Light Microfinance, IppoPay to offer digital loans to MSMEs
Microfinance has partnered Chennai-based fintech firm IppoPay to power digital lending to micro, small and medium enterprises (MSMEs) in rural and semi-urban micro-markets of Tamil Nadu, Andhra Pradesh, Telangana and Karnataka. Coinbase Ventures and Better Capital-backed startup Ippopay offers payments solutions to about 400,00 merchants.
According to the company, this partnership brings together Gujarat-based NBFC’s expertise in lending services and IppoPay’s fintech platform to offer MSME loans. "At Light, we have always been committed to going deeper into the rural and semi-urban geographies," said Rakesh Kumar, CEO of Light.
"Our partnership with IppoPay will deliver credit to merchants in a simple, efficient and technology-driven manner when they need it and where they need it." "We are excited to join hands with Light," said Mohan K, CEO and co-founder of IppoPay Technologies. "Our shared commitment to innovation and merchant-centricity will enable us to make a significant impact in the rural lending space." The country’s digital lending market grew at a compounded rate of nearly 40% over the last 10 years and was worth $270 billion in 2022, according to a report by Experian, a consumer credit reporting company.
The lending potential of Indian MSMEs can reach $3 trillion by FY23, the government’s chief economic advisor, V Anantha Nageswaran had said last year. Following back-to-back digital lending guidelines from the Reserve Bank of India, most fintechs – which don’t have their own NBFC – are partnering with regulated entities and working as a customer acquisition and collection agent for NBFCs.
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