In the fast-paced world of financial services, My Mudra Fincorp Ltd. (MMFL) has carved a niche for itself as a key channel partner and Direct Selling Agent (DSA) for major banks and NBFCs across India. MMFL's business model seamlessly integrates tele-calling, advertising, direct marketing, and a hybrid physical-digital marketing strategy to acquire customers for its financial partners.
This approach enables the company to offer a diverse range of financial products, including secured loans like home loans, unsecured loans such as personal and business loans, professional loans, and credit cards. Recently, MMFL expanded its services to include insurance products, further diversifying its offerings.
MMFL’s customer-centric approach sets it apart in the highly competitive Indian financial sector. By allowing customers to research and compare various lending and insurance products, the company enhances transparency and empowers clients to make informed decisions. Once a customer shares their requirements, MMFL presents tailored options, clearly outlining costs and features. This streamlined process ensures that loans are approved quickly and at competitive rates, catering to both individual and corporate clients, including professionals like company secretaries and architects.
The company's revenue model is built on commissions earned from its lending and insurance partners. In the loan sector, MMFL receives commissions from its lending partners, while in the credit card business, it earns fees from credit card providers. With the recent addition of insurance distribution, the company is poised to generate further income from insurer commissions.
MMFL is now making its debut in the stock market with an Initial Public Offering (IPO) of 3,024,000 equity shares, aiming to raise INR 33.26 crore. The IPO price band is set at INR 104 to INR 110 per share, with a minimum application of 1,200 shares. Post-allotment, the shares will be listed on the NSE SME Emerge platform. The company plans to utilize the IPO proceeds for working capital, debt repayment, technology development, and general corporate purposes.
Financially, MMFL has demonstrated steady growth. Over the past three fiscal years, it has increased its total income from INR 28.46 crore in FY22 to INR 71.14 crore in FY24, with net profits rising from INR 0.47 crore to INR 8.36 crore in the same period. The company’s strong return on net worth (RoNW) and consistent profitability make it a compelling investment for those looking for medium-term growth in the financial services sector. However, given the competitive nature of the industry, investors should consider their risk tolerance before investing.
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