### **Company Overview** Akme Fintrade (India) Limited (AFIL) is a publicly listed, Reserve Bank of India (RBI)-registered non-deposit-taking Non-Banking Financial Company (NBFC), established in **1996** in **Udaipur, Rajasthan**. The company specializes in **retail asset financing and business loans** for **rural and semi-urban populations**, focusing on financially underserved and underbanked segments across India. AFIL is promoted by **Mr. Nirmal Kumar Jain**, a Chartered Accountant and Cost Accountant with over 25 years of experience in finance and mortgage lending. The company’s core operations are supported by a **stable and experienced management team**, a **robust underwriting model**, and a **diversified funding base**. --- ### **Business Focus & Lending Portfolio** AFIL’s lending portfolio centers on **three main product categories**: 1. **Vehicle Finance (primarily two-wheelers, three-wheelers, used commercial vehicles)** 2. **Business & MSME Finance** (livelihood-linked loans, working capital, property-secured loans) 3. **Productivity- and Livelihood-Enhancing Assets** (e.g., farm equipment, solar rooftops) As of recent data (FY25), two-wheeler financing constitutes **~69% of the loan book**, while **Business Finance** accounts for nearly **79% of credit exposure**, indicating a strong focus on income-generating assets. All loans are **100% secured**, with **average Loan-to-Value (LTV) ratios at 72%**, ensuring strong collateral coverage and low credit risk. The portfolio structure is **granular**, with **41,964 live accounts** and an **average ticket size of ₹1.5–2 lakh**. --- ### **Geographic Presence & Expansion Strategy** AFIL operates primarily across **four states**: **Rajasthan (69% of operations), Maharashtra (10%), Madhya Pradesh (12%), and Gujarat (9%)**. Despite 28+ years of operation, it has tapped only **~30–35% of its potential in Rajasthan**, indicating significant room for **organic growth**. As of **November 2025**, the company maintains: - **27–29 branches** - **Over 30 business and collection points** - **A network of 130+ field and collection officers** The company follows a **hub-and-spoke model**: - **Branches (hubs)**: Handle credit assessment, disbursement, collections, and risk management. - **Sales points (spokes)**: Source leads and deliver doorstep services. Successful spokes are **upgraded to full branches** once disbursements hit ₹2 crore/month. **Recent Expansion Highlights**: - Added **12 new branches** since Q3 FY25. - **Plans to double branch presence** in Maharashtra, Gujarat, and Madhya Pradesh. - Strategic focus on **Tier II and Tier III cities**, with future expansion planned into **UP, Punjab, and NCR**. --- ### **Growth Initiatives & Market Opportunities (Nov 2025)** #### **1. Entry into Gold Loan Segment** In November 2025, Akme Fintrade announced its **strategic entry into the gold loan segment**, capitalizing on an estimated **25,000–27,000 tonnes of unmonetized household gold in India (worth ₹135 lakh crore)**. With **organized gold loan AUM projected to reach $15 trillion by FY26 (ICRA)**, this move aims to: - Serve **underprivileged customers** seeking quick, low-documentation credit. - Fund **education, healthcare, and MSME working capital**. - Leverage existing **dealer network and branch infrastructure** in **five Indian states**. - Utilize **proven loan disbursement capabilities** and a **growing funding base**. #### **2. Expansion in Two-Wheeler & Electric Vehicle (EV) Financing** - **Market Opportunity**: The **two-wheeler financing market stood at ₹1.64 lakh crore** as of March 2025, with **18–19% expected growth in FY26**, driven by **rising demand for EVs**. - **EV Financing**: Launched in **April 2025** via a tie-up with **FINAYO**, targeting: - Electric two-wheelers - Commercial e-three-wheelers (e-rickshaws, e-autos) - Solar rooftops - **Partnerships**: Active collaborations with **EV OEMs** and **fintech platforms** to enhance reach. - **Sales Model**: **On-site representatives at EV dealerships** and **digital integration**. #### **3. Digital Transformation** - **Aasaan Loans (www.aasaanloans.com)**: A digital lending platform launched in **July 2024**, offering: - Aasaan Vehicle Loan - AasaanSaral Udyog Loan (for SMEs) - Aasaan Loan Against Property (LAP) - Aasaan Mahila Udyog Loan - Aasaan Farm Equipment Loan - The platform is **integrated with 30+ third-party APIs** for credit risk assessment. - Implementation of **Loan Origination System (LOS)** and **Loan Management System (LMS)** to digitize the entire loan lifecycle—**already live for two-wheelers**, with full rollout expected by **end-FY26**. #### **4. Co-Lending & Funding Strategy** - **Co-lending with MAS Financial Services** since **September 2024** for MSME loans (Akme: 20%, MAS: 80%), using a **fully digital platform** to expand credit access. - **18+ lending partner relationships**, including NBFCs and banks. - Plans to raise capital via **Non-Convertible Debentures (NCDs)** and **External Commercial Borrowings (ECBs)** to support growth. --- ### **Financial Performance & Risk Management (as of Q3 FY25)** - **Assets Under Management (AUM)**: ₹523.38 crore (**+33.49% YoY**) - **Disbursements (9MFY25)**: ₹145.30 crore (₹50.08 crore in Q3) - **Net Profit After Tax (PAT)**: ₹26.69 crore for 9MFY25 (**+109.74% YoY**) - **Net Worth**: ₹360.81 crore - **Cost of Funds**: ~**14.62%** (average) - **Credit Rating**: **BBB+ (Stable)** from Infomerics - **Asset Quality**: - **GNPA**: 3.13% (improved from 5% pre-pandemic) - **NNPA**: 1.41% - **Returns**: RoAA of **4.48%**, RoAE of **8.66%** --- ### **Operational Strengths** - **Customer-Centric Approach**: Designed for **first-time borrowers**, **self-employed individuals**, and those with **informal income**. - **Underwriting Model**: Relies on **field assessments of collateral and behavioral factors**, not just documented income. - **Diverse Funding Sources**: Ensures **stable asset-liability management**. - **National Expansion Roadmap**: Targeting **PAN India presence** over the next 3–5 years.