Press Release

Press Release

December 09, 2025

AURIOLUS FINVEST PRIVATE LIMITED
Rating Upgraded & Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	8.00	ACUITE BB- \| Upgraded & Withdrawn	-
Total Outstanding	0.00	-	-
Total Withdrawn	8.00	-	-

Rating Rationale

Acuite has upgraded and withdrawn the long-term rating to 'ACUITE BB-' (read as ACUITE double B Minus) from 'ACUITE B+' (read as ACUITE B Plus) on the Rs. 8.00 Cr. bank facilities of Auriolus Finvest Private Limited.
The withdrawal is in accordance with Acuite's policy on withdrawal of ratings as applicable to the respective facility / instrument. The rating is being withdrawn on account of request received from the company, and NOC (No Objection Certificate) received from the banker.

Rationale for Upgrade
The rating is driven by the group's established operating track record, improvement in scale of operations during FY2025, and the presence of experienced promoters supported by institutional investors. The consolidated operating income increased from Rs. 672.14 Crore in FY2024 to Rs. 1011.36 crore in FY2025, reflecting a partial recovery in business volumes. The rating also factors in capital infusion of Rs. 41 crores in FY2025, which supported net-worth position, and group’s ability to service reputed corporate clients across diversified sectors. However, the rating remains constrained by weak profit after tax (PAT) of Rs. 15.78 crore as of March 31, 2025, elevated working capital intensity and leveraged capital structure with gearing of 3.67 times as on March 31, 2025, compared to 1.61 times as on March 31, 2024. Going forward the group’s ability to improve profitability, strengthen working capital and reduce leverage will remain key monitorable.

About the Company

Delhi based, Auriolus Finvest Private Limited (AFPL), known with its Brand, “BizFunds” was incorporated in 2018 to carry on the business of lending to SME sector and working capital loans to Indian businesses to finance their purchase of manufacturing supplies: raw material and industrial equipment. The Company is a subsidiary of Power2SME Private Limited. In April, 2019, the Company has received the Certificate of registration from the Reserve Bank of India to carry on the business of Non-Banking Financial Institution without accepting public deposits.

About the Group

Power2SME provides its B2B services through its digital ecosystem which delivers raw material procurement at competitive prices, MRO procurement, and access to finance to smaller SME’s with an objective to provide them with higher efficiencies and profitability. Power2SME functions as a 'buying club' and helps SMEs benefit from economies of scale as a result of volume purchase and buying power across a large network of manufacturers. The company has 2 wholly owned subsidiary companies named Jijo India Private Limited & Auriolus Finvest Private Limited. Jijo India Private Limited was incorporated in October 2012 and engaged in the business of trading of various products. Auriolus Finvest Private Limited was incorporated in October 2018 and engaged in lending to SME sector by extending working capital loans to them.
Power2SME Private Limited (P2S) is a private limited company incorporated in 2012. The company is engaged in the business of trading of Metals (majorly Steel & TMT), Polymers, Yarn, Chemicals etc and sells its product in domestic market. Headquartered in Gurugram, Power2SME has 5 offices spread across Mumbai, Chennai, Kolkata, Ahmedabad and Pune. The company is led and promoted by Mr. R. Narayan (Founder & CEO) with the support of marquee investors.

Unsupported Rating

Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuité has considered the consolidated view on the business and financial risk profile of Power2SME Private Limited and its subsidiaries Auriolus Finvest Private Limited and others to arrive at the rating. The approach is driven by common management, shared brand, and strong operational and financial synergies between the group companies.

Key Rating Drivers

Strength

Experienced management team
Power2SME Private Limited (P2S) is led by Mr. R. Narayan (Founder & CEO). Mr. Narayan is a seasoned entrepreneur with around two decades of corporate experience. He was previously associated with working in sales and marketing profiles for Microsoft, Oracle and TATA Group. Having worked with SME segment closely and understanding their nuances he co-founded Denave India Private Limited a technology powered sales enabling services company. Later in 2012, with the support of marquee investors, Mr. Narayan founded Power2SME to further his cause to empower the SME segment. Mr. Narayan is supported by an experienced professional team with diverse expertise in areas of finance, treasury, investments, customer-ready technology solutions, networking alliances amongst others. Mr. Saurav Ghosh and Mr. Vineet Agrawal are on the board of P2S. The management team has been able to on-board various suppliers on their platform and blue-chip companies as customers to fulfil their MRO requirements like Vendata, Hindustan Zinc, Orient, L&T and others. The management has taken steps to improve its credit policies. The subsequent decline in traded volumes has resulted in the company not being able to achieve optimal levels of volumes required for break-even. Acuité believes that, the adoption of robust credit policies, on-boarding blue-chip clients to drive volumes and overall experience of the management will help the company to grow in a sustainable manner.

Weakness

Weak financial risk profile
P2S commenced its operations in 2012. The group reported loss of Rs. 15.78 Cr. for FY2025 over an operating income of Rs. 1011.36 Cr. as compared to a loss of Rs. 34.87 Cr. over an operating income of Rs. 672.14 Cr. during FY2024. The group’s net worth stood at Rs. 49.99 Cr. as on Mar-25 with a gearing of 3.67 times as compared to Rs. 31.70 Cr. as on Mar-24 with a gearing of 1.61 times this is primarily because of equity infusion of Rs. 41.00 Cr. and increase in short term borrowings. The company will be able to achieve break-even only once it achieves optimal levels of volumes in its trading segment and rationalize its high operating costs. As the NBFC arm grows, the company will require funding lines which could further add to the existing stress on profitability metrics unless, the company is able to optimize its overall operating costs and scale up business volumes. Additional capital infusions from investors, could help the business to maintain lower levels of finance costs in medium term, thus enabling the company to focus its resources in driving business growth.

