The Small Industries Development Bank of India (SIDBI) has collaborated with MonetaGo to deploy the company’s globally recognised digital public-infrastructure solution aimed at de-risking trade finance and strengthening the trust, efficiency and transparency of lending to MSMEs.
The partnership marks the first time a development financial institution in India has implemented MonetaGo’s ‘Secure Financing’ system, setting a potential benchmark for secure and scalable MSME lending in the country.
“SIDBI is committed to promoting cash flow-based, digitised credit flow to MSMEs, which could be further enhanced by building resilience and transparency in the MSME financing ecosystem, more particularly GST-Sahay Invoice-Based Financing,” said Y M Kumari, CGM, DIV SIDBI.
“We are proud to partner with MonetaGo as a service provider for an interoperable solution to cater to the requirement of dedupe functionality on the Invoice Dedupe Registry (IDR) of TReDs to avoid double financing. This partnership will reinforce trust in lending, and in turn contribute to greater efficiency and reliability in capital flows, helping unlock the sector’s growth potential,” said Y M Kumari.
“Improving transparency and reducing risk in lending is vital to expanding credit access for India’s MSMEs and boosting their global competitiveness. As SIDBI strengthens support for this sector, de-risking credit flows will be key to unlocking growth and resilience,” said Sudatta Mandal, DMD of SIDBI.
“SIDBI’s adoption of MonetaGo’s Secure Financing system marks a turning point in institutional fraud prevention for MSME lending. MSMEs are the backbone of the Indian economy, and protecting their financing from fraud is essential to expanding access to credit. We look forward to supporting SIDBI’s mission and impact,” commented Kalyan Basu, Managing Director India, MonetaGo.
“We are pleased to welcome SIDBI to MonetaGo’s Secure Financing platform. This milestone reinforces the vital role of digital public infrastructure in safeguarding lending and supporting economic growth, not just in India, but globally. We are proud to partner with SIDBI in its mission to empower India’s MSMEs,” said Neil Shonhard, CEO of MonetaGo.
MonetaGo’s Secure Financing system has been at the core of India’s digital trade-finance infrastructure since 2018 and has underpinned various regulated MSME financing platforms.
According to recent data, MSME financing under these platforms has grown by approximately 216 per cent since the beginning of 2023, underscoring the transformational impact of secure, standards-based infrastructure in expanding access to credit and unlocking growth.
The partnership is expected to advance SIDBI’s objective of enabling inclusive, technology-driven growth for MSMEs by bridging credit gaps, facilitating entrepreneurship, and integrating India’s MSME sector more deeply into global value chains.
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