CXOToday has engaged in an exclusive interview with Mr. Subhash Acharya, Co-founder & Director of Seeds Fincap Pvt Ltd (NBFC)
- What is Seeds Fincap Private Limited and what services does it offer?
Seeds Fincap Private Limited is a Delhi-based Non-Banking Financial Company – Non-Deposit Company (“NBFC-ND”) that focuses solely on lending to entrepreneurs for income generation activities through business loans. The company provides collateral-free loans to micro-enterprises, especially in Tier II, III, and IV cities. In total, Seeds Fincap has disbursed more than 30000 loans totaling more than 200 crores.
Q: What kind of clients does Seeds Fincap Pvt Ltd cater to, and what are its products?
A: Seeds Fincap Pvt Ltd serves underserved and unserved entrepreneurs across the country, with a special emphasis on people living in Tier II, III & IV cities. The company provides business loans up to 5,00,000 with a tenure of 24 months to serve individuals who are engaged in the Trading, Manufacturing, Production, Services, and Dairy industry on a micro or small scale with a minimum of three years in the same line of business and operating in the same location with an annual household income above 6,00,000 per annum.
Q: What makes Seeds Fincap Pvt Ltd different from its competitors?
A: Seeds Fincap Pvt Ltd is one of the fastest-growing NBFCs that provides tech-enabled, cost-efficient, and transparent financing to micro-enterprises. The company maintains absolute transparency through 100% cashless disbursement and collection, and innovation in systems and products is one of its core values. Seeds Fincap Pvt Ltd’s USP areas are pre and post-disbursement operations, risk management, and effective governance
Q: How does Seeds Fincap Pvt Ltd keep pace with changing market trends?
To keep up with emerging market trends, Seeds Fincap Pvt Ltd uses technology to simplify financial assistance to clients and improve internal and industry standards. The company uses various technologies that have created new opportunities, introducing regulated operations, cutting down risks, reducing human errors, enabling efficient decision-making, and improving communication. These technologies have allowed Seeds Fincap Pvt Ltd to provide quality financial services to its clients, at low costs and with quick turnaround time. The company has been able to adapt quickly to the changing market conditions.
Q: What struggles is Seeds Fincap Pvt Ltd facing and what is its approach to overcoming them?
A: Seeds Fincap Pvt Ltd’s biggest challenge is acquiring the finest talent for its branches. To recruit local talent for various branches, the company is approaching educational institutions for campus recruitment. Also, it spreads awareness through social media platforms and print media to attract and engage enthusiastic and energetic candidate and has established itself as a leader in the financial services industry.
Q: Do you believe R&D is essential for the growth of your company?
Answer: Yes, Seeds Fincap Pvt Ltd strongly believes that research and development are crucial for our company’s growth. As the quote says, “Research is to see what everybody else has seen and to think what nobody else has thought.” We understand the trends of the market, our customers, and their needs. Our diversified board and senior management team with rich professional experience across the BFSI industry bring versatile experiences and valuable perspectives. They develop various flexible, progressive, and superior products specially designed and customized for customer’s needs.
Q: How important it is to keep your employees content, and how do you ensure it?
Answer: At Seeds Fincap Pvt Ltd, we consider our employees as our big family, and we call them “The Seedians.” We have celebrated a lot of happy moments together, be it festivals, staff birthdays, milestones/achievements of individuals, branches, or at the Company level; we have all lived it with togetherness.
We emphasize team-building and ensure continuous engagement within teams to build a strong framework. We have been regular with employee interactions and embrace an open culture.
For each employee to grow in their stature, we ensure that they receive the right training, requisite learning, and requisite skill sets. Equal opportunities to grow and a transparent promotion policy help us create leaders from within.
Seeds Fincap’s annual events are the most awaited time for Seedians when they can showcase their talents in cultural activities and sports competitions. In addition, they have motivational sessions, reward & recognition, a little brainstorming for the way forward, and lots of fun and frolic.
Q: What are the achievements and milestones of the company?
Our growth trajectory has been a remarkable journey of two years, with our presence now established in 54 branches across 5 states, including UP, Rajasthan, Bihar, Uttarakhand, and Haryana. We have also made cumulative disbursements of 286 cr and secured a loan of 1cr, which is a testament to our commitment towards providing financial services to our clients.
In addition to this, we are proud to have provided consumer durable loans to 250 individuals and have secured the support of 26 lenders. Our 99.9% collection efficiency, with a collection of 105 cr done digitally, reflects our dedication to leveraging technology to provide seamless services to our more than 30k clients.
Q: Where does the company see itself in the next five years?
Answer: The company intends to serve micro-entrepreneurs through financial services. Post attaining sustainability, the company aims to have multiple financial products, either through its own book or through business partnerships, for micro-entrepreneurs to meet all their finance requirements. The company also aims to work towards increasing the margin of its customers by leveraging its business network and thereby improving the standard of living of its customer base in a comprehensive manner.
Q: What would you say about the future of NBFCs?
NBFCs (Non-Banking Financial Companies) will continue to play an important role in the financial ecosystem, particularly in providing credit to underserved segments of the population such as small and medium-sized enterprises (SMEs) and individuals who may not have access to traditional banking services. However, the future of NBFCs will be influenced by digitalization and regulatory changes, which may impact their operations and ability to reach a wider customer base.
Q: What are the challenges that NBFCs are facing? How is Seeds planning to overcome those?
NBFCs (Non-Banking Financial Companies) face several challenges. One of the main challenges is an increase in the repo rate results in higher borrowing costs for NBFCs, which affects their profitability and makes it difficult for them to raise funds from banks and other financial institutions. Additionally, the increased borrowing costs are often passed on to the borrowers in the form of higher interest rates, which makes it challenging for NBFCs to retain their customer base.
Other challenges like liquidity crunches, increased regulatory scrutiny, rising non-performing assets (NPAs) due to the economic slowdown, and the impact of digitalization and emerging technologies. These challenges can limit their ability to serve customers and expand their businesses. To overcome these challenges, NBFCs are adopting various strategies such as enhancing risk management systems, improving operational efficiencies, diversifying product portfolios, and leveraging technology to digitize operations and reach a wider customer base. Moreover, many NBFCs collaborate with fintech firms and other ecosystem players to develop innovative solutions and expand their reach.
Also, an increase in the repo rate results in higher borrowing costs for NBFCs, which affects their profitability and makes it difficult for them to raise funds from banks and other financial institutions. Additionally, the increased borrowing costs are often passed on to the borrowers in the form of higher interest rates, which makes it challenging for NBFCs to retain their customer base.
Lastly, what message would you like to give to the readers?
“SEEDS FINCAP PVT LTD aims to touch the lives of entrepreneurs from all segments and sectors of the country. Underserved and underprivileged people from different domains of education, caste, class, region, gender, and profession have taken our services. With their hard work, skill, and financial support, they have successfully improved their and their family’s lifestyle and future”. Our vision is to create the best value for all the stakeholders & investors and empower the dreams of the young entrepreneurs who have the calibre to fly high. We are now firming up role designs, employee reward programs & developing an effective learning management system for all employees while aiming to become the employer of choice where people get empowered to perform, and assured job security offering safety & open culture.
