Why Mezzanine/Hybrid Debt is Becoming the Perfect Form of Funding for Small and Medium Enterprises

Businesses need funding to grow, and small and medium enterprises often find it difficult to obtain debt financing because banks and NBFCs are wary to lend to small businesses. The limited collateral, erratic cash flow, and below-average debt-to-income ratio become pain points when it comes to raising debt. The growing demand for alternative financing has therefore led to the growth of alternative asset management i.e., Venture Debt, and Private Credit/Debt firms.

Ankur Agarwal, Co-Founder & CTO, PE Front Office

These Alternative Investment firms can provide funds to small and mid-sized enterprises quickly and efficiently in different forms i.e., equity, debt, and mezzanine debt, etc. When it comes to equity and debt financing, enterprises may be apprehensive because either they may not want to dilute the ownership stake, or they may be unwilling to borrow debt due to a lack of collateral or reluctance to provide a personal guarantee.

Mezzanine/Hybrid financing fills the gap between equity and debt in terms of payout priority — superior to equity and subordinate to senior debt. While there can be multiple ways in which a Mezzanine debt can be structured, the most commonly used structure is the one that has an equity component in the form of warrants. Mezzanine debt also known as subordinated debt, offers flexible repayment terms such as monthly or quarterly Interest payments, with the principal to be repaid at final maturity. Further, there can be a convertible structure that allows the lender to convert all or a portion of the principal into equity. Mezzanine funding is also ideal for companies that don’t have the capital to self-finance big expansion moves or those with good positive cash flows.

Mezzanine/Hybrid Debt is an ideal option for borrowers as it offers the following benefits:

• Designed to allow the owners to retain complete control of the company.
• Lenders do not interfere with the working of the business and remain passive.
• Does not require a personal guarantee or collateral.
• Offers less restrictive covenants than senior debt.

Further, Mezzanine/Hybrid Debt also offers the following benefits to lenders as well:

• Yields attractive returns between 12 to 20% annually which is considerably higher than other forms of debt.
• Ranked ahead of equity investors when it comes to repayment which offers a safer avenue to investors in cyclical markets.
• Offers the lender an option to convert the debt into equity at a future date.

These are some reasons why a growing number of enterprises are opting for Mezzanine/Hybrid debt to manage expansion, acquisitions, etc. It is becoming a financing option of choice for small and medium enterprises resulting in a thriving Alternative Investment sector with a record number of deals being signed.

The ever-rising numbers of deals and investments have made the task of Investment managers very tough, given that most Alternative Investment firms still rely on traditional tools like Excel to manage their investments. Therefore, it is worthwhile to also discuss the benefits that technology offers in managing Mezzanine/Hybrid debt investments by addressing some of the major pain areas such as:

• Tracking investment pipeline
• Capturing cashflow transactions including interest repayments
• Managing different Mezzanine debt scenarios, for example, conversion of investment from debt to equity
• Tracking periodic valuations and performance metrics such as IRR/MoC (Multiple of Capital or Times money back)
• Monitoring Portfolio Financials/KPIs and ESG metrics
• Investor On-boarding, Communication, and Reporting
• Managing Capital Calls and Drawdown/Distribution
• Tracking Fund Cost and Fund Performance Metrics

There are many technology providers in the market today that offer independent solutions for specific processes such as Deal Flow Management, Investment Management, Portfolio Monitoring, Investor Management, and Fund Management. However, integrated technology solutions that offer end-to-end investment management capabilities have carved a niche for themselves in this industry. These solutions not only help in enhancing operational efficiencies but also add to the productivity of the investment team by offering mobile apps, email plugins, and built-in analytics. Such software solutions facilitate the process of alternative financing and make the experience safe, smooth, and seamless for all the stakeholders

If used strategically, both enterprises and Alternative Investment firms can benefit from Mezzanine funding. For enterprises, it is a good funding option that offers to reduce the cost of capital while ensuring that there is still an opportunity for borrowing funds from banks. On the other hand, for Alternative Investment firms, Mezzanine investments offer some of the highest return rates.

(The Author of the article is Ankur Agarwal, Co-Founder & CTO, PE Front Office)

Why CFOs are Becoming the Go-To Metric for Start-Ups & SMEs

By - CA Jitendra Jain, Director, Tapanshi Finanziell Pvt Ltd

Given the pace at which market dynamics, corporate strategies, and operational structures have evolved in recent years, businesses are increasingly becoming aware of the critical role that CFOs play in determining and directing a company's strategic direction. CFOs bring incredibly useful networks in addition to their talents and expertise, whicht can help with business growth, legal compliance, and hiring.

Also, since technology is altering how the workforce operates, it stands true for CFOs as well. Technology is driving the conventional position of a CFO and making them more digitized. They are particularly experiencing a change in how they conduct their businesses due to technology and the automation of routine transactional work. Technology advancement is making CFOs more and more interested in the long-term advantages of digital investments, which can significantly lower the cost of conducting business. Using it, they can cater better to today's consumer-driven environment and keep businesses competitive in the market.

Jitendra Jain

Post-covid several startups and SMEs are still navigating through extremely treacherous waters. CFOs can promote their recovery and confront ongoing uncertainties, given their distinct position to plan out the most effective routes to success, see the wider picture, and comprehend the inner workings of our organizations.

However, the majority of startups and SMEs lack the need for and the financial resources to hire a full-time, competent CFO.

A fractional approach can assist them in this situation by allowing them to hire a CFO just as needed, eliminating the burden of hiring one and providing executive counsel and better knowledge to help with financial planning and decision-making.

CFOs - Go-to metric for startups and SMEs

A CFO's agenda now includes a considerable discussion of enterprise risk where legal reporting and payment requirements are constantly developing and altering. CFOs have long been recognized for their influence on the financial side of the business, but their impact on several other key sectors has also become important these days. These sectors include raising capital, establishing reporting mechanisms, developing a corporate strategy, ensuring balanced investment growth, and reserving money for potential opportunities. By having a capable CFO on their side, no matter if outsourced, startups and SMEs can achieve considerably. Startups and SMEs can derive the following benefits by employing CFOs.

Strategic Decision-making

Because the future is uncertain due to growing political and economic unpredictability that has a distinctive impact on business, CFOs are expected to look around every corner and make more strategic, deliberate judgments. Today, the expansion of the company's finances, as well as long-term financial and non-financial initiatives, depend heavily on the work of the CFO.

The CFO assists in making strategic financial and business decisions that are optimal for the organization and its objectives. They provide accurate reporting and meaningful data related to inventories, spending, recruiting, capital investments, and other matters. They guarantee on-time delivery of accurate, high-quality information, establish and track KPIs, develop strategic plans for success, deal with setbacks, and support contingency planning. Recovery calls for contingency planning for both, startups and SMEs to get through the current challenges.
This is where CFOs come into play.

Sustainability Measures

A growing concern for both large and small firms, sustainability challenges, can be addressed largely with their help. They can assist in balancing short-term concerns with longer-term goals by integrating sustainability challenges into reporting with conventional financial indicators.

Easy Funding

They help startups and SMEs with their funding challenges. Their maintenance and development of beneficial networks with banks, accounting firms, brokers of liability insurance, and other similar organizations facilitate safe financing.

Cash Flow Management

CFOs actively control the fragile cash flow of startups and SMEs as opposed to only monitoring it because they understand that cash is vital for every business. They examine the total cash flow and offer suggestions on best practices that have been proven effective for firms of comparable size and stage of development in an industry vertical. They also suggest technologies that help business owners keep an eye on their cash flow and better prepare for unforeseen circumstances every day.

