Akme Fintrade (Aasaan Loans)

Akme Fintrade India Ltd, a non-banking financial company (NBFC) incorporated in 1996, is into traditional lending, catering to the long- and short-term financing needs of salaried and small business owners in rural and semi-urban areas. Its portfolio comprises mainly vehicle finance and business finance products.

The company currently operates across four Indian states – Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat. With 9 physical branches and 23 digital points of presence, the company has served over 2,00,000 customers as of the date of filing for the IPO with the Securities and Exchange Board of India (SEBI).

Akme is undergoing a digital transformation, and its digital lending platform – www.aasaanloans.com – has been rolled out for user acceptance testing (UAT) to select users seeking two-wheeler loans.

Akme Fintrade (Aasaan Loans) Strengths

• The company has proven execution capabilities with a strong rural and semi-urban focus.
• It also has a well-established Vehicle Finance and small business lending business.
• The company has a customer-centric approach and a deep understanding of target customers.
• It also has access to Diversified Sources of Capital and Effective Asset Liability Management.
• The company follows a Robust underwriting process and risk management policies.
• The company operates on a Hub and Spoke business model that improves efficiencies and decreases costs.
• Experienced management team.

Akme Fintrade (Aasaan Loans) Risks

• The company has experienced a reduction in revenue in the past.
• It has higher levels of NPAs as compared to some of its peer companies.
• A major part of revenue comes from the business Loans segment.
• It has reported negative cash flows in the past.
• It operates in a highly competitive industry.
• Any failures to follow RBI norms can impact the business.