What we do Five-Star Business Finance is an NBFC focused on providing secured business loans to micro-entrepreneurs and self-employed individuals across India, empowering financial inclusion. |
Founded in 1,984 |
Market share Strong presence in South and Central India with expanding footprint in 11 states, recognized for robust asset quality and best-in-class credit underwriting in microfinance segment. |
Problem solved Addresses credit gap for underserved small business owners lacking formal financing access by offering secured loans backed primarily by borrower property. |
Top clients or who we serve Serves micro-entrepreneurs, small business owners, and self-employed individuals in semi-urban and rural areas; predominantly B2C. |
Key management Lakshmipathy Deenadayalan (Chairman & MD), Anand Raghavan (Independent Director), Srikanth Gopalakrishnan (JMD & CFO), Bhama Krishnamurthy (Independent Director). |
Our journey and innovations Founded in 1984, pivoted to secured business loans in 2008, expanded geographically since 2017, went public in 2022, and innovated proprietary underwriting and collection models. |
Where we operate Operates in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Maharashtra, Chhattisgarh, Uttar Pradesh, Rajasthan, and Gujarat. |
Top products or what we offer Secured business loans, home renovation loans, and other mortgage-backed loans targeting micro and small entrepreneurs. |
Top brands Five-Star's core product is secured business loans for microentrepreneurs, recognized for high asset quality and customer-centric service. |
Raw materials needed - |
Raw materials supplier - |
Recurring vs cyclical contribution Revenue is largely recurring through loan interest income, driven by continuous disbursements and repayments. |
Our industry position Among leading NBFCs focusing on micro and small business lending with strong portfolio growth and low non-performing assets. |
Financial highlights FY24 revenue ₹2195 Cr, PAT ₹836 Cr, AUM ₹9641 Cr, 44% growth in disbursements; strong profitability with ROE ~15.8%. |
Geographical revenue split Revenue primarily from southern and central Indian states, expanding branch network enhances regional contributions. |
Order book - |
Whats driving growth Branch expansion, robust underwriting, proprietary risk management, growing demand from underserved small businesses, and access to diversified funding. |
Our future plans Aggressive branch expansion, increasing ticket sizes, enhancing technology, and deepening presence across 11 states. |
Our green promise Committed to sustainable practices with robust ESG governance, supporting social impact via financial inclusion and CSR initiatives. |
Our people and values Employs over 13,800 employees focusing on local hiring, training, and inclusive workplace culture. |
Key challenges ahead Managing asset quality while scaling, maintaining cost efficiency, regulatory compliance, and competitive pressures in NBFC sector. |
Interesting facts Listed since 2022, with over 830 branches and a loan portfolio exceeding ₹13,000 Cr by 2026, strong credit ratings by major agencies. |
Risks and strategy Mitigates credit, operational, and liquidity risks via stringent underwriting, diversified borrowing, robust IT systems, and regular audits. |
