Electronica Finance aims`10K-cr AUM in 5 years

Hyderabad ElectronicaFinance Limited (EFL), a leading non-banking financial company (NBFC) specialising in financing the micro, small & medium enterprises (MSMEs) with a focus on financial inclusion, has set a target to surpass its assets under management (AUM) at Rs 10,000 crore in coming five years. It has an AUM of Rs 3,000 crore as on June 2023.

Keeping in mind the overall philosophy of customer centricity and assessment-based financing, the company provides a comprehensive product portfolio - machine loan, business loan, rooftop solar loan, loan against property, institutional lending, working capital loan and loans to micro enterprises, catering to the financial needs of individuals, small business owners and medium-sized enterprises.

The Pune-headquartered company was incorporated in 1990 as a part of the SRP Electronica Group. With a legacy of over 30 years, it has become one of the pioneers in the field of MSME finance. It currently has operations in 180+ branches across 15 States. Under its machine financing wing, it already has presence in Hyderabad for the past 12 years.

About five years ago, the EFL has launched micro loan against property (LAP). After successfully offering its LAP product in Gujarat, Rajasthan and Madhya Pradesh markets, EFL is looking forward to enter rural market of Telangana to enhance credit availability to the MSMEs and help them build a credible credit profile. It plans to open more than 50 branches across the State, and further entering new locations. “The company is planning a hub and spoke model to operate in the rural parts of Telangana. We have recently opened 7-8 branches in Warangal and Suryapet. We are spending around Rs 10-15 lakh in setting up each branch. By the end of this year, we will be investing around Rs 10 crore to establish 40-50 branches across the State,” said Shilpa Pophale, Managing Director & CEO of EFL, told Bizz Buzz.

She said, “We have already identified 34 locations for the new branches in the State. Every branch of the company acts as a hub to cater to the aspirations of small businesses in the surrounding villages by offering seamless credit facility in the most transparent manner. We chose Telangana as the first State in South Indian market. Subsequently, we will expand to Andhra Pradesh, Tamil Nadu and Karnataka.”

According to a study, Telangana is home to about 26 lakh MSMEs, out of which 56 per cent are in rural areas where EFL plans to give loans to customers who are borrowing for the first time. This lending will spur growth in the local economy of the State by generating newer employment opportunities, avenues for business expansion and improved standard of living.

Shilpa further said, “The company has been contributing to the United Nations’ sustainable development goal of financial inclusion and sustained economic growth through funding New to Credit (NTC) customers, wherein more than 5,000 NTC borrowers have been funded till date. Our employee strength has also doubled to 2,000 during the last financial year.” “Over the next five years, the company is aiming to have 4,000 employees across 500 branches in India with an AUM of Rs 10,000 crore. This growth will be complemented by introducing new products, investing into technology and refining existing processes. The technology enablement will help us digitally serve the customers in rural parts of the country,” she added.