In 2007,clearly recognising a need in the growing microfinance sector,Intellecap set up IntelleCash (in collaboration with CashPor,a well-known MFI in UP,India) to help incubate and capacity build start up microfinance institutions (MFI) in India.In 2008,IntelleCash was incorporated as an NBFC to enable small lending to start up MFIs and also create a retail lending platform for piloting new products/processes for the MFI partners in Bihar. IntelleCash incubated and co-created an early stage SME lending business in partnership with Shell FoundationUKand in end 2011 hived it off into a new entity – with a brand name IntelleGrow.

In September 2012,post the AP microfinance crisis, and sensing the possibility of consolidation in the sector,IntelleCash invested, acquired and consolidated its retail lending portfolio (GLP of INR 108 million, client base of 13,500 with 12 branches across four districts of Bihar) with Arohan (an MFI based in Kolkata,WB). Arohan, a well-established Microfinance Institution operating in West Bengal and Assam was finding it difficult to navigate the challenges post the Andhra crisis and needed management restructure and capital infusion which was provided by IntelleCash. The management inputs and capital helped Arohan to turn the corner and lead to path of viability & growth. IntelleCash Microfinance Network now holds significant stakes and promoter obligation in Arohan and provides management oversight and guidance. Additionally, IntelleCash Microfinance Network was entrusted by the Intellecap group with the responsibility to work on Intellecap's stated vision to provide Financial Inclusion across the spectrum of Low Income Population.As part of this Mission, IntelleCash through Arohan is serving the poor segment needing loans and services between INR 5,000 and INR 50,000 Rupees. While it's hived off MSME lending business is catering to small enterprises needing INR 5 million to INR 50 million.The missing middle comprising of micro enterprise segment seeking anything between INR 0.5 million and INR 5 million is the new area of focus at IntelleCash and a small team of highly capable banking team is working on the business plan to serve this missing middle that would allow the Intellecap group to serve the entire spectrum of market in the Low Income Group.

IntelleCash Microfinance Network Board and Management also believes that Small Finance Bank guidelines are designed to meet the well-articulated ambition of Intellecap group to provide proper financial inclusion to the low income population in the country with emphasis to the groups desire to operate in Low Income States. IntelleCash Board thus feels it is appropriate entity within the group to apply for the Small Finance Bank license and a view that has been endorsed by the Intellecap group management and Board as well.

Arohan Financial Services Private Limited (Arohan):Arohan is a microfinance institution in Eastern& North East part of India with a mission to provide financial inclusion to poor households in the low income states. A Non-Banking Finance Company (NBFC) with headquarters in Kolkata, Arohan operates in the low income states of Bihar, Assam, Jharkhand and West Bengal through close to 100 branches. Arohan's assets under management as of December 2014 was INR 3117 million, catering to the financial needs of >270,000 customers. The company is well recognised as transparent and innovative and follows a Financial Inclusion approach – apart from microcredit it also offers micropensions and microinsurance products to its customers and is now a Business Correspondent (BC) for 2 banks in Assam and West Bengal. Through an acquisition in September 2012, Arohan joined the Intellecap Group and is now the retail lending business of the group. This acquisition involved incremental investment of more than ~INR 520 million and represented the first significant consolidation in India's microfinance sector.Arohan has the ambition to be the largest financial inclusion service provider in the 10 Low Income states in India. Arohan management and board believes that access to small finance bank structure would allow us to provide significantly higher quality services to our 300,000 and ever growing client base.We believe our mission of financial inclusion for the poor can only be completed under a banking structure and the Small Finance Bank guideline is a perfect platform for making an application.The Arohan Board and management is very aligned with the idea that application for the Small Finance Bank is made at IntelleCash Microfinance Network level andwe believe a complete merger of Intellecap group in one legal stable structure would allow us to create stakeholder value more effectively.

Jainson Finlease Private Limited (IntelleGrow):In October 2010, IntelleCash incubated and co-created early stage SME lending business in partnership with Shell Foundation (charity arm of Shell,UK) andaround late 2011 hived it off into a new entity – called Jainson Finlease Private Limited with its brand name being IntelleGrow. Today IntelleGrow provides tailored, flexible debt to small and growing businesses that have the potential to address India's development challenges. Since 2012, IntelleGrowhas grown to help fill a demonstrated market need for 'missing middle' financing in case of innovative enterprises working in one of six priority sectors of Clean energy, financial inclusion, healthcare, water & sanitation, agriculture supply chain and education.

IntelleGrow products suite include 'venture debt', term loans, optionally convertible loans and are largely targeted at early stagegrowth stage businesses with a social focus.The above approach of lending is backed primarily by deep understanding that the has been developed over years on early stage business viability and strong model based cash flow prediction that allow usto offer loans customized to the particular needs of each enterprise.It has till date funded 55 companies over a period of 48 months and provided INR 1500 million of debt through term loans. Of this 75% of loans were towards Healthcare, Clean Energy and Financial Inclusion.

As a pioneer in this space, IntelleGrow believes that the opportunity to scale would require to build such portfolio would need support from the regulator to classify its assets under Priority sector lending and currently in the NBFC form it can only be done by securitizing the asset to a bank.The portfolio would classify as Priority Sector portfolio under the small finance bank license and hence IntelleGrow management and Board are very excited about the application being made by IntelleCash Microfinance Network and enthusiastically look at part of the merged entity as part of the process if granted the permission to be a small finance bank.