India’s healthcare and manufacturing segments are rapidly growing however Micro, Small and Medium Enterprises (MSMEs) are facing the challenges of capacity expansion. Banks are not able to fund many of the new age organizations due to lack of collaterals, credit history, track record of positive net profit etc. As a result, there is a huge capex financing gap which is estimated to be around USD 23 billion.
Leasing can foster economic development and job creation, by providing access to financing to Small and Medium Enterprises (SMEs), especially in developing country like India where SMEs provide strong growth and employment opportunities, but often lack access to other forms of financing.
ORIGA LEASING, is India’s first Fintech in equipment leasing. It is also India’s first leasing company to provide complete Asset Life Cycle Management (ALCM) – right from selection of the asset, to finance it, to maintain it and to recycle it at the end of the tenure. With its focus on Asset Life Cycle Management, clients can devote their entire focus on business and need not worry about asset. It provides a very innovative solution called Operating Lease. Through the leasing solutions, it helps the SMEs covert its capital expenses into operating expenses and thereby enjoy significant level of flexibility in financing its growth.
In its simplest form, leasing is a means of providing access to finance. Leasing institution (lessor) purchases the asset and then allows the client (lessee) to use the asset for a specified period of time in return for lease rentals. Leasing is asset-based financing with the asset providing (in most situations) the security for the financing. It is based on the proposition that income is earned through the use of assets, rather than from their ownership. It focuses on the lessee’s ability to generate cash flow from business operations to service the lease payment, rather than on the balance sheet or on past credit history.
In India, there is a considerable potential to use leasing as a way to increase access to finance for SMEs.
ORIGA Leasing was founded by Shrirang Tambe with a core philosophy of “Access to Finance” for SMEs. Shrirang believes that ORIGA is a thought leader on “Financial inclusion at B2B level”. Today, ORIGA is the only alternative financing Fintech player when it comes to equipment financing. Origa’s asset leasing solution helps companies to scale up and also create employment and income. ORIGA puts more emphasis on innovation and futuristic business model. It thus acts as a growth engine for entities at all stages.
“During my financial advisory days, when companies were just not getting funding from traditional financing channels, I was pained by the fact that good potential companies aren’t getting funded sheer due to their inability to tick the boxes prepared ages ago”, say Shrirang who realized that that time that term loan is no longer a one fit all solution and India desperately requires innovative fixed income products for its SMEs. “Identifying this gap and lack of financial products around led to the birth of ORIGA in 2013”, remembers Shrirang.
ORIGA has come a long way from being a naïve in the field to becoming one of the most unique Fintech today in this space. It is currently in the process of deploying one of the finest Fintech solution which will leverage technology right from customer acquisition to asset management to provide seamless and scalable leasing solution to its clients which in turn helps in building capacity. Deep domain knowledge of the equipment is ORIGA’s key strength.
One more benefit that a leasing company such as ORIGA brings to the table of its clients is an opportunity to upgrade equipment technology periodically. This ability provides excellent impetus to SMEs in India to avail and use best of the technologies at all times without paying the entire amount for it upfront.
ORIGA currently operates in the western and southern region of India and focusses on boutique small and medium sized healthcare setups and sub hundred and fifty crores revenues manufacturing companies. It leases between the ticket sizes of INR 2 million to INR 20 million for a tenure between 3 and 5 years. Since ORIGA leases only core revenue generating equipment, its clients are very comfortable paying the lease rentals over a period of time since the equipment starts making money for them immediately.
The company raised its first round of funding in 2015 and targeting to become one of the largest home grown standalone leasing company in India in the next five years with asset book crossing INR 20 billion.
“Our vision is that every SME in this country should have access to the right financial products and best of the technology at all times”, says Shrirang who tirelessly along with his team is working towards this goal.