Mumbai: Profectus Capital, a non-banking finance company (NBFC) backed by UK-based private equity firm Actis LLP, aims to achieve a loan book of $1.3 billion, about ₹ 10,000 crore, in the next five years, a top company official said. Co-founded last year by K.V. Srinivasan, who headed Reliance Commercial Finance for nearly a decade, Profectus lends to small and medium enterprises which have a turnover between ₹ 5 and ₹ 50 crores. The company has received an anchor investment of ₹ 50 crore from Actis.
“Profectus lends to specific sectors such as health, education, food, pharmaceuticals, automobile components and chemicals and components. We will disburse loans amounting to ₹ 40 crore by the end of this month and are raising a further ₹ 100 crore from Actis. We are targeting a loan book of ₹ 170 crore by the end of this fiscal, which we hope will to grow to ₹ 3,000 crore by the end of the third year of the operations (FY21) and around ₹ 10,000 crore in five years," said Srinivasan, director and chief executive officer of Profectus Capital, in an interview.
Srinivasan quit Reliance in October 2016, and—along with a few colleagues from Reliance—started Profectus in June 2017.
Mint had on 30 May reported that Actis was setting up Profectus as a credit platform for India and was aiming to deploy up to $220 million of equity capital in the NBFC over five years.
“We will start slowly and then accelerate with a focus on long-term growth. The first one year will be spent in getting the basics right such as people, processes, technology and culture, among other things," Srinivasan said.
Profectus Capital currently operates in Mumbai, Hyderabad, Coimbatore, Pune and Ahmedabad.
“We chose Hyderabad to start operations because it is an education hub and has a strong pharma market. Then we went to Coimbatore (because of) strong engineering and education. Pune (has) strong auto components industry and food and Ahmedabad is strong in pharma and chemicals and practices," Srinivasan said.
Profectus has also started discussions with five private sector banks to raise funds. The company plans to be present in 35 locations in the next five years, and will cover 80 towns through a hub and spoke model. It also plans to grow its workforce to 200 employees by next year, Srinivasan said.