Clix Capital, a non-bank finance company based in Gurugram, may go for an Initial Public Offering (IPO) in the next two years, provided market conditions remain favourable, according to its Chief Financial Officer Gagan Aggarwal.
“Going public in two years depends on various factors, but if everything aligns, it could be the right time,” he said.
However, Aggarwal said that going public is not the immediate priority for Clix Capital. “Our immediate focus is on FY25, targeting a Rs 100 crore profit and sustainable growth.
“Our focus is on sustainable growth, aiming for 30-35 per cent annually over the next few years. Reaching a Rs10,000 crore AUM in the next two years is a key milestone, and hitting the public market could be on the horizon if conditions are favourable,” Aggarwal told ETCFO.
Aggarwal shared insights into Clix Capital’s significant turnaround story in FY24. “FY24 was about delivering on our commitments,” he said. “We ended FY24 with just under Rs 6,000 crore in AUM, showing a growth of over 30 per cent, and a profit after tax growth of 125 per cent. Our Gross Non-Performing Assets (GNPA), which was at 5 per cent in FY22, reduced to 1.8 per cent in FY24, demonstrating significant improvement in portfolio quality.”
Borrowing Plans
Borrowing remains a crucial aspect of Clix Capital’s growth strategy. “In FY24, we borrowed around Rs 4,500 crore, and for FY25, our target is Rs 5,000 crore,” Aggarwal explained. “Last year, 70 per cent came from PSU and private sector banks, with a diversified borrowing profile including term loans, Non-Convertible Debentures (NCDs), and Pass Through Certificates (PTCs). For FY25, we plan a similar mix, focusing on term loans (60-65 per cent) and the rest through NCDs and other instruments.”
Strategic Partnerships
“We are comfortably placed in the co-lending space and may not need more partnerships beyond one or two additional ones this year,” Aggarwal noted. “The partnership with Karnataka Bank, established last year, involves a complete digital journey for co-lending business loans. This helps us tap into customer segments outside our Business As Usual (BAU) category, managing liquidity and profitability. Apart from Karnataka Bank, we have partnerships with SBI, CBI, and other big players. These arrangements cater to all our product segments, including unsecured business loans, school financing, healthcare, and MSME.”
Impact on MSME, Education, and Healthcare
Clix Capital has made significant strides in the MSME sector, education, and healthcare, all growing at a 10-15 per cent Compound Annual Growth Rate (CAGR). “The MSME sector, along with education and healthcare, is growing at a 10-15 per cent CAGR,” Aggarwal noted. “We’ve touched over two lakh MSMEs, disbursed more than Rs 25,000 crores, and funded around 1,500 schools, impacting over 100,000 students. In healthcare, we’ve financed medical equipment for small clinics and doctors, benefiting over 50,000 patients.”
