India has been on a steady growth trajectory and since the economy has emerged from the shadow of the Covid-19 pandemic, this growth has ramped up even more. As the economy rapidly approaches the ambitious $5 trillion mark set by the government, thousands of major markets and industries are also experiencing exponential growth. This is fuelled by both domestic and export demand multiplying. For Indian MSMEs, being able to tap into a burgeoning industry's growth can fuel their own expansion and create amazing success stories.
However, one major hurdle that gets in the way of MSMEs hitching their growth wagon to the industry’s success is the lack of opportune financing. The majority of MSMEs don’t have access to liquidity to invest in their own growth. In the case of many Kinara customers, their small enterprises get a big boost when they come across easily accessible collateral-free loans and are finally able to make the most of their industry's growth potential.
Babu Rao started his paper products and packaging business back in 2001, in Hyderabad, Telangana. At the time, all the seed money he had was Rs. 6,000, so his business started very small with just the basics in place. He had the drive and ambition to become a business owner, so not even the lack of a substantial amount of capital could hinder him from starting a business.
His business operated successfully but remained small-scale for many years, since Babu Rao did not have the capital to scale it up at the time.
After over a decade of running his business, Babu Rao realized that the packaging market in India was on a rapid growth trajectory, given the rising demand from various industries. He saw the potential his business held, but he did not have the liquidity or accessible capital to give it the boost it needed, so he started looking for financing options to grow.
In 2014, Babu Rao came across Kinara Capital and found out about collateral-free business loans. He realized that this is exactly what he needed to take his business to the next level.
In the same year, he applied for and received his first loan from Kinara, followed by a second in the next year. He invested the capital in buying machinery and as working capital to ramp up his production. Between 2014 and 2018, Babu Rao took a loan from Kinara each year, investing the varying loan amounts in fast-tracking his business growth.
Babu Rao consistently invested the loan amounts in his business, even as he paid off his outstanding loans dues. Over the period between 2014 and 2018, Babu Rao’s business turnover increased from around Rs. 10 lakhs to a whopping Rs. 1.85 crores! Such an impressive growth trajectory within a short period of time is not unheard of among MSMEs. All it takes is timely financing, allowing them to seize the right opportunities.
This is what happened in the case of Babu Rao and his small business. He shares, "Kinara's loans were immensely helpful in allowing me to expand my operations and production capacity. Now I own machinery worth close to Rs. 50 lakhs, and produce 90% of the raw materials I need in-house. It's hard to believe where my business is now, given how small I had started. I'm very thankful to Kinara Capital for making this exponential growth possible!"
Babu Rao is one of 45000+ MSME entrepreneurs in India who have benefited from Kinara Capital’s collateral-free MSME business loans. Kinara Capital, an RBI-registered, Systemically Important NBFC in India with an aim to empower the MSME sectors has disbursed 75000+ business loans worth INR 3500+ crores to date. With its branches across 3000+ pin codes, Kinara provides doorstep services in vernacular.
To get a business loan for your small business, check your loan eligibility in 1 minute in the myKinara App by downloading it from the Google Play Store, with 7 language options available, choose your preferred vernacular. You can now get a business loan by giving a missed call on 080-68264454 and go from decision to disbursement within 24 hours.