Kogta Financial India Limited Success Story – Providing Financial Products to More and More Customers
Kogta Financial India Limited is a fast-growing NBFC (Non-Banking Financial Company). They specialise in financing for vehicles loans, house loans, etc. to the MSMEs (Micro, Small, and Medium Enterprises) segment. Their distribution strength as of March 2021 stands at more than 120 plus branches. Kogta is one such company that aims of providing financial products to customers in the most friendly and professional manner. So let us get into this article to read the success story of this promising NBFC.
Kogta Financial India Limited - Key Points
- Company Name – Kogta Financial India Limited
- Founding Year – 1996
- Founder – Banwari Lal Kogta, Bal Mukund Kogta, Radha Krishan Kogta
- Industry – Financial Services
- Number of Employees - 2500
- Headquarters – Jaipur, Rajasthan, India
- Revenue – INR 100 Cr – 500 Cr
- Website – www.kogta.in
Kogta Financial India Limited – Leadership Team
- Radha Krishan Kogta – Radha is the chairman and whole-time director of the company. He is a first-generation entrepreneur and has more than 35 years of experience in finance, construction and other SME businesses. Radha holds a bachelor's degree in Commerce from Rajasthan University.
- Arun Kogta – Arun Kogta is the Managing Director and Chief Executive Officer (CEO) of the company. He holds a bachelor's degree in Civil Engineering from Pune University and an MBA in finance from Cardiff University, UK. He is an expert in marketing, risk analysis, collection, credit, development strategies, etc.
- Varun Kogta – Varun is the whole time director and Chief Financial Officer (CFO) of the company. He is a qualified CA (Chartered Accountant) and served as a part of the statutory audit team of ICICI Bank & Axis Bank at Ernst & Young.
Kogta Financial India Limited – Brand Name, Logo, and Tagline
- Brand Name – The company's brand name is after the surname of the founder of the company and since its financial service provider company, hence the word attached to the brand name.
- Logo – The company’s logo is in bright blue and orange colour. It is striking in the eyes of the people and customers will be easily able to differentiate it from other competitors.
- Tagline – The company’s tagline is very engaging and catching. It is – Freedom to Grow.
Kogta Financial India Limited – Business Model
Kogta Financial, just like any other NBFC raises money by lending money to other businesses and people. They earn from the interest charged on the loans financed.
Kogta Financial India Limited – Funding and Investors
Kogta Financial has raised a funding of $175.8 M in over 4 rounds. Some of its funding and investors are as follows:
- Undisclosed Amount – Series A Round, IIFL Seed Ventures, Oct 1, 2016
- INR 1.5 B – Series B Round, Morgan Stanley Expansion Capital, Nov 29, 2018
- INR 3 B – Series C Round, Morgan Stanley, Creador, Oct 7, 2019
- INR 8.5 B – Series D Round, Multiples Alternate Asset Management Pvt. Ltd., Mar 31, 2022
Kogta Financial India Limited – USP
Kogta has various USPs. Some of them are as follows:
- Fair Business Practices
- Efficient Processes
- Safe & Trusted Financial Policies
- Extensive Product Offering
- Ease of Loan Application
- Dedicated Customer Service
- Minimum Documentation
- Catering to Urban, Semi-Urban & Rural Areas
- Diverse Customer Profile
- Wide Network
Kogta Financial India Limited – Growth
Some of the growth factors of the company are as follows:
- Kogta has successfully serviced loans to more than 50,000 customers.
- The company has a network of around 100 branches.
- They are spread across various states such as Rajasthan, Delhi (NCR), Maharashtra, Punjab, Madhya Pradesh, and Gujarat.
- Kogta has a diverse borrower profile that includes farmers, taxi operators, small road transporters, first-time borrowers, etc.
- The company has also started helping people with small scale industry entrepreneurs, small mining operators, people from weaker sections of society, and small mining operators, among others.
Kogta Financial India Limited – Investment
The investment done by Kogta is mentioned below:
INR 20 M - Pumpumpum – Debt Financing
Kogta Financial India Limited – Milestones
The milestones reached by the company are as follows:
- 1998 – Registred with RBI under the category NBFC-AFC.
- 2008 – Started expanding the business by starting operation in Jaipur along with the development of our own ERP
- 2009 – Started in-house development of ERP
- 2010 – Purchased auto loan salvage portfolio from GMAC Financial Services India Ltd. across 14 states.
- 2011 – Started operations in Gujarat and upgraded to the web version of ERP
- 2014 – Crossed INR 500 AUM and introduced an algorithm-based credit scoring model
- 2015 – Achieved BBB (-) stable investment rating; Crossed 100 Crores AUM; Started operations in Maharashtra
- 2016 – Raised its first Series A funding of INR 30 Crores from IIFL Seed Ventured Fund
- 2017 – Started operations in Madhya Pradesh & Delhi NCR; Achieved external rating of BBB stable
- 2018 – Raised second round of funding of INR 1543 M from Morgan Stanley & IIFL Seed Ventures. Crossed INR 5000 M AUM
- 2019 – Raised 25 Crores through India’s first-ever Covered Bond Transactions; Achieved CARE BBB (+) stable rating
Kogta Financial India Limited – Competitors
Some of the competitors of the company are as follows:
- Razorpay
- Paytm Payments
- Digit Insurance
- Merchant Stronghold
- Home First Finance Co.
- Coverfox Insurance Broking Pvt. Ltd.
- Clix Capital
- Auxesis Group
Kogta Financial India Limited – Challenges
Kogta being a financial services company had to go through various challenges while incorporating their company. The company still has to face many day-to-day challenges. Some of them are as follows:
- Pandemic – Due to the recent COVID 19 pandemic, the disbursement and collection of Kogta Financial were slow in the first two-quarters of the FY. The impact of the crisis differed from region to region. Various states were adversely affected and economic activities such as collection slowed down.
- Competitors – This is one of the biggest challenges on the way of any entrepreneurial journey. Every company has to face various competitions in the market and it is also compulsory for better customer service. Kogta has a good market share in the industry but it still has to face many competitors to stand out amongst them.
Kogta Financial India Limited – Future Plans
Some of the upcoming plans of the company are as follows:
- Kogta wants to open more branches in other Indian states as well.
- They want to open over 20 new branches by the end of this FY.
- The company is planning to increase their customer base and they want to service loans to more customers.
- Kogta is planning to help more MSMEs by financing loans in a professional and friendly manner.
- The company will also look for more investments in the coming few years.
