KLM Axiva Finvest: Fulfilling the Vision of “Amritkaal” by Empowering the Rural Population of India



Gold is a commodity with high liquidity and sustainability, making it an ideal asset for leveraging. Since ancient times, gold-backed loans have been a prevalent trend in India for a long time, particularly in rural areas. Although, from a general perspective, rural areas have limited access to formal credit provided by banks and other financial bodies. For them, gold loans are readily available through local lenders, making them a viable option for investment.
However, this sector is quite unorganized, and people at the bottom of the pyramid often end up in a vicious debt trap. By providing holistically structured gold-backed loans, rural people can be empowered without having to participate in the hassles of traditional banking services. To bridge this gap and offer the aforementioned support to rural communities, today we present the brand story of KLM Axiva Finvest.
KLM Axiva Finvest offers high-quality services like gold loans, business loans, microfinance, investments, insurance, money transfers, and forex services. With this comprehensive suite of offerings, the company strives to provide solutions that have an upper hand in empowering rural people with financial stability. In addition to that, to become the confidant of students pursuing overseas education, KLM Axiva Finvest has launched new divisions specializing in foreign exchange, money transfer, and outward remittance services.

As we engaged in an interactive conversation with the dynamo behind the company, Mr. T.P. Sreenivasan IFS (Retd) Chairman, KLM Axiva Finvest we delved into the entire trajectory of his entrepreneurship. The segment he has chosen to work on is prolific from the standpoint of rural empowerment, and we are elated to bring it forward on our platform!

KLM Axiva FinvestPrime Insights: Welcome sir. It is a humble privilege to have you with us. We would like to know what led to the inception of your company.

The major factor that inspired us to start a gold loan company is the realization that gold-related loans offer a tangible solution, especially for rural populations who often face challenges in accessing traditional banking services. Gold is a commodity with high liquidity and sustainability, making it an ideal asset for leveraging in financial transactions.
Rural populations, in particular, are often underserved by banks, making them less bankable. By providing gold-backed loans, we aim to bridge this gap and offer much-needed support to rural communities.
Furthermore, this business is hassle-free, offering a straightforward process for borrowers. Leveraging microcredits, we aim to stimulate economic growth by empowering individuals to undertake various income-generating activities. So our target is to not only provide financial assistance but also to contribute to the overall economic development of rural areas through accessible and sustainable financial solutions.

Prime Insights: During the initial phases of your journey, what were the prominent hurdles you faced?

The initial challenges faced in our gold loan business were around ensuring the security of assets, particularly because we took on the responsibility of handling the gold of the public. Safety and security were and continue to be major concerns in this regard. One of the primary hurdles we still encounter is identifying trustworthy individuals to whom we can extend our services. Given that our business heavily relies on trust, establishing the integrity and reliability of our clients is paramount.
To address these challenges, we have implemented rigorous security measures and comprehensive vetting processes. This includes utilizing advanced security systems and conducting thorough background checks on potential clients to ensure their credibility and reliability. By prioritizing security and trustworthiness, we aim to build a strong foundation for our gold loan business, fostering long-term relationships with our clients based on mutual trust and confidence.

Prime Insights: What mantras has the company implemented to build credible alliances with your customers?

With 25 years of trust and legacy, we have been able to cultivate trust not only among our customers but also within the market. Our commitment to customer relationships, swift delivery, excellent after-sales service, and competitive interest rates are the unique factors that contribute to building trust in our brand within the market. We also engage with them regularly to garner their valuable feedback for our benefit.
This dedication to customer satisfaction has created a differentiating factor for us in the gold loan service. Additionally, offering competitive interest rates underscores our commitment to providing value to our customers, further strengthening their confidence in our brand. Through these unique factors and our longstanding legacy of trust, we continue to solidify our position as a trusted leader in the market, earning the confidence and loyalty of both existing and potential customers alike.

