Mr. Raja Debnath, aged 47 years, is the Promoter, Chairman and Managing Director of the Company. He holds Masters’ Degree in Business Administration from University of Oxford, Masters’ degree in Management Studies from Jamnalal Bajaj Institute of Management Studies and Bachelors’ degree in Engineering (Mechanical) from University of Pune. He has an experience of around 20 years in the Digital Technology Services, Banking and Consultancy. In his previous stint, he has worked on senior management roles for large corporations like GE Money, Kotak Mahindra Bank, Ernst and Young and International Finance Corporation. Under his leadership, the Company has built a strong team providing a financial products and digital solutions to various Clients. He has real-world banking experience, which lends to better implementation of advisory projects in the company. He is responsible for crafting and implementing the overall strategy of the company, which includes overseeing the development and launch of new products and services. In addition to his strategic responsibilities, he is also responsible for driving growth and partnerships for the company. He identifies potential partners and collaborators who can help the company expand its reach and market presence, and works closely with them to establish mutually beneficial relationships. Mr. Gautam Vijay Udani, aged 38 years, is the Promoter and Wholetime Director of the Company. He holds Masters’ degree in Management Information System from New Jersey Institute of Technology, New Jersey, USA and a Bachelor’s Degree in Engineering (Computer Engineering) from University of Mumbai. In 2010, he founded Infini Systems, a startup that specialised in creating software products for the education, real estate, and e-commerce industry. He has floated several successful start-ups in E-commerce, E-Learning and Financial Technology. He also served as the CoFounder of “Mad Orders”, which went down in history as India’s maiden midnight food delivery platform. His experience with solution building in multiple domains has helped sharpen understanding of Technology application in Business and Finance of the company. He works diligently behind the scenes, making optimum use of the resources and skilfully solving problems. He is responsible for a range of key functions, including Engineering and Delivery, Quality Assurance of the Product, Finance and Accounts, Fund Raising, and Human Resources and he is also responsible for ensuring that the company’s products and services are delivered to customers on time, on budget, and with the highest level of quality. He oversees the development process, manages the engineering team, and ensures that the company's products meet the needs of customers in a constantly evolving market. He oversees the Quality Assurance function of the company, ensuring that every product meets the highest standards of quality and reliability. He works closely with the engineering team to identify and address any potential defects or issues that could impact the customer experience Mr. Ajay Babu Rajendran, Management Studies from University of Mumbai and a Bachelors’ Degree in Engineering (Chemical) from The Maharaja Sagajirao University of Baroda. He is the Chairman of Meraki Group of Companies and Sobha Engineering and Contracting LLC in Dubai, involved in Real Estate Development, Construction, related manufacturing and fabrication facilities as well as Education. He is the Chairman of the three Education Business Schools-North London Collegiate School Dubai, North London Collegiate School Singapore and Hartland International School. He leads a team of more than 350+ staff in the education business with over 2200 students across Dubai schools. His experience in the entire spectrum of real estate, construction, facilities management, education operations, and business strategy and planning while keeping ‘customer’ at the centre of everything has led to setting up one of the top premium IB schools of Dubai within 3 years of its operations.

A. Balance Sheet

Particular (In Lakhs)	Mar-21	Mar-22	10MFY23
Equity Share Capital	1.04	1.24	1,833.79
Reserves	103	886	2,402
Borrowings	474	346	36
Trade Payables	4	84	84
Other Liabilities	298	248	383
Total Liabilities	775	678	504
Net Block	5	21	59
Investments	0	9	11
Other Assets	850	1,418	3,443
Total NC Assets	855	1,448	3,513
Receivables	9	75	749
Cash & Bank	2	2	321
Other Assets	13	40	157
Face value	10	10	10

B. Profit & Loss Statement

Particular (In Lakhs)	Mar-21	Mar-22	Mar-23
Sales	76	619	1,358
Employee Cost	48	205	496
Other Expenses	20	347	369
Other Income	5	0	54
EBITDA	13	68	547
EBITDA Margin	16.60%	10.94%	38.77%
Depreciation	2	17	22
Interest	0.05	2	3
Profit before tax	11	49	580
Tax	-3	20	126
Net profit	14	29	397

C. Cash Flow Statement

Particular (In Lakhs)	Mar-21	Mar-22	10MFY23
Cash From Operating Activity
Profit From Operation	41	74	489
Receivable	-9	-66	-673
Payable	4	80	0.3
Loans And Advances	-9	9	-6
Other WC Items	97	-42	-3
Working Capital Changes	83	-18	-682
Direct Taxes	0	1	8
Net Cash Inflow from Operating Activity	124	55	-201
Cash from Investing Activity
Fixed assets purchased	-857	-601	-2,081
Investments purchased	0	9	2
Other investing items	172	-70	-102
Net cash inflow from investing activities	-686	-680	-2,185
Cash from Financing Activity
Proceeds from shares	1	0.2	0.3
Proceeds from borrowings	474	0	0
Repayment of borrowings	0	127	310
Intrest paid fin	-0.05	-2	-2
Other financing items	89	754	3,018
Net Cash Flow	2	-0.01	320

 

* There are no listed companies in India and abroad that is engaged in developing a similar line of product solution to that of Company *

Review and Recommendation of Veefin-Solutions SME IPO by IZ team 4/10 A) Business Model of Veefin-Solutions 1. Company is a Digital Lending and Supply Chain Finance (SCF) technology product solutions provider.

2. Offers unique technology product solutions designed with a user-led approach, data and analytics, and built by experienced bankers for bankers.

3. Provides SCF product and platform that are highly flexible and configurable to meet specific client needs without relying on third-party execution.

4. Offers cutting-edge technology products with unmatched flexibility, enabling quick and efficient configuration and implementation.

5. Empowers bankers and financial institutions to offer highly customized loan products, both regular and transaction-based, based on clients' unique requirements.

6. Works with a wide range of clients globally, including Banks, Non-Banking Financial Institutions, FinTech, Marketplaces, and Corporates.

7. Helps clients digitize, automate, and scale across SME lending.

8. Acquired the product business undertaking of Infini Systems Private Limited to expand product offerings in digital lending and supply chain finance technology solutions. Acquired software products include Supply Chain Finance Software, Loan Origination System, Loan Management System, Collection Management System, Sales CRM, and Digital Tools for SME clients of banks.

B) Pros 1. Extensive Experience: Mr. Raja Debnath, the Chairman and Managing Director of the company, brings a wealth of experience in the Digital Technology Services, Banking, and Consultancy fields. With 20 years of experience, he has a deep understanding of these industries and can provide valuable insights and guidance to the company. 2. Excellent Growth : The Revenue of the company was Rs.80 lakh in Fy21 and same has increased to ~13 Crores in Fy23. In the same period PAT has also increased from 14 Lakh to ~4 Crores. 3. Asset Light Model: The company functions as an intermediary, utilizing their technology to establish a connection between banks, institutions, and clients, resulting in minimal costs incurred solely for software expenses. C) Cons 1. The trade receivables as of January 2023 amount to 7.48 Crores, which appears significantly higher, particularly when considering that it constitutes a significant portion of the total revenue of 11 Crores generated during the first 10 months of FY23. Consequently, this has resulted in negative cash flow from operations. 2. Asking Price/Earning is 42x. Highly overvalued. 3. Out of 48 Cr company is raising, 50% is OFS. OFS in a SME is always negative.

Veefin Solutions Limited Off No-601, 602 & 603, Neelkanth Corporate IT Park, Kirol Road, Vidhyavihar (West), Mumbai – 400 086 Phone: +91 9004917712 Email: investors@veefin.com Website: https://www.veefin.com/