Micro, small and medium-sized-focused Clix Capital is planning to borrow around Rs 5,000 crore in FY25 from various sources.
“We have very active relationships with 43 lenders in India, which includes almost all PSU banks, large private sector banks, NBFCs, DFIs and other state-sponsored institutions like Sidbi,” Rakesh Kaul, chief executive officer at Clix Capital said, adding that the company will continue to focus on raising debt as a part of the overall strategy.
Term loans from banks and non-banking financial companies comprise less than 50% of the company borrowings. In April, the company had secured debt funding of $6 million from DCB Bank.
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The net profit of Clix Capital rose 125% year-on-year(y-o-y) to Rs 63 crore in 2023-24(April-March) due to a growth in its assets under management. The company’s assets rose 31% y-o-y to `5,872 crore as on March 31. The lifetime disbursement of loans surpassed `25,000 crore in 2023-24.
Currently, the company offers business loans, loan against property, healthcare equipment finance, and K-12 loans or school financing loans. Around 80% of the company’s business volumes come from MSMEs. On average, the ticket size of the company’s loans is at Rs 17-18 lakh.
“A sizeable portion of our borrowers are micro and small enterprises. Our sweet spot is MSMEs whose -turnover is around 5-10 crores. So, we target this as our bread and butter offering,” he said, adding that the company is not planning to add any new loan verticals in the near-to-medium term.
The company plans to disburse loans worth `6,000 crore in the current financial year. Around 15% of disbursals will be done through co-lending. It intends to grow its assets under management at a compound annual growth rate of over 25% in the next two years, which will take the loan book to over `10,000 crore.
The company is backed by private equity fund AION Capital Partners, an affiliate of Apollo Global Management.
While a potential initial public offering is currently not under consideration, the non-bank lender will start evaluating prospects once the assets under management touches Rs 10,000 crore.
“I think Rs 10,000 crore puts us in a sweet spot. That is the magical number that we want to cross before we start evaluating an IPO,” Kaul said.
From: financialexpress
Financial News
