Mob : 020-65600261/262/263

Brief Business Description

Kudos Finance and Investments Pvt. Ltd. is a Non-Banking Financial Company (NBFC) formed in 2009, focused on providing unsecured loans for a niche market of small-scale urban businesses. These ideally include small businesses with a turnover of between 20 - 60 lakhs. Kudos also finances a wide range of metal cutting and metal forming machines, plastic machines, printing and packaging machines, and wood working machines, and includes providing finances for all major brands under the generator and compressor segment as well. Kudos concentrates its efforts towards that section of the economy, which is non-included in India's growth story, enabling it to make a powerful social impact.

The overall market potential for financing small businesses is still largely untapped. Most financial organizations have focused either on the segment comprising medium or large businesses, which are eligible for loans from banks, or the lowermost segment which are catered by micro-finance institutions, with smaller ticket sizes. Kudos directs its focus to the mid-segment, where the potential may be estimated at being worth $ 50 billion.

Kudos has identified a gap in the market and recognizes that financial inclusion is not just an issue faced by the poor, or by rural India. It also extends to urban India, where business owners are taxpayers, property owners, PAN Card holders with bank accounts, and have Year over Year growth in their balance sheets, and yet despite this, do not receive funding from banks. Kudos affords financial assistance through business loans and Machinery loans to this niche market, and reports to CIBIL (Credit Information Bureau India Limited) on the payment track records of its clients. Kudos creates a financial identity for its clients, and successfully integrates them into the financial system.

MSME Loans - Micro, Small and Medium Enterprises

Kudos Finance & Investments Pvt. Ltd. is a Non-Banking Financial Company (NBFC), providing customized financial assistance to small-scale urban businesses, without any demand for collaterals. The average ticket size of loans provided to this sector is 5 Lakh rupees.

To fulfill requirements of small businesses of all kinds, across all industries including shops, services, handloom and cottage industries and non-farm undertakings, Kudos gives unsecured loans on an EMI basis for a tenor of upto 30 months. Therefore, the advantage Kudos offers, is that there are no collaterals that are required for securing these loans.

Machinery Loans

Kudos Finance and Investments Pvt. Ltd. provides Machine Loans and Machine Refinance, for the purchase of machines, either new or used. These cover a wide range of metal cutting and metal forming machines, plastic machines, printing and packaging machines, and wood working machines. This also includes providing finances for all major brands under the generator and compressor segment as well The remarkable feature about these loans is the turnaround time, which is only 8 days.

Machinery Loan
Kudos offers Machine Loans wherein Kudos will sanction the loan amount for the required machine purchase and will even buy the particular machine. It will then withhold the invoice until the loan has been repaid, while the machine may be used in the interim. The average ticket size of loans provided to this sector is under 10 Lakh rupees

Machine Refinance
Machine Refinance involves mortgaging a machine that has already been paid for by the customer, with Kudos, against the loan that Kudos will sanction in order to make other purchases.

Sector Overview

The micro, small and medium enterprises (MSMEs) sector contributes significantly to the manufacturing output, employment and exports of the country. It is estimated that in terms of value, the sector accounts for about 45 per cent of the manufacturing output and 40 per cent of the total exports of the country. The sector is estimated to employ about 595 lakh persons in over 261 lakh enterprises throughout the country. Further, this sector has consistently registered a higher growth rate than the rest of the industrial sector. (Source: Ministry of MSME, Annual Report 2011 - 12)

The MSME enterprises form a very important part of the Indian economy, contributing significantly to the development of the country by being the major constituent sector in the production system, GDP, export, employment generation, rural industrialization etc. However, of the over 261 lakh MSMEs, 94% remain unregistered. These enterprises possess minimal records, causing them immense difficulty in establishing their income and expenditure track record, mandatory for accessing capital from formal sources. Access to finance therefore continues to be a huge stumbling block for this sector.

However, even though a healthy yearly growth in lending has been the trend, statistics reveal a vast disparity between demand and supply, resulting in a large portion of this sector not having received their required capital, for growth and development.

Financing of MSMEs

Number of Units Registered Unregistered Total
Self finance/ No finance 13,62,568 2,28,50,626 2,42,13,194
Finance through institutional Sources 1,74,060 11,77,212 13,51,272
Finance through non-institutional Sources 15,864 5,20,467 5,36,331
Total 15,52,492 2,45,48,305 2,61,00,797

These unregistered enterprises, without access to traditional means of finance through banks and NFBCs, eventually turn to informal borrowing and rely on private finance through moneylenders and 'saukars', who charge them exorbitant rates. This is where Kudos steps in, making a huge difference in the growth and development of enterprises, through much needed customized financial assistance involving simple, quick processes, and without the requirement of any collateral for securing loans. It ensures that finance is never a limiting factor for the growth and success of an enterprise. Kudos reports every payment to CIBIL, thereby creating a financial identity for its clients.

Target Segment

Kudos serves a niche market of small-scale urban businesses; those with a turnover of between Rs 20 - 60 lakhs. These businesses include small manufacturing enterprises, traders, Kirana stores, traders, home-based industries, workshops and garages, lathe machines, cottage industries, different kinds of shops, various services etc., which are the drivers of economic growth.

Kudos converges its attention upon this opportunity, thereby providing customized products tailored to these specific needs, in alignment with loan size and tenor. And the greatest benefit Kudos offer, which differentiates from the other players in the segment, is the fact that it does not demand any collateral for its loans.

The typical loan size for a Kudos client is 5 lakhs, although Kudos provides loan amounts of upto Rs 10 lakhs to its clients.

A Typical Kudos Client

  • Has been running a business for a minimum of 3 years with YOY growth in revenue and profitability
  • Owns property, either office or residence
  • Has been filing IT returns on time for the last 3 years
  • Has no more than 0-3 Inward Cheque Returns in the last 6 months
  • Is not a CIBIL defaulter for any prior or running loan
  • Has a matching Banking to turnover ratio

Kudos Credit Methodology

Small enterprises with a revenue of under Rs 60 lakhs, do not have audited balance sheets. Although this makes the job challenging, Kudos performs a thorough analysis through scrutinizing documents, checking purchase orders, and crosschecking references of suppliers and competitors. All financial information is ascertained prior to loan sanction.

Through adherence to strict guidelines, since its inception in 2010, Kudos has successfully funded numerous organizations and continues to convert dreams to thriving reality

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