Press Release

VIS Assigns Initial Entity Ratings to Trukkr Financial Services Limited

Karachi, August 12, 2024: VIS Credit Rating Company Limited (‘VIS’) assigns initial entity ratings to Trukkr Financial Services Limited ('TFSL’ or 'the Company’) to 'A-/A-2' (‘Single A minus/A-Two’). Medium to long term rating of 'A-' indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of 'A-2' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors Outlook on the assigned ratings is ‘Stable’.

TFSL was incorporated in Pakistan on January 19, 2023, as an unlisted public limited company. Licensed by the Securities and Exchange Commission of Pakistan (SECP) as an Investment Finance Services, TFSL began operations on March 08, 2023. The Company is a subsidiary of Velocity Financial Technologies Inc (Formerly Finlo Technologies, Inc.), registered and located in Delaware, US, and held by the founding members of TFSL. The Group started with an online logistics platform in 2019, connecting truckers with shippers. The platform gained traction attracting a number of notable corporates. In 2023, Trukkr pivoted to a fintech model under TFSL, to address the financing gap by leveraging logistics data to underwrite loans for trucking companies, helping them scale their businesses and increase revenues.

Assigned ratings take into account the business acumen and hands on experience of the sponsors and management team of TFSL, with expertise across finance, logistics, private equity, fintech, and technology sectors, both domestically and internationally. They have also shown success in attracting international investors. Ratings also take into account the risk management framework adopted by the Company which not only encompasses the use of advanced analytics and specific artificial intelligence algorithms on existing and new data but also includes a comprehensive analysis of operational and financial data. Credit risk triggers and mitigation checks have been laid out supported by visibility provided by the Trukkr online platform and on ground presence. Given the limited operational history of the Company, ratings remain underpinned on achievement of projected plans including projected equity support planned to be injected in the Company over time.

Going forward, the key indicators include the Company's ability to manage and sustain its growth while maintaining a healthy risk profile. Prudent management of credit risk and continued improvement of control environment remains vital. The Company's plans to navigate liquidity constraints by negotiating finance facilities and managing capitalization metrics will be important.

For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.









Applicable Rating Criteria:
Non-Bank Financial Companies
https://docs.vis.com.pk/Methodologies%202024/NBFCs202003.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .