According to the Confederation of Indian Industry, MSMEs contribute 6.11 per cent to the manufacturing GDP, 24.63 per cent to the GDP from service activities, and 33.4 per cent to India's manufacturing output. Despite its huge contribution, the sector is considered laid back. 

The MSMEs in India often face a cash flow disturbance due to various factors like non-availability of funds, post-dated cheques, late payments, and many more. The sector has immense potential for growth, however, funding is the pre-requisite for any MSME to grow smoothly and the number of restrictions imposed by the banks is making it difficult for the sector to finance their business. 

In this technologically-advanced era, fintech players are disrupting this space with their advanced technology and by providing flexible benefits plan to these MSME’s.

Indifi Technologies: Gurgaon-based leading platform, Indifi Technologies enables debt-financing for small businesses. It claims to design and deliver credit products based on the kind of business the SMB does. The platform helps to create an industry-specific credit delivery system in a cost-effective and scalable manner using innovative technology with an increasing focus on Tier II and Tier III cities as Well.The Company states that it strives to improve access to credit, speed of approval and disbursement, in order to provide relevant collateral-free loans and loan products.

 NeoGrowth: It is an SME lending platform, registered with the Reserve Bank of India (RBI). The NBFC’s approach includes innovative technology and digital payment ecosystem, along with flexible repayment options. NeoGrowth’s objective is to bridge the credit gap of MSMEs and offer customised products to address the customers multiple business needs. Following its alliance with Paisabazaar.com last year, the platform increased its point-of-sale (PoS) based loan business by 100 percent during Oct-Dec 2018 over the previous quarter. NeoGrowth has partnered with over 13,000 business merchants from the MSME industry.

 Zip Loan: The platform offers SME loans in the range of Rs 1 lakh to Rs 5 lakh at the best interest rates in the market, ZipLoan states. Its business loans for SMEs are designed to meet the needs of small business owners and the company disburses the funds within a few working days.

RupeeCircle: RupeeCircle is a new-age peer-to-peer lending platform that gives business loans to small business owners and enterprises at attractive interest rates. It provides low-interest business loans and follows a collateral-free approach.

 ePayLater: ePayLater is an online platform that provides working capital finance to SMEs in India with flexible, short-term loans that can be used to purchase inventory, service new orders, or optimise cash cycles. Its mission, it states, 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.

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