Over the last few years, the advent of fintech platforms – especially digital lending, has been a game-changer for MSMEs. Amidst a positive regulatory environment and progressive Government initiatives, there has been significant growth of SMEs accounting for nearly 17% Year-on-Year growth last year. However, a huge chunk of the market with the opportunity for digital lending is still left untapped. Studies anticipate 15x growth in digital lending to MSMEs by 2023, owing to rapid digitization and access to easier, cheaper credit facilitated by digital lending companies.
From digitally lending money to large-scale data analyses, the use of artificial intelligence and machine learning has brought FinTech—an industry that covers the integration of finance and technology—to new heights, especially with the ever-enlarging spools of data that need to be processed.
Indifi Technologies – is a Gurgaon-based platform for enabling debt financing for small businesses. It aims to substantially improve the experience for borrowers regarding credit access as well as the speed and convenience of the loan process. Driven by the idea of expanding access to MSME financing in India, Indifi has emerged as an enabler for start-ups and small businesses seeking seamless access to funding. Indifi expands the envelope of formal lending by designing the right-fit credit products for MSMEs, improving the standard of risk assessment, and leveraging the supply chain linkages of MSMEs. Indifi works with over half a dozen banks and NBFCs to enable them to lend to such MSMEs. Indifi currently serves over 15,000 customers through its innovative credit offerings.
ToneTag: Backed by Amazon, Mastercard, 3one4 capital, and Amensa, ToneTag is the largest sound-wave communication technology platform in the world. This technology uses sound waves to enable contactless, offline, and proximity data communication on any device. With 15 globally filed patents and multiple grants, this Bengaluru-based company is changing the payment and transaction landscape in India. Leading this initiative is ToneTag’s ‘Retail Pod’, a sophisticated payment accepting device, which can accept payments from any phone, basic or smart, working with or without the internet. One of the key features which makes the Retail Pod a promising prospect is its Sound-based authentication of the OTP, wherein the Retail Pod itself authenticates the incoming OTP from the bank and completes the transaction through its highly secure 3-layered encrypted sound technology.
Lendingkart: Founded in 2014, Lendingkart uses AI to access working capital finance options easily. The company is a non-deposit taking NBFC (Non-Banking Financial Corporation), which provides SME (small and medium enterprises) lending in India. Thus, it uses this technology to help with credit evaluation, product interaction and quality lead scoring. The AI algorithm analyses over 10 thousand data points to analyse an applicant’s creditworthiness. This technology integration helps small businesses thrive, which is integral to India’s digital ambitions.
