New D2C loan app for MSMEs on anvil by Ambit Finvest and Bajaj Finserv Direct’s Skaleup

Credit and finance for MSMEs: MSME-focused NBFC lender Ambit Finvest on Tuesday said it has partnered with Skaleup, the digital technology services arm of Bajaj Finserv’s subsidiary Bajaj Finserv Direct to develop a D2C (direct-to-customer) mobile app for instant loans and a web-based digital lending platform. The platform would enable MSME business owners for loans through a completely paperless and automated digital onboarding process, the company announced.

Ambit Finvest said it has served over 50,000 MSME business owners so far and has disbursed more than Rs 3,500 crore of loans since its inception. The company was incorporated in July 2006. “Our core focus has been to develop a coherent strategy around capturing the maximum value from digital technologies catering to customer experience and operational efficiency,” said Sanjay Agarwal, CEO, Ambit Finvest in a statement.

Also read: Bank credit to micro, small enterprises grew 15% in January: RBI data

Also Read

PayU, Visa, Yes Bank launch new payment solution for merchants to cut costs, boost cash flow, digitise SMBs

3 years of PM SVANidhi: Among fastest growing micro credit schemes by govt, says Hardeep S Puri

Amazon’s 10 years in India: 12 lakh sellers, 40 lakh digitised SMBs, $5B exports and some hiccups

Traders, retailers welcome move by CBIC to curb fake GST registrations

Skaleup’s creditech solution is a low-code/no-code digital platform that will enable Ambit Finvest to manage a broad range of processes and services, from digital journeys and multiple products to managing complex workflows involving sales, underwriting & operations, said Ashish Panchal, CEO, Bajaj Finserv Direct. 

Importantly, to boost digital lending to small businesses, Ambit Finvest in January this year had announced the acquisition of the MSME business of digital lender SME Corner (trade name of Digikredit Finance, an RBI-registered NBFC) which had offered credit to over 17,000 SME business owners and had around Rs 450 crores worth assets under management. 

Also read: Bank credit to MSMEs grew 71% during FY15-FY22 period: Govt data

In December last year, Ambit Finvest had announced a tie-up with the Small Industries Development Bank of India (SIDBI) to reach wider geographies and co-lend unsecured business loans at a blended lower rate of interest to MSMEs. 

Meanwhile, the credit outstanding to the MSME sector by scheduled commercial banks in FY22 stood at Rs 20.11 lakh crore to 264.67 lakh borrowers vis-a-vis Rs 17.83 lakh crore to 420.19 lakh borrowers in FY21, according to the data from the Reserve Bank of India (RBI) shared by the MSME Minister Narayan Rane in the Rajya Sabha on Monday in a written reply to a question in December 2022. 

Subscribe to Financial Express SME (FE Aspire) newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises