funds, the choice
Institutional cash collateral Funding between a multiple of collateralized funds or a fixed
Funds 1) Offshore Institutional Funds - BDT investment amount depends on the risk tolerance
Assumed Multiple of Total (Collateralized) * Multiple
and strategic alignment with onshore entities.
Or
Collateralized Funds 2) Fixed Amount of Investment
Fixed amount of Investment
External Number of Investors Amount of External Equity / New External equity and new founder funding can be
Equity Founder Funding structured based on the number of investors or a
Investors & 1) Number of Investors * Avg fixed amount, depending on the preferences of the
Avg. Amount Invested per investor Amount/Investor 8
New Founder Or
external investors and the strategic needs of the
Fixed amount of Investment 2) Fixed Amount of Investment business.
Visual Representation of Funding Flow
Number of Investors * Avg
Amount/Investor
Amount of Investment Offshore Institutional
in USD Funds - BDT
Offshore USD
Fixed Amount of Investment Amount of Investment
(USD) * Currency
Exchange Rate

Offshore Institutional Funds -

Onshore BDT (Collateralized) * Multiple Amount of Onshore
Institutional Institutional Funding
Funds
Loan Amount
WeGro
Treasur
Number of Investors * Avg
Amount/Investor
Crowd Sourced Amount of Crowd
Funds Sources Funds y
Fixed Amount of Investment

Number of Investors * Avg

Amount/Investor
External Equity
Amount of
Amount of External
External
Investors & New Equity / New Founder
Equity / New Founder
Founder Funding
Funding
Fixed Amount of Investment

Amount of Retained
Company % Allocation to Project
Earnings for Project
Retained Earnings Financing
Financing 9

One of the two options

 Fund Utilization
Amount of Onshore Amount of External
Offshore Institutional Amount of Crowd Amount of Retained
Institutional Funding Equity / New
Funds - BDT Sources Funds Earnings
Founder Funding

Trading
Farming Farming Agri Input Farming
General Allocation Permitted Purpose Working
Project Project Capital Project
Capital

Amount for
Equity Shareholder
Deposit in
Investment Loan
FC

Offshore Institutional ■General Allocation: This fund can be utilized for any purpose, including operational expenses, capital expenditures, farming projects, input
Funds procurement, or trading business.
■Permitted Purpose: This fund is restricted to specific mandates.

Onshore Institutional ■Farming Project: This fund is allocated specifically for a farming project.
Funding

Crowd Sourced Funds ■Farming Project: Funding dedicated to a farming project.

■Trading Working Capital: Capital designated for trading operations.
■Agri Input Capital: Capital earmarked for agricultural inputs.
External Equity / New ■Amount for Deposit in FC: Used for General Allocation and collateral for onshore funding
Founder Funding ■Equity Investment: Deposited for general allocation
■Shareholder Loan: Invested in farming project
Amount of Retained ■Farming Project: Utilization of retained earnings specifically for project financing related to farming.
Earnings
10
Understanding Income Statement
01 | Revenue Build Up
02 | Cost of Revenue
03 | Opex - Expenses related to GTV (Financing Business)
04 | Operating Expense
05 | Depreciation & Amortization Expense
06 | Pro Forma Income Statement

1111
Revenue Segment Rationale

Financing Yield Rate Unitization:

Revenue Build Up
■Normalize yield rates across multiple crops (Poultry, Livestock, Crop & Fisheries) using poultry
Business
as the benchmark.
■Formula: Yield Rate of Livestock / Yield Rate of Poultry.
GTV Estimation:
■Calculate Gross Target Value for each segment based on duration (time till maturity) and unit
rate.
■GTV for benchmark unit (Poultry)= Unit Rate * Total Deployable Fund
■GTV for other products = Unit Rate * GTV of the benchmark
Net Revenue Calculation:
■Total GTV * WeGro’s return of the business

12
Revenue Build Up
Revenue Segment Rationale

Monthly Turnover Factor:

■The monthly turnover factor of 2.25 indicates that the turnover occurs 2.25 times within a month. This
factor is applied to the deployable cash to estimate the Gross Merchandise Value (GMV) generated per
month.
■GMV = Deployable Cash * Monthly Turnover Factor
In this case, GMV = BDT 12,000,000 * 2.25 = BDT 27,000,000
GMV from Benchmark - Poultry:
■The assumption is that 60% of the total GMV is generated from poultry products. This percentage is
applied to the total GMV to estimate the GMV specifically from poultry.
■GMV from Poultry = Total GMV * Percentage from Poultry Benchmark
In this case, GMV from Poultry = BDT 27,000,000 * 0.60 = BDT 16,200,000
Trading Category Wise Margin Calculation:
Business ■For benchmark product category, the margin is calculated by multiplying the GMV from that category by
the margin percentage.
■Margin for benchmark category = GMV from benchmark * Margin Percentage
the margin for Poultry - Live Bird = BDT 16,200,000 * 2% = BDT 243,000
■Margin for other category = Margin for benchmark category * Margin Percentage
Overall Revenue Buildup:
■The total revenue for the trading business is the sum of margins across all product categories.
Total Revenue = Sum of Margins for all Categories
In this case, Total Revenue = Margin Poultry - Live Bird + Margin Processed Chicken + Margin Egg
Distribution + Margin Other Trading
Total Revenue = BDT 243,000 + BDT 486,000 + BDT 486,000 + BDT 1,134,000 13
Total Revenue = BDT 2,349,000
Cost of Revenue
Assumptions Calculation

Financing Business: Cost of Revenue - Financing Business:

■Number of Farmers: 15 ■The cost of revenue for the financing business is calculated based on
■Growth in Number of Farmers: 5% the number of farmers, growth rate, and average cost per farmer.
■Average Cost per Farmer: BDT 360 ■Total Cost of Revenue = Number of Farmers * Average Cost per Farmer
(Onboarding) ■Total Cost of Revenue = 15 * BDT 360 = BDT 5,400
# For Forecast
Agri Input Vertical: ■Farmer Growth Rate = Total Number of Farmers * (1 + Growth Rate)
■Percentage of Sales allocated to direct ■Cost of Revenue for the next period = 15 * (1 + 5%) * Average Cost
expenses: 85% per Farmer = BDT 5,760

Trading Business: Cost of Revenue - Agri Input Vertical:

■Cost of Produce as a percentage of Sales: 90% ■The cost of revenue for the Agri Input Vertical is % of Sales
■Cost of Revenue - Agri Input Vertical = BDT 19,125,000

Cost of Revenue - Trading Business:

■The cost of revenue for the trading business is calculated as a
percentage of sales.
■Cost of Revenue - Trading Business = Percentage of Sales allocated to
direct expenses * Total Sales
■Cost of Revenue - Trading Business = 90% * Total Sales = 90% * BDT
27,000,000 = BDT 24,300,000

14
Opex - Expenses related to GTV (Financing Business)

Assumptions Calculation

■Farmer Center Rent per month: BDT 10,000 1.Monthly Expenses:

■Marketing Expense (Farmer Meet) per event: ■Monthly expenses include rent, conveyance, entertainment, other
BDT 30,000 expenses, insurance, and utility expenses.
○Event occurs in every six months ■Monthly Expenses = Farmer Center Rent + Conveyance Expense +
■Conveyance Expense per month: BDT 3,000 Entertainment Expense + Other Expenses + Insurance Expense +
■Entertainment Expense per month: BDT 2,000 Utility Expense
■Other Expenses per month: BDT 140,000 ■Monthly Expenses = BDT 10,000 + BDT 3,000 + BDT 2,000 + BDT
■Insurance Expense per month: BDT 320,000 140,000 + BDT 320,000 + BDT 1,000 = BDT 476,000
■One-time expenses for Farmer Center:
○Farmer Center Advance: BDT 8,000 2.Adjustment for Change:
○Initial Supplies: BDT 20,000 ■The adjustment for change is either 0.35% of the total expenses or a
■Utility Expense per month: BDT 1,000 fixed amount, depending on the assumption.
■Change in expenses: 0.35% or fixed amount ■We need to calculate the adjustment based on the assumption
provided.
■If the adjustment is 0.35% of total expenses:
○Adjustment for Change = 0.35% * Monthly Expenses
■If the adjustment is a fixed amount:
○Adjustment for Change = Fixed Amount

