India’s MSME sector is a land of opportunity, brimming with passionate entrepreneurs. But the road from dream to success can be bumpy. The biggest hurdle for many aspiring business owners is keeping the cash flowing.  Even profitable businesses can struggle to sustain operations and achieve long-term success without adequate capital flow. At such times, financial aid can boost the business and propel it to greater heights, especially for small enterprises yet to establish a foothold in their industry. Protium understands this challenge intimately, and that’s where our solutions come in.

VSK Online Services: A Growth Story

Founded in 2022, VSK Online Services, a Delhi-based men’s clothing company, exemplifies the power of accessing the right financial resources. Started by Vishal Gupta with a modest Rs 25,000 investment, VSK initially focused on selling beanbags locally. Recognizing the limitations of a brick-and-mortar approach, especially during the pandemic, Vishal envisioned a broader online presence to cater to a national audience.

However, Vishal’s journey wasn’t without its obstacles. One of the biggest challenges for any business, especially a young one, is ensuring there is a healthy repository of working capital. This is critical to meet short-term obligations and invest in growth opportunities.

Limited capital (Rs 25,000) initially restricted VSK’s ability to invest in new products and expand offerings.  A limited inventory (around 50 beanbags) meant Vishal couldn’t cater to diverse customer needs. Operating from home limited storage space, making it difficult to manage inventory efficiently as customer demand grew.

With the e-commerce industry booming during the pandemic, particularly in FY 2022-23, Vishal saw an opportunity to scale his business. The surge in online shopping, (as highlighted by research agency, Statista on retail e-commerce sales worldwide) to surpass eight trillion dollars by 2027, convinced him to establish an online presence. This digital expansion would allow him to reach customers across India and overcome the limitations of his physical setup.

VSK Online Services turned to Protium for help. Protium’s business loan provided the necessary financial impetus to overcome these challenges and propel the company’s growth trajectory.

Addressing Cash Flow Needs
Protium’s business loan empowered Vishal to:

• Invest in new products: A wider range of men’s apparel, including shirts and trousers, was introduced, catering to a broader audience and boosting revenue streams.
• Increase inventory: With additional capital, Vishal significantly expanded his inventory, allowing him to stock not only 1,000 pieces of apparel but also maintain a sufficient stock of beanbags.
• Expand workspace: The loan facilitated the transition from a home-based setup to a dedicated warehouse, enabling efficient inventory management and smoother fulfillment of customer orders.

The Impact: A Thriving Business
The results speak volumes about the transformative power of Protium’s support. VSK Online Services witnessed a significant surge in revenue, growing from INR 49 lakhs in FY 22 to a staggering INR 1.5 Cr in FY 23. This financial growth translated into a stable and flourishing business with a loyal customer base of 50,000 per month.

Beyond Finance: Building Trust and Transparency
Vishal’s success story goes beyond just the numbers. Despite offers from other lenders, Vishal remains a Protium customer, potentially due to their transparent repayment plans with no hidden fees or surprise interest rates.

Stepping Stone to Greater Heights
With a flourishing online presence established on a leading e-commerce platform, VSK Online Services now sets its sights on conquering new frontiers. The company plans to expand its reach to other major e-commerce platforms that serves a customer base of millions.

In Vishal’s own words: “Protium has been my rock in my journey from selling beanbags to establishing a full-fledged successful men’s clothing business. Sticking to Protium since 2022 has helped me through all my ups and downs and given me the confidence to dream big and march towards other business platforms.“

Vishal’s experience serves as a beacon of hope for aspiring MSMEs. It demonstrates the power of a well-timed financial boost coupled with a supportive lending partner. Protium, through its tailored business loan solutions, empowers promising ventures like VSK Online Services not only to overcome initial hurdles but also to scale new heights and contribute to the vibrancy of the Indian entrepreneurial landscape.