Comments
Mastercard, a global technology company in the payments industry, has tied up with U GRO Capital, a NBFC specialising in MSME financing, to extend financing solution to small businesses in India that require financial support to maintain and grow their operations.
MSMEs in India have long grappled with substantial challenges, including constrained access to capital. According to recent reports, out of over 64 million MSMEs in India, only 14 per cent have access to credit.
This strategic collaboration between Mastercard and U GRO Capital aims to address this challenge by enabling a holistic digital supply chain financing solution for millions of small businesses in India.
Vikas Varma, Chief Operating Officer, South Asia, Mastercard, said “U GRO Capital and Mastercard are joining forces to deliver an accessible working capital solution and the collaborative commitment aims to fuel the growth of small businesses across India, paving the way for sustained success in the entrepreneurial landscape.”
Mastercard understands the substantial challenges faced by MSMEs in accessing capital, thus, posing a barrier to the growth of their businesses, he said. The credit gap requires a collective effort, and it is imperative to forge right partnerships within the ecosystem to overcome the existing divide, Varma added.
Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital, said, “We are truly excited to collaborate with Mastercard, a recognised global leader in the payment industry. This strategic partnership complements our vision of reshaping the MSME finance landscape and meeting the pressing demands for instant working capital”.
This alliance, underpinned by innovation and a shared commitment, holds the potential to be a pivotal force in addressing the intricate credit needs of MSMEs nationwide, Nath added.
U GRO Capital will leverage its proprietary underwriting and cash flow backed assessment model to offer short term credit to dealer-distributors and last-mile retailers, among other small merchants and women entrepreneurs.
Through its vast network, Mastercard is bringing together the demand and supply side ecosystem stakeholders on a common platform to facilitate the adequate support for the growth of small businesses.
Mastercard had announced a global commitment to bring a total of one billion people and 50 million micro and small businesses, including 25 million female entrepreneurs into the digital economy by 2025.
This collaboration with U GRO Capital aligns with Mastercard’s mission to drive financial inclusion for businesses across India.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.