Hero Fincorp, Cashinvoice partner to offer supply chain financing to MSMEs
The companies aim to disburse Rs 1,000 crore within the first year of the partnership to help alleviate the MSME cash crunch.
, a digital supply chain financing platform, has collaborated with non-banking finance company (NBFC) Hero Fincorp to make financing available to MSMEs in India.
The partnership aims to provide supply chain finance services to meet the growing needs of corporates in India as well as address the liquidity issues of the MSMEs. Through the association, Cashinvoice aims to facilitate Rs 10,000 crore of MSMEs purchases in FY24.
The platform aims to pair its technological capabilities with Hero Fincorp's capital base to understand supply chain finance challenges in-depth, enable liquidity to vendor ecosystems, and help small businesses with credit.
“We are thrilled to have Hero FinCorp, India's leading NBFC, on board to act as financial aid on our journey to create solutions to solve the working capital gap in India,” said Arun Poojari, CEO and Co-founder, Cashinvoice.
He added that it is critical for India to recognise issues faced by MSMEs, such as lack of capital, complex regulatory procedures, and insufficient business knowledge.
Tarul Agarwal, Head of Supply Chain Finance, Hero Fincorp, said that the working cash crunch has been an age-old bottleneck for many of the corporates and MSMEs, and supply chain finance offers tailor-made solutions to resolve the issue.
“This collaboration will benefit SMEs and MSMEs seeking business loans by making the overall process faster and more seamless,” he added.
Cashinvoice aims to disburse Rs 1,000 crore within the first year of the partnership to help alleviate the MSME cash crunch. The company aims to make the process of onboarding, sanction and end-to-end digital financing a hassle-free and digital experience for dealers.
Edited by Kanishk Singh