Noya Enterprises: Supporting The Growth Of Indian MSME Sector With Innovative Investment Policies

Rajottam Ganguly,CEO and Founder

Rajottam Ganguly

CEO and Founder

MSMEs play a major role in most economies, particularly in developing countries, like India. With that said, MSMEs are also less likely to be able to obtain bank loans than large firms and they rely on microfinance institutions, internal funds, or cash from friends and family to launch and run their enterprises. The International Finance Corporation (IFC) estimates that 65 million firms, or 40% of MSMEs in developing countries, have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of global MSME lending.

Acknowledging this scenario, Noya Enterprises is one pioneering organization that is contributing to the mission of increasing access to funds for the unbanked via innovative lending schemes that protect the borrower and allow flexibility. Apart from this, the company also helps its clients grow by providing them with pro-bono advisory and consulting services.

RajottamGanguly, the Founder and CEO of the company mentioned, "Noya began at a small scale in 2013 as Kuber Finance and was focused solely on micro-lending. In 2016, we increased our capital base significantly (more than double). In 2019, we established Noya Enterprises as a parent company of Kuber, and we began increasing and diversifying our lending capacity.

Today we are lending to ~300 MSMEs, and we employ an office of ~20 employees that range from collections officers to accountants to lawyers. We have doubled the size of the fund since 2019, through the devastating pandemic. Today, we lend to businesses operating in a variety of industries, including agriculture, food & beverage, construction and hospitality. Some of our largest-scale impact has been felt within the construction sector, where we have partnered with our clients as long-term finance providers.
With our lending scheme, our borrowers have been able to better manage their working capital and have completed multiple projects that have been subcontracted to them by large government contractors. One example of such high-impact projects is the completion of a road in Panvel. The road has aided in providing flood relief for residents and travelers, and also contributed to a key governmental sustainability initiative."

The reason Noya Enterprises is successful and why its clients are successful is the company's innovative lending scheme. This would be Noya's unique selling point and what sets them apart from other MSME lenders. Noya Enterprises prides itself on being flexible with its clients and restructuring their repayment schedules as necessary. They are able to achieve this while returning competitive ROIs to their investors.

Mariam Fakhroo, Co-Founder and CFO

While talking about some of the notable achievements of the company and their future aspirations, Mariam Fakhroo, the Co-Founder and CFO of Noya Enterprises adds, "Most of our clients grow their businesses significantly over the terms of their Noya loans. We generate impact beyond profit and liquidity by helping borrowers realize growth and new revenue streams. We have also played a role in sustaining Mumbai's MSME ecosystem during the pandemic by restructuring loans for many of our borrowers who were facing closures.

The reason Noya Enterprises is successful and why its clients are successful is the company's innovative lending scheme. This would be Noya's unique selling point and what sets them apart from other MSME lenders.

We are actively working with them to help their businesses recover and have also supported them personally by distributing hot meals to their employees a couple of days a week, providing masks, sanitizers and other essential supplies to prevent shortage, covering their medical expenses when needed, among other initiatives. Going forward, Noya Enterprises hopes to diversify its client base by placing increased focus on the agricultural industry, particularly within the importation of nuts and spices into Mumbai. We are also in the process of incorporating an NBFC, which will drive us into a new stage of capital raising for which we will begin approaching global institutional investors."