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<ul><li><keyword id="401567" type="General" weightage="100" keywordseo="faering-capital" source="Orion">Faering Capital</keyword> looks to participate in the mortgage lender’s journey ahead.</li><li>Vastu Housing is focused on the affordable housing market in India and has also started an NBFC to service new to credit customers.</li><li>Secondary transaction carried out by Multiples Alternate Asset Management. </li></ul> <keyword id="6236441" type="General" weightage="80" keywordseo="vastu-housing-finance" source="Orion">Vastu Housing Finance</keyword> has closed a fund raise from Faering Capital, founded by <keyword id="401568" type="General" weightage="80" keywordseo="aditya-parekh" source="Orion">Aditya Parekh</keyword> and Sameer Shroff. The transaction is a secondary sale by funds managed by Multiples Alternate Asset Management and other shareholders of the company. The value of the transaction is $30 mn. Aditya Parekh, Co-founder &amp; Managing Director of Faering Capital said, “We are excited to partner with Sandeep and team and other shareholders in the Vastu journey. Housing finance and specifically affordable housing are multidecadal opportunities in India. Having tracked Vastu’s progress over the last few years, we are confident that the company is well on its way to build a highly profitable, large and respected institutional franchise focused on affordable housing finance.” Private equity investors are keenly looking at India’s fintechs and non-banks that look to build businesses that serve the underserved population in India. According to deal data analysed by <keyword id="131240" type="General" weightage="50" keywordseo="grant-thornton" source="Orion">Grant Thornton</keyword>, a total of 30 private equity deals were executed in the sector, cumulatively valued at $566 million in the September quarter of 2023. Among these transactions, fintech claimed the spotlight with a 30% share in terms of deal volumes, even though sequentially value and volume showed a dip. However, banks and non-banks ruled the charts with respect to values, contributing a 77% share in overall investments. Vastu is a digitally enabled retail affordable housing finance company with a pan-India presence. Vastu currently has an AUM of $900 million and serves 15 states across India in 200+ markets. It aims to become a mortgage-led consumer lender serving the credit needs of emerging and aspiring India, Vastu has also set up a non-banking finance company (NBFC), Vastu Finserve in 2019, venturing into vehicle and MSME finance. Creating social impact lies at the core of Vastu, which focuses on lending to the low-middle income, mainly self-employed segment, and backing women borrowers. Vastu has more than 40 lending relationships across leading public and private sector banks and leading financial institutions. Sandeep Menon, Founder, MD &amp; CEO, Vastu said,"We are happy to have Faering Capital join us as a valued partner. Aditya, Sameer and team have great domain knowledge in our industry and have been long-term supporters of Vastu. We look forward to having them as long-term shareholders.”

