Consumer finance firm Home Credit India, a subsidiary of PPF Group of the Czech Republic, hopes to earn a profit during the current financial year on the back of growing customer base and fast business expansion.
"Usually, it takes 4-5 years to break even. We have so far invested 304 million euro (about Rs 2,520 crore in the business in India," PPF Group shareholder Jean Pascal Duvieusart told PTI.
"We are almost there ... we expect to break even during this financial year," he said.
He said the company will pump in capital to expand its footprint in India, but did not disclose the investment size.
Home Credit India has been expanding operations since its foray in 2012, he said, adding the company's operations are now spread over 175 cities and 29,000 Point of Sales across various states.
The company had a customer base of nearly 6 million and last year alone it added another 3.5 million customers, he said.
He further said, "We see a lot of potential for growth because of the scale of rapid economic expansion and many not having access to formal loan products in the country."
To support the growth of the business, the company has been diversifying funding base in terms of types of instruments and maturity to bring down the cost, Home Credit India Chief Business Development Officer (CBDO) Martin Navratil said.
The company for the first time plan to raise resources by floating commercial paper, Martin said, adding, it will happen during this month.
In the January March quarter, Home Credit India raised Rs 600 crore through a mix of securitization transactions, terms loans, and non-convertible debenture (NCD) issue.
The company plans to use the funding to augment its loan book, invest in technology infrastructure, and develop financing products catering to needs of customers with little or no credit history, he added.
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