Microfinance Company Investment Opportunity in Pune, India
Seeking active partners for an established Nidhi company that plans to pivot to secured lending.
| Established | 5-10 year(s) |
| Employees | 2 - 5 |
| Legal Entity | Public Limited Company |
| Reported Sales | USD 3.4 thousand |
| Run Rate Sales | Nil |
| EBITDA Margin | Nil |
| Industries | Microfinance |
| Locations | Pune |
| Local Time | 11:52 AM Asia / Kolkata |
| Listed By | Business Owner / Director |
| Status | Active |
Partial Stake Sale
USD
22.5 thousand
for
50.0%
stake
(Native Currency: INR 2,000,000)
Reason: We seek an active partner investor to restart our operations.
Interested to connect with advisors
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Business Name
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Business Overview
- Non-operational Nidhi Limited company that primarily targeted small traders and individual consumers, and offered loans and financial products tailored to local needs.
- The company operated successfully for a year and disbursed loans totalling INR 60 lakh before experiencing challenges due to the Covid-19 pandemic.
- Loans were initially offered at competitive interest rates of 12% and above.
- Currently, there is an outstanding receivables loan and interest amount of INR 30 lakh, indicating a substantial level of embedment in the community and potential for recovery and growth.
- Past experience highlighted challenges with unsecured loans during the pandemic, prompting a strategic pivot towards offering 100% secured loans moving forward.
- The business is seeking investment to relaunch operations with a more secure and revised approach, emphasizing risk mitigation through collateral-backed lending.
- With certificates of incorporation and a Nidhi status ensuring compliance, the company is positioned for a prudent and legally sound resurgence in the microfinance sector.
- No RBI approval is necessary for Nidhi companies, as RBI has specifically exempted this category of NBFCs in India to comply with its core provisions such as registration with RBI.
- The company operated successfully for a year and disbursed loans totalling INR 60 lakh before experiencing challenges due to the Covid-19 pandemic.
- Loans were initially offered at competitive interest rates of 12% and above.
- Currently, there is an outstanding receivables loan and interest amount of INR 30 lakh, indicating a substantial level of embedment in the community and potential for recovery and growth.
- Past experience highlighted challenges with unsecured loans during the pandemic, prompting a strategic pivot towards offering 100% secured loans moving forward.
- The business is seeking investment to relaunch operations with a more secure and revised approach, emphasizing risk mitigation through collateral-backed lending.
- With certificates of incorporation and a Nidhi status ensuring compliance, the company is positioned for a prudent and legally sound resurgence in the microfinance sector.
- No RBI approval is necessary for Nidhi companies, as RBI has specifically exempted this category of NBFCs in India to comply with its core provisions such as registration with RBI.
Products & Services Overview
We used to offer micro-loans, loans and other financial products. Our consumers were small traders and individuals based in Pune.
Assets Overview
The business does not own tangible assets.The intangible assets include the outstanding receivables of INR 30 lakh + interest, processes, and the Nidhi status of the company.
Facilities Overview
We operate from a rented office in Pune.
Capitalization Overview
- 90% of the shareholding in this Nidhi company is held by a family (seven members), rest of the 10% shareholding is split amongst 400 members of the Nidhi Company (this is in compliance with the law where members need to be given at least 10 shares in the company)- There are no loans in the name of the business, and we started with INR 10 lakh of our own savings.
Recent Activity
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Earlier than 15 daysManaging Director, Microfinance, Coimbatore, Corporate Investor / Buyer connected with the Business
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Earlier than 15 daysManaging Director, Trading, Rajkot, Individual Investor / Buyer connected with the Business
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Earlier than 15 daysChairman, Real Estate Developers, Mumbai, Corporate Investor / Buyer connected with the Business
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1 Investor contacted this Business this month.
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