3.Total One-time Expenses:

■Total one-time expenses include the farmer center advance and
initial supplies.
■Total One-time Expenses = Farmer Center Advance + Initial Supplies
■Total One-time Expenses = BDT 8,000 + BDT 20,000 = BDT 28,000
15
Operating Expense

Expense List

○Total OPEX related to Financing

Business (GTV)
○Bank Charge
○Corporate Gift
○Tours & Travel
○Legal & Consultancy Fee Monthly Opex Tracker
○Corporate Mobile bill & Internet
Expense Pro-Forma Income Statement
○Office Expense General & Administrative Expenses
○Printing
Operation Expense
○Farmar Meet Program Selling & Marketing Expenses
○HO Rent
○Utility Expense
○Office Conveyance
○Entertainment
○Subsidy Lunch
○Courier
○Stationary Expense
○Training & Development
○Stamp

Expense List

○Marketing Expenses
○Sales & Distribution Expense - related
to GMV

16
Depreciation & Amortization Expense

Expense List

○Air Condition
○Furniture and Fixture
○Electrical Equipment Monthly Opex Tracker Pro-Forma Income Statement
○Computer and IT equipment
○Warehouse Equipment Depreciation Expenses Depreciation & Amortization
○Mobile App: Investor
○Mobile App: Ogro Amortization Expenses Interest Expense
○Interest Expense
○Tax Expense Interest and Tax Expense Tax Expense

17
Pro Forma Income Statement
Pro-Forma Income Statement Calculation Worksheet Navigation
Revenue GTV of Financing Business, Input Revenue Build Up
Vertical and Trading Business
(-) Cost of Revenue Summation of direct cost of Financing Expense Build Up
Business, Input Vertical and Trading
Business
Gross Profit Net Revenue Calculation

(-) Operating Expenses General and Administrative Expenses Expense Buildup

Selling and Marketing Expense
EBITDA Gross Profit - Operating Expense

EBITDA Margin

(-) Depreciation & Amortization Depreciation of Fixed Asset PPE & Intangibles
Amortization of Apps
EBIT

(+) / (-) Non operating income/(expenses) Future estimation of grant income Assumptions
(-) Interest Expense Debt & Equity

EBT

(-) Taxes IS - Monthly

18
Net Income
Understanding Balance Sheet
01 | Understanding Working Capital
02 | Asset Breakdown
03 | Liabilities Breakdown
04 | Pro Forma Balance Sheet Statement

1919
Understanding Working Capital

Working Capital Assets

Inventory (Cost of Input + Cost of Trading Business) * Inventory assumptions comes from two revenue
Calculation (Inventory days)^(365/12) sources
1) Input vertical in which we buy raw materials in
bulk to facilitate services in financing projects
2) Trading business where WeGro holds final
products to sell in the open market

Account (Gross Revenue of Input and Trading Business) * Account Receivable assumptions are projected from
Receivable (Accounts Receivable Days)^(365/12) deployable cash invested in input and trading
business

Investment in GTV in Financing Business * (Investment in Another form of account receivable which drive from
Projects Projects holding period - days)^(365/12) the financing vertical.

Working Capital Liabilities

Advance Receipts GTV in Financing Business * (Advance receipt Another form of account payable which drive from
holding period - days)^(365/12) the financing vertical.

Accounts Payable (Cost of Input + Cost of Trading Business) *

Account payable assumptions are projected from
(Accounts Payable days)^(365/12) deployable cash invested in input and trading
business
Net Working Capital = Working Capital Asset - Working Capital Liabilities
20
Asset Breakdown
Current Asset Derivation Fixed Asset Derivation

Cash and Cash Equivalents Air Condition Opening Balance + New addition -
Disposal -Depreciation (PPE &
Intangibles sheet)

Deposit in FC (Foreign Amount of External Furniture and Fixture Opening Balance + New addition -
Currency) Equity / New Founder Disposal -Depreciation (PPE &
Funding (Assumption sheet) Intangibles sheet)

Inventories Working capital sheet Electric Equipment Opening Balance + New addition -
Disposal -Depreciation (PPE &
Intangibles sheet)

