The data and information for this case study were derived from a combination of primary and secondary sources. Primary data was gathered through interviews with the company’s founder and its customers. Initially, two semi-structured personal interviews with the founder were conducted on 17th and 18th October 2024 to establish a foundational understanding. These were followed by two structured interviews on 21st March 2025 and 19th August 2025, designed to address any remaining gaps. Customer insights were obtained through semi-structured interviews with micro, small and medium enterprise borrowers on 14th and 15th October 2024, along with structured interviews with 30 individual customers. Secondary data, including financial statements, was accessed from the Prowess database (Unravel insights & opportunities in India’s richly diverse enterprisesLink to the cited article.) on 10th August 2025. To ensure the reliability of the results, a triangulation process was used by systematically comparing the data collected from these primary and secondary sources. This method of cross-verification helped validate the findings. Furthermore, all information was anonymised as needed to prevent conflicts of interest, thereby enhancing classroom discussions and learning.
Abhik Mitra from Patna’s middle class worked as a professional, while his key goal was to help disadvantaged sections of society. His vision for financial inclusion prompted him to pursue his dreams after witnessing that local artisans failed to receive help from corporate lending and their ongoing financial struggles. 2016 marked the establishment of the Kanak Kuber Microfinance Association (KKMFA) by Mitra after injecting INR 7.5m through a trust-based Joint Liability Group (JLG) to lend small amounts to rural borrowers. Mitra’s approach to personalized lending brought immediate success to the KKMFA, which led to new investments, resulting in new business locations in Bihar and West Bengal. Through his resilience, strategic digital payment innovation and chatbot-assisted service development, Mitra restored stability to his organization during the severe challenges brought on by the COVID-19 pandemic. After the pandemic, the KKMFA encountered an altered business environment since the year ending in March 2023. Small borrowers in rural areas abandoned the JLG loan structures because they migrated toward conducting their own independent activities. An increasing number of predatory lenders with unsustainable practices has intensified competition in the microfinance sector, leading to shrinking profit margins. As a result, Mitra faced growing pressure from financiers and customer segments to rethink his primary focus on a sustainable JLG model rooted in trust and responsible finance. Should the KKMFA uphold its trusted, community-based JLG model to ensure sustainable and responsible finance, or should Mitra respond more practically to market pressures by additionally piloting a technology-driven individual lending model with competitive rates? However, this risks higher defaults and could compromise Kuber’s mission of responsible and sustainable financial inclusion.
This case is appropriate for a postgraduate-level program in strategic management, strategic finance, microfinance and entrepreneurship. In these courses, students can learn to interpret possible strategies by analyzing financial statements and aligning them with cost-benefit analysis, stakeholder theory and social capital theory. This case study deals with the practical dilemma of adopting a new business model that uses technology to minimize the risk of delinquency, optimize profits, enhance value for stakeholders and build social capital for low-income groups. Details about the country, banking situation and microfinance in India are included to make the case relevant to a larger audience.
