### **Overview** CP Capital Limited is a specialized, digitally enabled Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI). Formerly known as Career Point Limited, the company underwent a strategic corporate restructuring in 2023–2024, culminating in the merger of its NBFC subsidiary **Srajan Capital Limited** into the parent entity, followed by a rebranding to **CP Capital Limited** and the acquisition of a fresh NBFC license. This transformation marks CP Capital’s evolution into a focused, scalable financial services platform dedicated to underserved credit segments in India. The demerger of its education and financial services businesses has resulted in two independent listed entities (pending full listings on BSE and NSE), allowing CP Capital to operate with a clear strategic identity and enhanced operational focus. --- ### **Core Business Model & Verticals** CP Capital operates through well-defined, secured lending verticals aimed at ensuring stable asset quality, financial resilience, and sustainable growth: #### 1. **Property-Backed Loans (Loan Against Property - LAP)** - Provides term financing secured against **residential or commercial real estate**. - Primarily used by borrowers for **business expansion** and **working capital needs**. - Enables CP Capital to maintain a **low-risk, secured credit portfolio** with higher collateral coverage. - Offers larger ticket sizes and longer tenures, catering to MSMEs and entrepreneurs overlooked by traditional banks. #### 2. **NBFC Portfolio-Backed Lending** - Offers **short-term bridge and bullet loans** to partner NBFCs, secured by hypothecation of their receivables. - Supported by **corporate or personal guarantees** to strengthen risk control. - Allows **indirect access to a broader borrower base**, including micro-enterprises and rural entrepreneurs. - Flexible repayment structures: **EMIs or lump-sum (bullet)** based on credit assessment and risk profile. #### 3. **Target Segments** - **MSMEs and small businesses** with growth potential but limited access to formal credit. - **Entrepreneurs and self-employed professionals** requiring urgent or flexible financing. - **Partner NBFCs** seeking short-term liquidity or refinancing options under structured arrangements. --- ### **Strategic Focus & Competitive Differentiation** CP Capital is positioned as a **future-ready, technology-driven NBFC** focused on **financial inclusion**, **responsible lending**, and **operational efficiency**. Its strategy is built on several key pillars: #### ✅ **Digital Transformation** - Implementing an **integrated digital platform** covering the full loan lifecycle—from **origination to collections**. - Aims to: - Enhance **customer experience** through fast, paper-light processes. - Improve **credit underwriting accuracy** via data-driven analytics. - Enable **real-time portfolio monitoring** and proactive risk management. - Reduce turnaround time for **loan disbursal** while maintaining robust risk checks. #### ✅ **Innovative Credit Assessment** - Moves beyond traditional CIBIL scores to adopt **alternative, holistic credit evaluation models**. - Analyzes: - Cash flows and banking behavior - Business profiles and income patterns - Asset ownership and repayment capacity - Enables access to credit for **thin-file or new-to-credit** borrowers. #### ✅ **Flexible & Customized Products** - Offers adaptable **loan sizes, repayment tenures, and structures**. - Supports both **secured and unsecured** facilities based on risk-return parameters. - Designed specifically for **small business dynamics**, seasonality, and cash flow cycles. #### ✅ **Geographic Expansion via Cluster-Based Approach** - Pursuing **focused geographic growth** using a **cluster-based model** to build deep local market knowledge. - Aims to reduce regional concentration risk (historically strong in Rajasthan and North India). - Expanding through partnerships with **Business Correspondents (BCs)**, **co-lending institutions**, and digital channels. --- ### **Financial Strength & Risk Management** CP Capital maintains a **conservative and resilient financial structure**, enabling sustainable growth with strong risk-adjusted returns: - **Net Worth covers over 80% of total assets**, indicating high equity backing and low leverage. - **Debt-to-Equity Ratio: 0.17x**, reflecting minimal dependency on external debt. - **Conservative provisioning policy** and disciplined due diligence across origination and portfolio management. - Strong **board-led governance**, regulatory compliance, and transparent operations. - AUM growth: Surpassed **₹400 crores as of December 2024**, achieved **without external leverage**, and profitable since inception. > *Note: As of FY2023–24, the NBFC arm reported a Return on Equity (RoE) of 35%, highlighting capital efficiency.* --- ### **Historical Evolution** - **1993**: Founded as Career Point in Kota, Rajasthan, by IIT alumnus Pramod Maheshwari, initially focused on test-prep coaching. - **2014**: Diversified into NBFC space with the launch of **Srajan Capital Limited**, initially financing educational infrastructure. - **2022–2023**: Transitioned Srajan Capital into broader MSME and individual lending. - **April 1, 2023**: **Merger of Srajan Capital into Career Point Limited** approved under NCLT scheme. - **Post-Merger**: Rebranded as **CP Capital Limited**, received new **RBI NBFC license**. - **2024–2025**: Completion of **demerger process**, separating education and financial services into standalone listed entities.