Godrej Capital, the NBFC arm of Godrej Group, aims to grow its assets under management to ₹12,000 crore by the end of the current financial year, its MD and CEO Manish Shah said.
“Of this, over ₹7,000 crore should come in from the MSME/SME vertical as we plan to treble our presence this year. The rest of the disbursals should be in the home loan vertical,” he said, adding that the eventual aim is to take the AUM to ₹50,000 crore by FY29.
To support this growth, promoters will infuse ₹1,200 crore capital in FY24, the first tranche of which will be in this quarter. Prior to this, the Godrej group had infused ₹1,500 crore as equity capital at the time of launch in November 2020. The NBFC may consider listing in 3-5 years.
Currently, the company’s AUM is ₹5,500 crore of which ₹4,000 crore is the home loan vertical, wherein over 50 per cent borrowers are Godrej Properties’ customers and the rest are small businesses.
The MSME book turned profitable in Q4 FY23 whereas the home loan arm has been profitable for the whole of FY23, Shah said, adding that the company is looking to grow its MSME customer base from 1,000 to 10,000 by the end of FY24.
MSME platform
Shah was speaking at an event to launch the NBFC’s MSME platform ‘Nirmaan’ where it has partnered with Amazon Global Selling, Onsurity, Zolvit, and MSMEx to increase the market reach, simplify legal and compliance, enhance employees’ health and welfare, and provide business coaching for small businesses. The services will be provided free of cost with no obligation to borrow from Godrej Capital.
While the NBFC may not be incurring actual cash payouts, it can attract businesses through free services or lower fees as they are likely to get a larger business through the Nirmaan platform over time, Shah said, adding that they will keep adding value-added services with the aim of targetting 30-50 lakh MSMEs in FY24 through organic and promotional efforts.