We view risk monitoring as a crucial component of our operations, encompassing all sectors, channels, and borrower categories. Risk management is at the heart of our business, and over the years, we have built and implemented a tailored risk management system. These systems, designed specifically for each sector and channel in which we operate, enable us to create a diversified portfolio and address various risks effectively.

Our overall risk management is governed by an enterprise risk management (ERM) framework that addresses nine key risk types we encounter. The ERM framework allows us to identify, monitor, and manage the various risks inherent in our operations. We conduct monthly reviews of exposures through detailed exposure reports and regularly review and approve counterparty limits based on the most recent quarterly data, as well as feedback from our risk monitoring processes and field visits. Both qualitative and quantitative risk insights play a significant role in the portfolio selection for securitization and direct assignment transactions. Managing risks within the ERM framework gives us a holistic view of our existing risks, while also enhancing our ability to identify and proactively manage emerging risks.

We leverage our in-house expertise and data to develop bespoke and proprietary risk models that align with our offerings, products, and market conditions, improving capital efficiency. Most of our credit risk management processes are enhanced by advanced analytical models built on Nimbus. This platform utilizes both internal and external data sources to create detailed risk analytics and modeling, coupled with early warning systems that enable proactive risk management.

Nimbus continues to improve as we integrate new data points and sources each year. As of March 31, 2024, our quantitative analysis is based on more than 35.17 million data points, including (a) loan pools assessed and invested in for our Originator or Investor Partners through securitization and direct assignment, and (b) over 18.58 million loans disbursed through Direct to Customer Lending. We also incorporate secondary data from external sources like credit bureaus and economic research portals to analyze borrower characteristics at the pin-code level, including indebtedness, collection efficiency, and sector growth trends.

Beyond our vast data repository, we also integrate insights from on-field surveillance into Nimbus, ensuring a well-rounded dataset. We routinely update customer credit information by gathering data from credit bureaus, which is vital for pool selection and financial modeling. By combining data insights, scrub analysis, and field monitoring, we can benchmark all our Originator Partners and Retail Lending Partners. This is a critical input in our credit decision-making process, portfolio testing, early warning systems, and in-depth sector reports.

As of March 31, 2024, we have conducted reviews for 677 Originator Partners, of which we performed due diligence on 430 and successfully onboarded 328 onto our platform. These insights also enable us to provide valuable feedback to Originator Partners, including comparisons with operational and financial industry benchmarks. Additionally, these insights are used in webinars for both domestic and offshore investors and to create detailed sector presentations.