Godrej Capital, established in 2020, serves as the financial services arm of the Godrej Industries Group, a conglomerate with a 127-year legacy. The company offers a diverse range of financial products, including home loans, loans against property, and business loans tailored for Micro, Small, and Medium Enterprises (MSMEs). Committed to fostering sustainable growth, Godrej Capital emphasizes integrity, transparency, and customer-centric solutions in the Indian financial services sector.
Recent Developments
- Entry into Affordable Housing Loans: In September 2024, Godrej Capital announced its foray into the affordable housing loan segment, aiming to increase its Assets Under Management (AUM) from INR 13,000 crore to INR 17,000 crore by the end of the fiscal year. The company targets an AUM of INR 50,000 crore by March 2028. This strategic move aligns with the government's 'Housing for All' mission, reflecting the company's commitment to supporting homebuyers in the low-income segment.
- Generative AI Initiatives: In December 2024, Godrej Capital launched Generative AI (GenAI) solutions to enhance customer engagement and operational efficiency. These initiatives include analyzing 100% of customer interactions to derive actionable insights, implementing AI/ML-driven credit risk assessments, and developing the 'Godrej Capital SAKSHAM-AI/ML' platform for integrating GenAI capabilities.
- MSME Support through 'Nirmaan' Platform: In November 2024, the company expanded its 'Nirmaan' platform by partnering with DBS Bank India, Visa, and Amazon. These collaborations aim to empower MSMEs by offering a range of value-added services and comprehensive support throughout their business journey.
- Inclusive Hiring Initiatives: In June 2024, during Pride Month, Godrej Capital launched the 'Pride Capital' initiative, focusing on LGBTQIA+ inclusion in the workplace. Partnering with the Tweet Foundation, the company conducted an inclusive career fair, screening over 240 profiles and providing insights into roles and work culture.
- 'Hum Samajhte Hain Business' Campaign: Also in June 2024, Godrej Capital unveiled the 'Hum Samajhte Hain Business' campaign, emphasizing its understanding of the challenges faced by MSME business owners. The campaign includes a digital film that captures the emotional journey of a business owner transitioning from a small shop to a larger venture, highlighting the company's commitment to supporting business growth.
Financial Performance
- Assets Under Management (AUM): As of September 2024, Godrej Capital reported an AUM of INR 13,000 crore, with projections to reach INR 17,000 crore by the end of the fiscal year. The company aims to achieve an AUM of INR 30,000 crore by March 2026 and INR 50,000 crore by March 2028.
- Profitability: The company achieved a profit before tax of INR 56 crore in FY24 and targets a profit before tax of INR 175 crore in FY25, showcasing a robust growth trajectory.
- Loan Portfolio Composition: The loan portfolio is diversified, with approximately INR 5,000 crore allocated to the housing business and INR 8,000 crore to the MSME sector.
Employee Insights
- Workforce Expansion: Since its inception, Godrej Capital has expanded its presence to 40 cities across India, with plans to reach 100 cities by 2028.
- Diversity and Inclusion: The company is committed to diversity, equity, and inclusion, as evidenced by initiatives like 'Pride Capital' and recognition as one of India's Top 50 Best Workplaces in BFSI for 2023.
Conclusion
Godrej Capital continues to make significant strides in the financial services sector, particularly with its recent initiatives in affordable housing loans, technological innovation through Generative AI, and support for MSME growth.