Aditya Parekh’s Faering Capital picks up stake in Vastu Housing Finance

<ul><li>MSMEs hold immense potential in supporting India’s ambitious vision of a $40 trillion economy by 2047, says industry body Assocham.</li><li>Banks can fund <keyword id="6358354" type="General" weightage="20" keywordseo="msme" source="Orion">MSME</keyword> working capital requirements against <keyword id="4572080" type="General" weightage="20" keywordseo="GST-filings" source="Orion">GST filings</keyword>, suggests Assocham.</li><li>Another suggestion is to come up with a similar structure of REITs and InVITs, an investment trust that lends specifically to MSMEs via pooling.</li></ul>The micro, small and medium enterprises (MSME) sector has played a meaningful role in India’s growth. The sector holds immense potential in supporting India’s ambitious vision of a $40 trillion economy by 2047, says a report by industry body Assocham. However, the real struggle for small businesses lies in fundraising for future growth. The report highlighted challenges faced by MSMEs in terms of fundraising and recommended ways to solve the problem. “An April 2022 report by the Standing Committee on Finance estimated the credit gap in the MSME sector to the tune of ₹20-25 trillion. Therefore, funding via alternative sources apart from bank credit needs to be augmented for the MSME segment,” said the report. Given that nearly 60% of MSMEs raise funds through informal sources, formalization of the sector is necessary to facilitate growth, the industry body says. “To this end, banks could fund working capital requirements against GST filings, which are more reliable quantitatively, as compared to collateralized loans. This would not only enable MSMEs easy access to funds but also spur formalization through GST registrations,” Assocham said. Another suggestion is to come up with a similar structure of real estate investment trusts (REITs) and infrastructure investment trusts (InVITs). The industry body says that an investment trust that lends specifically to MSMEs via pooling – can be created. Disclosures a challenge with SME IPOs Apart from credit, small businesses also find it tough to raise equity. Raising funds by going public via <keyword id="5559702" type="General" weightage="20" keywordseo="SME-IPO" source="Orion">SME IPO</keyword> is also a challenge due to strict disclosure requirements. BSE SME Exchange was launched in 2012 while NSE launched SME Emerge platform and Nifty SME EMERGE Index in 2017 to encourage MSME companies to get public. “In November 2021, BSE also collaborated with the All-India MSME Association (AIMA) to encourage and promote the listing of MSMEs and start-ups through the SME platform. Although these steps helped overall resource mobilization in the initial years, evident from the gradual rise in number of MSMEs that have moved to the main board, we have not seen equity emerge as a source of MSME financing in a big way,” said the report. While tough disclosure remains a challenge, data shows that SME IPOs have witnessed good growth with hundreds of companies launching their issues with <a href="https://www.businessinsider.in/stock-market/news/small-is-the-new-big-sme-ipos-double-in-2022-while-mainboard-ipos-halve/articleshow/96618323.cms#:~:text=mainboard%20IPOs%20halve-,Small%20is%20the%20new%20big%3A%20SME%20IPOs%20double,2022%2C%20while%20mainboard%20IPOs%20halve&amp;text=In%202022%2C%20108%20SME%20IPOs,age%20technology%20IPOs%2C%20last%20year.">stellar performances</a>. In 2022, 108 SME IPOs were launched, as against 60 the year before. A net worth between ₹1 crore and ₹25 crore is one of the listing requirements for SME IPOs on BSE, as per BSE Stock Exchange. The minimum investment amount for an SME IPOs is quite large compared to regular IPOs – ₹1 lakh for SME IPOs versus nearly ₹15,000 for regular IPOs. The report also revealed that the Department for Promotion of Industry and Internal Trade (DPIIT) is in process of finalizing the new industrial policy, which amongst other things, encourages MSMEs to choose the corporate bond market. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/mutual-funds-raise-bets-on-mid-small-cap-stocks-amid-volatile-markets/articleshow/98516460.cms">Mutual funds raise bets on mid &amp; small-cap stocks amid volatile markets</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/fpis-continue-to-be-bearish-on-oil-gas-power-stocks-in-february-offload-equities-worth-7821-crore-in-the-two-sectors/articleshow/98511897.cms">FPIs continue to be bearish on oil &amp; gas, power stocks in February, offload equities worth ₹7,821 crore in the two sectors</a>

REIT-like structures, loans against GST filings can help solve MSME fundraising problems: Assocham

