### **Overview** Capital India Finance Limited (CIFL) is a **Systemically Important Non-Deposit-Taking Non-Banking Financial Company (NBFC-ND-SI)** registered with the Reserve Bank of India under Section 45-IA of the RBI Act, 1934. Originally incorporated in 1994, the company underwent significant strategic transformation following a management change in November 2017, pivoting toward a digitally enabled, customer-centric financial services platform focused on underserved micro, small, and medium enterprises (MSMEs), self-employed professionals, and underbanked segments. CIFL operates as a diversified financial group with core verticals in **MSME lending**, **foreign exchange services (RemitX)**, and **digital financial inclusion (RapiPay Fintech)**, while also maintaining subsidiaries in housing finance and wealth management. --- ### **Core Business Segments** #### **1. MSME & SME Lending** CIFL specializes in delivering **customized, asset-backed financial solutions** to MSMEs excluded from conventional banking channels due to insufficient credit history, informal income, or complex documentation requirements. - **Key Products:** - **Loan Against Property (LAP):** Secured against residential, commercial, or industrial properties. - *Prime LAP*: Ticket size ₹70–75 lakh; yield 12–15% p.a.; tenor ~60 months; LTV ~48%. - *Affordable/Micro LAP*: Up to ₹40 lakh; ticket size ₹8–10 lakh; yield 16–21% p.a.; tenor ~48 months; LTV ~39%. - **Working Capital Loans & Unsecured MSME Loans:** For short-term operational needs. - **Equipment Finance:** Funding for machinery purchase/upgrades. - **Supply Chain & Vendor Finance:** Collateral-free financing linked to anchor corporate receivables. - **Structured Finance:** Supporting business acquisitions, partnerships, and debt restructuring. - **Lending Model:** - Combines **field-based engagement** with **data-driven credit assessment**, leveraging AI/ML tools like Perfios for behavioral analysis. - Emphasizes **real-world business dynamics** over traditional financial metrics. - Digital platform enables **instant KYC/CKYC integration, e-signatures, and real-time credit checks**, reducing processing time and drop-offs. - **Operational Scale (as of FY25):** - **29 branches** across 7 states, focused on **Tier 2, Tier 3, and semi-urban markets**. - **Disbursements:** INR 465.41 crore in FY25. - **Assets Under Management (AUM):** INR 1,004.52 crore. - **Loans Disbursed:** 11,023 in FY25 – reflecting a **quality-focused, risk-aware growth strategy**. - **Future Expansion:** - Plans to grow to **100 branches over the next two years**. - Focus on **phygital (physical + digital) delivery model** for last-mile outreach. - Launching "Emerging Market – Micro LAP" for deeper rural penetration. --- #### **2. RemitX – Foreign Exchange & Remittance Services** RemitX is CIFL’s **RBI-licensed Authorised Dealer (Category II)** for retail foreign exchange, operating under the Money Transfer Service Scheme (MTSS). - **Target Segments:** - Overseas-bound students - Leisure, pilgrimage, and business travelers (MICE) - SMEs and corporates with cross-border needs - **Services Offered:** - Outward remittances - Foreign currency notes & demand drafts - Multi-currency travel cards - Inward remittance solutions - Real-time cross-border transfers - **Operations:** - Functions across **18 states via 38 branches**. - Processed **over 140,000 transactions annually in FY25**. - Proprietary tech platform ensures **fast, secure, and transparent forex services**. - **Growth Drivers:** - Rising global migration, digital adoption, and regulatory support (e.g., RBI’s Liberalised Remittance Scheme). - Strategic partnerships with **fintechs, travel agencies, student consultants, and industry bodies**. --- #### **3. RapiPay Fintech – Digital Financial Inclusion** RapiPay Fintech Private Limited is a **subsidiary focused on bringing formal financial services to India’s underbanked population** through a vast **phygital network**. - **Platform & Network:** - Operates a pan-India network of **~760,000 Direct Business Outlets (DBOs)** ("RapiPay Saathis") and **40,000 merchants**. - Covers **95% of India’s PIN codes**; served **~70 million unique customers**. - Deploys **~200,000 micro-ATMs/POS devices**, with **7 regional offices** in metro cities. - **NYE – Digital Banking Super App:** - A first-of-its-kind **digital ecosystem** launched in 2022 with $15 million strategic funding. - Offers: PPI wallets, business loans, BNPL, payments, insurance, investments, and multi-bank account aggregation. - Enables **assisted onboarding** and **AI-led credit assessment** for first-time borrowers. - **Services:** - Cash-in/Cash-out (CICO), AEPS, DMT, utility payments, QR & Soundbox payments. - Banking as a Service (BaaS) for banks and financial institutions. - Co-lending and co-servicing models with financial partners. --- #### **4. Subsidiaries & Investments** CIFL has built a **multi-vertical financial ecosystem**: | Entity | Focus Area | |-------|-----------| | **Capital India Home Loans Ltd.** | Affordable housing finance; launched in 2019; sold to sharpen MSME focus. | | **RapiPay Fintech Pvt. Ltd.** | Digital financial services, neo-banking, payments, and micro-lending for underbanked. | | **Kuants Wealth Pvt. Ltd.** | Wealth management and investment advisory. | | **Capital India Asset Management Pvt. Ltd.** | Asset management services. | | **Credenc Web Technologies Pvt. Ltd. (Associate)** | Education fintech; Credenc received USD 25 million strategic investment from CIFL in 2021. | > **Note:** Following the sale of **Capital India Home Loans**, CIFL has refocused as an **MSME-centric NBFC**, streamlining operations and doubling down on core lending. --- ### **Technology & Operations** - **Digital Infrastructure:** - **API-first lending platform** integrated with bank accounts, credit bureaus, and CKYC registry via CERSAI. - **OmniFin LMS** (developed by AS Software Services) centralizes loan lifecycle—underwriting, disbursement, tracking, collections. - Integrated with **third-party tools** (e.g., Perfios) for cash flow and banking behavior analysis. - **Cloud & Data:** - Hosts data on **scalable cloud infrastructure**; migration underway to **Azure Cloud**. - Deployed **cloud-native BI platform** for unified, real-time reporting and predictive analytics. - **Customer-Centric Features:** - Transparent documentation - Flexible repayment schedules (daily, weekly, monthly) - Easy prepayment options - UPI and agent-led disbursement --- ### **Risk Management & Compliance** - Strong focus on **credit underwriting, portfolio quality, and compliance**. - **Hybrid collections model:** Local agents + digital nudges, with emphasis on **financial literacy, restructuring, and distress management**. - Fully compliant with **KYC, AML, and RBI regulatory norms**. - Robust **risk governance framework**, especially critical during macroeconomic volatility. --- ### **Financial & Strategic Highlights** - Raised **INR 250 crore via preferential equity in 2018**. - Achieved **'A-' rating from ACUITE** for long-term borrowing program. - **Co-origination partnership with Union Bank of India** under RBI guidelines—blends low-cost bank funds with NBFC agility for affordable lending. - **Backed by experienced leadership**: - Dr. Harsh Kumar Bhanwala, Executive Chairman – Former Chairman, NABARD; IIM Ahmedabad alumnus. - Management team with deep expertise in SME finance, fintech, and inclusive banking. --- ### **Summary: Competitive Edge** | Strength | Description | |--------|-------------| | **Niche Focus** | Targets underserved MSMEs, informal sector, and semi-urban populations. | | **Asset-Backed Lending** | Reduces credit risk, ensures portfolio resilience. | | **Phygital Model** | Blends digital innovation with human touch for last-mile delivery. | | **Diversified Portfolio** | LAP, unsecured loans, equipment finance, vendor finance, forex, and digital banking. | | **Technology Integration** | Cloud, AI, real-time KYC, and digital onboarding enhance speed and access. | | **Strategic Partnerships** | With banks, fintechs, DS Group, RJ Corp, agri-tech, and cooperatives. | ---