APAC Financial Services Private Limited: Company Profile

Background

Overview

APAC Financial Services Private Limited is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI) in February 2018. Established with the vision of serving the financial needs of underbanked and underserved micro and small enterprises (MSEs), self-employed individuals, and salaried professionals in semi-urban and rural areas across India, APAC has rapidly expanded its footprint. The company operates with a strong emphasis on Environmental, Social, and Governance (ESG) principles, balancing its core objectives of Growth, Quality, and Profitability (G.Q.P.).

Mission and Vision

APAC's mission is to empower deserving MSE businesses by providing them with the necessary financial resources to focus on growth without being constrained by access to capital. The company's vision is to be a leading tech-enabled lender, offering quick, customized loans that cater to the diverse needs of MSEs, thereby contributing to the broader financial inclusion in India.

Industry Significance

As a growing tech-led MSME lender, APAC plays a pivotal role in addressing the financing challenges faced by small and medium-sized enterprises in India. By leveraging technology and a deep understanding of the MSME sector, APAC contributes significantly to the economic development and financial inclusion of underserved communities.

Key Strategic Focus

Core Objectives

Financial Inclusion: Provide accessible and affordable financial solutions to underbanked and underserved MSEs, self-employed individuals, and salaried professionals in semi-urban and rural areas.

Growth and Profitability: Achieve sustainable growth while maintaining high standards of quality and profitability, adhering to the G.Q.P. framework.

Areas of Specialization

Secured Loans: Offer primarily term loans secured by property, with an average ticket size of ₹5-6 lakhs, tailored to meet the specific needs of MSEs.

Digital Onboarding: Implement digital and paperless customer onboarding processes to enhance efficiency and reduce turnaround times.

Key Technologies Utilized

Proprietary Technology Platform "Alpha": Utilize an in-house developed platform for loan origination and underwriting, streamlining processes and improving decision-making.

Data Analytics: Employ data analytics and alternative data sources to enhance credit assessment and risk management.

Primary Markets Targeted

Semi-Urban and Rural Areas: Focus on regions with limited access to traditional banking services, aiming to bridge the financial inclusion gap.

Micro and Small Enterprises: Serve businesses with limited access to capital, providing them with the necessary financial resources to grow and thrive.

Financials and Funding

Funding History

Initial Capitalization: Founded with equity capital contributed by the founder and leadership team.

Subsequent Funding Rounds:

Multiples Private Equity Fund & Plenty Private Equity Fund: Collectively invested ₹250 crore.

Norwest Venture Partners & Creador: Raised ₹400 crore in equity capital.

Total Funds Raised

As of the latest funding round, APAC has raised a total of ₹650 crore in equity capital.

Notable Investors

Multiples Private Equity Fund & Plenty Private Equity Fund: Renowned private equity firms with a strong track record in the financial services sector.

Norwest Venture Partners & Creador: Esteemed global investment firms with significant experience in supporting high-growth companies.

Utilization of Capital

The raised capital has been utilized to:

Expand Branch Network: Increase the number of branches to over 200 across six states, enhancing market reach.

Enhance Technology Infrastructure: Develop and implement the "Alpha" platform for efficient loan origination and underwriting.

Strengthen Risk Management: Invest in robust risk management systems and processes to ensure asset quality.

Pipeline Development

Key Pipeline Candidates

Term Loans Secured by Property: Focus on providing secured loans to MSEs, with an average ticket size of ₹5-6 lakhs.

Stages of Development

Loan Origination: Utilize the "Alpha" platform for efficient loan origination and underwriting.

Disbursement: Ensure quick disbursement of funds to meet the immediate financial needs of borrowers.

Target Conditions

Micro and Small Enterprises: Businesses with limited access to traditional banking services.

Self-Employed and Salaried Professionals: Individuals seeking financial support for business expansion or personal needs.

Anticipated Milestones

Branch Expansion: Increase the number of branches to over 200 across six states.

Customer Base Growth: Serve over 45,000 customers, with a consistent Net Promoter Score (NPS) of 80+ and a customer satisfaction score of 9/10.

Technological Platform and Innovation

Proprietary Technologies

"Alpha" Platform: An in-house developed platform for loan origination and underwriting, streamlining processes and improving decision-making.

Significant Scientific Methods

Data Analytics: Employ data analytics and alternative data sources to enhance credit assessment and risk management.

Digital Onboarding: Implement digital and paperless customer onboarding processes to enhance efficiency and reduce turnaround times.

Leadership Team

Key Executives

Gunit Chadha: Founder and Managing Director; former CEO of Deutsche Bank (Asia Pacific region) and CEO of IDBI Bank.

Shankar Dey: Director; seasoned banking and finance professional with over four decades of experience in the BFSI sector.

Nithya Easwaran: Director; Managing Director of Multiples Alternate Asset Management Company Limited, with over two decades of experience in financial services.

Sanjay Maliah: Director; over two decades of experience in the BFSI sector.

Ajit Raikar: Director; over two decades of experience in the BFSI sector.

Robin Agarwal: Director; over a decade of experience across private equity and consulting.

Leadership Changes

Ajit Raikar: Appointed as Director on February 12, 2025.

Robin Agarwal: Appointed as Director on March 15, 2024.

Market Overview and Competitor Profile

Market Insights and Dynamics

Market Size: The Indian MSME sector is vast, with over 63 million enterprises contributing significantly to the economy.

Growth Potential: The sector is expected to grow at a compound annual growth rate (CAGR) of 10-12% over the next five years.

Industry Trends: Increasing adoption of digital financial services, government initiatives for MSME support, and a growing focus on financial inclusion.

Competitor Analysis

Aspire: A Singapore-based fintech company offering corporate cards, cross-border payments, and spend management services to SMEs.

Hantec Financial: A Hong Kong-based financial services provider offering multi-asset trading services, including forex, commodities, and CFDs.

YCP Holdings: A Singapore-based consulting company specializing in supporting Asian fund managers seeking to promote, distribute, and raise capital in Australia’s wealth management sector.

Strategic Collaborations and Partnerships

Multiples Private Equity Fund & Plenty Private Equity Fund: Invested ₹250 crore, providing capital for expansion and growth.

Norwest Venture Partners & Creador: Invested ₹400 crore, supporting technological advancements and market expansion.

Operational Insights

Branch Network: Over 200 branches across six states, enhancing market reach and customer accessibility.

Digital Infrastructure: Implementation of the "Alpha" platform for efficient loan origination and underwriting.

Customer Satisfaction: Consistent NPS of 80+ and a customer satisfaction score of 9/10, indicating strong customer loyalty and service quality.

Strategic Opportunities and Future Directions

Geographical Expansion: Increase presence in underserved regions to tap into a larger customer base.

Product Diversification: Introduce new financial products tailored to the evolving needs of MSEs.

Technological Advancements: Enhance the "Alpha" platform with advanced analytics and AI capabilities to improve credit assessment and risk management.