Profectus Capital

Profectus Capital is an Indian Non-Banking Financial Company (NBFC) that specializes in secured lending to Small and Medium Enterprises (SMEs). The company is committed to empowering SMEs across various sectors, particularly in manufacturing and services.

Core Products and Services

• Machinery & equipment finance: Loans up to ₹3 crore for new and used machinery.

• Business expansion and working capital loans: Term loans and demand loans for growth and operations.

• Rooftop solar finance: Loans up to ₹3 crore for solar panel installation.

• Supply chain finance: Cluster-specific and general supply chain solutions.

• School finance: Custom loans for educational institutions.

• Special schemes: First-time machinery buyer loans, flexible tenures, high LTV ratios.

Business Model & Revenue Streams

• Revenue generation: Interest income from loans, fees for specialized financial services.

• Business unit contribution: Machinery finance and solar finance are key drivers; exact percentage not disclosed.

• Customer segmentation: 100% B2B, focusing on MSMEs/SMEs in manufacturing, services and education; also serves schools and commercial enterprises.

• Concrete data point: Financed over 1,300 SMEs as of 2021, with strong focus on manufacturing and service sectors.

Top Clients & Partnerships

• Client profile: SMEs and MSMEs across manufacturing, healthcare, packaging, food processing, and education; schools and hospitals for solar finance.

• Marquee contracts: No major joint ventures disclosed; long-term relationships with sector clusters and OEMs.

• Client concentration risk: Well-diversified across sectors and geographies; no single client or sector dominates.

• Diversification initiatives: Expanding into new regions and sectors, leveraging cluster-based and digital lending models.

• Concrete data point: Operates across 29+ locations, serving a wide range of industry verticals.

Future Outlook & Strategic Priorities

• Growth drivers: New product launches, expansion into underserved regions, deeper sector penetration (reflecting recent market trends).

• Risks and headwinds: Regulatory changes in NBFC sector, macroeconomic volatility and technological disruption from fintech peers.

• Management targets: Scale operations, enhance digital capabilities and maintain leadership in MSME/SME lending.

• Capital-allocation priorities: Investment in technology, compliance and talent; focus on broadening market access and client diversification.

• Concrete data point: Targeting deeper penetration into emerging SME clusters and leveraging digital solutions to reach more customers.