Over the last few years, the advent of fintech platforms – especially digital lending, has been a game-changer for the MSMEs. Amidst a positive regulatory environment and progressive Government initiatives, there has been significant growth of SMEs accounted for nearly 17% Year-on-Year growth last year. However, a huge chunk of the market with the opportunity for digital lending is still left untapped. Studies anticipate 15x growth in digital lending to MSMEs by 2023, owing to rapid digitization and access to easier, cheaper credit facilitated by digital lending companies.
In the last year, the Indian financial market faced a major setback with ILFS crisis, shaving off over $116.33 billion investor wealth. With IL&FS being a major infrastructure player, this crisis could have potentially triggered a bigger financial crisis; however, the swift reaction by the Government and the regulatory bodies contained the financial crisis.
Let us now take a look 4 Fintech platforms that offer smooth finance to MSMEs:
Indifi Technologies: Indifi is one of India’s leading non-banking financial companies for SME lending. It is an end-to-end tech-driven lending platform that gathers and analyzes data of small businesses from innumerous sources, drawing key insights such as their past and present performance in the context of the industry they belong to. The platform then assesses the creditworthiness of these businesses and upon approval, takes the relevant applications to multiple lenders. In this manner, Indifi facilitates those businesses that had little to no access to traditional lenders or any formal business funding, providing them a simple, convenient, instantaneous, and hassle-free experience for them to address their pressing financial concerns and to embark onto their growth journey. The platform has successfully disbursed over 20,000+ loans to businesses across 200+ cities in 12+ industries, leveraging its extensive network of 20+ lenders.
Capital Float: Capital Float is the pioneer of digital lending in India with proven capabilities and experience in MSME financing. Speed and simplicity of availing credit have perennially been pain points for the Indian borrower. Capital Float is a lending startup that especially focuses on SMEs and helps them scale up. Capital Float works with ecommerce merchants, small-scale manufacturers and early-stage B2B service providers to provide flexible, short-term loans.
Lendingkart: Technologies Private Limited is a fintech startup in the working capital space. The Company has developed technology tools based on big data analysis, which facilitates lenders to evaluate borrower’s creditworthiness and provides other related services. 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, analyzing thousands of data points from various data sources to assess the creditworthiness of small businesses rapidly and accurately.
Neo Growth: NeoGrowth provides finance to small business owners to drive business growth that matches their ambitions. The hassle-free loans are powered by technology innovations and leverage the digital payment ecosystem. NeoGrowth provides retail and supply-chain finance to several industries. The company has provided business loans to several apparel industry merchants in the last 7 years across pan-India locations, providing them strong support in building up their business or expanding it further. Customised repayment solution, no collateral requirement, doorstep service and easy top-ups are some of the key features of NeoGrowth business loans.
(This listicle has not been compiled or written by DataQuest Editors)