Earnings Call Transcript - XNSE:MUFIN 2026-11-10

Gunjan Jain, CFO

Good afternoon, everyone. This is Gunjan. I'm CFO at Muffin Green Finance Limited, and I'll take you through the financial performance for quarter two and H1 of financial year 26-27. So, a gross AUM as on 30th September 2026 stood at 1766 crore. This was an up of 10.4% from 1599 crore as on June, and an up of 71% from 1028 crore in September 2025. Disbursements for the quarter were 590 crore, up of 31% from 449 of quarter 1. So these are the key numbers where we have achieved a net interest income of 33.27 crore as against 35 crore in quarter one. And our PBT has increased from 18.82 crore to 19.47. With a massive improvement in our gross NPA, which has improved from 1.91% to 1.77%. And our net NPA has also improved from 1.63% to 1.50%. This is majorly because of pivoting our portfolio from green segment to digital lending, This includes MediClaim Premium Financing, where the AEM stands at 686 crore, and the Salary Sati product, where our AEM stands at 90.61 crore. So these two primary products constitute 44% of our AEM. This is the share of AEM, as described earlier, that our medical and treatment financing portfolio has achieved 38.9% in our total AEM and our salary sati, which is a personal loan to the employees of Rajasthan and Assam government, stood at 5.1%. This product has started recently in the month of February 2026 and achieved a 5.1% in the total AEM. And our climate financing has reduced from 29.8% to 19.1%. So we have shifted our traditional approach to digital lending approach where in digital lending, we are having integration with 10 plus insurance partners and it is only a five minute journey where anyone who want to take the funding against the medical and prima financing within a five minute, they can get the sanction and get the insurance policy in their name. Second product is the salary sati, which is again a five-minute journey where any employee of Rajasthan and Asaham government, they can simply apply through their HRMS and they'll get the loan within a spam of one hour to two hour maximum. So this is our month-on-month disbursement for the financial year 26-27, and as we can see that disbursement numbers are increasing along with our AUM is also increasing to reach the targeted AUM as per our projection, which is somewhere around 2,500 crore by end of this financial year. MediClaim premium financing as the study itself says that the year on year growth in the retail hen premium is 31% and the first time buyers who choose monthly payment is 40 to 45%. So the expected annual growth in the premium financing is 20 to 25%. And another factor which will increase the MediClaim premium financing as a market is a GST which is now 0% itself. Over here, our average ticket size has improved to almost 51,000 and our tenure is as low as 2 months to as high as 60 months. We are getting a return of 18 to 24% and we are onboarded with 10 insurance companies. So over there, we have done the securitization as well in the form of PTC as well as DA and for the PTC, we got the rating of A plus from the crystal and from the crystal itself, we got the loss given default of 1% 25 plus minus 25. Loss given default for the DA transaction, which we recently did with the credit CYSEM. This shows the regular comfort from our lenders from the securitization of this particular product as well. This is a month-on-month disbursement. If we see for the financial year 25, 26 and 26, 27, our disbursement has improved a lot. There was a slowdown in the disbursement of April, May, June, 2026, while in 2027, the disbursement was stagnant. It is somewhere around 80 crore a month itself. The second product where we are getting the integration done with a few more states and one more product where which we have integrated is the Artham. This is the launch of the product where we will be funding to the contract worker as well, where the tenure will be one month. Apart from adding more states for the salary saati government employees. Then this is climate financing. So in the climate financing, our portfolio is running down majorly because of the OPEX which we were facing in the climate financing. MUFIN being a listed entity, our focus is primarily on reducing on cost of borrowing and increase the margins for our stakeholders. So our cost of funds are continuously reducing because we have started onboard with PSU banks. On our debt table, we are having State Bank of India, IOB Bank, Union Bank, IDBI Bank. So many other banks are getting onboarded. IDBI Bank and South Indian Bank are the new banks which we have onboarded in the quarter ending September 2026 website. So this is the diversified borings. We have raised the funds from entire, like all the segments available to us, whether it is DFIs, whether it is listed NCDs. In listed NCDs, we are having 20,000 plus of the investors who have subscribed to the listed NCDs of Muffin Green. We are having NBCs, financial institutions. We are having PSU bank. We are having private banks. We are raising funds through ECBs, DA, NCDs, PTCs. Every mode of borings are available. So along with the growth, we are not compromising with the quality of our portfolio. Our gross NPA has been continuously improving as it is evident from quarter for 2025, which is as high as 2.50% of gross NPA. It has reduced to 1.77%. Looking forward to reduce it to below 1.50%. This is our operating leverage. So in financial year 2026, our employee base was somewhere in 500, which has now reduced to 306. Our target for this financial year was to reduce our employee base to 300 and we have already reached at 306. So we are as per projection and our per employee AUM has also improved from 1.89 crore to 5.77. So our interest income has improved, has seen a growth of 80.2% as we compared to the previous year. And our net interest expense has also increased to 103.7%. Reason being, we are keeping the surplus liquidity also, so that we are able to meet the EMIs of next three to four months. That is why the interest portion has increased quite higher as compared to interest income. But otherwise, our borrowing cost has reduced by more than one person over a period of last one year. Our net interest income has improved by 52.4% and our operating expense has reduced by 27.7%. Profit before tax has improved by 135.9% and PAT has improved by 148.5%. So, this is the outlook of our March 2026 and September 2026. Our AUM has increased from 1541 to 17.66. Our borrowing has improved from 1400 crore to 1745. Our net worth has improved from 574 crore to 604 crore. And our asset size has increased from 2027 crore to 2400 crore. A debt equity has also increased from 2.43 to 2.89%. But yes, the standard leverage which is allowed to us by across all the lenders is somewhere at 4x, which is quite like we are far away. We can take care of the borings of next to financial year with the security base along with the pad which we are expecting to add in this financial year. So thank you from my side. I'll just ask Aapul sir to take the lead.

