Indifi disburses Rs 2800 cr to underserved micro businesses
GURGAON: Indifi Technologies has announced crossing all time disbursals of 50,000 loans to over 30,000 underserved micro SMEs. Despite their potential the credit gap to the MSMEs is estimated at Rs 40 lakh-crore, owing to barriers of access, cost, and underwriting.
Addressing the challenges that traditional underwriting models face in underwriting micro entrepreneurs, Indifi has been working towards driving inclusivity and growth within the sector by committing to significant technology and data investments. Indifi’s proprietary algorithms leverage data across verticals through ecosystem partnerships to underwrite the underserved MSMEs and deliver faster, more risk efficient and customised credit offerings.
Out of the 50,000 loans disbursed so far, one-fifth are to women entrepreneurs who on a national scale face a finance gap of $158 billion and largely rely on informal sources. Further within the women led businesses, 25% of the loans are to first time borrowers and 25% to businesses from tier 2,3 & 4 cities.
Post pandemic, there has been a significant transition of both businesses and consumers moving digital and the same is true for women entrepreneurs. Indifi saw the same reflected in its disbursals as well. The share of loans disbursed to women MSMEs within the e-commerce and restaurant delivery verticals was 50% higher than the retail and offline verticals. Through its strategic ecosystem partnerships and embedded data-led underwriting models Indifi aims to break the traditional roadblocks of credit and help women MSMEs unlock scale.
Neha Tandon, owner of Isadora Lifestyle an e-commerce textile business based out of Raipur stated, “I took a loan from Indifi and thanks to their fast digital process, I was able to update stock for my clothing business at the time when we needed the stock.”
Another segment of the underserved yet creditworthy MSME demographic that Indifi has been able to enable is of young entrepreneurs in India with approx 25% of all disbursals to young business owners below 30 years. This comes at a time when expanding the opportunities of entrepreneurship to young people in particular becomes even more critical to sustainable growth and social development.
In a statement, Mohit Kumar, who runs an e-commerce business said, “I have taken loans twice from Indifi and was able to manage my supplier payments and buy better packaging. Overall, I have seen a 20% YoY growth even during COVID as I could buy more inventory and that wouldn’t have been possible without the timely access to capital Indifi enabled for me.”
Commenting on the milestone, Alok Mittal, Co-Founder and CEO said “Customer impact is at the core of our inspiration. We believe MSMEs are a key driver in India’s economic ambitions and we are committed to empower their true potential. Micro entrepreneurs have historically struggled with access to timely capital but, with advancements in technology and data, the industry today is equipped with great tailwinds to change that. The progress we have made so far in driving financial inclusion for underserved MSMEs only strengthens our commitment to bridging the MSME credit gap. We are cognizant that we have only scratched the surface but we are determined to go the distance.”
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