Experienced Management and reputed investors
 
Ananya Finance for inclusive growth is managed by Mr. Gaurav Gupta (M.D) having an experience of over 2 decades in the banking industry. Ananya is promoted by Gojo & Company (72.93 percent), Stichting Capital 4 Development (C4D) (21.83 percent) and Indian Foundation for Inclusive Growth (5.11 percent). Gojo and Company, Inc invested in Ananya in 2018 in the form of equity. Gojo & Company has invested Rs.58.13 Cr. (Primary investment) since 2018 and currently holds majority stakes of 72.93 percent. Gojo & Company, Inc, a Tokyo based company, established in July 2014 has supported microfinance institutions in Cambodia, Kazakhstan, Sri Lanka, Myanmar and India. 
Ananya’s board comprises of 9 members with one managing director,one executive director ,three independent director and four nominee directors. In addition, Ananya has a Senior Advisory Council (SAC) comprising three advisors, Mr. Naveen Kumar Maini ,Mr.Arindom Datta and Ms. Jayshree Vyas. Mr. Maini has more than three and a half decades experience in commercial and development banking. He retired as Deputy Managing Director at SIDBI. Ms. Vyas is the Chairperson of Friends of Women’s World Banking and Managing Director of SEWA Bank, both headquartered at Ahmedabad. She possesses over three and half decades of experience in the financial sector. Mr. Arindom Datta is the former Head of Rabo Foundation, South Asia. The Board of directors and members of SAC have vast industry experience. The management of Ananya also have a good experience in the field of microfinance industry. Ananya’s board has representation from Gojo & Company, Inc. (Mr. Sanjay Gandhi & Mr Taejun Shin). Mr. Sanjay Gandhi, cofounder of Gojo & Company, Inc, joined the microfinance industry in 2003 and has international experience in MFI industry. Mr Taejun Shin is a Founder, Representative Director & CEO of Gojo & Company, Inc. Ananya continues to benefit from the expertise of their directors. 
Acuité believes that Ananya’s business profile will continue to benefit from the strong promoter support. 
 
Comfortable capital buffer and resource raising ability  

The company has comfortable capital buffer to support the future growth prospects. Ananya reported a CAR of 27.75 percent (Tier I: 23.41 percent) as on September 30, 2023 as against 27.46 percent (Tier I: 27.23 percent & Tier II :0.23 percent) as on March 31, 2022. Apart from capital infusion from the investor Gojo and Company, Inc, Ananya has been able to raise funds in the form of debt. The company raised fresh borrowings of ~Rs 112.93 Cr during 6MFY24 which resulted a gearing of 3.91 times. The company has relationships with 21 lenders including Public and Private Banks, PSUs, NBFC and DFIs.  
 
Improvement in AUM
 

Ananya is an NBFC with a diversified portfolio across Microfinance, Agrifinance and Impact MSME. The company’s AUM has moderately increased from Rs. 315.79 Cr. as on March 31, 2022, to Rs. 354.83 Cr. as on March 31, 2023 . This improvement was on account of increase in disbursement which improved from Rs. Rs. 398.66 Cr. as on March 2022  to and Rs. 441.69 Cr as on March 31,2023. The growth in business is largely driven by change in business strategy. The company started lending directly to micro finance borrowers via business correspondence and colending partnerships.
Ananya also acquired Prayas Financial Services Private Limited which became a subsidiary  in June 2022. Prayas has an outstanding MFI portfolio of Rs. 113.87 Cr as on March  31,2023. Ananya looks forward to expanding their retail portfolio through Prayas Financial Services Private Limited.

­Low profitability albeit improving
 
Ananya’s profitability metrics stood low marked by a NIM at 6.53 percent for FY23. Return on Total Asset (ROTA) and Return on Average Asset (ROAA) also stood low at 0.46 percent and 0.53 percent for FY 2023. Ananya saw an increase in its Net Interest Income from Rs. 14.63 Cr. for FY 2022 to Rs. 21.96 for FY 2023. The company reported a PAT of Rs. 2.34 Cr. as on March 31, 2023 and Rs. 1.04 Cr. as on March 31, 2022, as against losses of Rs.11.87 Cr. as on March 31, 2021.  
Acuite believes that going forward ability of the company to grow its loan portfolio while improving its profitability will be key monitorable. 
 
 Moderate asset quality
 
Ananya finance for Inclusive Growth reported moderate asset quality as reflected by the Gross NPA (90+DPD) of 2.28 percent as on September 2023 marginally deteriorating from 1.97  percent as on March 31, 2023 (2.10 percent as on March 31, 2022). However, the company shown an improvement in on time portfolio which improved to 97.21 percent as on March  31, 2023, from 95.99 percent as on March 31, 2022. 
 
Shift in business model
 
Ananya Finance for Inclusive growth has changed its portfolio segment from MFI(Wholesale) to retail. The wholesale MFI portfolio came down from 86.78 percent as on March 31, 2020, to 10.50  percent as on September 30, 2023. The impact of the shift in business model is yet to be seen. Accordingly, Acuite expects the earning profile of Ananya to remain muted in near to medium term.