Kapil Garg, CEO

Sunjan, this is an elaborate presentation. On call with me, I always feel honoured that Sandeep sir has also joined and many other investors are on the call, including Karan Gala from Lighthouse. These are the people who have supported me in this journey and because of their confidence only, I am able to... I have reached where I am today and committed to taking me to the place where I had given the vision to all the investors and shareholders. So, I am going to discuss in the discussion and discuss what we had received from the shareholders, investors and lenders. Thank you. First of all, we had a vision that we couldn't make much money in climate financing. Today, our main target is that our profitability increases. Today, we improve our numbers, pay ratio, multiple parameters, and shareholder confidence. So, today we have seen sustainable financing. So, today we have 300 crore, which is more than 1,000 crore than the books. In which we had a rickshaw, buses, battery infrastructure. So, we have slowly and steadily a commitment. It was a painful commitment. It was not easy to pilot our products. Thank you. And in that regard, there is fear that we may fall down or fall down, but in which we have a systemically, the shareholders, the lenders, the team, the team has made a new product, implemented, implemented and tested. So today, MUFIN is in which we are building, and in which we are delivering our numbers, our ambition will increase. Today, we are so much optimistic that we can think about what we can do in the Miffin. How can we do this? Think about it. Because the thing is a hurdle that we have crossed. We have understood that we don't have to do aggressive lending, unsecured lending, traditional branch-based model, manpower intensive model, housing loan, MSME loan, Thank you. We will be successful in this year, and we will be able to stay in the 31st March of 2028 for Mufin. Why? Because the product we started, we started in BIMA. When we started, we didn't have the first investor in the call, Karan Gala Ji, who had a company live. And then, we had confidence that we had money, Sandeep Kamadji sir, and we had money. Today, the product, we have 50 people, and we have 50 people, but the market is so big, we have a leader of us, and we will stay. Good morning, everyone, and welcome to the call. The second product has started with the sales, with the government's integration, the employee has given us directly to the government's TDS. The great product has started with the Rajasthan Asam Live. There are many things, some competition, some challenges. Everything is easy, cakewalk doesn't get to any promoter or company. The challenges we face today are going on. The third product has started with the Artham. The Artham has 20% stake in the company. It's a platform. Thank you. The industry size is huge. If I say this year, if I say this year, I will leave the month, if I say this year, if I say this year, I will tell you the month, if I say this year, I will tell you the month. Today we have to say that we have no money to make money back to our country, to make money back to our country, but our allies have to make money back. We have to say that we have to say that we have to make money back. Good morning, everyone. We have a PPA license. PPA license is wallet architecture. If you look at the country, there are 4-5 thousand dollars in which we have a make. We have made a very wonderful model. We have made a wallet for the company and employees. I am a employee. The employee, which night or night, day, click the app, then it will be based on how many days it is working, and how many days it is due. And when it comes to the salary, it will be advanced. The IRR will be slightly more. Because if we have a company, we will take high IRR. We will offer approximately 3% of the month and 5% of the month. Now the contractor has given the due date to the employee, they will not go to the wallet-based ecosystem and we will immediately transfer the EMI with the interest card. It's a market size, which we think, when we started, many people didn't trust us. We thought that either the market size could not be able to get the product, IID, but we thought that out-of-the-box came to the product alive. Out-of-the-box came to the product. Out-of-the-box came to the product. Out-of-the-box came to the product. Out-of-the-box came to the product. This is an extension. This is not a new product. Today we will see two products. We are doing medical and life. The salary of the government has started integration. The rest of the government has been made. But we will be beating around and we will be