SME Times News Bureau | 27 May, 2019
Lack of capital availability is the
only biggest challenge facing the Indian Micro, Small and Medium Enterprise
(MSME) sector, said Saurabh Jhalaria - CEO, SME Business, InCred.
Excerpts of the interview...
Please tell our readers about InCred.
Saurabh Jhalaria: InCred caters
to the financial needs of everyone ranging from homemakers, working
professionals, and students to self-employed individuals as well as SMEs. The
ticket size of these loans can range from Rs. 50,000 to Rs. 10 crores,
depending on a customer’s credit profile, individual requirement, collateral
provided as well as the loan product.
are the services you offer, particularly when it comes to small businesses?
Saurabh Jhalaria: Our
product portfolio includes personal loans, education loans, and two-wheeler
loans, and SME business loans. For small businesses, we offer working
capital loans of up to 12 months, collateral-free term loans of up to 36
months, secured business loans of up to 10 years .
is the loan disbursal amount and number of customers you have served since
Saurabh Jhalaria: We have
disbursed loans over 3000 crores till date while serving a
total of over 2,00,000 customers since inception.
is said InCred is LinkedIn's most sought after start-up. Please give
our readers the details.
Saurabh Jhalaria: Late last
year, LinkedIn released the list of 25 most attractive startups in India for
working professionals. This was based on LinkedIn’s proprietary data that
ranged from employment growth and engagement to job interest and attraction of
top talent. InCred, being one of the finest employee- and customer-centric
fintech player, was a part of the list.
are the major investors which showed interest in InCred's first round of
Saurabh Jhalaria: Our
initial investors were Anshu Jain, Ranjan Pai (Manipal Group), Alpha Capital,
Paragon Partners, Dalmia Enterprise Holdings, Investcorp (IDFC Private Equity
Fund) among others.
is the current loan book value? And what about your overall presence in India?
Saurabh Jhalaria: We
currently have Rs. 1750 crore in AUM (assets under management). Over the due
course of time, we have expanded our business footprint to all tier 1
cities, focusing on penetrating some of the untapped tier 2 cities where
business potential has been identified to be significant.
tell us about the MSME sector financing scenario in India at present.
Saurabh Jhalaria: The MSME
sector has considerable potential as India grabs the global economic spotlight.
India’s improved diplomatic connections with major economies have also added to
the prevailing business opportunity. Further receiving a push from GST and
digitization, the local market has also opened up brilliantly for MSMEs.
However, the only stumbling block for them at present is the lack of capital
availability. This is preventing them from tapping the prevailing opportunity
and achieving their true business potential.
MSME sector has a credit requirement of $370 billion, out of which, only around
$139 billion is being met by banks and larger NBFCs. This has left a
credit gap of more than $230 billion which has given an opportunity for
new-age NBFCs such as InCred and in collaboration with Fintechs to
address and tap the market.
are your future plans?
Saurabh Jhalaria: We are
currently consolidating our market position amongst existing geographies
while bringing more tier 2 cities under our ambit. Building a
differentiated product using technology and analytics across verticals and
gaining the edge in the market is crucial for our success along with risk
monitoring and containment.