How We Helped Hanto Secure ₹10 Crore in CapEx Financing to Open Two New Offices

We helped Hanto successfully raised over ₹10 crore within one month through RFin, enabling them to open 50,000 square feet of new workspace immediately, with the flexibility to scale up to 2 lakh square feet in the near future.
Co-working office construction
Co-working office construction

Company Overview

Hanto hosts exclusive workspaces, cafes, food joints, Airbnbs and terrace gardens enabling various modes of work. It currently operates 9 properties. Located on well connected junctions, spaces are passionately crafted with meticulous detail and offer a seamless blend of functionality and aesthetic appeal.

CLIENT NAME

Hanto Workspaces

CLIENT LOCATION

Bengaluru, Karnataka

CATEGORY

Coworking company

The Challenge

Hanto plans to expand by adding over 2 lakh square feet of managed office space, but high CapEx for fit-out costs was a major hurdle. To address this, they aimed to switch from CapEx to OpEx through an operating lease model to reduce upfront investment and preserve cash flow. However, they faced credit limit constraints with existing lenders and lacked expertise in securing operating leases in the fit-out industry. Additionally, using internal funds for CapEx would not provide enough tax benefits in the initial months of operations due to limited depreciation claims.

The Solution

RFin helped in –
  • Tailored Financing Solution: RFin identified three operating lease companies best suited to Hanto’s needs, securing offers with favorable terms. The final arrangement included a ₹10 crore credit line, disbursed in two tranches, with a 3-year tenure and less than 15% post-tax IRR. This operating lease allowed Hanto to fund the fit-out of over 50,000 square feet of office space immediately, with further capacity to expand to their 2 lakh square feet target.
  • Cost Efficiency and Flexible Utilization: Hanto’s monthly CapEx need of ₹1.5–2 crore was well-suited to a 6-month operating lease model, proving more cost-effective than traditional loans. The structure reduced financing costs while preserving debt capacity, enabling Hanto to execute its expansion plans efficiently.
  • Significant Tax Savings: Converting CapEx to OpEx resulted in substantial tax savings for Hanto, reducing their total cost of ownership by 30%. Instead of claiming just 10% depreciation on CapEx, Hanto could now claim approximately 35% of the original CapEx annually in their P&L over the three-year lease period, significantly lowering their tax burden.

And more..

The Results

After implementing the above solutions, the customer experienced the following results in project costs and performance

👉 ₹ 10 Crore Sanctioned  
Hanto successfully raised over ₹10 crore within one month through RFinance, enabling them to open 50,000 square feet of new workspace immediately, with the flexibility to scale up to 2 lakh square feet in the near future.

👉 Interest @15% Post tax IRR and a 3-year tenure  

The partnership with RFin delivered exceptional outcomes, providing a single ₹10 crore credit facility at under 15% post-tax IRR with a 3-year tenure. This flexible facility can be expanded through fresh assessments, ensuring continued financial support for Hanto’s ambitious growth plans. The process was efficient, cost-effective, and aligned with Hanto’s long-term goals.

“RFin has truly transformed our business, particularly in handling the significant debt burden of our managed office spaces venture. In the past, we explored both internal as well the DSA model, but it never quite met our needs. However, since teaming up with RFin, they swiftly understood our challenges, carefully reviewed our financial records, and provided invaluable advice, much like a trusted guardian. They helped us navigate the complexities of securing the right loan amount and structure for sustainable business growth. Remarkably, In just the past 2-3 months, they facilitated a 5 Cr disbursement and secured sanctions up to 15 Cr for future use as per projected growth and Capex funding requirements through syndication and resolved a longstanding issue with a single transaction. I wholeheartedly endorse integrating RFin as your debt funding partner.”

Aashit Verma

Founder and CEO

About RFin

RFin is India’s first-of-its-kind financial solution for construction companies & SMEs in India.

We offer construction companies quick and easy financing, competitive interest rates, and the chance to attract more clients and expand their services.

Explore innovative financial solutions provided by RFin in our insightful case study.

Business Growth.FINANCED

RFin connects borrowers and lenders, enabling businesses to raise capital easily and efficiently.

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