How Can Ujjivan Become Profitable with Sustained Growth?

Problem Statement

How can Ujjivan become profitable with sustained growth?

Introduction

Ujjivan is a microfinance institution, aimed at providing financing facilities to the underprivileged areas of the India, specially empowering women in the country, who are living below the poverty line and struggling with life to support their daily expenses such as food, cloths, shelter, and medical expenses as well. Furthermore, the company is a young in the market and is growing rapidly. Indeed, the increased complex financial system has made very complicated procedures for acquiring loans, especially for the poor people.

So, this triggered the growth of the microfinance institutions that also increased competition as well. Furthermore, the Ujjivan focused on the urban women empowerment rather than serving the rural population. With this perspective and mission, the Ujjivan expanded to the main cities of the India including Bangalore, Kolkata, and Delhi. Meanwhile, it has a customer base of 25,000 in all cities.

Furthermore, the attractiveness of the Ujjivan was its quick processing loan in less lead time, and its broad range of financial products that include family loan, business loan, housing loans, and other two small loans like festival loans, and emergency loan that is being processed within 24 hours of the time period. Indeed, the increased financial complexities have attracted customers to the Ujjivan, and also due to the trust that company had built among the customers regarding the facilitations services.

Meanwhile, Ujjivan has been under many problems that it was facing since the rapid growth of the company. Because, Ujjivan is on the loss since it started operations. The loss continues to increase every year, and the fraud in the loan repayments, and in insurance payment has also increased. Meanwhile the competition in the market