NBFC

“Right now our book, our assets under management at our NBFC level is 400 crores. 202 150 crores is equity side, one 50 crores is on the debt side.”

“So, we are at NBFC, ah, unlike other venture debt funds, they have to raise money from multiple LPs and then return the capital at the end of the fund, which could be ranging from five, seven years to 10 years. We don't have that kind of, ah, sort of challenge…”

“So what ends up happening, you know, so that is people want to invest in NBFCs, but you don't realize that you'll be like 90% diluted by the time you build a billion dollar book, because you will just be pretty much operating at two to three X leverage.”

“If you want to come and invest in a lending business as a technology business, your valuation is just some random technology valuation, which is fine, right? But if you build that business consistently, the penultimate investor before an IPO will value it like…”

“10,000 at least.”

“The 10,000 number that I told you must have been about 13,000 plus three, four years back. So, there are consciously, 3004 thousand NBFC's license which have got cancelled over a period of time.”

“But I think the way the regulations will evolve over a period of time, you may not have 10,000, you may have 2000 NBFCs, but pretty much serious in trying to penetrate and create an issue of what they want to do.”

“The market is large because I think in India, you know, banks still cater to, I would say, largely the top 20% for various reasons. It could be the diverse geography. It could be the unorganized nature or the spread of people that were there, or it could be th…”

“Pretty much now if you see any new licenses that RBI grants, it's never for a deposit taking license. So most of the people who still hold a deposit taking license are all older NBFCs which got it at the earlier regime.”

“And the reason for NBFCs to exist has always been regulatory arbitrage.”

“Indian economy, the bank is a relatively smaller portion of the overall scheme of things. There may be, 12% at max. And this is banks plus NBFCs put together. It's about 12% of economy. But the index is overrepresented.”

“One of our voiceboard agents collections agent about two, three months ago, I got to know that has actually collected almost three crores of rupees in a month for one of the NBFCs completely automated.”