Asirvad Microfinance Acquired
Asirvad Microfinance: Business Model Canvas
The nine-block Business Model Canvas, filled in only where a public source states it — empty blocks mean we haven't found a citable fact yet, not that the answer is zero.
Value Propositions
The large majority of loans are for income-generating purposes, delivered primarily through the Joint Liability Group (JLG) lending model.
sourceProduct branding used in the company's own IPO disclosure describing its core loan category for economically disadvantaged borrowers.
sourceCustomer Segments
Microfinance loans provided to women from low-income households through a nationwide branch network.
sourcePredominantly female client base of micro-entrepreneurs and individuals in the informal economy, mostly in rural/underbanked areas.
sourceCustomer Relationships
Channels
Physical branch network for loan origination, disbursement and collection, spanning most Indian states.
sourceKey Activities
Core lending activity is group-based microcredit origination, underwriting and collection.
sourceKey Resources
Net worth stood at Rs 2,047 crore with gearing of 4.5x as of December 2023, up from Rs 1,544 crore net worth and 5.5x gearing a year earlier -- the capital cushion that supports on-lending.
sourceAccess to wholesale funding is a core resource: as of December 2023 Asirvad held Rs 3,014 crore of unutilised bank lines, on top of a dedicated facility from parent Manappuram Finance (MAFIL).
sourceAsirvad's field-heavy JLG lending model runs on a large employee base -- about 15,784 staff at the time of its DRHP filing, who source, underwrite, disburse and collect loans across the branch network.
sourceKey Partnerships
Majority shareholder and parent NBFC since a February 2015 stake acquisition.
sourceBacks the 2021 WorldBusiness Capital external commercial borrowing facility used to fund on-lending.
sourceUS lender providing a 7-year ECB loan to fund rural lending expansion.
sourceRevenue Streams
Core AUM is microfinance lending, with smaller diversified gold-loan and MSME-loan books also contributing.
sourceCost Structure
Asirvad's operating costs as a share of its book have held in a tight 5.5-5.7% band over the last 4-6 quarters, even while the company expanded its gold-loan portfolio.
sourceProvisioning/write-offs are a major cost line: total credit costs ran about Rs 305 crore in the first nine months of FY24, versus Rs 273 crore for all of FY23, reflecting the microfinance sector's asset-quality stress.
sourceFAQs on Asirvad Microfinance
What is Asirvad Microfinance's business model?
Asirvad Microfinance's core value proposition centers on Income-generating group loans, "Income Generating Product" loans.
How does Asirvad Microfinance make money?
Asirvad Microfinance's cited revenue streams include Microfinance, gold-loan and MSME-loan interest income.