Growth Assistance

A CFO can give a company a blueprint for future growth if they have the required advanced analytical knowledge. This entails increasing profitability as well as carefully planning when to hire new employees, make acquisitions, and other investments, such as in real estate or a marketing campaign. Also, the CFO will always ensure that all financial accounts are accurate and defend the company in the case of an audit. They can deliberate on best accounting practices and offer guidance to guarantee long-term success.

Resource Optimization

Internal controls, including procedures, processes, and automation, can be put in place with the support of CFOs to help prevent errors and even fraud. This lowers the possibility of expensive financial errors. Additionally, CFO services ought to free up the business owner to concentrate on their core competencies rather than accounting, lowering overall risk by giving the finances more focused attention. They can assist entrepreneurs in deciding where and when to make investments and accountants in tax preparation.

The many benefits of hiring CFOs have led to the popularity of virtual CFOs and outsourcing them. Besides, such hiring allows to employ a CFO more relevant to a particular industry. Employing someone more suited to the industry sector through outsourcing helps SMEs and startups gain the necessary skills, experience, and competitive edge.

Conclusion

Startups and SMEs can gain from hiring a CFO sooner rather than later since they need to get their systems in place, especially around governance and compliance. All of the aforementioned strategic services, offered on a part-time or as-needed basis by an outsourced CFO, enable startups and small businesses to obtain financial counsel of an enterprise-level quality that may also be more suited to their current requirements and issues than a full-time worker. The demand for CFOs is therefore increasing as they play a considerably more significant role than just figuring out and putting financial rules in place. The lifeblood of every firm is money, and it requires a skilled CFO to understand exactly where that fuel originates from and how decisions made in the future will impact it, making them a vital resource for businesses.

(The author of the article is CA Jitendra Jain, Director, TapanshiFinanziell Pvt Ltd)

U GRO Capital Ltd. Raises Impact Funds of $5 Mn in Partnership with Swiss-based Enabling Qapital

U GRO Capital has raised funds of USD 5 million through an ECB (external commercial borrowings) transaction with the EMF Microfinance Fund AgmvK (EMF). U GRO Capital, a listed entity that operates a Fintech lending platform for MSMEs (Micro, Small and Medium Enterprises), will be leveraging the funds to extend credit to India’s underserved business sections.

EMF was founded in 2008 as an instrument to catalyse access to capital where it is needed most and to promote financial inclusion to people in developing economies. Enabling Qapital (EQ), a Swiss impact-focused investment advisory and the exclusive advisor to EMF, acted as the chief facilitator for the funding round. The transaction took four months for closure with synergistic collaboration by all parties.

Expressing happiness at the conclusion of the exercise, Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital said, “We share a common vision of financial inclusion with impact funding organisations such as EQ. The partnership furthers our purpose to serve India’s underserved business segments. Impact investors are critical funding partners to enable us bridge the enormous credit gap in India’s MSME sector. We will continue to leverage our technology and credit expertise to service MSMEs across the spectrum through our multi-channel distribution model.”

Chuck Olson, Managing Partner, Enabling Qapital further elaborated, “MSME Finance is a key driver for financial inclusion, and we are excited to partner with U GRO Capital in our endeavour to move money to meaning. We are confident that U GRO will enable us to positively impact the lives of MSME borrowers. The association will help strengthen our commitment towards greater financial inclusion in India.”

Contributing to the UN Sustainable Development Goals (SDGs) that outline reducing inequality and promoting inclusive growth as key goals, the proceeds from this partnership serve as a crucial credit link for India’s MSME segment. This fuels economic elevation through boosting business, accelerating job creation and promoting equality in distribution of opportunities.

About U GRO Capital Ltd.

U GRO Capital limited is an MSME-focused lending fintech platform. U GRO Capital’s mission is to ‘Solve the Unsolved’ by providing small businesses with much-needed credit. U GRO operates with an omnichannel distribution model combining physical and digital customer journeys. The company envisions to spearhead the transition of India’s MSME lending market to the new age of on-tap financing. It uses the emerging data tripod of GST, banking and bureau coupled with sectoral analysis to solve the problem of credit for small businesses.

U GRO Capital currently has 75 branches across 9 states. It aims to expand the branch network to 100 by FY2022 and intends to reach 250,000 MSMEs in the coming 4 financial years.

About Enabling Qapital

Enabling Qapital Ltd. (EQ) is a leading Impact Investment Advisory Company dedicated to a world where investments provide a financial and social return and have a positive economic, social, and environmental impact. EQ is a certified B Corp, the gold standard for environmental and social certifications. EQ currently advises over USD 500 million in assets within the EMF Microfinance Fund AGmvK (EMF) and the Spark+ Africa Fund (in cooperation with the Clean Cooking Alliance from the UN Foundation). EQ has approximately 50 team members based in Switzerland, Ecuador, India, Kenya, Kyrgyzstan, Liechtenstein, Mexico, Philippines, Pakistan and the United States in order to better understand local markets and be able to offer access to our services globally.

SIDBI and ONDC Ink MoU to Accelerate E-Commerce for Small Industries

SIDBI and ONDC ink MoU to accelerate E-Commerce for Small Industries

Open Network for Digital Commerce (ONDC) in partnership with the Small Industries Development Bank of India (SIDBI) is aiming to democratise and accelerate the participation of MSMEs.

ONDC, a first-of-its-kind initiative to democratize the country's e-commerce ecosystem has signed a Memorandum of Understanding (MoU) with SIDBI, the principal financial institution set up under an Act of Parliament for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector and for coordination of functions of institutions engaged in similar activities. The partnership is aimed to change the landscape of MSMEs by bringing them into the ONDC network and accelerating their participation in e-commerce.

SIDBI and ONDC ink MoU to accelerate E-Commerce for Small Industries

The association between ONDC and SIDBI will establish a programmatic approach for MSMEs where sessions will be held first to educate them about ONDC, then masterclass sessions on ONDC protocol and MVP definition, followed by incentivised accelerator programs and finishing with participants and their ecosystems going live and being able to transact

The MoU, signed by Shri Sivasubramanian Ramann, CMD, SIDBI and Shri T Koshy, MD&CEO, ONDC, provides for several collaborative efforts by SIDBI and ONDC in helping MSMEs access open network e-commerce platform proposed by ONDC

T. Koshy, MD & CEO, ONDC, said, “We are building a network of networks and through this MoU, we will connect the SIDBI network with ONDC, which will revolutionize the ecosystem of small industries. This initiative will be a driving force to initiate the participation of the small industries across the country onto e-commerce on a larger scale and enable their growth.

S.Ramann, CMD, SIDBI, said “ SIDBI is very keen to ensure success of this important national initiative and it will leverage its strong relationships with all major MSME industrial clusters in the country starting with Morbi, Coimbatore and Ludhiana for engagement with ONDC. SIDBI will also facilitate engagement of ONDC with its network of partner grassroots agencies, inter-alia, working for market access to informal enterprises. Three partners being introduced to ONDC are Annapurna Finance Pvt. Ltd, Access Livelihoods Group and the women co-operative ‘Looms of Ladakh’. SIDBI will also use its strong presence in fintech ecosystem to explore e commerce embedded financing solutions.

