SKS Microfinance

SKS Microfinance is a prominent financial institution in India, specializing in providing microloans to underserved communities, enhancing financial accessibility and empowering low-income households through its services. SKS Microfinance, founded in 1997 and headquartered in Hyderabad, India, operates primarily in the microfinance sector, offering personal loans tailored for individuals in low-income brackets. The company has undergone strategic changes over the years, focusing on expanding its reach to more underserved markets. It was established by Vikram Akula, who has a background in social entrepreneurship and previously founded other organizations aimed at poverty alleviation.

SKS Microfinance raised a total of INR 4000 million, with its latest funding round being a Private Placement/Follow on that occurred on February 6, 2012, which coincided with its total amount raised. SKS Microfinance specializes in providing licensed moneylending services through its flagship platform, SmartLoan. Its primary offering is personal loans tailored to meet the financial needs of individuals, particularly in underserved communities. Customers can borrow amounts up to six times their monthly income, which allows for significant financial support.

Loans can be customized regarding repayment terms, enabling negotiations with loan officers to establish manageable repayment plans. The company primarily targets low-income households across various regions in India while also aiming to expand into international markets as part of its vision to serve 50 million households. In the most recent financial year of 2018, SKS Microfinance reported a revenue of INR 317,367,630. 30 and an EBITDA of INR 174,253,069.

The revenue model is chiefly based on interest accrued from personal loans, structured around the borrower's financial capacity. This structured approach fosters long-term relationships with clients, allowing for repeat borrowing as customers benefit from flexible repayment options and reasonable interest rates. SKS Microfinance is expected to leverage its recent funding to enhance its product offerings and expand into new markets. The company is in the process of developing new financial products tailored for varied consumer needs.

Additionally, it aims to broaden its reach to more underserved areas and international locations, focusing on strategic growth by 2020. The completion of its INR 2,430 million IPO in February 2012 has also provided the necessary capital to pursue these ambitious expansion plans.