Sidbi Joins C2treds, UGRO to Boost MSME Credit
ECONOMY & POLICY

Sidbi Joins C2treds, UGRO to Boost MSME Credit

In a significant move to enhance credit access for Micro, Small, and Medium Enterprises (MSMEs), the Small Industries Development Bank of India (Sidbi) has announced strategic partnerships with C2treds and UGRO Capital.

These collaborations, established under the Reserve Bank of India's (RBI) co-lending framework, aim to leverage the strengths of banks and Non-Banking Financial Companies (NBFCs) to boost priority sector lending.

Sidbi, the apex institution for MSME promotion and development, has onboarded C2treds, a platform operating under the Trade Receivables Discounting System (TReDS) initiative. C2treds, regulated by the RBI, enables invoice discounting and promises to provide MSMEs with liquidity within 24 hours through an online bidding process. This platform is part of C2FO, a global on-demand working capital platform serving nearly 2 million businesses worldwide.

Prakash Kumar, Deputy Managing Director of Sidbi, emphasized the institution's commitment to increasing credit flow to MSMEs, stating, "TReDS has become an effective tool for the prompt realization of MSMEs' receivables, and Sidbi is onboarded on all operational TReDS platforms."

Basant Kaur, Country Head of C2FO India, expressed optimism about the partnership's potential impact, noting that Sidbi's involvement will "significantly amplify the company's efforts to support the growth of MSMEs, which are the employment engines of India."

In a parallel development, UGRO Capital, a datatech NBFC specialising in MSME lending, announced its co-lending partnership with Sidbi. This collaboration, also under the RBI's co-lending framework, aims to combine the strengths of both institutions to enhance priority sector lending.

Shachindra Nath, founder and managing director of UGRO Capital, highlighted the significance of this partnership, stating, "This collaboration is a testament to our commitment to driving financial inclusion and supporting the growth of MSMEs across the nation." UGRO Capital has already provided tailored financial solutions to over 78,000 MSMEs in India.

These partnerships represent a concerted effort to address the credit needs of the MSME sector, which plays a crucial role in India's economic landscape. By combining the reach and expertise of Sidbi with the innovative platforms and approaches of C2treds and UGRO Capital, these initiatives are poised to enhance liquidity, streamline lending processes, and ultimately foster growth in the MSME sector.

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In a significant move to enhance credit access for Micro, Small, and Medium Enterprises (MSMEs), the Small Industries Development Bank of India (Sidbi) has announced strategic partnerships with C2treds and UGRO Capital. These collaborations, established under the Reserve Bank of India's (RBI) co-lending framework, aim to leverage the strengths of banks and Non-Banking Financial Companies (NBFCs) to boost priority sector lending. Sidbi, the apex institution for MSME promotion and development, has onboarded C2treds, a platform operating under the Trade Receivables Discounting System (TReDS) initiative. C2treds, regulated by the RBI, enables invoice discounting and promises to provide MSMEs with liquidity within 24 hours through an online bidding process. This platform is part of C2FO, a global on-demand working capital platform serving nearly 2 million businesses worldwide. Prakash Kumar, Deputy Managing Director of Sidbi, emphasized the institution's commitment to increasing credit flow to MSMEs, stating, TReDS has become an effective tool for the prompt realization of MSMEs' receivables, and Sidbi is onboarded on all operational TReDS platforms. Basant Kaur, Country Head of C2FO India, expressed optimism about the partnership's potential impact, noting that Sidbi's involvement will significantly amplify the company's efforts to support the growth of MSMEs, which are the employment engines of India. In a parallel development, UGRO Capital, a datatech NBFC specialising in MSME lending, announced its co-lending partnership with Sidbi. This collaboration, also under the RBI's co-lending framework, aims to combine the strengths of both institutions to enhance priority sector lending. Shachindra Nath, founder and managing director of UGRO Capital, highlighted the significance of this partnership, stating, This collaboration is a testament to our commitment to driving financial inclusion and supporting the growth of MSMEs across the nation. UGRO Capital has already provided tailored financial solutions to over 78,000 MSMEs in India. These partnerships represent a concerted effort to address the credit needs of the MSME sector, which plays a crucial role in India's economic landscape. By combining the reach and expertise of Sidbi with the innovative platforms and approaches of C2treds and UGRO Capital, these initiatives are poised to enhance liquidity, streamline lending processes, and ultimately foster growth in the MSME sector.

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