It is widely acknowledged that the micro, small and medium enterprises (<keyword id="6358354" type="General" weightage="20" keywordseo="MSME" source="Orion">MSME</keyword>) sector has become the central nerve of <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword>’s economy in these past few decades. The glaring asymmetry between the MSMEs that require credit and those that receive it has also not gone unnoticed. NBFCs have become a pivotal part of the mechanism in closing this gap, by widening the reach of financial services thereby enhancing MSMEs’ resilience. NBFCs are slowly but surely gaining a foothold in the Indian financial system. They are the <a href="https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/01AR101017F2969F6115EB4B5992BD73976F9A905D.PDF">biggest</a> receivers of funds on a net basis, even surpassing banks. The double-digit growth in credit that NBFCs accomplished while banks were facing a decline in credit as a result of asset quality stress, should be an indicator of their central role as credit providers in India’s financial system. Within the MSME lending segment, NBFCs have <a href="https://www.statista.com/statistics/1243029/india-market-share-of-lenders-for-msme/">witnessed</a> a stable 13% market share (as of 2020). NBFCs are increasingly preferred by borrowers owing to their increased ability to reach remote areas and in making quicker decisions, providing prompt services and having expertise in niche segments. According to the <keyword id="247408" type="General" weightage="80" keywordseo="world-bank-programme" source="Orion">World Bank Programme</keyword> <a href="https://www.financialexpress.com/budget/msme-eodb-budget-2022-rs-6000-crore-ramp-programme-for-msmes-to-be-rolled-out-in-five-years-says-fm-sitharaman/2422280/">appraisal</a> document for the Raising and Accelerating MSME Performance (RAMP) programme, over 40% of MSMEs lack access to formal sources of finance. As a result of lacking proper accounting systems, updated financials, and proper documentation, a large number of MSMEs borrowers are excluded from the traditional lending ecosystem. From the perspective of larger lenders, thin-file customers often require a greater degree of support and hand-holding. This combination of smaller ticket size geographical dispersion of such MSMEs makes it economically not viable to serve these markets. For India to step confidently into the future, servicing the credit needs of India's 60 million MSMEs without any access to formal credit is paramount. Digitally-led NBFCs remain key in this mission as in their case. They are expanding access to credit through credit models like the cash flow based model. This makes such NBFCs the go-to lenders for borrowers who have the means but are disqualified as per the traditional credit assessment process. There is an evolution of partnership models between NBFCs leveraging their distribution strength and superior customer underwriting with larger banks that have cheaper capital and better risk management processes. Such access to credit is further augmented by digital lenders that have built efficient and scalable outreach to credit-starved MSMEs. The data driven credit models such digital lenders use allow better risk calibration. This is demonstrated by the improving credit performance of these lenders after the Covid-induced stress. <cmsannotation type="cmsannotation" annotationid="Online NBFCs and digital SME lending: Key step towards universal credit access" comment="subhead" text="Online NBFCs and digital SME lending: Key step towards universal credit access">Online NBFCs and digital SME lending: Key step towards universal credit access</cmsannotation> Online NBFCs are taking this aim of reach and access one step ahead through tech-enabled solutions. They have widened the scope of what credit could be, and enabled the reach of credit to underserved customers across different parts of the country. Leveraging alternate data sets, innovative approaches to credit underwriting and offering customised products with a lower turn-around time have also made digital lenders more suitable in enabling access to credit to the MSME borrowers. They are displaying a new confidence in lending to small businesses through varied approaches. One such approach is ‘ecosystem-based lending’. Accessing business loans that are digitised end-to-end is logistically easier for MSMEs that are in tier 3 &amp; 4 cities and may not have the same bank branch options that bigger cities do. The ecosystem based approach to lending involves partnering with digital ecosystems such as Amazon, Google Pay, Zomato and leveraging the information about the MSMEs available with these technology platforms. The approach also allows usage of segment-specific indicators around revenue, customer ratings/reviews, and transaction business volume to arrive at a composite credit model. Thus, proprietors in small towns can seamlessly access credit that was previously available to them in only physical bank branches that are flush with liquidity but inaccessible to MSME borrowers. This access has further been enhanced through solutions like E-NACH, CKYC/OKYC, E-Sign, Video Sign. The alternate data sets digital lenders use for credit modelling sidestep the need for collateral and documentation that many MSMEs may not have. This is how an ‘ecosystem-based’ approach to lending takes accessibility one step further. There is still much distance to be covered in terms of completely closing the MSME <keyword id="7804914" type="General" weightage="20" keywordseo="Credit-gap" source="Orion">credit gap</keyword>. The onus falls on start-ups and the innovation ecosystem to create digital tools and strategies that leverage MSMEs digital footprints and ecosystems. Regardless, in terms of reaching the fringes of the financial system, NBFCS (both online and offline) are rightfully giving credit where credit is due. The author is the founder and chief executive officer (CEO) of online lending firm Indifi Technologies. Disclaimer: The opinions expressed are of the author and do not necessarily reflect the views of the Business Insider India.

OPINION: Why NBFCs remain key to closing the MSME credit gap

Mohali, Dec 6 () Punjab Chief Minister Amarinder Singh on Friday said the government will set up a dedicated MSME marketing cell and establish a Rs 100-crore start-up fund. 
 The MSME marketing cell will work for forming trade linkages for Punjab's micro, small and medium enterprises (MSMEs), a government release said here.
 The release listed out various decisions taken by the chief minister after two days of deliberations during the Progressive Punjab Investors Summit (PPIS) 2019, that concluded on Friday. 
 The start-up fund will be set up by the state government in partnership with IKG Punjab Technical University for promotion of incubators, providing seed or scale-up funding to start-ups, it said.
 Of this, 25 per cent fund shall be used to promote scheduled caste and women entrepreneurs, it said, adding that venture capitalists or angel networks like Indian Angel Network and Bharat Fund may contribute to this corpus fund.
 Responding to industry's concerns about interference by regulatory bodies for environment and pollution clearance, Amarinder decided to give 'Auto Consent to the Green Category Industry on Intimation'. 
 With this, the state government will do away with inspection by any regulatory body and consent shall be given to the industry on the day of intimation, the release said.
 Further, the chief minister also decided to bring certain amendments to GST reimbursement policy to encourage non-paddy based agri-processing sector to wean farmers away from paddy, thereby saving water and preventing air pollution from stubble burning.
 Based on his discussions with a delegation from UAE , which was led by the country's Ambassador to India, the chief minister directed Invest Punjab to immediately establish a dedicated UAE desk at their office, the release said. 
 He also ordered a monthly round table to be conducted at the level of chief secretary with the partner countries which participated in the investor summit.
 Taking note of the key takeaways from each engagement, interaction as well as session during the summit, the chief minister directed to constitute a working group, chaired by the chief secretary, within seven days to ensure expeditious delivery on all points. 
 The working group will submit a report on the feasibility of implementing suggested policy measures within a month, it said.
 In response to some other concerns and demands raised by the industry to boost ease of doing business, the chief minister decided to give permission for sale of independent floors in apartment buildings, and for a minimum floor area ratio of 3 throughout the state. 
 He also agreed to bring in a land leasing law, as urged by industry, at the earliest, the release said. CHS RVK
RVK
RVK

