|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 15.65 | ACUITE BB+ | Reaffirmed & Withdrawn | - |
| Bank Loan Ratings | 9.35 | Not Applicable | Withdrawn | - |
| Non Convertible Debentures (NCD) | 7.50 | Not Applicable | Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 32.50 | - | - |
|
Rating Rationale |
|
Acuité has reaffirmed and withdrawn its long-term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) on the Rs 15.65 Cr. bank facilities of Seeds Fincap Private Limited (SFPL). The rating is being withdrawn on account of No Objection Certificate received from the banker and withdrawal request received from the issuer.
Acuité has withdrawn the long-term rating on the Rs. 7.50 Cr. Non Convertible Debentures of Seeds Fincap Private Limited (SFPL) without assigning any rating as it has been redeemed. The rating is being withdrawn on account of No Objection Certificate received from the trustee and withdrawal request received from the issuer. Acuité has withdrawn the long-term rating on the Rs. 9.35 Cr. bank facilities of Seeds Fincap Private Limited (SFPL) without assigning any rating as it is a proposed facility. The rating is being withdrawn on account of request received by the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument. Rationale for Rating The rating continues to factor in the company’s experienced management team, sound asset quality, and healthy growth in AUM levels in FY24. The company’s AUM grew to Rs. 509.06 Cr. as on March 31, 2025, compared to Rs. 328.50 Cr. as on March 31, 2024. It has increased due to the healthy disbursement levels at Rs. 447.97 Cr. in FY2025 compared to Rs. 294.72 Crore in FY2024. Reportedly, the company's GNPA is 1.21 percent and NNPA is 0.18 percent as on March 31,2025 which has increases compared to FY2024. The rating additionally factors in the equity infusion of Rs. 40 Cr. in June 2024 and 32 Cr. in September 2023 by existing and new investors. The rating, however, continues to remain constrained by SFPL’s weak earnings profile and its nascent stage of operation. The rating factors in SFPL’s improved financial performance, with the company turning profitable in FY2025 and reporting a PAT of Rs. 1.41 crore, as against a net loss of Rs. 3.63 crore in FY2024.However, the elevated operating expenses are arising from ongoing branch expansion and increased staff hiring. The rating also factors SFPL’s geographically concentrated portfolio due to its limited track record of operations. (Uttar Pradesh contributing 43% of total AUM as on September 30, 2025). Acuite believes that the company’s ability to timely infuse capital, improved networth base, and improvement in the profitability metrics, while keeping the momentum in growth of AUM, and disbursements would be a key rating monitorable. |
| About the company |
| Incorporated in 2019, Seeds Fincap Private Limited (SFPL) is a RBI registered non- deposit taking NBFC with its headquarters in Gurugram (Delhi). The company is currently Promoted by Mr. Subhash Chandra Acharya as the CEO and Managing Director, and Mr. Avishek Sarkar as a whole-time Director. They are engaged in providing unsecured loans to people/enterprises living in Tier II, III & IV Cities. It commenced its operations in February 2021, and currently operating in Haryana, Rajasthan, Uttar Pradesh, Bihar, and Uttarakhand with 140 branches as on September 2025. |
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Acuité has considered the standalone business and financial risk profile of Seeds Fincap Private Limited to arrive at the rating. |
| Key Rating Drivers |
| Strength |
| Experienced Management :
SFPL is engaged in extending unsecured loans to people and enterprises in Tier II, III and IV cities. It operates in eight states with branch networks of 140 branches. The company is headed by Mr Subhash Chandra Acharya as the Managing Director-CEO and Mr Avishek Sarkar as the Whole Time Director are supported by the seasoned professionals for the daily operations. The management has an extensive experience of over a decade in the industry. Acuité believes that company’s growth prospects will be supported by the promoter’s experience in this industry. Adequate capitalisation supported by regular infusions: The company remains adequately capitalised for its current scale of operations, supported by the demonstrated ability of its promoters to infuse equity at regular intervals. Seeds Fincap raised Rs. 32 crore in the second quarter of FY2024 and RS. 40 crore in the first quarter of FY2025 from institutional investors. As a result, the net worth improved to Rs.105.77 Cr. as on March 31, 2025, compared to Rs. 64.69 Cr. on March 31 2024 and Rs. 37.02 Cr. as on March 31, 2023. Correspondingly, on-book gearing moderated to 4.26 times in FY2025 from 4.67 times in FY2024 and 3.96 times in FY2023. The company’s ability to continue raising equity capital and maintain prudent leverage levels will remain a key monitorable. Healthy AUM growth: The company's Assets Under Management (AUM) grew robustly from Rs. 208.16 Cr. in FY2023 to Rs. 328.50 Cr. in FY2024 and further to Rs. 509.06 Cr. in FY2025, reflecting strong business expansion. SFPL’s risk management framework remains adequate, supporting its expansion into new geographies while maintaining asset quality in its existing operational regions. The company has built a robust credit and risk infrastructure, including dedicated teams that conduct detailed cash flow assessments. Each branch is assigned a credit officer to ensure portfolio quality is consistently monitored. |
| Weakness |
| Exposure to geographic concentration in portfolio
SFPL was incorporated in 2019, and it is operating from Delhi since February 2021. The company is spread across 8 states, with the major exposure in state of Uttar Pradesh (43% of the portfolio o/s). The company expanded their branch network from 54 in March 31, 2023, to 90 in March 31, 2024, to 140 in September 2025 as to improve it's borrower base. This expansion resulted in high operating expenses primarily driven by staff expenses leading to subdued profitability metrics. SFPL’s ability to scale up its operations while maintaining its profitability metrics would be a key rating monitorable. Modest capital structure: SFPL offers loans for Trading, Agriculture & Dairy, Manufacturing & Production, Services and Consumer loan & MFIs which account for approximately 57%, 23%, 10%, 5% , 10% respectively of the portfolio. The company’s capital structure is marked by Networth of Rs 105.77 Cr. as on March 31, 2025 and total debt of Rs 450.12 Cr resulting in debt/equity ratio of 4.26 times. |
| Rating Sensitivity |
| Not Applicable |
| Liquidity Position |
| Adequate |
| As per ALM statement as on March 31, 2025, SFPL has no negative cumulative mismatches in any buckets upto 1 years. SFPL’s is able to maintain its monthly collection efficiency at the range of ~95 percent. |
| Outlook: Not Applicable |
| |
| Other Factors affecting Rating |
| None |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
| Status of non-cooperation with previous CRA (if applicable): |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
|
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm |
| Note on complexity levels of the rated instrument |
|
| |
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| |
|
Contacts |
About Acuité Ratings & Research |