About ONDC

Incorporated on 31st December 2021, Open Network for Digital Commerce (ONDC), a Section 8 company is an initiative of the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, Government of India build envisioned to create a facilitative model to revolutionize digital commerce, giving greater thrust to penetration of retail e-commerce in India. ONDC is not an application, platform, intermediary, or software, but a set of specifications designed to foster open, unbundled, and interoperable open networks thereby eliminating the dependency on a single platform.

Major ONDC objectives are as follows:

1. Democratisation and decentralization of eCommerce
2. Inclusivity and access for sellers, especially small and medium enterprises as well as local businesses
3. Increased choices and independency for consumers

SIDBI Partners With SVC Bank for Empowering MSMEs

The MoU signed will enable SVC Bank to tap into SIDBI’s Refinance facility to facilitate credit flow to MSME clients

SVC Bank becomes the first Urban Co-operative Bank to initiate a unique refinancing partnership with SIDBI

SVC Co-operative Bank Ltd. (SVC Bank), one of India’s leading co-operative bank and Small Industries Development Bank in India (SIDBI), country’s apex financial institution for micro, small and medium enterprises (MSMEs), today announced entering into a partnership through an Agreement.

The Agreement was signed by Shri Ashish Singhal, MD, SVC Bank and Shri Sanjeev Gupta, GM, SIDBI in Mumbai on July 28, 2022. As per the agreement, SIDBI will extend Refinance facility to SVC Bank to facilitate an improved flow of credit to MSMEs.

Commenting on the occasion, Mr. Ashish Singhal, Managing Director, SVC Bank, said, “MSME sector is the backbone of the Indian economy in terms of exports, employment creation and revenue to exchequers. SVC Bank has been supporting the MSMEs as a trusted partner for more than 115 years. We believe that access to affordable capital will prove to be a shot in the arm for the sector. In line with the Government of India’s vision of an Aatmanirbhar Bharat, SIDBI has proven to be the driving force for resolving the issues relating to MSMEs. We are proud to partner with SIDBI as the first UCB to participate in their vision of empowering the MSMEs.”

SIDBI is the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small, and Medium Enterprise (MSME) sector as well as for coordination of functions of institutions engaged in similar activities, has recently decided to extend refinance assistance to eligible scheduled Urban Co-operative Banks (UCBs) and Regional Rural Banks (RRBs). This is the first such agreement executed with a UCB. SIDBI will sign more such Agreements with other UCBs and RRBs across various States.

Speaking on the agreement, Shri Sanjeev Gupta, General Manager, SIDBI, said, “We consistently work towards offering an empowered ecosystem to the Indian MSMEs. Towards this, we have now extended our partnership with various Scheduled Commercial Banks, SFBs and NBFCs to an urban co-operative bank. The focus is on aligning with the leaders across all segments, which can boost economic participation and upscale of India’s most promising aspirational powerhouses termed as MSMEs. We are elated to partner with SVC Bank. Being a century-plus young bank, SVC has demonstrated success in empowering communities. We will, in time, expand our refinance services to other banks as well.”

Set up in 1906, SVC Bank has contributed significantly to the development of the cooperative movement in India for over a century. Today, the Bank is one of the oldest and most recognized names in the country’s co-operative Banking space and remains the country’s only multi-state scheduled Bank with a presence across 11 states – Maharashtra, Karnataka, Goa, Gujrat, Rajasthan, Delhi, Haryana, Madhya Pradesh, Andhra Pradesh, Telangana, Tamil Nadu. With a total business of INR 29,659.53 crore and a Net Profit of INR 150.21 crore (FY 20-21), it has proven its robust and strong fundamentals. Headquartered in Mumbai, the Bank has a vast spread of 198 branches, 214 ATMs and has an employee strength of over 2300. The Bank offers the entire gamut of services across Retail Banking, Corporate Banking and International Banking. SVC Bank was recently awarded for its 100+ years of service at the hands of Hon’ble Union Minister of Home Affairs and Cooperation – Shri Amitbhai Shah. It has also been acknowledged with many prestigious awards, like ‘Data Centers Award’ & ‘Enterprise Security Award’ at Express BFSI Technology Awards 2022, Award for Outstanding Response to Covid-19 at Co-operative Banks Ingenious Leadership Summit and Technology Awards 2022, and Best BFSI Brand Award 2021 at The Economic Times Best BFSI Brands. The Bank was among the first few co-operative banks in the country to get the Authorized Dealer Category I License (Independent Forex Operations) from RBI, in December 2007. In July 2008, it launched its International Banking Division, which today handles more than Rs. 3,000 crore forex business.

Since its formation in 1990, SIDBI has been impacting the lives of citizens across various strata of society through its integrated, innovative and inclusive approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly touched the lives of Micro and Small Enterprises (MSEs) through various credit and developmental engagements. SIDBI 2.0 carries the vision of inclusive, innovative and impact-oriented engagements.

To know more, check out: https://www.sidbi.in

MSME Business Forum Hosted MSME Banking Conclave 2022 and Received An Overwhelming Response

The conclave outlined the role of banking institutions in boosting MSME sectors

MSME Business Forum India, a subject matter expert ecosystem assisting MSMEs in Ease of Doing Business, celebrated the inauguration of its first edition of 'MSME Banking Conclave' on July 8th, 2022, Holiday Inn, Mayur Vihar, New Delhi. The event discussed the significant role of banking institutions in MSME growth and understanding the right financial solution to drive business development.

MSME Banking Conclave was a highly successful event that attracted interest and participation from financial policy influencers, distinguished personalities from diverse industries background and top management personnel from corporates and financial institutions to exchange ideas and share their insights as part of the speaker sessions and panel discussions.

A day-long conclave aimed on understanding the schemes and scope through GOI's vision, addressing critical banking challenges and learning the various innovative financial solutions suiting business expansion goals and promising opportunities for MSMEs. Some notable speakers at the event included Dr Bhagwat Kishanrao Karad - Minister of State for Finance, Pradip Das - CMD, IREDA, Vijay Singh DGM -SME, SBI Bank, Kuldeep Chand - DGM, NABARD and Gaurav Kapoor, Head Capital, British High Commission.

Dr. Sindhu Bhaskar, Joint President - MSME Business Forum India and Founder, EST Global Inc, Cambridge Innovation Centre, said "Liquidity crunch, availability of credit, Poor finance management are the major issues with MSMEs in India. The MSME sector in India is considered the backbone of the nation's economy and vital fuel for economic growth. Embracing technology advancement, strategically investments in the business alliance and partnership, understanding existing industry problems and interpretation of the solution are the roadmap to empower banking ecosystem".

Nirbhay Kant Gargya, CEO, NCG Corporate said "There is immediate requirement for MSMEs to embrace technological advancements to empower their business operations multifaceted, as they employ over 120 million people and embrace an immense contribution to the socio-economic development of the country. The advent of technology has significantly transformed the banking business front over the last decade and with the introduction of a pandemic, it has emerged as an ideal path for sustainable growth".

Shri Ravi Nandan Sinha, Director of Development, MSME Business Forum India, said, "The MSME's contribution can't be excluded and empowering it leads to creating India as a global business leader. India, a developing nation, highly relies on MSME for its sustainable economic growth. More than 7.9 MSMEs are marking their contribution towards poverty alleviation, employment generation and rural development. Still, the sector is depressed with low productivity, lack of efficiency and limited means, which lead to poor competitiveness in the global sphere.To stay competitive in the ever-changing business climate, MSMEs owners need to take more strategic initiatives to be updated with the changing market dynamics and outfitted with the most recent technology".