Punjab govt to set up MSME marketing cell, 100-cr start-up fund

Mohali, Dec 6 () Punjab Chief Minister Amarinder Singh on Friday said the government will set up a dedicated MSME marketing cell and establish a Rs 100-crore start-up fund. 
 The MSME marketing cell will work for forming trade linkages for Punjab's micro, small and medium enterprises (MSMEs), a government release said here.
 The release listed out various decisions taken by the chief minister after two days of deliberations during the Progressive Punjab Investors Summit (PPIS) 2019, that concluded on Friday. 
 The start-up fund will be set up by the state government in partnership with IKG Punjab Technical University for promotion of incubators, providing seed or scale-up funding to start-ups, it said.
 Of this, 25 per cent fund shall be used to promote scheduled caste and women entrepreneurs, it said, adding that venture capitalists or angel networks like Indian Angel Network and Bharat Fund may contribute to this corpus fund.
 Responding to industry's concerns about interference by regulatory bodies for environment and pollution clearance, Amarinder decided to give 'Auto Consent to the Green Category Industry on Intimation'. 
 With this, the state government will do away with inspection by any regulatory body and consent shall be given to the industry on the day of intimation, the release said.
 Further, the chief minister also decided to bring certain amendments to GST reimbursement policy to encourage non-paddy based agri-processing sector to wean farmers away from paddy, thereby saving water and preventing air pollution from stubble burning.
 Based on his discussions with a delegation from UAE , which was led by the country's Ambassador to India, the chief minister directed Invest Punjab to immediately establish a dedicated UAE desk at their office, the release said. 
 He also ordered a monthly round table to be conducted at the level of chief secretary with the partner countries which participated in the investor summit.
 Taking note of the key takeaways from each engagement, interaction as well as session during the summit, the chief minister directed to constitute a working group, chaired by the chief secretary, within seven days to ensure expeditious delivery on all points. 
 The working group will submit a report on the feasibility of implementing suggested policy measures within a month, it said.
 In response to some other concerns and demands raised by the industry to boost ease of doing business, the chief minister decided to give permission for sale of independent floors in apartment buildings, and for a minimum floor area ratio of 3 throughout the state. 
 He also agreed to bring in a land leasing law, as urged by industry, at the earliest, the release said. CHS RVK

