Risks
Credit Risk: The primary risk for any lending business, particularly in the MSME segment, involves potential defaults or delays in repayment, impacting asset quality and profitability.
Liquidity and Funding Risk: As a non-deposit-taking NBFC, reliance on wholesale funding, bank lines, or debt markets exposes it to interest rate fluctuations and challenges in raising funds, especially during tight liquidity conditions.
Regulatory & Compliance Risk: Changes in RBI regulations, capital adequacy norms, or other financial sector policies can significantly impact operations and profitability.
Competitive Pressure: Intense competition from established banks, large NBFCs, and emerging fintech lenders in the MSME and supply chain finance space can compress margins.
Diversification Risk: Managing a portfolio of diverse businesses (finance, healthcare, EV, digital marketing) requires varied expertise and resources, potentially leading to operational complexities and diluted focus if not managed effectively.
Sector-Specific Risks: The healthcare product business faces competition and regulatory hurdles, while the EV infrastructure business depends on EV adoption rates and government policies.