The ScaleUp Summit 2022 opens door of opportunities for small businesses

Sonal Khetarpal, Editor, SMEs, Financial Express Digital delivered the Vote of Thanks. “A big thank you to all who contributed their thoughts to The ScaleUp Summit 2022. It is a success!”

SME underwriting has always been a challenge as SMEs still have many transactions in cash, so it's not possible to determine their financial health, said Anubhav Jain, Co-founder and CEO, Rupifi, adding that this is where fintechs have a role to play.

On BNPL in India, BNPL improves customer experience such as instant approval, less documentation, low friction and completely digital. India has had some very successful BNPL models, said Anubhav Jain, Co-founder and CEO, Rupifi.

Every credit is now based on BNPL.

“For consumers, it's aspirational like buying an iphone on a salary of Rs 10,000 and paying an instalment of Rs 1,000 every month for the next 20 years. While for MSMEs it's more of a matter of survival, said Manish Kumar, Founder and CEO, KredX.

Consumer lending and SME lending have transformed in the last ten years. MSMEs' contribution is around 29 per cent of GDP, said Pankaj Bansal, Chief Business Officer, BankBazaar. BNPL.

The final session on How is Buy Now Pay Later (BNPL) solving MSMEs' working capital crisis. This panel has outstanding speakers: Anubhav Jain, Co-founder and CEO, Rupifi; Manish Kumar, Founder and CEO, KredX; Pankaj Bansal, Chief Business Officer, BankBazaar. The session is moderated by Mihir Gandhi, Payments Transformation Leader, PwC India.

For business turnaround, Bhairav Kothari, Founder & CEO, SuperCFO Advisory Services recommends detailed rolling cashflow forecast — minimum 13 weeks; re-evaluating various contracts – prioritise cashflow; segmental profitability — to evaluate non core, and loss making projects.

The Masterclass on Smart Finance to Accelerate Business Growth by Bhairav Kothari, Founder & CEO, SuperCFO Advisory Services, proves to be a popular feature of The Scale Up Summit 2022, providing direct access to the latest insights and perspectives from an industry expert on the topic that matters today.

Advising MSMEs to invest in plant and machinery, D P Goel, Co- Chair, MSME Committee, PHD Chamber of Commerce and Industry (PHDCCI) said whatever loan an MSME takes, they have to return it with interest so better to invest in plant and machinery.

Bankers must be in contact with entrepreneurs to gauge the operation of the business, are they going in the right direction, their intention, added Goel.

On third party guarantee for loans, lenders smell fraud if there is third party involved, said Vikrant Narang, Deputy CEO, Ambit Finvest.

All panelists agreed that financial discipline is important for all businesses when taking loans.

On the role that technology plays in collateral free loans, Dhruv Dhanraj Bahl, Head, Merchant Lending, BharatPe said when one looks at technology, trust and convenience are very important.

For quicker decision making (say within 48 hours) about giving a loan to an MSME , our business is completely digitised from taking the decision to collecting data about the company, said Prasanna Madhyasta, EVP & Business Head, Supply Chain Finance, U GRO Capital.

“Under the Amanirbhar package, Rs 5 lakh crore was provided to MSMES. The platform was completely digital,” pointed out Subhransu Sekhar Acharya, Chief General Manager, Small Industries Development Bank of India (SIDBI).

An insightful discussion on how to get collateral-free credit from banks and NBFCs begins, with moderator by Raman Aggarwal, Director, Finance Industry Development Council (FIDC) stating that the importance of collateral free credit is well known and it is the same for all enterprises-both big or small.

On stage is a diverse panel comprising Dhruv Dhanraj Bahl, Head, Merchant Lending, BharatPe; Prasanna Madhyasta, EVP & Business Head, Supply Chain Finance, U GRO Capital; D P Goel, Co- Chair, MSME Committee, PHD Chamber of Commerce and Industry (PHDCCI); Subhransu Sekhar Acharya, Chief General Manager, Small Industries Development Bank of India (SIDBI); and Vikrant Narang, Deputy CEO, Ambit Finvest.