Rachana Chowdhary, CEO-MVW-MSME Development Centre, said, "The proliferating MSME sector is very well known globally and has created numerous opportunities across sectors. The right set of strategic movements to support the SMBs leads India to emerge as a global business leader. Exploring the various innovative financial solutions suiting business expansion goals and promising opportunities. Attending industry conclaves, training programmes, seminars and interaction with delegates leads to a legacy mindset and adopt an entrepreneurial approach to tap on new opportunities".

About MSME Business Forum:

MSME Business Forum is a network hub of erstwhile corporate executives, investors, and industry experts striving to enhance the MSME and SME profitability by ensuring ease of doing Business thru interventions of Subject Matter Experts. At MSME Business Forum, we go beyond just advising MSMEs to handholding enterprise in executing task/assignment/project(s) through single window support (acting as a one-stop solution). Support range from assisting in Fund Raising to IT Solutions, Compliance's, Audit, Valuations, Certifications, Human Resource & Training, Legal assistance, Marketing, Branding, Exhibition Support, JV/Tie-Ups/ Export Promotions, Tender advisory & virtual assistant and more recently Travel planning and Health care support has also been added in support systems.

About MVW-MSME Development Centre: 

The Development Centre was established in 2021 to empower small and mid-sized MSMEs to unlock their potential, scale faster and explore newer opportunities in the post-pandemic era. The DC (development centre) vision was set to be a nurturer of Indian MSMEs to help incorporate global best practices, execute efficient workflows, deploy effective marketing strategies, go digital, and be investment ready. The Development centre aims to redefine and reinvent the MSMEs of India. It plays a vital role in influencing, handholding, and upskilling the entrepreneurs through timely interventions with need-of-the-hour support on resources, guidance and timely mentoring.

SIDBI Joins Hands with UPEIDA to Support MSMEs in Aerospace & Defence (A&D) Sector

Small Industries Development Bank of India (SIDBI), the country's principal financial institution engaged in the promotion, financing, and development of Micro, Small and Medium Enterprises (MSME), has entered into a Memorandum of Understanding (MoU) with Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) to enlarge the financial outreach and to support MSMEs in Aerospace & Defence (A&D) sector through direct financing.

The MoU executed by Shri V. Satya Venkata Rao, Deputy Managing Director, SIDBI and Shri Awanish Kumar Awasthi, IAS, Chief Executive Officer, UPEIDA, was, formally exchanged by Shri Prakash Kumar, Chief General Manager, SIDBI.

Under the MoU, SIDBI would consider funding financial requirements of MSMEs setting up/ having units in Uttar Pradesh Defence Industrial Corridor (UPDIC) and other industrial areas developed by UPEIDA. The MoU would help MSMEs to set up industrial units in the state of Uttar Pradesh. The key highlights of the arrangement are —

• when any allotment letter(s) for industrial land are issued by UPEIDA, it shall provide details of allottees to SIDBI, 
• SIDBI will contact the allottees for their financial needs. On receipt of the duly filled in application, SIDBI will process the same as per guidelines, 
• the present arrangement is aimed at development of a strong foundation for MSMEs in the state of Uttar Pradesh, which would attract investment from allottees and accelerate implementation of their projects, and 
• UPEIDA and SIDBI shall extend mutual co-operation for various other initiatives being undertaken for the benefit of MSMEs in UPDIC and other industrial areas developed by UPEIDA, which shall include, holding/ participating in outreach events, seminars and webinars for creating awareness among MSMEs about various financial products and initiatives being undertaken by SIDBI, including a dedicated web-portal (defence.sidbi.in), knowledge series for MSMEs in A&D sector, etc.

As regards the arrangement with UPEIDA, Shri V. Satya Venkata Rao, Deputy Managing Director, SIDBI said, "SIDBI's emphasis is on strengthening the MSME eco-system and realizing GoI's ideology of "Make In India" and making India "Self-reliant". This arrangement will support MSMEs setting up industrial units in the State of Uttar Pradesh by meeting their credit needs as well as addressing credit-plus requirements, viz, knowledge inputs through dedicated web-portal, literature, events/webinars etc."

About SIDBI: Since its formation in 1990, SIDBI has been impacting the lives of citizens across various strata of the society through its integrated, innovative and inclusive approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly touched the lives of Micro and Small Enterprises (MSEs) through various credit and developmental engagements. SIDBI 2.0 carries the vision of inclusive, innovative and impact-oriented engagements.

To know more, check out: https://www.sidbi.in

Union Bank of India Signs MoU with SIDBI for Co-Financing arrangement of MSMEs

Union Bank of India today signed a Memorandum of Understanding (MoU) with Small Industries Development Bank of India (SIDBI) for a Co-Financing arrangement for MSMEs. The MoU was signed by Shri Lal Singh, Chief General Manager, Union Bank of India and Shri Vivek Kumar Malhotra, Chief General Manager, SIDBI. SIDBI is country’s principal financial institution engaged in the Promotion, Financing and Development of Micro, Small and Medium Enterprises (MSME).

Shri Lal Singh, CGM, Union Bank of India and Shri Vivek Kumar Malhotra, CGM, SIDBI on singing of MOU

Under the MoU, Union Bank of India would consider Joint financing/ Co-Financing with SIDBI to Projects/Units in the MSME. This MoU would help the Banks to increase their customer base, while helping the MSMEs to meet their funding requirements. 

The key highlights of the arrangement include joint identification of viable projects and term loan and working capital financing to MSMEs. Initially the arrangement would be at specific centers and once the arrangement stabilizes at these centers, more locations would be covered.

Speaking on the occasion, Shri Lal Singh, CGM (MSME), Union Bank of India, said “MSME is one of the key sectors of our Indian Economy contributing to GDP, Exports, Manufacturing Output, Employment, Women Empowerment etc. MSME is one of the focused areas of the Bank and at Union Bank of India, we aim to become Bank of 1st choice for MSMEs. This tie-up with SIDBI aids in realizing the Bank’s vision to have increased credit flow to the MSME sector and extend operational convenience to the MSME clientele. Under partnership, Union Bank of India through its Pan India branch network can provide general Banking products like Current Accounts, Savings Accounts, Working Capital facilities and other related services to the MSME Customers of SIDBI.”

Also, speaking on the tie-up arrangement, Shri Vivek Kumar Malhotra, CGM, SIDBI reiterated SIDBI’s commitment towards timely financing for MSMEs across all sectors.

This comes a day after SIDBI signed MoU with Delhi Skill and Entrepreneurship University to nurture aspiring youth to infuse entrepreneurship and enterprise as preferred career choice.

Last month, Union Bank of India becomes the first public sector Bank to go live on the Account Aggregator Ecosystem for participating in Govt. of India’s Digital Initiatives.

Earlier in March, SIDBI, which is India's apex Financial Institution for financing and development of MSMEs, has acquired 7.84% stake in Open Network for Digital Commerce (ONDC) through an investment of Rs 10 crore. ONDC was incorporated in last year with an objective to create a first of its kind open public digital infrastructure to develop and transform the Indian digital commerce ecosystem for both goods and services.

Over $15 Million Supplier-Financing Program for SMEs From Fashinza

Fashinza, a B2B, new-age product development and production management platform enabling fashion brands and manufacturers to produce better, together, has joined hands with Stride One, SaraLoan and other fintech lenders to empower apparel manufacturing SMEs with an over $15 million supplier-financing program. The lack of requisite working capital has been a significant challenge and a roadblock for SME suppliers and manufacturers in fulfilling large orders from big fashion labels. The supplier finance program from Fashinza and the fintech lenders will help SMEs to receive their payments on due dates or early payments. This will help SMEs scale their business without capital limitation.

