Adani Group has committed initial capital of Rs 500 crore to its lending arm Adani Capital. The Gujarat-based conglomerate is looking to expand financial services business at a time when burgeoning bad loans have made state-run banks picky in bankrolling projects.
Privately funded by the promoter group, the company has started full-fledged operations with 200 employees in 19 branches spread across Gujarat and Maharashtra. These branches are in rural and semi-urban locations such as Himmatnagar, Mehsana, Kolhapur and Nashik.
“Our aim is to provide customised solutions to entrepreneurs, be it a farmer or a small businessman, by leveraging technology,” Gaurav Gupta, chief executive at Adani Capital, told ET. “Entrepreneurs are the backbone of the economic growth and they are our target customers markets. We find a void in the existing scheme of things, which would be a customised solution for entrepreneurs.”
Adani Capital aims to finance Rs 1 lakh to Rs 50 crore across the farm, commercial vehicle and business loan segments. It has also launched an all-digital channel finance product with over 100 live customers.
Adani Group’s move is in line with many other conglomerates such as the Aditya Birla Group, Bajaj, L&T, Piramal Group and Reliance Group. Many others like Kotak and Piramal also joined hands with large institutional investors like Canada Pension Plan Investment Board for rolling out various products
NBFCs are better placed in rural and semi-urban regions in terms of lending business, Investec Securities said in a note on April 17. “Our channel checks suggest banks continue to rely on direct sale agents or dealers to source business in semi-urban/rural areas, with DSAs typically helping banks in resolving collection issues,” the note said. “NBFCs, though, have a strong reach in semi-urban and rural regions which helps them connect better with customers.