Godrej Capital to enter affordable housing loan segment by Dec

Currently, the company manages an asset base of Rs 13,000 crore, having reached an AUM of ?10,000 crore in FY24. Godrej Capital aims to grow this to Rs 17,000 crore by FY25, with a target of ?30,000 crore by March 2026 and a long-term goal of ?50,000 crore by March 2028, Shah stated.

The company's strategic focus will include small and medium enterprises (SME), micro, small, and medium enterprises (MSME), and home loan segments. As part of its expansion, Godrej Capital will enter the affordable housing loan market by year-end.

"Our focus will be on smaller loan amounts tailored to the needs of affordable homebuyers," Shah said, highlighting the company's intent to meet the growing demand for affordable housing in India. Initially, affordable housing loans will be rolled out in one or two states, with expansion to other regions based on customer response.

This initiative aligns with the government’s 'Housing for All' mission, including schemes like the Pradhan Mantri Awas Yojana, and is expected to provide crucial financing options for lower-income homebuyers, enhancing the company's growth prospects.

In the SME sector, Godrej Capital has initiated a dairy farmer financing program, having provided 25 loans so far. Leveraging its group firm Creamline Dairy, which sources milk from local farmers, the company offers loans to small farmers to help them scale operations, typically by acquiring additional livestock to increase milk production.

Regarding its IPO plans, Shah mentioned that Godrej Capital intends to launch initial share sales within the next three and a half years. "As a mid-layer NBFC, we don't have an RBI (Reserve Bank of India) deadline. We are not classified as an upper layer NBFC," he explained. Upper layer NBFCs must be listed within three years of being designated as such.

On the profitability front, the company, which began operations in 2020, reported a profit of ?55 crore in FY24. For the current financial year, Godrej Capital aims for a profit before tax of ?175 crore, demonstrating a strong growth trajectory.

Nearly five years after commencing operations in four cities, Godrej Capital has expanded to 30 cities and aims to reach 40 cities across 180 locations, Shah noted. The company also introduced unsecured business loans in 31 markets to empower MSMEs in July 2023, maintaining a ?2,000 crore portfolio in that segment.