Out of the 200-245 million informal enterprises that need credit and can’t avail it, more than 90% are MSMEs. The Indian government has been trying hard to mobilize credit and funding for this critical sector of the nation’s economy but has not been able to. It’s just not feasible for conventional banks to do it. So here are 5 technology-driven lending platforms for MSMEs to consider:
A Gurgaon-based leading platform for enabling debt-financing for small businesses. The key innovation in the approach that Indifi is bringing is to design and deliver credit products basis the kind of business the MSME is in. With the proliferation of technology and easier data availability, the platform helps to create an industry-specific credit delivery system in a cost-effective and scalable manner. The USP lies in improving the access to credit, an experience that borrowers get in terms of speed of approval and disbursement, the relevance of collateral-free loans and loan products to their business needs.
Innoviti Payment Solutions Pvt. Ltd. (formerly Innoviti Embedded Solutions Pvt. Ltd.) uses technology to solve real-world payment acceptance problems of merchants. Using its indigenous developed technology and constant innovation, Innoviti has delivered differentiated solutions for payments automation, consumer credit distribution and SME lending that have become a benchmark in their markets.
Kredx was built to help businesses achieve their short-term working capital needs by discounting their unpaid invoices (raised against blue chip companies) to a network of buyers/financiers including banks, NBFCs, wealth managers, and retail investors. The platform helps organisations maintain cash flow by unlocking the cash that is tied up in their invoices. It also offers financiers access to risk-mitigated, high-yield, and short-term investment opportunities that are not tied to the uncertainties of the stock market.
4. Neo Growth
Neo Growth manages merchant transactions for acquiring banks as well as credit card issuers and large loyalty programs. It caters to the under-served market by adopting an innovative approach and validating the credit-worthiness of the business. They believe in financing small business owners by leveraging the digital payments ecosystem.
5. Capital Float
A non-banking finance company (NBFC), Caital Float is an online platform that provides working capital finance to SMEs in India. Their mission lies in bridging the current gap in the market with innovative and flexible credit products for SMEs. It offers flexible, short-term loans that can be used to purchase inventory, service new orders or optimize cash cycles.