The supplier-financing program, offered by Fashinza in partnership with Stride One, SaraLoan (Blacksoil’s fintech arm) and other fintech lenders, will help manufacturers to focus on production without financial stress, and enable brands to focus on their operations and sales without their cash getting stuck in production. Also the long-term benefits for SMEs are the ability to scale up capacity and to get new opportunities to grow their business faster.

According to Abhishek Sharma, Co-Founder and COO, Fashinza: “India’s contribution to apparel manufacturing and the global fashion industry is undisputed. While there is immense scope to grow for SMEs, availability of working capital remains a challenge. Our financing program for SMEs is an enabler and is empowering small manufacturers. We work closely with suppliers and have found that when the working capital is taken into account, they are able to work on bigger projects with bigger labels and scale their business."

"Fashinza is solving the cash flow problem of apparel manufacturers by offering supplier financing limits via fintech partners like Stride One and SaraLoan. Supplier financing is a win-win solution for both Fashinza and manufactures. Manufacturers get paid on time or request for early payment by paying a nominal interest on actuals. Supplier financing program will act as a catalyst to exponentially grow Fashinza’s supplier partners’ business,” says Akshay Poshatwar, AVP - Financial Services & Strategy, Fashinza.

“In our endeavor to provide customized financing solutions, we have designed robust and flexible financial programs for Fashinza that meet their working capital needs. Through this partnership, Stride One continues its focus on creating disruptive supply chain financing solutions for new-age businesses, along with digitizing the onboarding process of vendors,” says Sameer Mahajan, CBO, Stride One.

“We are excited to work with Fashinza as they are helping highly unstructured apparel manufactures by providing them a tech backbone to help them get more business. By working with Fashinza, SaraLoan has been able to provide working capital to these manufacturers to help fulfill orders generated on the Fashinza platform. The solution offered by SaraLoan is flexible and manufacturers can draw as per demand and pay interest only on the amount utilized,” says Ashutosh Kumar, Chief Business Officer, SaraLoan.

Fashinza is an AI-driven B2B marketplace for global fashion supply chains. They make it exceptionally easy for international brands to access design to delivery in as fast as 4 weeks with very low minimums. Fashinza offers access to a transparent production process that can be monitored 24/7 with 100% control enabled by their revolutionary FactoryOS. Their goal is to create a sustainable (i.e. net positive) supply chain by 2030 and empower SMB manufacturers with Industry 4.0 solutions. Fashinza has a roster of over 250 factories that currently serves 200+ brands across 6 countries, including the United States, Canada, UAE and India. The company was co-founded in 2020 by serial entrepreneurs Pawan Gupta, Abhishek Sharma, and Jamil Ahmad. For additional information, please visit www.fashinza.com.

Stride provides comprehensive debt & supply chain financing solutions, across sectors and lifecycles, to cater to the distinctive challenges faced by high-growth and inherently strong businesses, backed by leading VCs.

SaraLoan offers B2B checkout solutions to businesses to better manage their payment for their customers and vendors. By offering a platform that integrates with their current accounting solutions, businesses are able to get a bird's eye view of their receivables and payables.

Event SaaS Firm EventX Offers 3-Month Free Corporate Trial to Support SMEs on Riding Out the COVID-19 Challenges

In response to the COVID-19 Omicron outbreak, EventX, an Asian-focused event SaaS company providing event lead generation and event management solutions for businesses and marketers, announces today that it will provide small-and-medium enterprises (SMEs), marketers and event planners with a three-month free corporate trial to host virtual events and capture new business opportunities.

The pandemic has presented great challenges to SMEs. As people embraced social distancing, consumers shifted to online shopping and it has bloomed the digital economy. Holding online events to attract worldwide consumers digitally has become the new normal. The company also believes thatn technology can support SMEs to get through business challenges and will definitely enable SMEs to become powerhouse for digital transformation.

EventX aims to enable marketers to generate leads through running virtual events, which can save 90% of the cost. Built with smart features such as all-in-one CRM management, event analytics and email sending tools to streamline invitation, EventX’s virtual event platform strives to serve companies of all sizes to let them spot new business opportunities by enhancing audience reach, helping small and medium enterprises or even the startup community to strategically harvest leads through engaging and interactive events with its extensive expertise in event management.

Small enterprises can also explore potential business opportunities by using the EventX platform to conduct e-commerce livestreaming to attract online shoppers and expand their business on an international scale. EventX differs from other virtual event platforms in its interactive functions, such as clicking the raise hand button to ask questions, sending emojis, polling and more. Organizers can clearly capture the audience's real-time reactions and respond to questions instantly. Enterprises can also make good use of the product showcase function to customize their own virtual product catalogs, which allows attendees to browse the top recommended products.

“Understanding the urgent demand of SMEs for the need of capturing new business opportunities from the digital economy, we want to step up our efforts to relieve businesses’ operating pressures. We strive to be the pioneer in the industry to launch the initiatives and take an active part to tide over the hard time hand in hand with our community. SMEs can make best use of our virtual event platform to develop their business, discover potential customers and convert them into business opportunities, or even expand their overseas markets.” said Sum Wong, CEO of EventX.

Starting from today, businesses can leverage the platform to hold virtual events for free within three months after successfully registering as an EventX enterprise user, and there is no limit on a given quota. For more details, please visit https://bit.ly/357ZfjX.

About EventX 

EventX is an Asian-focued SaaS company providing hybrid event management solutions. We

enable brands and enterprises to unlock the power of virtual events, bringing authentic human

connections and connecting people without limitations. Equipped with a strong support network,

we provide both organizers and participants with a smooth online experience. EventX serves a

wide variety of industries ranging from financial institutions, entertainment, music, education to

large-scale concerts and conferences. Headquartered in Hong Kong, the company currently

caters to 100+ countries and has organized 20,000+ events with 5+ million attendees, making it

the best end-to-end platform for any organization to broaden its audience.

Telangana Govt Setting Up 200-acre Electrical Vehicle Park Aimed at MSMEs at Sitarampur: Mr Sujai Karampuri, Dir. Electronics, MD T-Fiber, CEO T-Works

The Electric Vehicles Expo which held until now in Delhi has come to Hyderabad and looking at the encouragement they are planning for a bigger show next year.

Electric Vehicle’s Sector is a priority sector for Govt of Telangana. Our Chief Minister and Ministers use Electric Vehicles: Prasada, GM, Telangana State Renewable Energy Development Corporation

Till now 9000 Electric Vehicles of all sorts registered in Telangana state: Ramakrishna, Project Director, Telangana State Renewable Energy Development Corporation(TSREDC).

Fold, pack, unfold, dual purpose---the bicycle come bike “Doodle”; several e bikes, scootys and rickshaws, battery stations were the highlight of the show.

seen electric scootys on display at EV Expo 2021

E-Rickshaws seen on display at 12th edition of EV Expo at Hitex--pic2

E-Rickshaws seen on display at EV Expo 2021

A two day Electric Vehicles Expo began at Hitex, Madhapur.

Organized by Altius Auto Solutions. It will conclude Sunday evening.

The Electric Vehicle Expo until now organized 11 expos in Delhi and different parts of India. It is being organized first in Hyderabad because of proactive government, industry policy, incentives, government support and encouragement. Next year also they plan to organize in Hyderabad in December for 3days shared Rajeev Arora and Anuj Sharma, the people behind the show.

