-           Alastair Pavrey Many entrepreneurs find themselves in a dilemma when it comes to raising funds and deciding between equity and debt. There are lot of common concerns regarding equity with respect to losing control and giving up equity stake which leads them towards debt funding, ignoring the risks inherent with that strategy. Although sometimes viable and effective, taking on debt at the wrong time can be a death wish to most startups and put them on a path to failure. Most importantly, many MSMEs are not very enthusiastic and aware of the various other financing options available. Private equity funding from a credible investor has many positives for MSMEs such as increasing the Net worth and strengthening the books, guidance to better endure the volatile business environment, flexibility in structuring return of investment, access to high-level intellectual capital, etc. Further, raising private equity is easier as com...

By Alastair Pavrey The banking sector has always been in the spotlight, for good or bad. Considered a backbone of the economy, the integrity of the institutions has been questioned due to various issues, ranging from the exponentially increasing Non-performing Asset (NPA) woes to the recent frauds making waves around the finance community. Let us look at how the sector performed in Q3 FY18, the NPA situation and how it is being resolved and finally why the MSME sector is emerging as a good proposition for banks to expand their loan portfolio, while significantly reducing the risk of “bad loans”. Banking Sector Performance Q3 FY18 As per CARE Ratings, the performance of banks continues to be stressed in Q3-FY18 as revealed by the performance of a sample of 30 banks which includes 13 PSBs and 17 private banks. Profits are under strain and the NPA issue continues to pressurize banks. ·       Growth in interest income in Q3-FY18 was 8.9% as a...

By    Alastair Pavrey The Union Budget and the Monetary Policy have made February an important month for MSMEs, with various policies and measures announced to boost the sector. The Government and RBI together hope to make the sector as a catalyst to the growth of the Indian economy, through key structural reforms. The Union Budget 2018-19: Finance Minister Arun Jaitley presented the Union Budget 2018-19 on February 1 st , amidst the backdrop of the current economy recovering from the twin shocks of Demonetization and rollout of the Goods and Services Tax (GST). The budget provided major benefits to the agriculture and rural economy with a focus on employment and infrastructure creation. The MSME segment also came out as a winner with some important and helpful policies, in addition to steps towards a more inclusive economy. The government has increased spending which will boost consumption, production, and investments. The highlight to the budget...