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LivFin: Tech-driven Supply-Chain Focused NBFC

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By Rakesh Malhotra,Founder, Rahul Chander, MD & CEO, Saurabh Srivastava, Director & CRO

By Rakesh Malhotra,Founder, Rahul Chander, MD & CEO

Saurabh Srivastava, Director & CRO

The growth of several small and middle enterprises in India is hindered because banks and organized finance companies do not find it feasible to fund them. This has resulted in a huge funding gap in the finance sector and remained undressed due to certain complications involved in the process of proving loans to budding businesses. LivFin founded by Rakesh Malhotra paved the path of rescue such companies in India by innovating on the methods that enable effective credit underwriting of this segment, by providing inclusive finance at feasible interest rates.

Rakesh, who completely understands the distribution market, is also the brain behind the establishment of SAR Group which comprises Livguard India's largest Automotive Battery Manufacturer and Livpure Third largest water Purification Company in the country. Along with this, the idea of LivFin sprouted to fund the distributors of Livguard. It later emerged as a company that serves across multiple industries. To address the aforementioned imbalance in the sector, slowly and steadily the whole concept of LivFin was shifted to build technology and bring financial services to the door step of MSMEs and SMEs and those do not have access to bank finance.

Today, LivFin is recognized as NBFC registered with the Reserve Bank of
India(RBI). It is authorized to grant small business loans, supply chain finance, and working capital loans to small and medium businesses in the country, as it understands the value of collateral free credit for small business owners and optimizes the services accordingly.

LivFin is on verge of closing an active book value of about 250 crores in the year 2020 and by fiscal `21 it is expecting to close live book of 600Cr


The supplychain focussed company finances both suppliers and distributors and offers a trustworthy financial partnership for SMEs that help them grow and prosper. "Our products, such as purchase invoice finance, sales invoice finance and working capital loans for registered channel partners bridge the current gap in the market with innovative and flexible features. Each LivFin product is a one stop solution for addressing specific situations and the products which are specially designed for your business needs,"says Rahul Chander, MD & CEO, LivFin.

It doesn't adapt to any fixed format of the supplier finance, it figures out the requirement of the anchor at that situation. Based on the sales cycle, shelf life of the product and others, it designs the structure to lend which is tailor made for each client depending on their needs and situation and create win win for all.

The company has embraced advanced technology to work in a way where a potential borrower can upload the required basic information through a mobile application.

The details are then loaded into the server and the background verification is performed autonomously. "As an NBFC we access to the necessary data points as every detail such as cibil adds weightage. With the total score, we determine the amount limit to be provided. Further, a complete digital loan sanction and loan management system is adopted and we use digital signatures for a more secure approach," he exclaims.

Beginning the journey in 2017, it built the entire technology and then rolled out the services from managing a book of about 40Cr. The company is on verge of closing an active book value of about 250 crores in the year 2020 and by 2021 it is expecting to close the live book of 600 Cr which includes co-lending as part of the business. It serves the distributor by financing up to 1 and a half crores and suppliers with up to two crores. The Delhi-based company looks forward to establishing subsidiaries in the Southern and Western parts of the country. It is currently operating with around 11 vendors, 300 borrowers and 14 anchors of different sizes onboard.