building. This is the private sector. The private sector will get higher than the IRR. The market is very large. Now, when we look at these products, in the future of the time, which Gunjan tried to make a very big deal with this presentation, that if we take the target of employee base, then we had a loan book for 1,50,000,000 per employee. We had 700 employees. We had 300 employees who had taken the target for a half-year-old year, and we had 300 people in our company, and we had 200 people in our company. Hello, everyone. You can see it. We can see it. So, today, we have a cost of the company. The cost of the company is now. And the cost of the company is now. Today, we have 306 employees. I have 306 employees. In the past, we have 300 employees. The cost of the company is now. Good morning, everyone, and welcome to the call. The biggest thing is profitability. We don't want to become a profitable company. We want to say that we have 10,000 or 20,000. We want to say that we have 5,000 employees. We don't want to become a person. We will think that today our ROA is a good ROA. Today our ROA is a good ROA. We will think that our pet is about 500.000. Without dilute this capital. So, today, the company has adopted a new model that we need to be in the digital lending, employee base, we need to be able to open a branch-wise to 500, 800, 900 branches, and we need to open a lot of infrastructure-based, cost-based ecosystem. Thank you. We have to do not have a debt, nor have you not leverage, you have to stay free and also have a direct impact. If we are going to make a product, we will not make a product immediately, leverage, arbitrage, discount, that we will not be prepared. We will compare our NBFC to the number of multiple, and we will say that we are completely solid in the market. Thank you. We are a tech driven ecosystem company, which is called Secured Lending, Scalable Lending, Tech Based Lending. And the fourth word that I would like to add is profitable lending. This is not our AUM, but our profitability is one of the best. If you look at ROA, approximately 4 cross. If we look at ROA, it was about 1.5% ROA. What is the growth? Our 8 crore profit is the year. I think we will achieve 80-90 crore. Is the growth of 8-10 crore not reasonable? And if we focus on that line, next year we focus on the number of profits. Is that not reasonable? I have a question that you have a lot of money, and you have a lot of money, and you have a lot of money. Good morning, everyone, and welcome to the call. So, today, we have a simple, in terms of all the people, investor calls, earning calls, if I talk about this, the need we have kept, and what we call it, is our dream, our wealth creation, our investor's wealth creation, and an organization to build in the country. If we build an organization to build a lending, Thank you. If you take a look at PSU or small finance banks, they have a name of Bajaj Finance, which has a vision of Bajaj Finance. Bajaj Finance is not a good one day, but they have a strategy, and they are now appreciable and suggestable. They have done it when they thought about it. We have multiple NBFC, MSME, Secured MSME, Home Loan, MFI, and we have started our climate financing. Climate financing was a buzzword. Thank you. I mean, if you look at the truth, the truth is that it is our need. And we should keep the system adapting to the system. Today, many investors say, what is going on? I mean, if we take the 8-80, or the 100, in the 3 years, then we take the 8-80, then we take the acceptability. First, we will adopt that new thing. If we have any mistake in the company, then we will regret it and improve it. So, the base of all the people who are all the best, you have supported me in the company's vision, and the unparalleled, unparalleled, unbelievable types. Many people in this call, our whole team had a general ending call. They said that the whole team, Sumit Ji, Alam, Hanut, all of them are in this call. And all of them are in the mind that the URJIA is doing a different way. Now, in the company, I think that the promoter is doing something for me. Thank you. Thank you.

Operator

Thank you.

Kapil Garg, CEO

The motor motor was about 11 to 12. As you can see, the motor motor was about 30 to 32. We will call the PBT level 40. The impact of it is that we had a blue smart car and we had a problem. Now, if it was a problem, we didn't want to tell you about it. It was our business call. When we had a blue smart car, it was a big company in the country. The promoter, Jaggi ji, gave us a personal check. It was a big deal, a thousand-dollar empire. It was a personal check. It was a gold.

