MSMEs will leverage digitization, particularly for market expansion
FinTech BizNews Service
Mumbai, 30 December, 2024: As we approach the new year, Hardika Shah, Founder and CEO of Kinara Capital, the fintech NBFC offering collateral-free loans to MSMEs in India, provides interesting technology focused comments on Outlook 2025 for MSMEs:
“2025 is poised to be a pivotal year for the MSME sector, with technology acting as a key catalyst for growth and transformation. I am optimistic that MSMEs will increasingly leverage digitization, particularly for market expansion. India has added 125 million online shoppers and is projected to gain another 80 million by 2025 . I am hopeful that this vast potential will encourage more MSMEs, particularly MSME sellers to leverage online platforms to sell products, which is currently just 2-3%, to much higher levels.
Beyond market opportunities, I believe that technology will significantly improve access to credit for MSMEs in 2025. The credit evaluation models, based on digital footprints rather than traditional metrics, which the government is expected to roll out, will be a critical stepping stone. This shift will drive further innovation and increase participation in MSME lending. It will also cement the role of NBFCs, who have been leveraging technology-enabled credit evaluation models to foster financial inclusion. According to an RBI report, NBFCs accounted for 11.7% of total credit extended to MSMEs by banks and NBFCs as of March 2024, and their contribution is set to scale up significantly in 2025.”
