Financials are strange businesses. On a sale, money goes out from the pocket rather than coming in.

Growth comes first. NPA comes later.

Aavas Financiers says: “What Kills Others Makes Me Strong”

Buckle yourself up as we’ll take you through the 19-20 AR

1/

Challenges for Aavas:

~People, Process & Branch intensive
~Caters to Tier2 to Tier 6 towns
~Underwriting difficult
-Lack of docs
-No CIBIL records
-Mostly catering to EWS and LIG category

Now let’s run past the AR to find the cues to their success
2/

Aavas Financiers

A Fast-growing Small Housing Finance Company in a Large Growing Housing Finance Market in India

A Fast-growing Small Fish in a Large Growing Pond
3/

~The Chairman
~The CEO
~The CFO

See what they say
4/

~Strategic Objectives
~Credit Risk Appraisal Framework
~How Aavas is Being Different
5/

How Aavas’ customer accretion helps build a lower-cost company
6/

How Aavas is Making a Difference

Part 1
7/

How Aavas is Making a Difference

Part 2
8/

How Aavas has built its business over the years
9/

2019-20 Performance Review
10/

~Sectoral Review

~Government Initiatives
11/

~SCOT Analysis

~Risk Mitigation Strategies
12/

Aavas is at that end of the market where big guys like HDFC, LIC HF, PNB HF, Repco etc will not bother to enter.

~Avg Ticket Size < 10 lacs
~Mostly in towns < 10 L pop
13/

Are you excited?

Wish to indulge more on Aavas?

Watch this video to know more about the CEO Mr. Sushil Agarwal and the business Model https://t.co/WNK1SWhOEJ

If you enjoyed this ride on the AR of Aavas, L&R for wider reach🙂

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Introducing "The Balloon Effect"

Many businesses & creators have experienced a similar pattern of success.

From @MrBeastYT and @MorningBrew to @oatly and @Rovio.

Let's break down what "The Balloon Effect" is and examples of it in real life.

Keep reading 👇


1/ What is "The Balloon Effect"?

It is a particular pattern of growth.

It is not Instagram's growth trajectory.

It is not
https://t.co/5axsTUKek6's growth trajectory.

"The Balloon Effect" is defined by several years of hard work & grit complemented by slow, linear growth.

2/ And then one day, one month, or one quarter...everything changes.

A business hits a tipping point and its trajectory shifts entirely.

Gradual growth turns to exponential growth & your brand and your size explode.

Like a step function.

3/ Now, you're probably wondering.

Why is it called "The Balloon Effect"?

Because filling/popping a water balloon follows the exact pattern I just described (and so many businesses experience).

Long unsexy slog 👉 Exponential tipping point.

4/ Initially, you turn on the faucet & water takes up space in the empty balloon.

Through effort you open the faucet, yet the results are unexciting.

But it's what must be done for water (or growth) to happen at all.

It's not sexy, but it's necessary.
So I'd recommend reading this thread from Dave, but I thought about some of these policies, and how they fit into the whole, a lot, and want to offer a different interpretation.


I think California is world leading on progressivism that doesn't ask anyone to give anything up, or accept any major change, right now.

That's what I mean by symbolically progressive, operationally conservative.

Take the 100% renewable energy standard. As @leahstokes has written, these policies often fail in practice. I note our leadership on renewable energy in the piece, but the kind of politics we see on housing and transportation are going foil that if they don't change.

Creating a statewide consumer financial protection agency is great! But again, you're not asking most voters to give anything up or accept any actual changes.

I don't see that as balancing the scales on, say, high-speed rail.

CA is willing to vote for higher taxes, new agencies, etc. It was impressive when LA passed Measure H, a new sales tax to fund homeless shelters. And depressing to watch those same communities pour into the streets to protest shelters being placed near them. That's the rub.

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हिमालय पर्वत की एक बड़ी पवित्र गुफा थी।उस गुफा के निकट ही गंगा जी बहती थी।एक बार देवर्षि नारद विचरण करते हुए वहां आ पहुंचे।वह परम पवित्र गुफा नारद जी को अत्यंत सुहावनी लगी।वहां का मनोरम प्राकृतिक दृश्य,पर्वत,नदी और वन देख उनके हृदय में श्रीहरि विष्णु की भक्ति अत्यंत बलवती हो उठी।


और देवर्षि नारद वहीं बैठकर तपस्या में लीन हो गए।इन्द्र नारद की तपस्या से घबरा गए।उन्हें हमेशा की तरह अपना सिंहासन व स्वर्ग खोने का डर सताने लगा।इसलिए इन्द्र ने नारद की तपस्या भंग करने के लिए कामदेव को उनके पास भेज दिया।वहां पहुंच कामदेव ने अपनी माया से वसंतऋतु को उत्पन्न कर दिया।


पेड़ और पौधों पर रंग बिरंगे फूल खिल गए और कोयलें कूकने लगी,पक्षी चहकने लगे।शीतल,मंद,सुगंधित और सुहावनी हवा चलने लगी।रंभा आदि अप्सराएं नाचने लगीं ।किन्तु कामदेव की किसी भी माया का नारद पे कोई प्रभाव नहीं पड़ा।तब कामदेव को डर सताने लगा कि कहीं नारद क्रोध में आकर मुझे श्राप न देदें।

जैसे ही नारद ने अपनी आंखें खोली, उसी क्षण कामदेव ने उनसे क्षमा मांगी।नारद मुनि को तनिक भी क्रोध नहीं आया और उन्होने शीघ्र ही कामदेव को क्षमा कर दिया।कामदेव प्रसन्न होकर वहां से चले गए।कामदेव के चले जाने पर देवर्षि के मन में अहंकार आ गया कि मैने कामदेव को हरा दिया।

नारद फिर कैलाश जा पहुंचे और शिवजी को अपनी विजयगाथा सुनाई।शिव समझ गए कि नारद अहंकारी हो गए हैं और अगर ये बात विष्णु जी जान गए तो नारद के लिए अच्छा नहीं होगा।ये सोचकर शिवजी ने नारद को भगवन विष्णु को ये बात बताने के लीए मना किया। परंतु नारद जी को ये बात उचित नहीं लगी।