Gunjan Jain, CFO

I have a 10 crore against which now it is 29.

Kapil Garg, CEO

I have a 29 pat and PBT level is 40. So, one half year to half year jump, three months ago. I mean, it's going to go a lot, but the last thing we carry, we don't give it. The last impact of the rickshaw, the 25-25 crore, we said that it was a loss, we should sit down on the back. Why should we sit down on the next journey? In the new journey, we're getting 100 crore. If we have a financial impact of the 15-20 crore, then it will come. If you have a problem with the call, then you have no sense in books. Sorry, I am going to say that my good advice is all about the maximum people. So I will give you a good advice here and you have any questions. I will give you a good answer to them.

Karan Gala, Analyst — Lighthouse

Um, Kapil ji if I can. I can go first. First of all, I think, thanks to you, Gunjan, Hanood, Love, etc. Fabulous numbers. Congratulations. Very proud to be an investor.

Kapil Garg, CEO

Sir, as an investor, you can say, fabulous numbers. I have a little bit of a number. Good to have this, sir.

Karan Gala, Analyst — Lighthouse

Good to have this spirit. Sir, few questions that I had. Thank you.

Kapil Garg, CEO

It's been a long time ago, but it's been a long time ago and it's been a long time ago. Jiro adlep Jiro. The reason is that climate finance is solar. Climate finance is L3-L5-100-110. Climate finance is approximately 60-70. The battery has been saved. And the other is the car and the car. Now, why are we doing it? We have longer lines from international funds. U.S. Development Finance Corporation, we have a lot of lines. Two years ago, due diligence, due diligence, multiple visits, multiple, Thank you. The other thing is that our equity investors, Inc. of Fin, they are always supporting us. When they put money, they put money on the term sheet, they put money on the term sheet. Today, they have a report in India worldwide. We are the only company in which they have exit at six times. And now they have got 200 crores. They have got 200 crores. They have an open mandate that you have to focus on the company. Thank you. Now, why do we have to do climate? Why do we have to do our commitments, our commitments, our obligations, such as DWM, our lending borrowing, we have two or three lenders like international, where we get our money, we have to do it. Thank you. We have requested them to make this impact and switch to the climate. So, if you have 4 questions, you have to ask for the pain, or the pain, or the pain, you have to ask for the institution, because you have to ask for money.

Vishwas Kumar, Head of Investor Relations

So Karan, just to give you insight, now we are doing only in retail as Kapil has mentioned, and our policies have been more tighter because we know the alternative use of fund is there. Earlier, it was only green financing, but now it is more of digital lending. So our credit policies have tightened to very extreme. Okay. And the portfolio quality of the current business, which we are doing in electric mobility business is running fantastically well.

Karan Gala, Analyst — Lighthouse

Got it. Got it. No, I think this helps. I think, you know, an extension to this question then, in terms of our NPA, you know, that 1.77% number or 1.5% NPA number, I just wanted to understand how much of this is, you know, from the new book, which is the new products, and how much is the legacy, the EV book NPA?

Kapil Garg, CEO

As we have commented, 99% of our data is related to old books, which we have already provisioned out.

Gunjan Jain, CFO

Out of total NPR of around 30 crore, 1 crore is for new legacies. For that also recoverability is there. So they are still in book. Rest is EV retail only.

Karan Gala, Analyst — Lighthouse

Got it. And Kapil ji, I mean, you know, larger picture with the current capital that we have, the current network, 600 ka number is, plus, obviously, you know, profits will accrue, etc. Till what AUM level can we grow? A, and when will that happen? Which year time period will?

