Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the Indian industry. According to an official data, MSMEs contribute around 6.11 percent of the manufacturing GDP and 24.63 percent of the GDP from service activities as well as 33.4 percent of India’s manufacturing output.
The MSMEs require free-flow of funds to carry out its operations without any hassle, and for this, MSME lending play a crucial role.
The lending sector in India has seen a drastic transformation in the recent past, given the technological advancements that have been witnessed in a decade. Today, fintech lenders are able to venture into segments previously deemed high-risk by financial institutions and banks. This is yielding positive results in several critical areas, such as MSME lending.
Emerging fintech platforms have been successful in bridging the gap between lenders and borrowers, utilising technology in automating policy checks, verifications, eKYC, among other governing protocols.
Here are five distinctive platforms provide smooth finance resource for MSMEs.
1. Indifi Technologies: Indifi Technologies is a Gurgaon-based leading platform for enabling debt-financing for small businesses. The key innovation in 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, experience that borrowers get in terms of speed of approval and disbursement, relevance of collateral-free loans and loan products to their business needs.
2. LendingKart: LendingKart Finance Limited (formerly Aadri Infin Limited), is a non-deposit taking NBFC, providing SME lending in India. The company aims to transform small business lending by making it convenient for SMEs to access credit easily. The company uses technology and analytics tools, analysing thousands of data points from various data sources to assess the creditworthiness of small businesses rapidly and accurately.
3. Capital Float: Capital Float is an online platform that provides working capital finance to SMEs in India. It offer flexible, short-term loans that can be used to purchase inventory, service new orders or optimize cash cycles. Their mission lies in bridging the current gap in the market with innovative and flexible credit products for SMEs, delivered in an efficient and customer-friendly manner.
4. KredX: 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.
5. Neo Growth: NeoGrowth offers unsecured loans to merchants who accept credit/debit cards or other digital payments from customers using its proprietary technology platform. NeoGrowth loans are short-term and hassle-free with the facility of daily repayment; a key customer delight factor. At the heart of NeoGrowth business strategy is a mission to have a positive social impact on the financial lives of small and medium business merchants across India, more than 50 percent of whom are creditworthy but until now have been excluded from accessing loans based on traditional underwriting methods.