NBFCs pride themselves in challenging the status quo in their business. They are constantly evolving to meet the changing needs of their customers, making strategic investments in their operating models to promote growth and expansion. In the recent past, there has been an increased interest of private equity (PE) firms in the BFSI sector with a specific focus on NBFCs. PE firms not only provide the necessary growth capital and the financial muscle to small and mid-sized NBFCs at a lower cost, but also get involved in the day-to-day operations and enable NBFCs to acquire scale and strengthen their balance sheets.
In this report, we have delved into the key imperatives and differentiators for a NBFC to attract private investments and also accessed the performance parameters for the company to subsequently move to a successful IPO stage.