Kapil Garg, CEO

Thank you. Thank you. Profitable Ventures. So, Thank you. It's not a challenge for capital raising us, because as much capital we have raised in the beginning of the year, since 2016 and 2017, our investors have never been given to us, and the investors have never been given to us. So today, we have challenged the capital raising us, but I am going to dilute it. I think I will use this call again. You can use this as well as the name of the name of the name of the name, Good morning, everyone. Thank you. I will continue to flow of funds. Now, the flow of funds will be spent in the month of the month of the month of the month of the month of the month of the month of the month of the month of the month of the month of the month. Closing AM is 200. So, the profitability is hit, but the AMD will build. I will not give a simple vision for the group. I have the vision that I have said. Secured, scalable, tech-based, profitable. And it's simple that I don't have to focus on the area, because I have to focus on the profit. If I have to focus on the profit, then if I go to DA, then I don't have to pay me. Today, I have to pay my debt. My books have reduced, reduced, reduced in my books, but the profitability improved. What can be better than that? The biggest thing is that people want to do this model in this model today, but they are not going to take books. We have a blessing today that our books are coming to have 10 landers. Please give us our books. If you have a big organization, you have 5 or 5 are behind us. Please give us all the books. Thank you. The problem is that I say that you have to pay a profit, but what happens is that we have to pay a debt. We have to pay a debt, but we don't have to pay a debt. So, we have to pay more than we have to pay more than we have to pay more than we have to pay more. So, today, capital raising is the same thing that we have outside interest for further capital. But I am doing a little effort that I don't have any capital. There is no such thing that you can get and get and get and get and get, and then there will be no value to it, and you will have a job. That is the investor's purpose to show the numbers and give growth to it, and then you will take the journey.

Karan Gala, Analyst — Lighthouse

Sure.

Vishwas Kumar, Head of Investor Relations

Any more questions or none?

Kapil Garg, CEO

Any more questions? I would love to answer that. I would like to say that if we are doing something wrong, we will improve. We will say that we are perfect. We will never be perfect.

Sandeep, Analyst — JP Morgan

Kabil, this is Sandeep. Let me ask one question. Kabil, you know, as we are trying to become more and more tech-based, Maybe you can spend a little time on the technology investments that you are doing for scaling the infrastructure and also the security, because as we get more... Uh, we are also kind of exposed, uh, in that, in that area, so maybe you can spend a little time on that.

Kapil Garg, CEO

Sir, you have such a relevant thing in the past month. I have never discussed this thing, and my investors have never seen me. I'm sorry, everyone, and welcome to the call. I'm gonna say the Indian. I'm gonna say the Indian. I'm gonna say the Indian. So, the Indian. India's lending is a whole of the time. The one of the time is that every digital lender has some kind of hack. Every digital lender has some kind of data. Set this data to our own ecosystem. It's so much that people have tried to enter the company that will breach the data and the money. So, today I'm going to be here with Sumitji. If you want to have five minutes, I'm happy to have the whole organization. The senior most country team has already joined us. There are four people who have named me Harish. Harish's background. Sumitji, are you on the line? Call? Thank you very much. In our scenario, investment in technology can happen only through the people who come with us. So, I think that the senior industry has already joined, and they have been given us. And they have been given us so much. We think that we were doing it and thought that we were full proof. We are very few. But they have given us a year's vision, roadmap. They are saying that you will be perfect today. They are using software, tools, technology, and developments, security, breaches, and they are using technology to improve the tech-driven ecosystem. Currently, as many banks, as many small financial banks, as many digital lending platforms, this sense of terror is going to go into it.

Vishwas Kumar, Head of Investor Relations

Basically, Kapil, what we have done in the past, we have hired senior resources. So, Mr. Harish Arroda, he has joined in our information sec department along with Amit Sharma, who is the CISO of the company, and they have relevant experience from a large organization. So, for example, Amit Sharma used to work with SBI Cards, and Harish was working with Ambit. Okay, so they have relevant experience, uh, and they have managed larger infrastructures. So, because we will be soon going to have. Much larger infrastructure in times to come. So we have recruited right people at right place. So what they have done immediately that they have moved all the servers to AWS. Okay. And to ring fence it so that no external breaches are there. We have taken the services of Sentinel one, which is a world's. Most capable software which ring fences any external attacks. Apart from that, systematic logs are being created and external audits are being regularly done on quarterly basis. VAPT audits are being done by certain impaneled auditors. So, many newer things are also being activated, okay, because earlier we were very small organization, and now we have also moved to the mid-layer in terms of the classification of RBI. So, many new regimes are being also put on us because being in middle layer. With respect to the infrastructure, regular audits, monitoring, and newer third-party vendors of top-notch quality are being onboarded, okay? So, we are ensuring that this part of the entire system is being managed and handled by best of the best people.

Sandeep, Analyst — JP Morgan

God did. And maybe a little time on the scalability part also, that is it expensive to invest in this tech infrastructure and how do we make it scalable?

