The Small Industries Development Bank of India (SIDBI) has partnered with C2treds and UGRO Capital to facilitate loans for the MSME sector. SIDBI has onboarded C2treds, a platform that provides MSMEs with liquidity within 24 hours through an online bidding process, according to a release by C2FO.
C2FO, an on-demand working capital platform, offers fast, flexible, and equitable access to low-cost capital to nearly 2 million businesses worldwide.
“Through this strategic collaboration, C2treds aims to enhance liquidity for MSMEs at competitive interest rates,” the release stated.
C2treds operates under the Trade Receivables Discounting System (TReDS) initiative, enabling the discounting of invoices. Regulated by the Reserve Bank of India (RBI), this system supports the MSME sector in India.
“As the apex institution for MSME promotion and development, SIDBI is committed to increasing credit flow to MSMEs. TReDS has become an effective tool for the prompt realization of MSMEs’ receivables, and SIDBI is onboarded on all operational TReDS platforms,” said Prakash Kumar, DMD, SIDBI.
Basant Kaur, Country Head of C2FO India, stated that SIDBI joining the C2treds platform will significantly enhance the company’s efforts to support the growth of MSMEs, which are the employment engines of India.
In a release, UGRO Capital, a datatech NBFC and co-lender in the MSME segment, announced its strategic co-lending partnership with SIDBI.
The partnership is established under the Reserve Bank of India’s (RBI) co-lending framework, which aims to leverage the strengths of banks and NBFCs to boost priority sector lending, UGRO said.
Commenting on the partnership, Shachindra Nath, founder and managing director of UGRO Capital, stated, “This collaboration is a testament to our commitment to driving financial inclusion and supporting the growth of MSMEs across the nation.”
UGRO Capital also noted that it has already provided bespoke finance solutions to over 78,000 MSMEs in India.