Access to finance is a key constraint in the growth of Small & Medium enterprise. According to World Bank it is the one of the most Cited India obstacle that SME’s face to grow their business in developing countries. In India this problem is compounded due to conventional underwriting techniques used by traditional lenders. This along with lack of credit history and lengthy documentation amplifies the problem. These issues forces the SME business owners to rely on internal resources, funds from family and friends and in many cases private informal lenders to fulfill the working capital needs. These lenders charge exorbitant rates which often leads to vicious cycle of late payments and finally defaults.

Kishori Capital, a RBI registered NBFC through its new product Krednote intends to bridge this gap and help SME meet their working capital needs. With its superior underwriting methodology using proprietary scoring framework, fraud mitigation system and usage of digitalization it intends to make an important contribution in the growth of the SME sector. Kishori Capital provides term loans that can be disbursed within 2 hrs of application through its technological capabilities which in traditional cases can take upto 2 weeks.

“We just don’t to be known for the 4x return

that we have generated in last 12 years but for how we have achieved this growth and the impact that we intend to make through our technology first product Krednote” says Siddhant Jain CEO of Kishori Capital.

The current management has been using its prowess and experience in Indian Equity and Debt Market to drive the company’s growth since 2008. They attribute this growth to their relentless hard work, perseverance and courage. Their ability to manage risk has been a key pillar of their growth story.

With Krednote, Kishori has built a digital platform that provides quick, easy and flexible financing option to SME. “Our initial idea for Krednote came from the experience that I have faced as a Small Business Entrepreneur. We saw that Small Business even through creditworthy were unable to raise funds. So, we went deeper into the problem and saw that if we apply analytics and create a decision engine which can accurately predict the small businesses' creditworthiness we can solve this problem in a big way”, says Sanjay Jain MD of Kishori Capital.

Kishori Capital provides term loans that can be disbursed within two hours of application through its technological capabilities which in traditional cases can extend upto two weeks

Team at Kishori deeply understands the needs of the SME and curates solution which individually solves their problem. “Different SME’s have different financing needs. One particular SME was doing well before Covid but his sales were hurting post lockdown and he was missing the opportunity to serve the pent up demand. So, we did a term loan for this entrepreneur for 18 months, wherein he was able to buy stocks quickly and take advantage of the opportunity. This Entrepreneur is now further driving and growing his enterprise”, adds Siddhant Jain.

Siddhant is now determined to continue the ongoing process for a longer period with focus on creating value for its customer and wealth for its stakeholders. While for the short term he wants to reach out to as many SMEs as possible and be part of their entrepreneurial journey. “Through Krednote we are reaching out to the most vital part of our economy which is a worth while journey to be a part of. We are optimistic that our solutions can positively affect millions of entrepreneurs in the country”, concludes the IIT Kharagpur Graduate.