Abhiyan Capital Revolutionizing MSME Lending and Driving Financial Inclusion in India

ding landscape in India. With a unique “phygital” model that seamlessly blends physical presence with cutting-edge technology, Abhiyan Capital is not only bridging the significant credit gap faced by underserved businesses but also fostering a new era of financial inclusion across the nation.

Addressing a Critical Need Empowering the Unbanked and Underbanked

India’s MSME sector is the backbone of its economy, contributing significantly to GDP, employment generation, and regional development. However, a vast majority of these enterprises, particularly in Tier 2 to Tier 6 towns and rural areas, struggle to access formal credit. Traditional financial institutions often impose stringent documentation requirements, collateral demands, and complex application processes that exclude these informal businesses.

Abhiyan Capital was founded precisely to address this critical market failure. Recognizing that many micro-enterprises operate with informal incomes and unconventional property profiles, the company has developed a flexible and customer-centric lending approach. Their core offering, Secured Business Loans (SBL), provides funding of up to ₹15 lakh (and up to ₹25 lakh for SBL School Funding) against a diverse range of collaterals, including self-occupied residential or commercial properties. This willingness to accept non-traditional collateral, even in the absence of formal income tax returns or detailed bank statements, has earned them immense trust from a segment previously overlooked by mainstream lenders.

The “Phygital” Advantage: A Hybrid Approach to Accessibility

A key differentiator for Abhiyan Capital is its innovative “phygital” model. This strategy combines the accessibility and personal touch of physical branches and franchise networks with the efficiency and speed of tech-enabled loan processing. This multi-channel approach ensures that customers in remote areas can still access the company’s services while benefiting from faster turnarounds and a seamless digital experience for applications and disbursements.

The recent strategic partnership with Triblem, leveraging the official WhatsApp Business API, further exemplifies Abhiyan Capital’s commitment to technological innovation. This collaboration is set to drastically reduce integration time for clients, from weeks to mere minutes, significantly broadening the company’s reach and making its services even more accessible to small businesses across the country. Such advancements are crucial in a market where speed and convenience are paramount for micro-entrepreneurs.

Tailored Solutions for Diverse Needs

Abhiyan Capital understands that one size does not fit all when it comes to financing MSMEs. They offer a range of specialized products beyond their standard Secured Business Loans:

• SBL Prime: Geared towards more organized MSMEs with slightly higher funding requirements, offering loans up to ₹20 lakh with longer repayment periods and attractive commercial terms.
• SBL Abhilasha: Specifically designed for self-employed individuals and MSMEs whose properties are covered under the Government of India’s SVAMITVA scheme. This initiative provides rural residents with property ownership documentation, enabling them to leverage their assets for securing loans.
• SBL School Funding: Providing crucial financial assistance of up to ₹25 lakh to schools, particularly in underserved and rural areas, to enhance infrastructure, expand academic programs, and improve overall student welfare.

This diverse product portfolio showcases Abhiyan Capital’s deep understanding of the varied needs within the MSME sector and its dedication to providing solutions that truly empower growth.

Robust Growth and Industry Recognition

Abhiyan Capital’s innovative model and unwavering focus on customer success have translated into impressive financial performance. For the fiscal year ending March 31, 2024, the company reported a revenue of ₹55.2 lakh, demonstrating a remarkable 139% compounded annual growth rate. This robust growth is a testament to the strong demand for their services and the effectiveness of their operational strategies.

Beyond financial metrics, Abhiyan Capital has also garnered significant industry recognition. They have been listed among the “Top 10 NBFCs in MSME Lending in India” by Finance Outlook and were honored with the “Rising Star NBFC of the Year” award at the prestigious NBFC Summit. Furthermore, HDFC Bank recognized them with the “BizBlack25 Award” for being among the top 25 Fintech founders in the country, underscoring their innovative spirit and impact. Rohit Tiku, the company’s Founder and Whole-time Director, has also been a prominent voice at industry events, highlighting the role of digital transformation in driving financial inclusion.

Leadership and Vision for the Future

Abhiyan Capital is led by a seasoned team with extensive experience in the banking and financial services sector. Co-founders Arvind Hali and Rohit Tiku bring a wealth of knowledge in business strategy, risk management, sales, and digital transformation. Their vision is clear: to fulfill the financial needs of 6 crore micro-enterprises by providing access to formal credit and becoming the leading provider of tailored and reliable business loan solutions for small businesses.

Looking ahead, Abhiyan Capital is poised for further expansion and impact. The company plans to raise its first external equity of $9 million in FY25. The strong response from the investment community, with commitments already secured for the entire amount, reflects widespread confidence in Abhiyan Capital’s business model, execution capabilities, and its potential to drive significant social and economic impact. This capital infusion will undoubtedly fuel their mission to deepen financial inclusion, expand their reach, and empower even more micro-enterprises to thrive and contribute to India’s economic prosperity.

In a nation where millions of small businesses form the backbone of local economies, Abhiyan Capital stands out as a vital catalyst, providing the essential financial lifelines that transform aspirations into reality. Their commitment to innovation, accessibility, and integrity positions them as a key player in shaping the future of MSME lending in India.