Success Story - Startup Loan for Urban Nashta

M/s. FoodZeplin Pvt Ltd had approached MSMEmitra.com when they were looking to raise seed funds for their venture – www.urbannashta.com

UrbanNashta.com is the Ultimate Breakfast Solution designed specifically for time crunched Gen Next, providing them with innovative recipes, delivered in time through a dynamic ordering platform. Urban Nashta prepares and delivers healthier, wholesome breakfasts through a daily rotating menu as tasty and innovative variations to common household recipes in order to maintain customer-product connect, and be perceived as the perfect solution to all breakfast related problems. The service includes In-Time Delivery, Subscription Packs, Option to Pre-Order, and Picking Personal Delivery Slots to ensure the brand breathes of convenience.
The company had held talks to raise seed funds with PE Investors, but the talks came to a standstill because the parties involved could not come to an agreement on the share of profits / dilution of shares in the company.

The company was in urgent need of Funds for:
i.           Development of a better website;
ii.         Integration of smart payment mechanisms;
iii.        Shifting to a bigger kitchen to cater to the increased demand; and
iv.       Expanding its operations without compromising on its core values.

Looking at the Financial Achievements and Operational Structure of the company, we advised UrbanNashta.com to make certain changes to their financial approach, keeping in mind the inherent and foreseeable Financial Risks, and suggested to raise funds under a Central Government Promoted Credit-Linked Scheme.

Based on our research of the Industry and Market, we helped UrbanNashta.com make justifiable Financial Projections, which was also to serve as a benchmark and target for them. The loan proposal was prepared, and submitted to a leading Nationalised Bank for processing.

After a lengthy process of Due Diligence, Analysis, Research, and Interview of the Promoters, the Credit Facilities were sanctioned under a Central Government promoted credit-linked scheme to UrbanNashta.com

The company was able to raise the much required Seed Funds as Debt at a very affordable cost, and without diluting Equity in the company.

With a bigger place to work from and cash in the Bank Account for focussed marketing, the Brand has built quite a niche among its target group in and around Powai, and scaled the Business to a level where they are ready for next round of PE Funding.

If you are a Business owner, and facing difficulties in raising Seed Funds, you can also apply for a Bank Loan, with or without collateral security. Visit https://msmemitra.com and find out what are the Debt Funding options and applicable schemes and subsidies for your Business. Contact us at support@msmemitra.com for our assistance in preparation of the loan proposals.

Here are a few points to remember for Business Owners. Before applying for a Business Loan, MSMEs and Start-ups must:

1. Visit MSMEemitra.com to make an informed decision about the most suitable Funding Option available, and learn how to avail the benefits of the applicable schemes and subsidies.
2. Make the projections with some degree of confidence and back it up with the quarterly / half-yearly achievements.
3. Describe the background, achievements and Business plans in the Loan Proposal. If you are unable to prepare your loan proposal, contact us at support@msmemitra.com for our assistance.
4. Know all the rules, regulations, and guidelines for MSME Funding, before approaching the Banks.
5. Identify which Banks have a favourable policy for funding MSMEs, by visiting MSMEmitra.com
5. Persevere! Do not give up if a Bank refuses to process your loan without giving a genuine reason.
6. You can always connect with us on support@msmemitra.com for our assistance.

Thank you for reading!
--

MSMEmitra.com is dedicated to Start-ups and MSMEs, with an objective of helping Enterprises focus on growing their Business, without the constant worry of funding the growth.

The team at MSMEmitra.com, with a combined experience of over 60 years in Credit Reporting, Due Diligence, Banking (MSME Funding segment), and Financial Consultancy, provides Financial Consultancy to MSMEs and Start-ups which do not have a CFO or an internal Finance team. 


Disclaimer:

This write-up is based on actual events. The author wishes to highlight the plight of Small Businesses in India, without the intent of targeting any particular Bank or Organisation.

Comments

Post a Comment

Most Read

Business loans to Small Enterprises will help in recovery of the economy

The overall slump in World economy caused by Brexit, US elections, threats of war involving countries from the far-east, coupled with the haphazard implementation of Demonetisation and lack of clarity about the procedures involved in implementation of GST has affected the Indian economy to the extent that companies have resorted to job cuts and shut down. This slump, however, is temporary, albeit a bit stretched. India’s Real GDP slowed down in the last quarter, but overall growth for the Current Fiscal is estimated to rebound to 7.00%, which is far better than that of the competing Developing and Developed countries. One of the major factors stalling the onset of rapid recovery is the lack of Private Investment due to reasons not limited to India alone. The constant disruptions of Parliament since 2012 for various reasons meant that GST was not implemented at a time when India could afford a temporary slowdown, but rather, at a time when the economy was showing signs of reco
Read more

Funding prospects for Blockchain Start ups in India

Blockchain, brainchild of the Anonymous founder/s of the World’s first crypto-currency, Bitcoin, Satoshi Nakamoto is often referred to as “The Backbone of the new Internet”. Initially conceptualised in 2008 for Bitcoin, blockchain has found its use in several other fields. WHAT IS BLOCKCHAIN? Blockchain is an open and distributed ledger, which can record transactions between two parties in a verifiable and permanent way. Once recorded, the transaction data cannot be modified retroactively, without alteration of all subsequent blocks. This also allows users to verify and audit transactions without much cost. Blockchain is a continuously growing list of records, linked and secured using cryptography (secret codes which prevent third parties or the public from reading the transaction data), wherein each Block contains a timestamp and transaction data, managed by a Peer-to-Peer, P2P (User to user) network. Person A requests a transaction involving crypto-currency, r
Read more

CASE STUDY: Issues faced in availing business Loans, and how to overcome them.

Based on our extensive market research, we have found that all Scheduled Commercial banks are mandated to provide financial assistance to eligible MSMEs and Start-ups, under Stand-up India, MUDRA, and CGTMSE Schemes. However, the interest in promoting these schemes is fairly low or non-existent amongst Banks, especially Private and Foreign Banks, which is contrary to the stipulated guidelines. Recently, while assisting one of our clients in availing a Cash Credit Limit under CGTMSE Scheme, MSMEmitra.com experienced some of the problems faced by MSMEs. 'Company X' is an established market player in its field of work, providing the goods and services to big corporate clients. Company X had infused more capital into the Business in this Financial Year, to expand its operations and had a requirement for a Working Capital Cash Credit Limit of Rs. 60.00 Lacs. The company had surpassed the sales figures of the previous year within 5 months of the Current Fiscal, and were loo
Read more