indifi | SME loans: Indifi’s online marketplace for unsecured SME loans grows 200% year-over-year
These figures are the result of multiple factors. Indifi has an ecosystem approach to lending which allows it to bring synergies across demand and supply partners. Indifi relies on partnerships with technology aggregators such as Zomato, Amazon, Swiggy, Facebook, etc. to enable integrated lending solutions for underserved, but creditworthy, small business owners registered on their platform. This allows Indifi’s platform business lenders to onboard once and gain access to over 50 small business ecosystems, increasing their reach in highly volatile segments and smaller cities than otherwise they would not have served. And with its data-driven underwriting and collection offerings, Indifi has generated high collection efficiency for its lending partners, even during the pandemic. Indifi has enabled end-to-end digitized authoring, data analytics, credit modeling and collections, building immense confidence in its future-ready, customer-centric solutions among its lending partners .
Commenting on this milestone, Siddharth Mahanot, Co-Founder and COO, Indifi Technologies, shared, “At Indifi, we are committed to solving credit accessibility for 65 million MSMEs in India and we know that technology and data are the fastest way to achieve this. As a platform, we seek to bridge the gap between underserved MSMEs and lenders. Through partnerships on both the demand and supply side of the lending spectrum, we are able to leverage low-cost capital held by lenders as well as leverage technology and data from MSMEs hosted on ecosystem platforms to break down lending barriers for MSMEs. It is this digital and data-driven strategy that has unlocked these growth numbers despite the ongoing pandemic. »
Its verticalized, segment-specific approach to account management and underwriting also helps assess the incremental impact of COVID-related disruptions across borrower segments. This helps lenders identify a pivot to prime borrower segments and profiles. Second, mobility constraints due to the pandemic have pushed MSME borrowers to look for non-presence modes to meet their credit needs.
It has extended the convenience of fully digital lending for borrowers with features like CKYC/OKYC, E-Sign, Video Sign, E-NACH, etc., further supporting disbursement volumes. Deep technology integrations with lenders resulted in a reduction of manual interventions and automated processes such as agreement sharing, offers and even revised offers that provided a seamless borrowing experience for MSME clients.
Currently, Indifi has nine active lenders on the platform, which are a mix of banks, NBFCs, and P2P lenders. Five of these lenders, including DMI Finance, Caspian Impact Investment and Ugro Capital, were integrated in 2021 and have moved quickly. It has successfully facilitated access to capital for MSMEs in segments such as e-commerce, retail, restaurants, etc. in 400 cities. Most of these providers are located in Tier 2 and Tier 3 cities, including women entrepreneurs who are otherwise geographically and analytically inaccessible to traditional lenders.