The expo was inaugurated by Mr. Sujai Karampuri, Director Electronics, MD T-Fiber, CEO T-Works.

Mr Prasad, GM and Mr Ramakrishna, Project Director, both from Telangana State Renewable Energy Development Corporation(TSREDC)also graced the inaugural function.

Prasad, GM of TSREDC seen checking E-Rikshaw at 12th edition of EV Expo at Hitex

Speaking on the occasion addressing the gathering Mr. Sujai Karampuri announced that the Government of Telangana is setting up 200 acre Electrical Vehicle Park at Sitarampur in Shahbad Mandal, Ranga Reddy District. The land is already identified and the allotments will be made in 2/3 months time. This is being done to make Telangana state, a destination of Electric Vehicle manufacturing. This park is aimed at MSMEs(Micro, Small, Medium Enterprises).

Mr Prasad, GM of TSREDC seen inaugurating the EV Expo 2021

Anuj sharma, one of the organisers of EV Expo seen felicitating Mr Sujai Karampuri

He also shared that the Department is all set to inaugurate Energy Storage Park soon at Divitipally in Mahbubnagar. This will promote lithium ion cell and battery manufacturing, solar cell and module assembly and other new and renewable energy related manufacturing, he said.

Mr Sujai invited industry leaders to make Hyderabad their manufacturing base for EVs.

Sujai Karampuri seen lighting the lamp to inaugurate 12th edition of EV Expo at Hitex. Also seen Prasad, Ramakrishna, Anuj Sharma, Rajiv Arora

 
He also shared to the gathering that government is offering incentives to those who buy electric vehicles such as—two wheelers, Auto Ricksha, Private Cars, Cabs, Buses abd Tractors. They will get 100% Road Tax exemption.

Sujai Karampuri, Director Electronics, MD T-Fiber, CEO T-Works seen addressing the gathering at inauguration of 12th edition of EV Expo at Hitex

Electric Vehicles are the future of our transportation. It is our dream to see Telangana as 100% Electric Vehicle state.

Mr Prasad, GM of TSREDC described the expo as the need of the hour. Electric Vehicle is priority sector for our government. Our Chief Minister and Ministers use Electric Vehicles. The state of Telangana before its formation had 34 mega watts manufacturing capacity of solar energy. Today 3900 mega watts capacity is commissioned.

Ramakrishna Project Director of Telangana State Renewable Energy Development Corporation said Telangana tops in India interns of EV Charging stations. So far more than 9000 EV vehicles are registered.

Anuj Sharma, one of the organizers and Director Soni E Vehicles said seeing so many vehicles on road is a dream come true since first EV vehicles was showcased in India during the Common Wealth Games.

EVEXPO is one of the largest expos on electrical vehicles in India. Altius Auto Solutions has already organized 11 EVEXPO's in Delhi, Bangalore, Kolkata and lucknow.

Anuj Sharma, Rajiv Arora, Sujai Karampuri, Prasad, Ramakrishna

The objective of the expo is to build pollution free India.

Governor of Telangana Dr. Tamilisai Soundararajan is also expected to visit the exhibition tomorrow.

Several Government bodies such as Ministry of Road Transport and Highways, Govt of India; MSME and others are supporting the expo.

The expo has 42stalls. Some of the stall include: Joule Point which has set up EV Charging Stations Network. It encourages people to set up their own EV Charing Station at their parking place. And it will connect the station to thousands of EV users.

30KW Charging Station seen on display at EV Expo 2021

120KW Charging station

Doodle, a electric cycle cum bike offering both utlity, convenience and adventure in just one vehicle. You can use it as cycle, or motor bike, you can fold it and carry in a car. It doest need RTO registration. It is cool and sleek and youth will fall for it. It costs Rs 79,000/-.

Doodle E-Bycycles whch can also work as a bike.  It can be folded and carried in a carry.  It costs Rs 79,000

Altius Technology, Soni E Vehicles exhibited some cool AV Vehicles. There were other exhibitors such as Franklin EV; Rosmetra, LionEnergy, EPick Bikes, EV ChargeMan, Yogo Bikes, Mayuri E Rikshaw; Olectra the pioneers electric buses in India and other.

Its not just passengers vehicles are turning electric but also commercail vehicles. Seen is a E-Garbage Rickshaw on display ny Soni E Vehicle at 12th edition of EV Expo

The Show providing the opportunity and platform to electric vehicle manufacturers to showcase their latest Products , technology and equipment ,Smart and NextGen transport ,electric passengers cars, scooter, motorcycle, cycles, buses etc

The automotive future is electric. There are several reasons to believe that Electric Vehicles are the Future of Transportation. The power of EVs to offer sustainability to our environment is one of the key elements. Battery prices are continuously dropping, making EVs more economical than traditional vehicles.

About 5000 visitors are expected to visit the expo during the two days.

Entrepreneurs' Development Centre Powered by ‘VANS Skilling and Advisory’ Aims to Nurture Indian MSMEs

VANS Skilling & Advisory announced a strategic alliance with MVW-MSME Development Centre and MSME Business Forum India to empower the developing, small, and mid-sized MSMEs to unlock their potential, scale faster and explore newer opportunities in the post-pandemic era. The association aims to be a nurturer of MSMEs to incorporate global best practices, execute efficient workflows, deploy effective marketing strategies, go digital and be investment ready.

VANS Skilling & Advisory is a tech enabled- human intervened mentorship platform that mentors start-ups, MSMEs and large organisations into unlocking value in their business and drive upper quartile shareholder value in addition to mentoring students.

It is managed by a team of 160+ mentors, most of them are CXOs, Ex CEOs and Managing Directors of large organisations who have scaled business through sharp rigour in execution, structured PMO approach, change management, and systems thinking. Wherein, MVW-MSME Development Centre aims to work in line with the vision of GOI to support MSMEs. Also, MSME Business Forum is a network hub of erstwhile corporate executives, investors, and industry experts striving to enhance the MSME and SME profitability.

The partnership focuses on helping MSMEs towards GOI's vision on Ease of Doing Business. It is an initiative to strengthen the investment climate for the MSMEs with guidance on inviting Foreign Investments, Joint Ventures and becoming globally competitive.

On this announcement, Dr. Srinivas Chunduru, Founder VANS Skilling & Advisory, said: “We are delighted to announce the partnership with MVW-MSME Development centre. MSMEs play a vital role as they have contributed significantly to expanding entrepreneurial endeavours through business innovations and annually contributed 30.27% in All India GDP in FY 2019-20. We aim to bring in structured methodologies, PMO approach, innovation and many such indigenously developed process that will help MSMEs leap faster in their growth curve.

“The Development centre aims to redefine and reinvent the MSMEs of India. It plays a vital role in influencing, hand-holding, and upskilling the entrepreneurs by timely interventions with need-of-the-hour support on resources, guidance and timely mentoring, said Rachana Chowdhary, CEO, MVW-MSME Development Centre.

With this partnership, the VANS group and MVW-MSME Development Centre can help MSMEs provide the right opportunities and empower their business. It will help robust credit provisioning with straightforward compliance frameworks, backed by technology upgrades for Indian small and medium enterprises. MSME Business Forum Board has applauded this initiative of the MVW-MSME Entrepreneurs Development Centre.

