HOW STARTUPS IN INDIA ARE BECOMING HARBINGER OF INNOVATIVE FUNDING FOR MSMEs
Abstract
Author(s): Vivek Sharma
The objective of this study is to find out how Startups are contributing in building a new India by providing funding to MSMEs by adopting innovative and customized modes of funding. The study focusse s on two “Startups” which have gone beyond traditional ways of funding and have been successful in covering untouched methods of lending such as lease based asset financing and collateral free lending. Both these startups have shown the way by going beyond dotted lines. The research analyses business models of these startups and how they have performed until now and what is the contribution made by these startups in MSMEs funding ecosystem. The methodology used in the research revolves around data analysis available regarding these companies, customer experience and interaction with owners of the business in online and offline mode. Various business news published regarding these companies have also been used in this report. Finding of the study shows that funding in India has moved away from the traditional lending methods but isyetto pick up in a big way. Traditional players still dominate the market but these startups are signaling arrival of a new era in lending. Usage of technology for lending and providing support to MSMEs has acquired new dimensions in recent times and there is no doubt about it. The idea of government of India to promote startup seems to have paid off as business run by these startups are flourishing.
