Annual Report 2025-26
At Northern Arc Capital, our future value builders collectively focus on diversifying our revenue streams, scaling assets under management, expanding distribution platforms, deepening our ecosystem partnerships, and leveraging technology for growth.
Our value builders represent the key strategic initiatives that are expected to drive the Company’s next phase of growth and strengthen its position within the financial services ecosystem. These initiatives are aimed at enhancing our operational scalability and creating multiple growth engines to support sustainable expansion of the business and further improve profitability in the long term.
We are focussed on expanding our retail lending products, scaling our asset management capabilities, deepening our partner-led credit enablement, growing a digital investment platform, and also leveraging technology through our SaaS solutions.
Our future growth enablers
#Strengthening the retail (D2C) business
We remain focussed on scaling our existing business segments, where significant growth opportunities exist given our relatively low market penetration. Expansion of branch network and strengthening digital partnership. Further, we will test new retail credit products, such as Affordable Housing, Gold Loan, and more. Our Test>Validate>Scale philosophy for new products helps minimise risk by piloting the product, assessing acceptance by the market and performance, and scaling the offerings accordingly.
#Scaling our retail bond platform - Altifi
To fund India’s growth ambition, the credit market has to expand beyond institutional funding. As a result, Altifi as a bond platform that democratises the credit market through retail participation will play a critical role. With our ambition to expand the investor base coupled with Northern Arc underwritten credit papers will help grow the retail credit participation.
#Fund first approach delivering growth in Funds AUM
Fund first approach to institutional credit coupled with thematic fund raising will entail significant expansion of our Fund AUM over the next 2-3 years.
#Focussing on credit enablement for Partners through Placement business
We are working towards strengthening the Company’s role as a credit intermediary by helping the lending partners access capital from investors and financial institutions. This helps generate fee income, while deepening our relationships across the lending ecosystem.
#Expanding SaaS solutions
Our proprietary lending platforms, nPOS, and scorecards, NuScore, have matured over the past five years, successfully navigating multiple credit cycles and evolving regulatory landscapes. Building on this proven track record, we see monetising opportunities of these technology capabilities as Software-as-a-Service (SaaS) solutions that leverage our expertise in credit underwriting, risk assessment, and lending infrastructure. This initiative creates a scalable and recurring fee-based revenue stream, while enabling our partners to enhance the efficiency and effectiveness of their lending operations.