Accounts Receivables Working capital sheet Computer and IT Opening Balance + New addition -
equipment Disposal -Depreciation (PPE &
Intangibles sheet)

Advance And Prepayment Management accounting Warehouse Opening Balance + New addition -
Equipment Disposal -Depreciation (PPE &
Intangibles sheet)

Investment Working capital sheet Intangible asset Opening Balance + New addition -
Disposal -Depreciation (PPE &
Intangibles sheet)

Advance Income Tax (AIT) Management accounting 21

Liabilities Breakdown
Current Liabilities Derivation Non Current Derivation
Liabilities

Accounts Payable Working capital sheet Bank Overdraft

Shareholder's Loan Funds usable in CapEx: LT Loan Debt & Equity sheet
Downstreaming as
Shareholder Loan

Advance received from Working capital sheet

investors

Provision for Taxation Management accounting

Provision for Expenses Management accounting

Working Capital Loan Debt & Equity sheet

22
Pro Forma Balance Sheet Statement
Assets Liabilities
Cash and Cash Equivalents Accounts Payable
Deposit in FC (Foreign Currency) Shareholder's Loan
Inventories Advance received from investors
Accounts Receivables Provision for Taxation
Advance And Prepayment Provision for Expenses
Investment Working Capital Loan
Advance Income Tax (AIT) Total Current Liabilities
Total Current Assets Bank Overdraft
Air Condition LT Loan
Furniture and Fixture Total Non-Current Liabilities
Electric Equipment Total Liabilities
Computer and IT equipment Shareholder Equities
Warehouse Equipment Paid up capital
Intangible asset Share Money Deposit / Interim capital
Total Fixed Assets Share Premium
Total Assets Retained Earnings
Total Equity
Total Liabilities & Equities
23
Pro Forma Balance Sheet Statement
Cash Flow from Operating Activities: Derivation
Net Income Income Statement - Monthly Worksheet
Add: Depreciation & Amortization Income Statement - Monthly Worksheet
(Increase)/Decrease in Working Capital Working Capital Worksheet
(Increase)/Decrease in Deposit in FC Balance Sheet Worksheet
Cash generated from Operating
Activities
Cash Flow from Investing Activities:
Capital Expenditure PPE & Intangible Worksheets
Cash used by Investing Activities
Cash Flow from Financing Activities:
Addition to Equity Debt & Equity Worksheets
Addition to Long Term Loan Debt & Equity Worksheets
Less: Repayment of Long term Loan Debt & Equity Worksheets
Increase/(Decrease) in Short term loan Balance Sheet Worksheet
Increase/(Decrease) in Shareholder Loan Balance Sheet Worksheet
Less: Dividend Paid Debt & Equity Worksheets
Cash flow from Financing Activities
Net Change in Cash
Beginning Cash Balance
Ending Cash Balance 24
Thank You

2525
Annex

2626
Section Subsection Page No
1.1 Project & Input Business Model

Table of Content
1.0 Business Model Overview 1.2 Project & Input Cash Flow Breakdown
1.3 Trading Business Model

2.1 Sources of Funds Components Driving the Fund

Breakdown for Investment

2.0 Funds Overview 2.2 Uses of Funds
General Purpose Allocation

2.3 Allocation of Funds Streams Permitted Purposes

3.0 P/L Assumptions 3.1 Revenue Assumptions

4.1 Thin Ledger Segmentation in Financial Model

4.0 Expense Allocation Model
4.2 Fat Ledger Fixed vs Variable Expense Categories

5.1 Equity Downstreaming vs Debt Downstreaming

5.0 Offshore Investment in 5.2 Currency Considerations USD vs BDT
Bangladesh BDIA Regulations
5.3 Regulatory Landscape
Withholding Tax (WHT)
Operating Expenses (Opex)
6.0 Budget Process 6.1 Investment Budget
Capital Expenditures (Capex)

7.1 Overview of Taxation

7.0 Tax Modeling
7.2 Key Tax Considerations

8.1 Income Statement Projection

8.0 Financial Projections 8.2 Balance Sheet Projection

8.2 Cash Flow Projection

27