Chennai-based IFMR Capital, which is focussed on helping the financially excluded class of clients get funds, is at present working with 25 originators in the small business loan (SBL) segment.

Its Chief Executive Kshama Fernandes told BusinessLine that the company works closely with clients, providing them the most optimal debt solution at every stage of growth. “We are, in fact, working with 100 originators, of which 25 are in the SBL space,” she clarified.

More funding options

The company acts not only as a structurer/arranger of funds for its clients, but also as an investor. “We help connect them with the capital market through non-convertible debentures, securitisation transactions and collateralised bond obligation to meet their funding requirement. she said, adding “these open up funding options to small firms (referred to as originators) that typically have no access to bank loans and the capital market.”

During the current year, the company has so far brought in ₹2,000 crore financing to the underlying sectors, apart from facilitating debt financing across verticals.

“We are intent on taking all our clients to the capital market this year, albeit for pure debt finance, not equity,” she added.

Answering a query, she said, “These SBL providers have their own mechanism to access cash flows.”

Promoted by IFMR Trust, this NBFC works for the creation of a stable and inclusive financial system by deepening its presence and providing access to financial services to millions of under-served households.

Big opportunity

“The opportunity is huge and not just in remote pockets but in urban centres as well.

“The challenge lies in communicating with the underlying sectors. Over the years, we have built a good understanding of the underlying borrowers and it is more than mere credit-risk assessment,” Fernandes said.

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