Whether it’s a major city, a small town, or even a village in India, the ‘kirana’ store is a fixture in nearly every neighborhood. These small- and mid-sized mom-and-pop shops account for 75-78% of the country’s consumer goods market.
In fact, data published by Forrester Research shows that $608 billion of the total $883 billion valuation of India’s retail market is accounted for by grocery retail. The market is also far from stagnant. Reports show that it is expected to grow to $1.3 trillion by 2024.
This market is a particularly lucrative one for new entrepreneurs, as it seems like an easy business to break into. However, it is an extremely competitive market, and entering it without a proper plan, financial backing, and experience can spell disaster.
Guntha Harish opened Sai Ram Kirana and General Store in 2013. Prior to becoming an entrepreneur, he worked at a job that paid him a salary of Rs, 12,000 a month, which fell short of his needs, so he decided that starting his own business would be the way to go. He opened up the ‘kirana’ store or a small grocery and necessities shop, in Hyderabad.
Initially, being new to the whole idea of running a shop, he struggled to manage the funds to successfully run his business. He saw the potential of his business to expand and bring in much higher profits, but he didn’t have the capital necessary to give it that boost.
Guntha eventually found out about Kinara Capital’s collateral-free loans and realized that this could be the solution to his financial crunch. He approached the company for financing and quickly received a loan amount of Rs. 4 lakhs, which he invested in his business.
The loan was aimed at stabilizing his finances and keeping his shop running, as well as giving him the capital support he needed to expand his business without endangering his assets.
With this additional funding support, he was able to open up his shop at a second location, and soon his turnover went from around Rs. 8,000 a day to a whopping Rs. 25,000 a day. With Kinara’s support, he is now raking in a yearly turnover of Rs. 1.5 crores!
He shares, “Kinara’s loan helped me improve my business and my profitability grew in tandem. I’m very grateful, and if I ever need financing in the future, Kinara will always be my first preference. They are extremely supportive!”
When a salaried employee like Guntha hits a dead end at his job, the urge to go in the entrepreneurial direction is common. However, for many, it remains a pipe dream, because hurdles like lack of funding get in the way. In this case, however, what could have been a failed venture became a recipe for success, with timely financing support from Kinara Capital.
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.
