Bullish on growth prospects, Abu Dhabi-based Lulu Financial Holdings is expanding its NBFC business in India, primarily focusing on organic growth, and aims to reach a loan book size of Rs 100 crore by the end of March next year, according to a top source. Company officials.
Lulu Financial Holdings, which is primarily involved in financial services, has invested in the Indian subcontinent, GCC (Gulf Co-operation Council) and APAC (Asia Pacific).
In India, the company owns NBFC – Lulu Financial Services (India) Private Ltd – and Lulu Forex Private Ltd, India.
NBFC (Non-Banking Financial Company) started operations last year and is in the process of expanding its business from the South, said Adib Ahmed, Managing Director, Lulu Financial Holdings.
“We have entered the NBFC space and it is very big in India. It is a growth sector and we are looking to invest more as a sector … We have started expanding in Kerala and we will take it to other states,” he told PTI in a recent interview. At present, the NBFC business is focusing on the SME (Small and Medium Enterprises) sector. “We expect the book size to reach Rs 100 crore by March 2023. This is the debt side, “Ahmed said
In a report released in March, ratings agency Ikra Ratings said that assets under the management of NBFCs (retail) in India are expected to grow by 5-7 per cent in FY 2022 and 8-10 per cent in FY 2023. According to Ahmed, initially, the company will focus on organic growth for NBFC verticals as it will allow customers to be more grounded and listen more closely.
“If it is inorganic, it will take up too much on the plate at this point. With this kind of volatility in the market, we want to grow rather organically. The first two years of expansion will be completely organic, ”he said.
Regarding the regulatory structure in India, Ahmed said the country is a strong and growing market, and much has changed.
“India is a very strong market but it is a growing market. It should not be seen in comparison to other mature markets and strategies that have worked in other markets should be started. We have always wanted to see India as a market of its own, with its own character – a lot has changed in the last few decades, “he said.
Emphasizing that his group is not here for an evaluation purpose but for the long term, Ahmed said that it had set up a forex division in 2012 and at that time, it was not interested in going anywhere else.
“Today, many rules have been simplified and it is more comfortable to approach international people like us. It encourages us to come and start our own fundraising in the market, ”he said. Lulu Financial Holdings also has a presence in hospitality but the main focus is the financial sector.