About VANS Skilling

VANS Skilling and Advisory is a part of VANS Group that was formed in early 2018 by a team of industry veterans (CXO’s with a combined experience of over 200+ man years and managing large organizations). VANS Group has interests in diversified sectors such as Edu-tech, Financial Services including Fin-tech and HR analytics. VANS Skilling and Advisory includes eminent Industry veterans such as Visty Banaji (Former ED & President at Godrej, CEO - Baner Global Consulting) and Sujan Sinha (Ex CEO and MD at Shriram Finance) on its board.

About MediaValueWorks (MVW): MVW, established in 2011 is an award-winning integrated marketing consulting firm focussed on 360 communications solutions. With a widespread network across pan-India and 125 countries, MVW helps clients with the right business solutions.

About MVW-MSME Development Centre: It is a division of MVW Network International Pvt. Ltd, a professional organization that aims to provide the right opportunities and empower and eligible MSME businesses. To learn more, interested MSMEs can write to mvwdevelopmentcentre@gmail.com.

Empowering and Upskilling MSMEs with Financial Literacy, Paynearby University Aims to Educate and Handhold Its Retailers

Aims to create a thriving ecosystem for its retail partners by helping them utilize PayNearby’s platform extensively to earn more

Mumbai, 26 July, 2021: In continuation with its brand ethos ‘Zidd Aage Badhne Ki’, PayNearby, India’s leading branchless banking and digital payments network, has launched “PayNearby University” under its trade app to educate and handhold its retail partners towards a better livelihood and a sustainable life for themselves and their families. Available in 10 regional languages for an engaging learning experience, PayNearby University is designed to empower retailers by utilizing the full potential of the platform and help create a thriving ecosystem for the retail community.

PayNearby was built to educate, engage and push a wide range of assisted financial and digital services including basic banking services like cash withdrawal, domestic remittance, goal-based savings and insurance to the last mile. Today, more than 15+ lakh retailers use the PayNearby platform to service close to 15 crore Indians on a wide range of products and services. The success of the model lies not only in the 10+ lakh transactions that it clocks daily or the monthly GTV of ~5500 crores plus, but in the social reach of the platform across 17,500+ PIN codes in the country, helping uplift both the retail community and consumers in those areas, thereby helping access to the Government’s DBT disbursements in an easy manner. The company’s constant commitment has been to empower local retailers who are building the nation ground-up while driving financial inclusion at the last mile, thus creating a digitally forward and financially inclusive India.

Reiterating this commitment is PayNearby University, where retailers can acquire knowledge about the financial product and services the company offers, learn how to use these services, and how to efficiently utilize the platform to earn more. PayNearby University ensures that retailers can upskill themselves and are able to deliver financial products seamlessly to the customers at the last mile. It also trains retailers on the best practices in investments and how to manage their finances better in order to take care of themselves and their families’ future. PayNearby University enables bite-sized learning videos which are easy to consume along with financial and insurance consultation and career guidance, in turn, creating more aware, engaged and empowered retailers.

To enhance the learning experience, PayNearby University is available in 10 regional languages to all retailers who have downloaded the app across the country. With over 250+ videos made available, the initial response has been excellent with over 3,50,000 users visiting the module with 310,000+ daily impressions. To make the learning journey more profound, completion certificates are available which can be downloaded on successful completion of assessments.

Commenting on the development, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby said, “Retailers are the very core of a business ecosystem and it is important for them to have all the necessary knowledge and skills to make their work easy and enhance customer engagement. As an organization, PayNearby recognizes the mutual relationship that it has with the retailer community and we want to take all possible steps to ensure the sustainable livelihood of the retailers. An important milestone in this direction is PayNearby University. PayNearby University was created with the vision to empower and upskill our retailers not just in trade skills but life skills as well and help them become financially independent and aware Digital Pradhans.

For India to thrive and grow, it is important that the retail community is given the essential support and tools to stay relevant in the fast-evolving economy. We are confident that this free-of-cost module which retailers can consume at their convenience in their own language will be a game-changer and in the long run, will help retailers across the country bridge the digital divide that exists in India. We are extremely delighted that PayNearby University is in sync with our Zidd Aage Badhne Ki.”

About PayNearby:

Incepted in April 2016, PayNearby is a fintech company creating technology and distribution network to reach financial/non-financial services to India and Bharat both. PayNearby empowers retail shop owners to offer digital services to local communities, thereby boosting digital financial inclusion. Retailer services are focused on Agent Banking, Digital payments, microSavings, microInsurance, Loan enablement among others.

It was founded by Anand Kumar Bajaj, Subhash Kumar, Yashwant Lodha & Rajesh Jha who bring with them rich experience in the field of banking, payments and other financial sectors. PayNearby is a DIPP-certified FinTech startup, partnering with various financial institutions including YES Bank, RBL Bank, IndusInd Bank, SBM Bank India, Equitas SFB, Ujjivan SFB, Axis Bank, ICICI Bank, State Bank of India, CC Avenue, Bill Desk, NPCI, FASTag, NBFC and FMCG companies. It is the sole technology provider using Aadhaar Enabled Payment Services (AEPS) and IMPS to YES Bank, making them one of the only two fintech companies hosted by the National Payments Corporation of India (NPCI).

U GRO Capital Launches 'Pratham', A ₹ 1,000 Cr MSME Co-lending Program in Partnership with Bank of Baroda

U GRO Capital, a BSE listed, technology enabled small business NBFC, today announced the launch of a co-lending partnership for micro, small and medium enterprises (MSME) with Bank of Baroda, one of the largest banks in India. Termed as ‘Pratham’, the loan disbursements have commenced on the occasion of Bank of Baroda’s 114th Foundation Day. The program has been launched under Reserve Bank of India’s revised co-lending guidelines.

‘Pratham’, a ₹1000 crore co-lending program will allow the MSMEs to avail customized lending solutions at a competitive rate of interest with a significant reduction in turn-around time. The loan amount ranges from ₹ 50 lakh to ₹ 2.5 crore to be offered at an interest rate starting from 8% with a maximum tenure of 120 months.

Shachindra Nath, Executive Chairman & Managing Director, U GRO.

 Speaking on this partnership, Mr. Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said, “It gives us immense pleasure to launch one of our most significant programs ‘Pratham’ and sign the co-lending agreement with Bank of Baroda under RBI’s revised guidelines. It is a reiteration of the value and trust that the bank places on our ability to leverage sectoral expertise and technology to solve the unsolved credit need of the MSMEs. We look forward to nurturing this essential relationship in our bid to support more MSMEs in the remotest locations, to help them revive and grow."

Shri Vikramaditya Singh Khichi, Executive Director, Bank of Baroda said, “We are glad to have joined hands with U GRO Capital by way of this co-lending program, which resonates with our intent to extend support to more MSMEs. We believe that forging such partnerships is the way forward and collaborative efforts leveraging individual entities’ expertise are of utmost importance to take co-lending to MSME segment to the next level. This is a significant advancement in the same direction."

‘Pratham’ program requires minimum documentation while providing financing to MSMEs. U GRO Capital’s proprietary developed platform GRO-Xstream, allows faster turnaround time, with an in-principle approval issued within 60 minutes. A wide range of MSMEs including the recently added Wholesale & Retail Traders under Priority Sector can avail credit via this program. The program is accessible to MSMEs across 200+ channel touch points around nine locations, i.e. Delhi, Jaipur, Ahmedabad, Pune, Mumbai, Bangalore, Chennai, Hyderabad and Kolkata.

