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Contributing to the Growth of SMEs

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    Small and medium-sized businesses (SMEs) are a crucial driver of growth in emerging markets like India, but they frequently face growth barriers due to a lack of access to institutional financing. To establish and maintain their firms, they are forced to rely on internal accruals or unofficial loans from friends and family. In the past several years, a number of companies have appeared to meet the various financial demands of SMEs, seeing the enormous opportunity that this anomaly affords.

    Minfiti, a prominent supply chain finance platform that was introduced in 2017, uses cutting-edge technology and a corporate distribution network to meet the inventory financing needs of SMEs across sectors.

    Ankit Mehta, co-founder, and chief architect claims that Mintifi has been successful from pretty early on in its development because of a deliberate decision to take cautious measures and not be controlled by a short-sighted perspective and difficulties. Mintifi has almost doubled in size over the past two years, and it is anticipated that it will continue to grow at this rate in the years to come.

    Also Read: For MSME exporters, the Center may consider raising interest equalization subsidies

    Tailwinds around the world

    Because of the supply chain difficulties brought on by the Russia-Ukraine conflict, increasing prices, the US economic downturn, and their effects on funding activities, Mehta is unconcerned by the global tailwinds.

    “In spite of the mayhem outside, India has remained relatively quiet. “As they say, a smooth sea never makes good sailors, so these are short-term challenges that one must take in stride,” says Mehta. He continues, “expectations of the public have been managed so well that a lot of startups have been able to raise money and garner attention from the global investor community. Fortunately, we don’t anticipate any long-term difficulties.”

    In order to better serve its partners, the firm plans to make investments in growing its skills and services as well as specialized solutions in a variety of areas, including dealer management systems, end-to-end automated receivables management, and supply chain finance.

    “A very haphazard strategy and not sticking to your guns is actually the underlying cause for the whole ‘hire and fire’ catastrophe we are watching,” Mehta adds in reference to the recent layoffs by multiple firms.

    Also Read: SME Stock returns 1600% in seven years to Allottees with Multi-Bagger IPO

    In recent months, the startup environment in India has been shaken by layoffs and a worldwide funding crisis. Both startups and industry giants may follow instructions and cut staff in preparation for future, more challenging macroeconomic situations.

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