Fintech partnerships move into SME space

There are new age fintech players which have emerged over the last 4-5 years and which have done significant work in acquiring MSME customers in niche segments. Their ability to focus on the target segments and design efficient financing solutions has made them price competitive and faster in terms of TAT.

Navin Saini reveals that this year, the focus of SME business at Arka Fincap would be to work with fintech partners, acquiring vintage MSME portfolios which meet their risk appetite and do co-lending.

He further adds: “We intend to partner with some of the niche fintech players especially in the field of education, healthcare, merchant finance and supply chain. Arka with its high credit rating of AA- / Stable from CRISIL, has the ability to raise debt efficiently wherein these fintech players usually struggle, which makes it a win-win for both the constituents of this partnership.”

The Muthoot Group too has ventured into handholding fintech companies for expansion of credit to SME sector through co-lending model in association with Capital Float.

U GRO Capital provides 60-minute approval for loans up to 50 million, which is an industry-first according to Subrata Das. The company is equipped with enterprise data store and in-house advanced analytics. Anuj comments: “We consider ourselves in the convergence between sector specialization and fintech expertise - and we have used the covid times to make faster progress on our mission to solve the unsolved needs of the SME sector in India.”