Progcap Offers New Fintech Solutions To Indian MSMEs

ENA MSME 2024-11-08 14:44:46 New Delhi, Nov 8 (KNN) Progcap, a rapidly growing fintech specialising in supply chain financing, announced an ambitious plan to transform India's Micro, Small, and Medium Enterprises (MSME) sector by digitizing supply chains and enhancing access to capital. By developing user-friendly mobile applications and tech solutions, the company aims to empower small businesses to manage transactions, access credit limits, and request disbursements seamlessly. We are building a comprehensive ecosystem for MSMEs, helping them digitise operations and integrate into the formal economy, said Pallavi Shrivastava, cofounder of Progcap. With Indias MSME sector contributing about 30 per cent to the GDP and 45 per cent to exports, the companys efforts align closely with the governments financial inclusion initiatives to drive job creation and economic growth. India's MSMEs, which employ around 62 per cent of the countrys workforce, often struggle with access to formal credit due to a lack of credit history and collateral, leaving a significant segment underserved by traditional banks. Progcap, established in 2017, addresses this gap through a co-lending model in partnership with banks and non-banking financial companies (NBFCs). This model leverages banks lower funding costs, benefiting all stakeholders. Our co-lending model scales our loan book quickly, offering banks a lower-risk entry to MSME lending, and delivers competitive rates to small businesses, said Shrivastava. Progcap's ultimate aim is to serve as a bridge between banks and MSMEs, potentially becoming Indias first digital SME bank. Recognising the massive USD 530 billion credit gap in the MSME sector, Progcap has disbursed nearly USD 3 billion to date, primarily through its innovative Fast Rotation Credit Line (FRCL). This product, unlike traditional loans, aligns with businesses cash flow cycles, allowing flexible drawdowns and repayments tailored to inventory turnover and sales patterns. Our FRCL product adapts to each businesss unique financial cycle, offering critical working capital when they need it most, explained Shrivastava, emphasising Progcaps mission to empower MSMEs not only with credit but comprehensive business solutions. (KNN Bureau) 39846 https://knnindia.co.in/news/newsdetails/msme/progcap-offers-new-fintech-solutions-to-indian-msmes 2024-11-08 14:44:46 knnindia.co.in Progcap Offers New Fintech Solutions To Indian MSMEs