KLM Axiva FinvestPrime Insights: How do you evaluate the value and importance of a customer in your business?

For us, a customer is someone who seeks a long-lasting relationship, looks for value-added, and relies on us for comprehensive financial support. They view KLM as a financial supermarket, offering a wide range of services to meet all their financial needs. Purely because of the value they’re finding in our services, they place their trust in us, and we appreciate the same. It is only because of their trust that we can inculcate a firmer sense of responsibility within us. As a result, our non-performing assets (NPA) rate is comparatively low, making us a leader in the industry in terms of asset quality.

Prime Insights: What are the strategic initiatives that KLM has implemented for marketing its array of services?

Below-the-line (BTL) campaigns are a prominent element of our marketing initiatives, particularly in rural areas. As 70% of the rural population falls under the T1 and T2 category cities these robust BTL campaigns facilitate the establishment of relationships and trust. Additionally, our brand endorsement initiatives, featuring the right ambassadors, are integral to our marketing strategy, further bolstering our business growth efforts.
Competitive offers and promotions serve as additional marketing initiatives employed by our company. These initiatives are designed to attract customers by providing compelling deals, thereby enhancing our competitiveness in the market. Through strategic pricing and enticing promotions, we aim to capture the attention of potential customers and encourage them to engage with our products and services.

Prime Insights: Can you please highlight the action plans that are aligned for the coming years?

Our upcoming plans include expanding to 2000 branches within the next 3 years, with a target of reaching a business turnover of 10,000 crores. Additionally, we aim to scale our branches to encompass 15 more states, further extending our reach and presence across the nation. We are preparing for the process of going public with an initial public offering (IPO), as part of our strategy to issue shares to the general public.
As we look towards the future, our aspirations, both personally and professionally, are driven by a steadfast commitment to excellence. Professionally, we aim to ascend to the ranks of the top 5 NBFCs within a span of 3 years. To achieve this ambitious goal, our strategy revolves around further expanding our branch network, elevating our service standards, and fortifying our relationships with customers.

KLM Axiva FinvestPrime Insights: Over all these years, how has your entrepreneurial journey shaped your perspective as a leader?

Embarking on this journey a quarter-century ago, I, as the entrepreneur behind our company, started with a humble vision nurtured within the confines of a village. Today, witnessing the fruits of our labor span across the nation fills me with immense pride. From our modest beginnings, our company has grown into a beacon of success, boasting a vast network of 1000 branches and serving over 5 lakh customers.
This achievement stands as a testament to the hard work of our 3500+ strong team, whose dedication has been the cornerstone of our progress. As we look back on our journey, we cherish the legacy of trust we’ve built. Having provided employment opportunities to over 3500 families, we are contributing to GDP growth. Looking ahead, we remain committed to our mission of offering meaningful employment to youth, thereby shaping a brighter future for generations to come.

Prime Insights: For aspiring young entrepreneurs, what are the pieces of advice that you would like to offer them?

As you embark on your journey to establish successful businesses, we offer you some invaluable advice based on our own experiences. Trustworthiness, dedication, and promptness are the cornerstones upon which you should build your ventures.

  • Firstly, cultivate trustworthiness in all your interactions. This quality is essential for building credibility and forming strong relationships with customers, suppliers, and stakeholders. Trust forms the bedrock of sustainable growth and long-term success.
  • Secondly, dedication is key to overcoming the inevitable challenges you will face along the way. Stay committed to your goals, and let your determination fuel your perseverance. By staying focused and resilient, you can navigate obstacles and emerge stronger than ever.
  • Lastly, promptness in decision-making and execution is crucial in today’s fast-paced business environment. Be agile and responsive to changes, seizing opportunities as they arise. Your ability to act swiftly and decisively will set you apart and keep you ahead in dynamic market conditions.

Incorporate these principles into your entrepreneurial journey, and you will be well-equipped to navigate the complexities of business ownership. My wishes are with you for your enlightened future.

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