Svakarma Finance Private Limited: Company Profile

Background

Svakarma Finance Private Limited is a Non-Banking Financial Company (NBFC) established in 2017, headquartered in Mumbai, India. The company is dedicated to empowering Micro, Small, and Medium Enterprises (MSMEs) by providing tailored financial solutions that foster sustainable socio-economic development.

Key Strategic Focus

Svakarma Finance specializes in offering a range of financial products designed to meet the diverse needs of MSMEs. Their offerings include:

• Machinery and Asset Purchase Loans: Facilitating business expansion through the acquisition of essential equipment.

• Samridhi Loan: Leveraging GST returns to provide working capital for business growth.

• SuryaKiran Loan: Financing the installation of rooftop solar systems on commercial and industrial buildings.

• Business Loans: Short-term and long-term working capital loans to manage operational expenses and cash flow.

• DAMINI (Business Loans for Women Entrepreneurs): Supporting women-led MSMEs with tailored financial solutions.

• WASH Loan: Financing for businesses involved in water, sanitation, and hygiene sectors.

The company adopts a flexible approach in structuring financing solutions, aligning repayment structures with the cash flows of the enterprises.

Financials and Funding

As of March 31, 2023, Svakarma Finance reported:

• Operating Revenue: Between INR 1 crore and INR 100 crore.

• Net Worth: Increased by 184.84% year-over-year.

• EBITDA: Decreased by 28.64%.

• Total Assets: Increased by 122.01%.

• Liabilities: Increased by 21.81%.

In December 2024, the company secured $10.4 million (approximately INR 88 crore) through a combination of debt and equity, led by existing institutional investors, including Encourage Capital. Additionally, Svakarma Finance signed a term sheet for up to $8 million in long-term borrowing from the US International Development Finance Corporation to promote financial inclusion of micro-enterprises in India.

Technological Platform and Innovation

Svakarma Finance leverages technology to streamline its lending processes, ensuring efficient service delivery to MSMEs. The company employs proprietary methodologies to assess the creditworthiness of borrowers, aligning repayment structures with the cash flows of the enterprises.

Leadership Team

• Kalpana Iyer: Managing Director & CEO

• Vivek Vig: Chairman

• Anuradha Nadkarni: Co-founder

• Kaushik Mazumdar: Co-founder

• Nishanth Muthusamy: Chief Financial Officer

• Ayushi Thakuriya: Company Secretary

Each member brings over three decades of experience in retail and wholesale banking, contributing significantly to the company's strategic direction and growth.

Competitor Profile

Market Insights and Dynamics

The MSME financing sector in India is characterized by a significant credit gap, presenting substantial growth opportunities for NBFCs like Svakarma Finance. The market is witnessing increased competition, with several players offering diverse financial products tailored to MSMEs.

Competitor Analysis

Key competitors include:

• Bajaj Finance: A diversified NBFC offering a wide range of financial products.

• HDB Financial Services: Provides loans and asset financing to individuals and businesses.

• Mahindra Finance: Focuses on rural and semi-urban markets, offering vehicle and asset financing.

• Tata Capital: Offers consumer loans, wealth management, and commercial finance.

• Shriram Finance: Specializes in commercial vehicle financing and MSME loans.

• L&T Finance: Provides rural, housing, and infrastructure finance.

Strategic Collaborations and Partnerships

Svakarma Finance has established significant partnerships to enhance its service offerings:

• DBS Bank India: Acquired a 9.9% stake in Svakarma Finance, aiming to promote microenterprise lending in a cost-effective manner.

• Encourage Capital: Led a funding round, providing substantial capital to support the company's expansion plans.

Operational Insights

Svakarma Finance differentiates itself through:

• Tailored Financial Products: Offering customized loan products that cater to the specific needs of MSMEs.

• Flexible Repayment Structures: Aligning loan repayments with the cash flow patterns of businesses.

• Dedicated Relationship Managers: Providing personalized service to clients, ensuring a deep understanding of their financial requirements.

Strategic Opportunities and Future Directions

The company plans to:

• Expand Branch Presence: Increase its footprint from 20 to nearly 50 cities.

• Grow Lending Portfolio: Aim to raise the loan portfolio to INR 1,500 crore over the next three years.

• Enhance Product Suite: Introduce new financial products to cater to the evolving needs of MSMEs.

Contact Information

• Website: www.svakarma.com

• Headquarters: Mumbai, India

Note: Specific contact details such as address, phone number, and email are not provided in this profile.