Vishwas Kumar, Head of Investor Relations

So, sir, I think the kind of, obviously it is expensive, but with the increase in AUM, economies of scales will play around. So I think it will not be a challenge and it will not be a very deep cut on the balance sheet. But yes, if you will talk about the expense, yes, it is expensive. And to be honest with you, now we are onboarding. So we are, you know, entering into a zone where we have to put expense on infrastructure. But for years, initially it pinches us, but we know that it will safeguard the entire system and will give us far more benefit than the cost. So, yes, it is expensive, but at the same time when, you know, economies of scale will definitely play around in future, when scale will increase.

Kapil Garg, CEO

One important thing is missing and some people appreciate it, some people don't appreciate it, but we don't know where the vision is attached to it. There is a license for RBI, AD2. AD2 license, Forex license. Okay, first we had a chance to have a license for our holding company, but we had a company acquired by the acquisition of our acquisition company, but the acquisition of the target company was the most important thing, which is miscompliant, but the acquisition of the acquisition was the most important thing. Hedge money, the company acquired by the company. FFMC, first the FFMC license was converted to AD2. So, we have seen a rule in RBI, that they have made a rule, in which in India, no one has applied. If there are more than 500 crore than the net worth of company, or 1,000 crore than the Avium, then that company, the NBFC can apply. Okay, so now the thought is that 82 license is a tech, which is already built in PPI license, wallet architecture, which is domestic currency, foreign currency, and NPCI, one world money, which is going to launch, which is perfected. So, we have to approve and say that the RBI has a new initiative, which has come to the country today, that the NBFC is straight forward to 82, not FFMC, wait 3 years, and then 82. Thank you very much for your blessings and the almighty blessing. Two days ago, this was the real thing that maybe one of the unique, in which we had a license to approve, two days ago, and maybe this does not relate to the lending, but it says that today we have, if we don't have a company, we have 500 quarts plus capital. Good morning, everyone, and welcome to the call. Two days ago, the RBI has an AD2 license for approval, which will be officially an announcement in a few days. And our only company is the AD2, who has a full tech. There is no vision that we can remove the branches from Thomas Cook. We have our vision of lending products and innovative solutions to the future. The most important thing was that the regulator, the country's most important license is AD2. As you can see, in the country, the active AD2 is 5 or 6. If you travel, you will see Thomas's card or the airport. If you see active licenses are 5 or 6 other than banks. So, today's presentation was not done because it was not done in PR officially, but it was a very big achievement. Sandeep sir, Karanth sir, I would like to tell you that if you acquire the AD2 license today, you will not have a clean license. We will not have a violation or compliance challenge. We have two years of effort to acquire the license. Because we have multiple products around. Thank you.

Sandeep, Analyst — JP Morgan

Kapil, congratulations. One other question which I have is, as we get more tech-enabled, it becomes also possibly more easy for new tech startups to enter the space, some, you know, other companies to also emulate these kind of concepts and copy it, just like, you know, it's a competitive market and if it's attractive. Thank you. So what are we doing to sort of build an edge which does not make it that easy for competition to kind of come and effectively it's like what is the edge which we have or the connection we have with the customers which allows us to protect our business as we scale.

Kapil Garg, CEO

The reason being is service. You can't stop anyone. You used to use the finance market, the product becomes a commodity, but the line in my mind was set. You can't make any product in the finance market, and you can't make any copy. You can improve your services, and you can build up new ideas and drive it. Good morning, everyone, and welcome to the call. Combination Nokia. It's just like a combination of a vault, in which you have a PPA license, a tech player, which only gives a service to employees, in terms of GST, in terms of attendance, etc., and third is the NBFC. So, the vault of the same origin can be made, it's impossible, but we have a vault that will be made in which people will be challenged. Today, I feel like I have 50 players, and our business will be killed. I am not. Today, when we enter a big play center, how much volume is going? If it goes, it will be more than the market size. The new products that we are thinking about is that we will have a new product live. Bhima is a live example, where we have learned that we can't stop anyone. We can improve our tech-end, innovative, innovative-ness. And then the competition comes. We can kill our own pricing. There will be a war in it. There will be a war in it. But today, if we have a cost of borrowing, we are sufficiently capitalized, so if we have to reduce our IRRs, which is a requirement, then we are going to do it. So we are going to create a new innovative business, such as Arthav is a live example, but we are going to say that if there is no entry, this will be my statement. I've always said that I have a monopolistic product in the finance market. I'll give you an example. Crazy B was the biggest work in the unsecured lending. In America and India, there was nothing to do with it. Everyone thought that Crazy B's model is so successful that no one can copy. Money view came. Money view has 1000k profit from Crazy B's. Am I right? For example, another industry is Ziroda and Grow. Now, in the last question, the number of growth has 5,000 customers and growth have been lost and growth have been added. What is the growth model? What is the growth model? What is the growth model? I'm not saying that, sir.

