Listed on the Growth and Enterprise Market Segment(GEMS), shoe vendor Nairobi Business Ventures(NBV) is considered the best performing at the Nairobi Securities Exchange. Its share price has appreciated more than 600% this year.
This follows the acquisition of a majority stake in the firm by Dubai-based Delta International FZE for a tidy sum of KSh 83 Million, giving the foreign entity an 84% in NBV, pending all regulatory approvals.
But where did the success story of NBV begin?
The journey began in 2012 when Vasu Abotula, a finance and accounting professional, established NBV as a small shoe distributor. NBV’s main business was the retail of leather shoes and leather accessories.
NBV started as a distributor of shoes in Kenya through the brand name ‘Kwanza shoes.’
These shoes were imported from China and India and branded in Kenya. Later in 2013, the Company changed the brand name from ‘Kwanza to ‘KShoe.’ It soon became a retail chain with six KShoe brand retail outlets at prime locations in Nairobi.
“When the GEMS segment was introduced in NSE for SMEs to list with a minimum capital of KSh10 Million and one year balance sheet, we realised we already meet the requirement,” said Abutola.
Abutola, who sits on the board of NBV, has always had a burning desire to be an entrepreneur, and after working for more than two decades, he got the opportunity to do just that.
“Since I am not a wealthyinvestor, i chose to start as an SME together with few like minded friends and together we begun the journey,” said Abutola.
In his narration, Abutola recounts the many hurdles he encountered to finance the business requirements as a private company without collateral securities to support sufficient bank finance and even private finance.
“I started setting up my small business venture in 2010 with a small restaurant and by 2012 had four of them,” said Abutola.
When NBV was preparing to list at the NSE, it began structuring the firm to meet the requirements of Corporate Governance, Transparency, and professional Board Composition.
“In 2014, we approached NSE through a Nominated Advisor. It was tough and long journey before we rang the bell in June 2016,” recalls Abutola.
During the NSE listing process, the shoe vendor learned a lot about why the stringent norms were put in place to protect the public money and trust in listed companies.
“To protect the interest of its shareholders NBV did not give up during the tough times it faced and bounced back with a much stronger and sound company that it is today,” said Abutola.
NBV is considered one of the best examples in Kenya to have benefited from listing at the NSE.
Weathering through a harsh business environment during its first four years in operation, NBV sought to attract a foreign investor to revive its operations and listing status at the NSE.
NBV has since professionalized a small shoe vendor how it does business, revamped its management and board structures, and instilled transparent and acceptable corporate governance practices.
“These steps are required for any SME that seeks to list at the NSE, seeking the much-needed access to finance through capital markets to support its growth and ambitious plans,” said Abutola.
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