In a Press Release by Businesswire India, Ujjivan Small Finance Bank (Ujjivan SFB) has forged a strategic alliance with Veefin Solutions, a prominent provider of Supply Chain Finance (SCF) solutions, to deliver comprehensive supply chain finance solutions aimed at fulfilling the working capital requirements of MSMEs.
The partnership with Veefin reflects Ujjivan SFB’s commitment to leveraging technology to bridge the credit gap in the MSME sector. This collaboration aims to provide working capital loans to MSMEs through supply chain financing, addressing gaps in the traditional lending model. This includes supplier and vendor onboarding, credit underwriting, transaction management, and collections, along with in-depth analysis provided by Veefin’s Reporting & Business Intelligence solution.
A 2019 RBI Committee report estimated the MSME sector’s credit gap at Rs 20-25 lakh crore. Only 14% of India’s over 64 million MSMEs have access to credit, as per another industry report. The MSME count in India is projected to increase from 6.3 crore to about 7.5 crore in the coming years, with a projected CAGR of 2.5%.
The partnership with Veefin reflects Ujjivan SFB’s commitment to leveraging technology to bridge the credit gap in the MSME sector. This collaboration aims to provide working capital loans to MSMEs through supply chain financing, addressing gaps in the traditional lending model.
“We are happy to partner with Veefin Solutions, which will enable us to further enhance the credit accessibility needs of the MSMEs, thereby strengthening our digital MSME offerings. This association will help us build on the operational efficiency, thereby empowering more MSMEs to charter their growth path,” said Ittira Davis, MD & CEO at Ujjivan Small Finance Bank.
Raja Debnath, Managing Director of Veefin Solutions Ltd, said, “We are delighted to welcome Ujjivan Small Finance Bank to our ever-growing clientele who have embarked on their SCF journey with Veefin. Financial institutions like Ujjivan SFB play a pivotal role in expanding the SCF ecosystem, reaching out to unserved and underserved customers nationwide. Together, we are poised not only to broaden the SCF landscape but also to drive inclusive growth, reaching even the most marginalized segments of our economy.”