Sandeep, Analyst — JP Morgan

Right, right.

Kapil Garg, CEO

Now, we can't stop ourselves. But we can improve ourselves, add new things.

Sandeep, Analyst — JP Morgan

Good morning, everyone, and welcome to the Kabil, one more question, and then I'll stop. You know, if you listen to the control of Bajak Finance, because you mentioned it, I will also mention it.

Karan Gala, Analyst — Lighthouse

Yes.

Sandeep, Analyst — JP Morgan

Large percentage of the call was explaining how they're incorporating AI into their system. And if you look at the digital lending business anywhere in the world, everything is around how to adopt AI into our business models. So I have not heard anything from you today around that, that what are we doing in that direction?

Kapil Garg, CEO

Sir, I'll be honest with you.

Vishwas Kumar, Head of Investor Relations

I would like to come in here to answer the question. Sandeep sir, artificial intelligence today majorly in the lending industry is used by lenders who are working in an unsecured lending environment, specifically where they are using this for underwriting of unsecured loan customers. Since we as an organization are on a path where we do not focus largely on unsecured loans and focus on loans where the repayment structures So, we do not need to focus a lot on the underwriting aspect, right, since we are largely secured on the collections part. And hence, use of AI currently is not a very relevant factor for us. However, yes, in other areas where we could adopt this in lending, our team is already working on that. But largely whichever organization you will talk about who's using AI is largely on the underwriting aspect and we currently are well covered on that space.

Sandeep, Analyst — JP Morgan

Thank you very much. I mean, you know, the thing is, they are the most advanced players are using it in everything. They are using it from underwriting, they will use it in customer contact, they will in responsive things, of course, in the software development. So in some ways, you know, it becomes like almost like table stakes. And it creates like, because the advanced users brings the cost of everything down. Absolutely, sir.

Vishwas Kumar, Head of Investor Relations

I tell you two spaces where we're already using this. One is on the DevOps side where the coding is also done through artificial intelligence, some of the aspects of it. The second is in our collections process, we've introduced collection bots which do a multilingual call to the customers for reminders as well as telling them, for example, that their policies will get canceled if they're not paying back and it's a conversational bot. So, if the customer replies, the bot replies in a manner the customer is asking questions about. So, you know, those small, small places, that's already implemented with us. And we are using it, but largely on the underwriting side, we are still yet to touch it because it's not a use case.

Sandeep, Analyst — JP Morgan

Okay. Thank you.

Vishwas Kumar, Head of Investor Relations

So if I may, what I'll quickly do is from next quarter onwards, let's add a slide which would showcase the R&D spend, the AI initiatives, and the new infrastructure expenses that we are doing, investments in infrastructure. I think that would be a good tracker to start that how much we have invested so far, what capabilities we are building for future.

Sandeep, Analyst — JP Morgan

Sounds good. I mean, actually, Kapil has very well expressed that we are focused on these four variables, secure, scalable, tech-based, and profitable, so actually, whatever KPIs that you form should also express that, you know, that what are we, how much is secure, what is unsecured, how we are scaling each aspect of the business, and how we are putting in place all the tech, I think what was discussed earlier on was how we are making it more profitable by bringing the cost of capital down and then what Guljan explained. So, in so many ways, it is around the four pillars that Kabilis expressed and maybe the KPIs should also reflect that.

Kapil Garg, CEO

Thank you.

Sandeep, Analyst — JP Morgan

All right. Great.

Kapil Garg, CEO

Thanks, sir.

Vishwas Kumar, Head of Investor Relations

Any more questions? Right, sir. I think we are short of time also. Since there are no more questions, I request that we can close it here. And if there's any more questions, anyone want to ask, you can reach out to us at irandroidmuffinfinance.com. And we'll make sure that we repair properly. Thank you.

Karan Gala, Analyst — Lighthouse

Thank you very much. Thank you.

Operator

Thanks, everyone.

Karan Gala, Analyst — Lighthouse

Thank you. Thank you. Thank you, everyone. Thank you.