NEW YORK, June 19, 2019 /PRNewswire/ -- Capsave Finance Pvt Ltd, a non-banking finance company (NBFC) providing leasing and financing solutions, posted 130 percent revenue and profit growth for fiscal year 2018-19 in its second year of operations.
"Capsave's success was achieved despite an environment where the liquidity crisis is crippling similar Indian companies and affecting sectors with a higher dependence on NBFC funding," said Jinesh Jain, Capsave chief executive officer, of the India-based company. "To be sure, while this crisis of confidence has paralyzed most small to mid-sized NBFCs, Capsave has swum against the tide to achieve revenue and net profit growth as well as 55 percent growth in cumulative assets funded between 2018 and 2019."
Capsave is a 100 percent subsidiary of Rent Alpha, which was founded in 2014 by a team of leasing professionals with a cumulative operating lease origination experience of US $1.5 billion, a portfolio of US $252 million, and more than 150 clients. Rent Alpha has partnered with original equipment manufacturers and vendors such as Lenovo, Apple, Agilent, AGS, Western Refrigeration and others. Rent Alpha is majority owned by Bravia Capital, a Hong Kong-based investment and advisory firm.
Jinesh Jain, who also serves as Rent Alpha CEO, is bullish about growth and profitability despite extremely challenging circumstances in India.
"Given the severe near term/midterm funding challenges within the financial services space, our investors Bravia Capital continue to back us to meet our liquidity needs based on our track record of growth and our customer demand," Jain said. "We are confident we will continue to outperform industry peers whilst maintaining asset quality."
Bharat Bhise, CEO of Bravia Capital, said: "Our confidence in Capsave's unique business model has never been stronger with its low leverage of less than 1 times debt-to-equity, which is much lower than its peers. That too at a time when the NBFC industry in India is plagued with widespread asset liability mismatches and non-performing assets. Capsave is leading by example with zero nonperforming assets on its books."
Capsave delivered an above industry average return on equity of 16 percent in the financial year ending March 31, 2019. Capsave was recently accredited with a first-time rating of BBB+ by India's Information Credit and Rating Agency.
Capsave Finance Private Limited is an NBFC operating on a pan India basis providing equipment leasing and financing along with other financing solutions.