MSMEs sector is blazoned to be the second-largest employment creator after agriculture, rendering employment to an estimated 11 crore. After all, it is the backbone of every economy and shares 30 percent of the GDP, and accounts for 48 percent of the exports.
Unfortunately, this space has always faced a plethora of issues associated with extensive liquidity, supply crunch, and lack of credit etc. These factors have created an unprecedented challenge for businesses of sizes, early age startups and MSMEs have been hit the hardest. This presents a significant opportunity for solution providers to bring forth intelligent insight-driven platforms that can enable easy access to cheap credit and helps in weathering out the storm faced by MSMEs. So, here is the rundown of the top 5 Financial Technology Companies offering Financial Health of MSMEs with their services –
Crediwatch– Crediwatch (CW) is a digital trust platform that has demonstrated multifarious use cases for the likes of large public sector banks to boutique corporate firms to small-scale industrial units. CW is an industry-defining AI/ML-powered company that operates in the space of business analytics, credit risk intelligence, and insights on businesses. CW is driven by its mission to solve for: 1. Financial inclusion of small and medium enterprises (SMEs) 2. Removing barriers to trade and credit 3. Building trust and transparency in business.
SmartCoin Financials– Smartcoin Financials is India’s first fully-automated app-based consumer lending company, offering small ticket personal loans to the underserved in India. It is stimulating MSMEs and individuals development and financial inclusion in India through ML and AI in financial services. Started by IIT/IIM alumnus Rohit Garg, Amit Chandel, Vinay Kumar Singh, and Jayant Upadhyay in early 2016, Smartcoin is aiming to address the credit requirements of innumerous self-employed micro-entrepreneurs, micro-merchants and middle/lower-income salaried individuals by leveraging advanced data science and Machine Language algorithms.
RXIL: In recent years, digital lending has been able to service the problem areas of the MSME ecosystem fairly efficiently. However, a completely recourse free mechanism called TReDS launched by the Govt. of India has enabled over 24,000 MSMEs unlock access to cash flow from their own working cycles. Receivables Exchange of India, is the country’s first TReDS Platform that provides registered MSMEs with recourse free, trusted receivables payments within 48 hours.
Algo360: Algo360 is an emerging alternative credit score solution that provides lenders 800+ alternate data points to gauge the creditworthiness of MSMEs who usually any credit score don’t have to present to banks. Less than 20% of MSMEs have access to formal credit amid an estimated MSME debt demand of INR 70 trillion or INR 70 lakh crore.
Cashinvoice: Cashinvoice provides technology that automates end-to-end processes from PO creation, invoice generation, payment clearance, reconciliation to settlements. This automation helps create a healthy working cycle between corporates and SMEs / vendors thereby allowing SMEs to focus on core commercial activities to scale their businesses by prioritizing efforts in the right direction.