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Tag: SIDBI

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Ugro Capital and Sidbi Announce Strategic Co-lending Partnership to Empower Msmes

Jul 30, 2024 by Mansi 0 Comments #Empower Msmes, #Mr. Shachindra Nath, #Shri Prakash Kumar, #SIDBI, #Ugro Capital

Mumbai, July 30, 2024: UGRO Capital, a DataTech NBFC and India’s largest Co-lender in the MSME segment, today announced its strategic co-lending partnership with the Small Industries Development Bank of India (SIDBI). The partnership is established under the Reserve Bank of India’s (RBI) co-lending framework, designed to leverage the strengths of banks and NBFCs to boost priority sector lending.

The co-lending agreement aims to provide faster and more affordable credit to MSMEs, combining UGRO Capital’s innovative data & technology and extensive on-ground presence with SIDBI’s robust financial resources and strategic vision. This collaboration will facilitate inclusive growth and socio-economic development across the country by enabling MSMEs to access the credit they need to thrive.

Shri Prakash Kumar, DMD, SIDBI commented on the partnership, saying, “SIDBI is committed to fostering the growth of the MSME sector, which is the backbone of India’s economy. NBFCs play a crucial role in our growth strategy due to their ability to reach the bottom-of-the-pyramid businesses, especially in credit-deficient geographies. Their adoption of innovative and agile credit delivery models and deep understanding of the local ecosystem are invaluable. The co-lending framework offers a significant opportunity to channel affordable and timely credit to the smallest MSMEs in partnership with NBFCs. Our collaboration with UGRO Capital aligns perfectly with our mission to extend our reach and impact through strategic partnerships. We are pleased to commence our co-lending arrangement with UGRO Capital, which will help provide affordable business loans to MSMEs.”

Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “We are thrilled to join hands with SIDBI in this strategic co-lending partnership. Our combined efforts will not only enhance the reach of credit to MSMEs but also ensure that it is provided swiftly and at a more affordable cost. This collaboration is a testament to our commitment to driving financial inclusion and supporting the growth of MSMEs across the nation.”

UGRO Capital‘s unique data-driven co-lending approach has already extended bespoke finance solutions to over 78,000 MSMEs in India. With this partnership, UGRO Capital will further expand its impact by enhancing its business footprint and increasing its income through collaborative efforts with SIDBI. The partnership underscores the commitment of both organizations to fulfilling priority sector lending obligations and supporting the MSME sector’s growth.

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GCF approves USdollar 215.6 million for SIDBI’s- Financing Mitigation and Adaptation Projects in Indian MSMEs

Jul 23, 2024 by Mansi 0 Comments #Development Financial Institution, #Green Climate Fund, #Indian MSME, #SIDBI

Chennai, 23 July 2024: Green Climate Fund (GCF) has approved US$ 215.6 million in its 39th Board meeting held in Songdo, South Korea on July 17, 2024 for implementing Financing Mitigation and Adaptation Projects (FMAP) in Indian MSMEs. The programme aims to support the Micro, Small and Medium Enterprises (MSMEs) in India to adopt low emission and climate resilient technologies, thereby contributing to the Net Zero targets of the country. The programme will also target scaling up Climate Finance for MSMEs by leveraging Private Sector Investments from the Participating Financial Institutions (PFIs) including Non-Banking Financial Companies (NBFCs), Small Finance Banks (SFBs) and Micro Finance Institutions (MFIs) which will then be utilised to provide concessional loans to MSMEs to adopt various mitigation and adaptation technologies.

gcf

By empowering MSMEs with access to dedicated climate financing, India not only bolsters its own green initiatives but also sets a vital precedent for sustainable development in the global south. This facility signifies a crucial step forward, reinforcing the importance of inclusive climate action and highlighting India’s proactive role in addressing global environmental challenges.

SIDBI, being Development Financial Institution (DFI), has taken proactive steps to green the enterprise ecosystem with its developmental and financial engagements. It has always remained at the forefront when it comes to promoting new technologies among the MSMEs through its innovative approach. SIDBI is engaged in several activities and is expanding its horizon in the space of Greening the Ecosystem at all fronts be it startup, MSMEs, rural/unserved/underserved segments/pockets/artisan clusters and so on. Further, FMAP is a unique endeavor to encourage the Indian Financial ecosystem to scale up climate financing for MSMEs. SIDBI is pleased to receive the much-needed support from GCF for greening the MSME ecosystem and to boost climate financing in the Indian Financial system.

