300% growth in demand for Veefin’s Supply Chain Finance solution in FY23-24

Mumbai, January 23, 2024: Veefin Solutions Ltd, a global pioneer in Supply Chain Finance (SCF) technology witnessed a 300% increase in demand for its Supply Chain Finance solutions from Indian and global financial institutions in FY 2023-24.

From new-age NBFCs and private sector banks like State Bank of Mauritius, Muthoot Fincorp, Aditya Birla Finance, Yes Bank, IDFC FIRST Bank, JSW One, Central Bank of India, Bahrain Development Bank to Small Finance Banks like Ujjivan and AU have signed up with Veefin for large scale deployment of SCF programs. Veefin Solutions Ltd, a BSE SME listed company, is also appointed by the PSB Alliance, a body representing all 12 public sector banks in India, to develop and run a unified Supply Chain Ecosystem for all the banks and NBFCs in the country.

Raja Debnath, Managing Director, Veefin Solutions Ltd. said, "Every credit provider in the market today recognizes the importance of supply chain finance to better serve the MSME ecosystem. We have witnessed an exponential growth in demand over the last 6-12 months where financial institutions across the spectrum of Banks, NBFCs, Small Finance Banks, Public and Private Sector Banks have wanted to switch from their incumbent legacy SCF platforms to Veefin’s state-of-the-art SCF solution. Due to rich functionalities and the speed of implementation we offer, we are pretty much the first choice for SCF."

The SCF products supported on Veefin's platform includes Sales Invoice Discounting, Purchase Invoice Discounting, Factoring, Reverse Factoring, Dynamic Discounting, Distributor Financing, Inventory Financing and Deep Tier Vendor Financing. All variants of MSME Loan Products including Term Loan, Overdraft, Loan against Property, other Collateral based loans, CGTMSE loans and Mudra loans are also offered through the platform.

Veefin's Supply Chain Finance platform facilitates digital SCF products for dealers and suppliers of corporate clients, enabling them to achieve their strategic business objectives, that includes working capital efficiency, market expansion, sales acceleration, and strengthening supply chain partnership.

In addition to its robust integration with India's digital infrastructure, i.e., India Stack and other key third-party data sources, the platform offers seamless ERP & Core Banking System (CBS) integrations. This synergy enriches credit underwriting, making it more reliable and efficient. The platform's sophisticated rule-based algorithms and omni-channel capabilities ensure that MSMEs can access credit effortlessly.

With banks and NBFCs meeting only 15% of MSME working capital demand and the credit gap estimated at Rs. 25 trillion, Indian and global financial institutions are rethinking current SCF operations and adopting digital solutions covering the entire lifecycle from digital onboarding, credit underwriting, transaction management, delinquency management, and risk monitoring to redefine SCF product accessibility.