New Delhi, Dec 4 (KNN) According to a study by integrated solutions provider Instamojo, the Micro, Small and Medium Enterprises (MSMEs) present in Tier-II and Tier-III cities are growing at much more faster pace than their counterparts in tier-1 cities.

Over the past year, the turnover of MSMEs in tier-I cities is more than doubled but those in tier-II and tier-III cities have scored 75 percent growth in their revenue.

The financial services sector have witnessed a higher growth in Tier-II cities as compared to Tier-I cities in the last quarter, the study observed.

Instamojo Chief Executive Officer and Co-founder Sampad Swain in a press interview said SMEs in Tier-II and Tier-III cities had recognized the potential of internet and had been connected to consumers, manufacturers, exporters and suppliers all across the country.

Only 32 per cent out of 52 million SMEs in India have digital presence and instamojo caters to 10 percent which is 300,000 SMEs in India and claims to be the fastest-growing on-demand payments firm.

According to a latest report by Boston Consulting Group and FICCI, MSMEs will be growth drivers for banks in the country because of small lending solutions, digital payments solutions and implementation of goods and services tax (GST). (KNN/AG)