How Leading Automotive Financing Company is able to Bag Strategic Partnership with 10 agritech companies for Flexi Loan/ BNPL services
Background and Challenge
Client’s Background:
- A leading NBFC company of India, that provides automotive loans. They have a range of thoughtfully-designed financial products. Their presence spans the largest cities of urban India to the smallest villages of their rural heartland, bringing their products within easy reach of Indians.
Challenges Faced by Client:
- First major challenge was limited background knowledge of the potential partners and exhaustiveness of the number of Agritech players. There were approximately >1300 players in the market covering four different segments.
- Secondly, the client wanted to identify risk management tactics in their financial solutions to be safe as a new player and also compete the existing players.
- Third challenge of the client was to understand the onboarding process as it involves huge investment and laborious considering the traditional methods. This was also a problem as they were targeting the rural population (Farmers) majorly.
AgriTech Industry at Glance:
- India Agritech Industry with the technological interventions by the agritech sector are creating investment opportunities (USD 1.6 Bntill 2021) by raising efficiencies and overall productivity.
- Agriculture is the main source of livelihood for about 58% of India’s population which gained government’s attention. India’s Budget 2022-23 also had provisions to support ‘digital agriculture’.
- COVID pandemic has now put them on an upwards growth trajectory. The states of Karnataka and Maharashtra and the Delhi (NCR) are major hubs for agri-startups in India.
Approach and Recommendations
Phase 1: To identify top Agritech players and ranking them for Client
- Ken collaborated with its client and identified the top agritech players depending upon certain parameters such as funding, inception year, YoY growth and more.
- In-depth discussions were carried out with the top decision making authorities of the top start-ups to understand their business model and recent developments.
- Discussion included the on ground situation and challenges of these agritech players along with the pain points of their end users.
- Understanding the operational and financial capabilities of these startups and their future plans with respect to Agri-financing was also an integral part of the discussions.
- These discussions the client identify the suitable potential partners.
Phase 2: Understanding the business model and market opportunities
- The second phase of work focused on identifying the key areas where our client can enter and provide unique solutions.
- In-depth analysis was conducted to identify the grey areas and prepare a strategy plan to target high potential regions, suitable target audience and high demand sub market.
- All these parameters also included a detailed study of the end users to address competitiveness in the market.
- Suspect institutions were unsure of their timelines, however, they were willing to take the discussion forwards, as they believed the future of Agritech India.
Phase 3: End to End support to partner with the Agritech Start-ups
- After identifying and analyzing the prospect and suspect Agritech Start-ups, Ken provide end to end implementation support for successful partnerships between the Client and all the prospect Agri start-ups.
- Also, Ken has been successful in connecting the suspect Agri start-ups with the Client for partnerships in the near future.
- Ken has provided a clear road map to the Client in order to successfully collaborate with renowned Agri start-ups for offering Agri finance services.
Result and Conclusion – Client Bags Strategic Partnership with 10 agritech companies for Flexi Loan/ BNPL services
Identification of the top Performing Agritech Start-ups
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In-depth study of the top performing Agritech players helped in low risk partnerships opportunities.
Assisting with the penetrating strategies
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Derived a workflow with targeted approach and strategies to help in easy penetration with the good practices prevalent in the market.
Connecting Agritech Players to the Clients
- Ken’s connection with the Agritech players during the project helped in smooth connection between the NBFC and Agritech Start-ups.
Business Impact
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Strategic Partnership with 2 Agritech Players
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Launch of new agri-equipment marketplace