Pune, 22 May 2024: In a significant development poised to reshape the landscape of real estate financing, Prachay Capital, a prominent non-banking financial company (NBFC) based in Pune, has forged a strategic partnership with leading Aluform manufacturer Knest, to introduce pioneering financing solutions.
The collaboration between Prachay Capital and Knest comes as a boon to the real estate sector, particularly in Pune, where capital-intensive projects often face challenges in securing timely funding. Aluform, a cutting-edge technology essential for high-rise buildings and expansive projects, previously sourced mainly from Korean companies, has seen a notable shift towards Indian suppliers in recent years. Knest, led by Mr. Nitin Mittal, has emerged as a key player in this domain, capturing a significant market share.
Recognizing the critical role of Aluform in project economics and the absence of dedicated financing options, Prachay Capital has introduced two innovative products – Equipment Lease Finance (ELF) and Equipment Purchase Finance (EPF). These solutions alleviate cash flow constraints for developers by offering flexible payment schedules, thus enabling smoother project execution.
The unveiling of these ground-breaking products took place at YouthCon, Delhi in March 2024, garnering enthusiastic responses from industry leaders and developers nationwide. The initiative has been lauded for its forward-looking approach, marking a departure from traditional lending practices in the real estate sector.
The partnership between Knest and Prachay Capital signifies a win-win scenario for both manufacturers and developers. Knest can now provide its customers with exclusive payment facilities, while developers benefit from more manageable payment terms, reducing financial strain during project initiation.
Girish Lakhotiya, CEO of Prachay Capital, commented, “We are excited to pioneer innovative financing solutions tailored to the evolving needs of the real estate sector. Our collaboration with Knest underscores our commitment to driving positive change and facilitating growth in the industry.”
With a track record of developing avant-garde financial products, Prachay Capital is poised to reshape the dynamics of real estate financing. As new-age NBFCs continue to innovate, the banking industry can expect a paradigm shift in its approach towards supporting the burgeoning real estate market.