About U GRO Capital

U GRO Capital limited is a BSE listed, small business lending fintech platform. The Company is focused on addressing capital needs of small businesses operating in select eight sectors by providing customized loan solutions.

U GRO Capital’s mission is ‘Solve the Unsolved’ – Small Business Credit Need. U GRO Capital believes that the problem of small businesses can be solved by building deep expertise around core sectors of SMEs in India coupled with a data centric, technology-enabled approach.

The Company has raised ~INR 920 crore of capital from a diversified set of private equity funds like institutional investors and well-known family offices.

The Company strives to build a strong SME financing platform based on sectoral understanding supplemented by a fully integrated technology and analytics platform.

About Bank of Baroda

Bank of Baroda (“The Bank”) established on 20th July 1908 is a State-owned banking and financial services organisation, headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.

Bank of Baroda is India’s leading public sector bank with a strong domestic presence supported by self- service channels. The Bank’s distribution network includes 8,300+ branches, 11,600+ ATMs, Cash Recyclers supported by self-service channels and over 23,000 Business Correspondents. The Bank has a significant international presence with a network of 96 branches/offices of subsidiaries, spanning 19 countries. 

The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and Baroda Asset Management India Ltd. Bank of Baroda also has joint ventures for life insurance viz. IndiaFirst Life Insurance Company Limited and India Infradebt Ltd., engaged in infrastructure financing. The Bank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.

To Protect 'Khadi' Brand Globally, India Files Trademark Registrations in 40 Countries

KVIC Secures Trademark Registrations in Bhutan, UAE & Mexico

Files Applications in 40 Countries to Protect Brand “Khadi”

Khadi and Village Industries Commission (KVIC) has recently secured trademark registrations in three countries – Bhutan, UAE and Mexico – a big stride towards protecting the identity of brand “Khadi” globally. KVIC is a statutory body formed in April 1957 by the Government of India and is under the ownership of Ministry of MSME.

Apart from these 3 countries, KVIC’s trademark applications are pending in 40 countries across the world that include the USA, Qatar, Sri Lanka, Japan, Italy, Australia, New Zealand, Singapore, Brazil and others.

While KVIC obtained the latest trademark registration in Bhutan on 9th July; trademark registration was granted in UAE on 28th June. With this, KVIC has succeeded in securing trademark registration for the first time in a Gulf country. Earlier, KVIC got the trademark registration for “Khadi” in Mexico in December 2020.

So far KVIC was having Trademark registrations for the word mark “KHADI” in 6 countries namely Germany, UK, Australia, Russia, China and EU where trademark registrations were granted in certain classes. However, with recent trademark registrations in Bhutan, UAE and Mexico, the number of such countries has gone up to nine. In these countries, KVIC has got registrations in various classes that pertain to Khadi fabric, Khadi readymade garments and village industry products like Khadi soaps, Khadi cosmetics, Khadi incense sticks among others.

It is for the first time in the history of KVIC that sustained efforts have been made in the last 5 years to protect the brand "Khadi" which was given to us by none other than Mahatma Gandhi.

Earlier this year, KVIC launched Khadi India’s official e-Commerce website having over 50,000 products under more than 500 varieties and various categories of locally made Khadi and Village Industries products.

KVIC Chairman Shri Vinai Kumar Saxena said these trademark registrations will prevent any misuse of the brand name 'Khadi' globally. He said in recent years, Khadi’s popularity has seen a massive growth in India and abroad due to Prime Minister Shri Narendra Modi’s appeal to adopt Khadi. It has, therefore, become very important for KVIC to protect the identity of Khadi and safeguard the interest of consumers and lakhs of Khadi artisans who are manufacturing genuine Khadi products.

The development assumes great significance as there have been instances of some private local entities in countries like Mexico and Germany seeking trademark registration for brand name “Khadi” in their respective countries. In Mexico, KVIC challenged the trademark application of “One Foundation Oaxaca Ac” which had applied for the 'Khadi' logo. However, the firm did not challenge KVIC’s objections and trademark registration for the word '/Khadi' and 'Khadi' logo was granted in favour of KVIC.

Similarly, in Germany, KVIC challenged a local company - Best Natural Products GmbH ("BNP"), which in 2011 already got prior rights in the mark “KHADI” and related marks in EU and other countries in different classes. After long legal battle and negotiations through the Diplomatic channel with the help of the Ministry of External Affairs, BNP has expressed its willingness to settle the trademark disputes amicably with KVIC.

Last year in September, KVIC mandated e-commerce firms like Amazon, Flipkart, Snapdeal and others to remove over 160 web links selling products in the brand name of “Khadi”. KVIC served legal notices to over 1000 firms using the brand name “Khadi India” to sell their products and thus causing damage to its reputation and the loss of work to Khadi artisans.

Govt Announces Inclusion of Retail and Wholesale Trades As MSMEs

Minister of MSME and Road Transport and Highways Shri Nitin Gadkari today announced revised guidelines for MSMEs with inclusion of Retail and Wholesale trades as MSMEs. In a Tweet he said under the leadership of PM Shri Narendra Modi Ji, we are committed to strengthening of MSME and make them engines for economic growth. 

कोविड के दूसरे वेव के कारण आई दिक़्क़तों से खुदरा और थोक व्यापारियों पर पड़े असर को ध्यान में रखते हुए अब इसे MSME के दायरे में लाने का फ़ैसला किया गया है।प्रायोरिटी सेक्टर लेंडिंग के अंतर्गत इस सेक्टर को लाकर आर्थिक सहायता पहुँचाने की कोशिश की जा रही है। #MSMEGrowthEngineOfIndia

— Nitin Gadkari (@nitin_gadkari) July 2, 2021

Shri Gadkari said the revised guidelines will benefit 2.5 Crore Retail and Wholesale Traders. He said Retail and wholesale trade were left out of the ambit of MSME, now under the revised guidelines, retail and wholesale trade will also get benefit of priority sector lending under RBI guidelines.

With the revised guidelines the Retail and wholesale trades will be now be allowed to register on Udyam Registration Portal.

MSME Development Centre Launched To Empower the Developing, Small and Mid-Sized Businesses

MSME Business Forum India, which is a network hub of corporate executives, investors, and industry experts striving to enhance MSME and SME profitability, has launched "MediaValueWorks (MVW) -MSME Development Centre" that aims to empower the developing, small and mid-sized businesses to unlock their potential and explore newer opportunities in the post-pandemic era.

The new MVW-MSME Development Centre will work in line with the vision of Government of India to support MSMEs. The centre aim to collaborate with partners and associates to grow the network across the globe.

The MVW-MSME Development Centre shall focus on Micro, Small, and Mid-sized MSMEs transform by going digital, incorporate global best practices, execute efficient workflows, marketing strategies, and being investment-ready said Rachana Chowdhary, Chief Executive of the Development Centre.

To learn more, interested MSMEs can write to mvwdevelopmentcentre@gmail.com.

MVW-MSME Development Centre is a division of MVW Network International Pvt. Ltd, which is a professional organization that aims to provide the right opportunities and empower and eligible MSME businesses. MediaValueWorks (MVW) was established in 2011 is an award-winning integrated marketing consulting firm focussed on 360 communications solutions. With a widespread network across pan-India and 125 countries, MVW helps clients with the right business solutions.

MSME Business Forum India is an SME/MSME platform for business opportunities. new markets development , startup support, technologies support to MSME , JVs/tie ups , benefit from Government scheme, debt re-structuring and fundraising.