Purple Finance Limited, a non-banking financial company (NBFC) focused on serving micro, small, and medium enterprises (MSMEs), has reported significant growth in its operations, with its loan portfolio tripling. The company's assets under management (AUM) have surpassed ₹155.00 crore, marking a substantial increase in its market presence.

Expansion and Market Penetration

Purple Finance has established a strong foothold in the MSME lending sector, operating over 40 branches across six states. The company primarily serves more than 2,500 MSME borrowers in tier III and IV cities, addressing the credit needs of underserved markets. Its focus on small-ticket secured business loans and income-generation credit has proven to be a successful strategy in penetrating these non-urban areas.

Hybrid Lending Model

The company employs a hybrid model that combines digital origination with a local network of representatives. This approach allows Purple Finance to maintain a personal touch while leveraging technology for efficient operations and broader reach.

Ambitious Growth Targets

Looking ahead, Purple Finance has set an ambitious target of reaching ₹500.00 crore in AUM by the fiscal year 2027. To accelerate its market penetration and achieve this goal, the company is exploring strategic acquisitions, particularly in the states of Gujarat and Rajasthan.

Long-Term Vision

As part of its long-term strategy, Purple Finance aspires to transition into a Small Finance Bank. This vision aligns with the company's mission to expand credit access to underserved MSME customers in non-urban areas.

Management's Perspective

Amitabh Chaturvedi, Founder and Executive Chairman of Purple Finance, emphasized the company's mission in a recent press release: "When we started Purple Finance, the mission was clear to unlock credit for the millions of underserved and un-served MSME customers in the non-urban geographies who struggles to access timely & fair credit. The response so far proves this isn't just a large market, it's an essential one for India's real economic growth."

Company Background

Purple Finance Limited, incorporated in 1993, is registered with the Reserve Bank of India as a non-deposit taking NBFC. While the company has been in existence for over three decades, its focused journey in retail secured lending began in 2022. The current leadership team, including three seasoned professionals who partnered with Chaturvedi, brings over 125 years of combined experience from leading financial services institutions.

As Purple Finance continues its growth trajectory, it remains committed to bridging the credit gap for MSMEs in India's smaller cities and towns, viewing this as both a significant opportunity and a responsibility in contributing to the country's economic development.

Purple Finance Limited has announced the withdrawal of an application for reclassification of a promoter group shareholder to the public category. The company made this disclosure in a recent filing to the Bombay Stock Exchange (BSE).

Key Details

• Shareholder Involved: Mr. Satyaprakash Pathak, a member of the Promoter Group
• Original Request: Reclassification from Promoter Group to Public category
• Current Status: Application withdrawn

Background

Purple Finance Limited had previously made intimations regarding this matter on August 12 and August 14. The company's latest filing, dated August 26, provides an update on the situation.

Official Statement

In the official communication to the BSE, Purple Finance stated:

"Mr. Satyaprakash Pathak, Shareholder belonging to Promoter Group has submitted withdrawal application for reclassification from Promoter Group to Public category."

Regulatory Context

The reclassification process falls under Regulation 31A of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. These regulations govern the reclassification of promoters as public shareholders.

Company Information

Purple Finance Limited is listed on the BSE. The company's registered office is located in Mumbai, and it operates in the financial services sector.

This development may be of interest to investors and market analysts following Purple Finance Limited, as changes in promoter classifications can sometimes impact market perceptions and regulatory considerations for listed companies.