Mastercard, U GRO Capital collaborate to extend financing solutions to SMEs
Mastercard, on Thursday, announced a collaboration with U GRO Capital to extend financing solution to small businesses in India that require financial support to maintain and grow their operations. This collaboration aims to address this challenge by enabling a holistic digital supply chain financing solution for millions of small businesses in India.
MSMEs in India have long grappled with substantial challenges, including constrained access to capital.
According to recent reports, out of over 64 million MSMEs in India, only 14 per cent have access to credit.
U GRO Capital will leverage its underwriting and cash flow backed assessment model to offer short term credit to dealer-distributors and last-mile retailers, among other small merchants and women entrepreneurs. Through its vast network, Mastercard is bringing together the demand and supply side ecosystem stakeholders on a common platform to facilitate the adequate support for the growth of small businesses.
Vikas Varma, Chief Operating Officer, South Asia, Mastercard, said in a statement, «Mastercard understands the substantial challenges faced by MSMEs in accessing capital, thus, posing a barrier to the growth of their businesses.
The credit gap requires a collective effort, and it is imperative to forge right partnerships within the ecosystem to overcome the existing divide. U GRO Capital and Mastercard are joining forces to deliver an accessible working capital solution and the collaborative commitment aims to fuel the growth of small businesses across India, paving the way for sustained success in the entrepreneurial landscape.»
Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital, said in a statement, We are confident to onboard millions of
