Sanjay Nayar, Narayan Seshadri, Vikram Sud to start NBFC
The NBFC has been set up with the acquisition of Flexiloans Technologies, which operates the technology-based financing platform FlexiLoans
Mumbai/New Delhi: Financial services industry veterans Sanjay Nayar, Narayan Seshadri and Vikram Sud have joined hands to start a non-banking financial company (NBFC) named Epimoney Pvt. Ltd after purchasing a technology-based financing platform, two people with knowledge of the development said.
Nayar, Seshadri and Sud formed the partnership in their individual capacity, said the people, who spoke on condition of anonymity.
Nayar is chief executive officer of KKR India, the local arm of global private equity firm KKR and Co.; Seshadri is former head of Andersen Business Consulting in India, and Sud is a former regional operations and technology head at Citigroup Inc.
The NBFC has been set up with the acquisition of Flexiloans Technologies Pvt. Ltd, which operates the technology-based financing platform FlexiLoans that solves the problems that small and medium enterprises (SME)s face in accessing quick, flexible and adequate funds for expansion.
The initial loan book of the NBFC will be Rs100 crore. After the completion of the acquisition, while the business will be re-branded, it will continue to be run by the existing team.
Deepak Jain, founder of Flexiloans, confirmed the development, but declined to disclose details.
Flexiloans was founded by Ritesh Jain, a former chief financial officer at Housing.com, Manish Lunia and Deepak Jain in January this year. The firm gives working capital loans to SMEs.
All three founders of Epimoney are alumni of the Indian School of Business, Hyderabad. Nayar is one of the board of directors at the management school. “Digital NBFC space has a wide potential in India and Epimoney plans to serve the undeserved category of Indian population with low credit rating,” Nayar said.
The NBFC segment, which is a crowded and competitive space, has seen a pick-up in investor interest. Some NBFCs have greater flexibility in expanding into new segments when compared to banks.
NBFCs have become active in online SME lending and structured lending. Notably, loans from NBFCs are more expensive when compared with bank finance, but they offer more flexible terms and customized solutions.