The FMAP facility carries a two-fold target: firstly, US$ 15.6 million grant support from GCF will be utilised to build the capacity of various stakeholders including MSMEs and PFIs to understand the various low emission and climate resilient technologies in the market and the importance of adopting the same and secondly, US$ 200 million will be utilised to provide the much-needed support of concessional finance to enable scaling up the targeted intervention. The uniqueness of FMAP is owing to the blended financing facility that will be set up under this programme, by blending US$ 200 million support from GCF with US$ 800 million contribution. This blended facility will then be utilised to provide nearly 10000 concessional loans to the MSMEs, an endeavour aimed at promoting low emission, climate resilient technologies and also to boost climate finance for MSMEs from the Indian Financial System. The FMAP programme is expected to result in GHG emission reductions to the tune of 35.3 million tonnes and the adaptation activities would not only lead to substantial water savings but also build resilience of vulnerable communities benefitting more than 10.8 million beneficiaries. FMAP programme encourages higher level of participation of women in all the activities envisaged.

As Accredited Entity and Direct Access Entity to GCF, its second project anchored by SIDBI. The first approved project, Avaana Sustainability Fund is to kindle start up eco system by enabling Avaana Capital, to obtain GCF funding of US$ 24.5 million for leveraging US$ 120 million. SIDBI is thankful to Ministry of Environment Forest and Climate Change (MOEF&CC), Government of India, the National Designated Authority for GCF related matters, for their continuous guidance and support.

BILITI Electric gets financing approval from SIDBI for its GMW Taskman Electric 3 Wheelers Autos
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BILITI Electric gets financing approval from SIDBI for its GMW Taskman Electric 3 Wheelers Autos

Jun 13, 2022 by Praveen 0 Comments #BILITI Electric, #GMW Taskman Electric 3 Wheelers Autos, #SIDBI

California-based BILITI Electric Inc announced that Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of MSMEs, has approved to sanction loans to those who are interested in purchasing GMW Taskman Electric 3W Autos, through its ‘Digital Prayaas’ program.

‘Digital Prayaas’ is an App-based end to end digital lending platform to facilitate access to low-cost borrowings for micro-entrepreneurs/micro enterprises. Further, to cater to the aspiring youths in the urban area, SIDBI has also tied up with a major aggregato r viz., BigBasket, to on board its delivery partners across the country and provide loans at an affordable interest rate for purchase of environment friendly electric vehicles suitable for deliveries.

The development enables BigBasket delivery partners to purchase GMW Taskman 3W vehicles at 8-10% interest rate and provide a regular stream of revenue, allowing them to lead a sustainable livelihood. BILITI’s Taskman vehicle is first in the e-van segment to get financing approval as part of the program.

Department of Financial Services Secretary Mr. Debasish Panda while launching the initiative, appreciated the role played by SIDBI in meeting the financial requirements of the people at the bottom of the pyramid by offering loans at an affordable rate through its Digital Prayaas programme.

SIDBI Chairman and Managing Director (CMD) Sivasubramanian Ramann said “the App facilitates speedy onboarding of loan applicants in a digital and integrated process which has made the entire programme scalable with better risk management and would further improve customer satisfaction.”

Speaking on this occasion, BigBasket CEO Hari Menon said that they are delighted about this partnership. “The initiative to offer loans will have a positive impact on the livelihood of hundreds of our delivery associates and also fulfills its social objectives,” said Hari Menon.

“We are extremely happy to collaborate with SIDBI-BigBasket on this unique financing option for BILITI Taskman 3-wheeler electric vehicles. SIDBI has been at the forefront of assisting and developing MSMEs, since its inception. We are one of the early EV partners for BigBasket. Thanks to BigBasket for being an early adopter of our EVs, and for creating EV friendly warehouses by providing charging and parking facilities across the country” said Rahul Gayam, CEO, BILITI Electric.

BILITI Electric currently operates through an exclusive manufacturing partnership with Hyderabad- based Gayam Motor Works (GMW) for manufacturing its three-wheelers. Biliti’s TaskmanTM is a popular last-mile delivery vehicle that is deployed in 15 countries across the globe including Japan, the USA, the UK, France, Portugal, Germany, Lebanon, Uganda, Kenya, Senegal, Nepal, Bangladesh, Dubai, and India and has covered over 20 million miles. TaskmanTM is being used by Amazon, IKEA, Wasoko (Sokowatch), BigBasket (Tata), Zomato, Flipkart (Walmart), and JioMart (Reliance) among others. The TaskmanTM has already made more than 12 million deliveries worldwide with many more to come. Its batteries and drivetrain are compact and modular in design, allowing them to have wider applications in auto, marine, warehousing, and backup power sectors enabling the buildout of an EV ecosystem.