Competitive nature of industry and susceptibility to cyclicality nature of industry
P2S competes with various players in the organized and unorganized segments in trading industry, thus limiting the pricing power. Metals (especially steel) constitutes around 60 percent of the total NMV for P2S. The steel consumption is majorly dependent on the economic activities taking place in and around the country, any significant slowdown in this industry will impact the revenue of the P2S’s customers thus impacting P2S’s credit profile.

Rating Sensitivity

Ability to raise capital
Sustained scale up in business operations
Movement in liquidity, earnings profile and asset quality metrics
Changes in Regulatory environment

Liquidity Position

Stretched

The Group’s liquidity is stretched marked by negative operating cash flows and modest cash and bank balance of Rs. 16.87 crore as on March 31, 2025. Despite of equity infusion in FY2025 of Rs. 41 Cr, internal cash accrual is negative and working capital cycle is elongated due to higher receivables. Company is highly dependent on short term borrowings to fund working capital requirement. A major portion of P2S portfolio is against Bank Guarantee and Letter of Credit which is correspondingly discounted against the bank lines with matched tenure.
As per ALM statement as on March 31, 2025, for Auriolus Finvest Private limited has no negative cumulative mismatches in any buckets up to 1 years. Auriolus Finvest Private limited is able to maintain its monthly collection efficiency at the range of ~85 percent.

Outlook

Not applicable

Other Factors affecting Rating

None

Key Financials - Standalone / Originator

Particulars	Unit	FY25 (Actual)	FY24 (Actual)
Total Assets	Rs. Cr.	42.00	32.35
Total Income*	Rs. Cr.	3.35	4.19
PAT	Rs. Cr.	-1.62	-1.82
Net Worth	Rs. Cr.	14.66	16.22
Return on Average Assets (RoAA)	(%)	-4.35	-3.1
Return on Average Net Worth (RoNW)	(%)	-10.47	-11.02
Debt/Equity	Times	1.18	0.39
Gross NPA	(%)	5.46	10.46
Net NPA	(%)	0.48	3.85

Key Financials (Consolidated)

Particulars	Unit	FY25 (Actual)	FY24 (Actual)
Operating Income	Rs. Cr.	1011.36	672.14
PAT	Rs. Cr.	(-)15.78	(-)34.86
PAT Margin	(%)	(-)1.56	(-)5.19
Total Debt/Tangible Worth	Times	3.67	1.61
PBDIT/Interest	Times	0.22	(-)1.16

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any Other Information

None

Applicable Criteria

• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
07 Jul 2025	Term Loan	Long Term	3.00	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
07 Jul 2025	Working Capital Demand Loan (WCDL)	Short Term	5.00	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
31 Oct 2024	Term Loan	Long Term	3.00	ACUITE BB- \| Stable (Downgraded from ACUITE BB+ \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	5.00	ACUITE BB- \| Stable (Downgraded from ACUITE BB+ \| Stable)
	Term Loan	Long Term	4.81	ACUITE Not Applicable (Withdrawn)
	Term Loan	Long Term	2.50	ACUITE Not Applicable (Withdrawn)
	Proposed Long Term Bank Facility	Long Term	25.51	ACUITE Not Applicable (Withdrawn)
	Term Loan	Long Term	7.00	ACUITE Not Applicable (Withdrawn)
	Proposed Non Convertible Debentures	Long Term	15.00	ACUITE Not Applicable (Withdrawn)
03 Nov 2023	Proposed Non Convertible Debentures	Long Term	15.00	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	4.81	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	2.50	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	0.57	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- \| Negative)
	Proposed Long Term Bank Facility	Long Term	27.94	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- \| Negative)
	Working Capital Demand Loan (WCDL)	Long Term	5.00	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	7.00	ACUITE Provisional BBB (CE) \| Stable (Downgraded from ACUITE Provisional BBB+ (CE) \| Negative)
04 Nov 2022	Proposed Non Convertible Debentures	Long Term	15.00	ACUITE BBB- \| Negative (Assigned)
	Term Loan	Long Term	3.09	ACUITE BBB- \| Negative (Reaffirmed)
	Term Loan	Long Term	14.33	ACUITE BBB- \| Negative (Reaffirmed)
	Term Loan	Long Term	5.77	ACUITE BBB- \| Negative (Reaffirmed)
	Term Loan	Long Term	16.28	ACUITE BBB- \| Negative (Reaffirmed)
	Term Loan	Long Term	1.35	ACUITE BBB- \| Negative (Reaffirmed)
	Term Loan	Long Term	7.00	ACUITE Provisional BBB+ (CE) \| Negative (Assigned)
24 Mar 2022	Term Loan	Long Term	1.35	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	16.28	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	5.77	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	14.33	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	3.09	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
UC Inclusive Private Ltd.	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Apr 2026	3.00	Simple	ACUITE BB- \| Upgraded & Withdrawn ( from ACUITE B+ )
UC Inclusive Private Ltd.	Not avl. / Not appl.	Working Capital Demand Loan (WCDL)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BB- \| Upgraded & Withdrawn ( from ACUITE B+ )

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr.No.	Company Name
1	Power2SME Private Limited
2	Auriolus Finvest Private Limited

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Yash Dharmale
Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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