Data security is gaining momentum these days and any data which is identified personal by an individual is data for concern, said Suryanarayan Iyer, Senior Director, India Applications Solution, Oracle.

While there is an efficiency aspect the effectiveness aspect also comes in when we talk about technology, he added.

From adoption and capability points of view, system design is very important for MSMEs . Unless you have a process oriented mindset, digitisation is very difficult. It is a combination of skillset (how do I adopt it), toolset (which tools) and mindset (why do I want to use it), emphasised Iyer.

“There is a big gap in adoption of technology but it can be addressed if we start looking at individual use of technology versus enterprise use of technology. Also, company culture plays a role. If there is a bright spot in the organisation then he should be made a role model for others to follow, said Shobhit Mathur, Partner, Business Consulting, EY India.

He added that Digitisation of MSMEs is the most important step from enterprise point of view while onboarding ONDC.

On the metaverse aiding MSMEs, he said that it is a buzzword, adding that it's “your digital twin.” Getting the basic digitisation right is important. We can park metaverse for the time being, Mathur said.

For micro, small and medium enterprises, the affordability factor of SaaS solutions matters a lot so pricing has to be done accordingly, said Amit Kumar, Founder and CEO, MSMEx.

There are two types of companies trying to work on SaaS- one which has dropped down from the corporate and the other which is working on it from the scratch, he added.

Now on stage is Amit Kumar, Founder and CEO, MSMEx; Suryanarayan Iyer, Senior Director, India Applications Solution, Oracle; Shobhit Mathur, Partner, Business Consulting, EY India. We're glad to have Roshun Povaiah, Editor, Financial Express Digital on stage to moderate the discussion on Acing the digital transformation with the right SaaS tools.

“We started with B2C and focused on two categories – groceries and food. It is very difficult as the categories are hyperlocal. In the coming months, we will try to bring fashion, finance, mobility etc. across the platform, said T. Koshy, MD and CEO, Open Network for Digital Commerce (ONDC).

We haven't prioritised any state, but we are reaching out to local industries of all states. So, we have a mechanism in place that will help us grow and blossom, he added.

On due diligence, Koshy said that on the ONDC website there is an extensive document on Building Trust. “We conducted a public consultation and the feedback has been very positive.”

“Whichever platform you are in, you are equally discoverable in front of the world and here’s where ONDC comes by unbundling the building blocks of commerce,” T. Koshy, MD and CEO, Open Network for Digital Commerce (ONDC).

“Every seller can use this single protocol (ONDC) to make their catalogue visible across the network,” he added.

In one of the most anticipated sessions at The ScaleUp Summit 2022, T. Koshy, MD and CEO, Open Network for Digital Commerce (ONDC), said that ONDC is a very new idea, and it is not easy to understand the concept and the possibilities all at once.

“To help people better understand the concept, every Tuesday we organise an online discussion on how to become a part of this network. If anyone wants to attend the session s/he could write to team@ondc.org,” he added.

Micro, small and medium enterprises (MSMEs) can power a stronger recovery from the COVID-19 pandemic if there is a collective effort by central public sector enterprises (CPSEs), private sector, government central and state, said Gaurang Dixit, Chairman and Managing Director, The National Small Industries Corporation (NSIC).

Chief Guest Gaurang Dixit, Chairman and Managing Director, The National Small Industries Corporation (NSIC) said that without formalising the sector, scale up will be difficult for any enterprise.

The four major challenges for MSMEs to scale up are capital, credit, technology and manpower, he pointed out.

The objective of the summit is very relevant as India is in the phase of transitioning from a developing economy to a developed economy, added Dixit.

The second edition of The ScaleUp Summit 2022 kicked off in the national capital. Sanjay Sindhwani, CEO, Indian Express Digital delivered the welcoming address noting the challenges faced by small businesses. However, the SME sector is poised for a great future, he added.