Customer Success Story: Mohammad Pasha

May 23, 2024
Updated on

Small businesses that make or sell niche products can either be really successful or total failures in a competitive and price-sensitive market. Speciality products command smaller market shares but can often be priced higher due to the demand and supply ratio being skewed in favour of the manufacturer. However, in order to establish themselves in such a market, business owners have to differentiate themselves by providing premium and diversified products to maintain customer interest and loyalty.

This can be an expensive endeavour and usually requires external financing support, which many MSME entrepreneurs in India don’t have access to. In the case of Mohammad Pasha, Kinara’s loans became the boost he needed to become an established name in the market and grow exponentially.

Introduction: Zam Zam Enterprises

Mohammad Pasha started his wooden furniture manufacturing business in 2010 with just 2 or 3 employees. He focused on quality, specialising in real teakwood furniture, carefully handcrafted by Uttar Pradesh-based artisans. 

These workers were well-known for their expert woodworking techniques, and the products they built soon picked up a positive reputation, with customers opting to furnish their homes with speciality pieces.

Problem Statement

Mohammad’s furniture and products commanded a special interest in a niche market with a small but loyal customer base. The problem he faced was one of scaling up. While he was able to keep running his business with a steady turnover, the growth plans he had would be difficult to execute without substantial capital infusion.

Like most small business owners in India, he lacked the wherewithal to fund this growth and diversification himself and was in need of financing support. Traditional lenders like banks were unwilling to lend to him because he did not have assets to offer as collateral. At this juncture, Mohammad needed to find a lender who would have faith in the potential of his small business to keep growing.

Solution Offered by Kinara Capital

Soon after he started his business, picking up a decent amount of traction, Mohammad was noticed and approached by a Kinara representative, who offered him a collateral-free loan. 

Although he was not in any dire need of financing, he saw the immense potential that readily available funding could offer his business. He applied for the loan right away, and soon received an amount of Rs. 2 lakhs.

Grow your MSME with collateral-free business loans

Impact of Solution Offered by Kinara Capital

Mohammad invested the loan amount into his business, buying up the expensive raw materials he needed to keep producing his furniture.

He quickly repaid his loan and opted for a second larger loan to invest in more skilled workers and raw materials. As his production capacity grew, so did his sales. He expanded his product portfolio, adding the latest models of luxury furniture like finely carved dressing tables and seating and even adding cushions, mattresses, and pillows to his offerings. He also added more employees to keep up with the growing demand.

He shares, “Kinara helped me expand my product portfolio, adding the latest models of luxury furniture like dressing tables and seating, and adding cushions, mattresses, and pillows. I also added more employees to keep up with the growing demand. Now we cater to all the furniture needs of a household, and our customers keep coming back for more pieces to add to their collection. My turnover has increased from Rs. 2 lakhs to Rs 12 lakhs!”

Mohammad is one of the thousands of small business entrepreneurs in India who need financing support to expand their fledgling businesses. For them, Kinara Capital’s collateral-free loans become the means to keep realising their growth goals and becoming established in their niche markets.

Kinara Capital, an RBI-registered, Systemically Important NBFC in India with an aim to empower the MSME sectors, has disbursed 100,000+ business loans worth INR 6500+ crores to date. With its branches across 4500+ 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. Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.

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