Punjab to set up MSME marketing cell, 100-cr start-up fund: Amarinder

<ul><li><keyword id="125587" type="COMPANY" weightage="20" keywordseo="K-N-Balagopal">K N Balagopal</keyword> thinks giving emphasis on <keyword id="6354525" type="UNKNOWN" weightage="20" keywordseo="healthcare">healthcare</keyword> is the best way to revive the state’s economy.</li><li>In the state budget, it was announced that a ₹100 crore venture capital fund was set up to help startups and small and medium scale businesses.</li><li>The <keyword id="6355261" type="UNKNOWN" weightage="20" keywordseo="finance-minister">finance minister</keyword> also says that under the GST regime, states are not getting ‘enough freedom’.</li></ul>A lot of states have been releasing their own stimulus packages to compensate for the strict lockdowns. Kerala, however, was the first to announce a relief package even before the central government did, in March last year. After the pandemic’s second wave, though, the newly elected state has decided to focus more on vaccinations than economic stimulus. They are vaccinating district by district, and in the meanwhile releasing ration kits to help the poor to tide over the bad times. Kerala ranked 11th among all Indian states for its vaccination rate, <a href="https://www.statista.com/statistics/1222266/india-cumulative-coverage-of-covid-19-vaccine-across-india/">as of June 28 </a>. The finance minister of the state, K N Balagopal, discussed the troubles of small businesses and their policies with Sriram Iyer, as part of Business Insider’s <keyword id="4106334" type="ORGANIZATION" weightage="20" keywordseo="msme-exchange">MSME Exchange</keyword>, a virtual event dedicated to small businesses in the country. Edited excerpts: You released a relief package of ₹20,000 crore in your latest budget. While a few hail it as a countercyclical measure, was it the intent? The second COVID wave is much more serious than expected. There are reports that there is a chance for a third wave where new areas like pediatrics need to be strengthened. So, we thought that our emphasis should be mainly on health where we gave maximum emphasis and allotted ₹2800 crores in the budget itself. This was for universal vaccination, and more facilities to the hospitals and especially pediatrics. This is an infectious disease, which requires a lot of infrastructure. So, we planned to combat and have the COVID situation covered. Then, our people will be safe enough to work. Our industry will work. Our service sector will work. Our agriculture industry and also our major area of activity ⁠— <keyword id="20048" type="CITY" weightage="20" keywordseo="tourism">tourism</keyword> where people feel safe to go to. In our plan, first comes health, and second is on agriculture and industry which includes MSMEs [micro, small and medium enterprises]. We are also providing food kits to all families. We have also cleared pending bills for contracts, which were lagging behind for six months or even a year. All this money will go to people. Those who do not receive pensions will also be paid. So your plan is to declare a few districts as Covid-free. And that everybody is vaccinated, so tourists start coming in and, therefore, everything else like hotels, transport and small enterprises start moving. Not just the tourists, though they are very important. We have around 33 million people working outside and now 1.4 million are back here. It’s a very tricky point for you. Putting the million plus people returning from the Gulf countries to work. Kerala has many things to be proud of like primary healthcare, education and tourism, but its manufacturing industry is not its greatest strength. How are you going to employ these people? We have a programme to help industry and agriculture. We are announcing some schemes like MSMEs with loans [sic] with lower interest rates. Have you announced these, or are you going to announce? We already announced them. Is it the Chief Minister's entrepreneurship scheme? Not just that. We are providing ₹10,000 crores [of] subsidised loan. We are planning to provide ₹2,000 crores to agricultural cooperatives like societies, which can do agriculture related industry or set up such units. Are small businesses even taking loans? They seem to be worried about demand, and are choosing to be cautious. It is a serious issue. That is why I said if your economy is not active, you cannot do anything with this. If our industries are producing something and nobody is there for purchasing, so there is no need. Then it's a very long discussion on how to create demand. What we are doing with [the] stimulus package is to ensure that people get money via loan schemes. Many people might want some loan, if an interest subsidy is there. If industry is working, and there is some money coming in, the demand will come. I would add that it is not a fast process. How will the state be able to finance these schemes? Especially, since remittances are going to take a hit with the return of people who were working in the Gulf countries and sending money back to Kerala. It is not [only] Kerala, but other governments are also facing this problem. The central government has everything with it [sic], be it GST [goods and services tax] or taxes or petroleum cess - it’s all with them. The central government has to make a very serious plan to help the states. And not just the states, but their subjects, common people, the industrialists. There should be some plan. Otherwise, the economy will not be revived. In your recent statements about I know you have a lot of anger, a lot like a lot of other state governments because they're not getting their share. They have to wait and all of that. But do you really believe that the sum total of GST’s impact on the economy has been really that bad that it should be repealed? Even the harshest critics of the Modi government would say that the idea is good, but implementation was lacking. And do you really think that India can sustain another shock of going through a complete overhaul of the tax regime one more time in just three years? No, no, that’s not what I said. The experience of GST in the country shows that it is not implemented properly. We gave a dissent note on behalf of the Left. These issues mainly raise the question of federalism. And now, state governments are not getting enough freedom. But there's a thinking among the people who supported GST earlier, who supported GST earlier that it's very detrimental to the interest of the state governments. And, if this feeling grows, it will not help the unity of the country. I had written this in the dissent note that the control will be with the central government. <h1 style="line-height:1.44;border-bottom:solid #eeeeee 0.75pt;background-color:#ffffff;margin-top:0pt;margin-bottom:8pt;background-clip:padding-box;padding:0pt 0pt 11.25pt 0pt;"></h1>

Kerala Finance Minister believes in just one economic stimulus ⁠— vaccines

By Roopshree Nair New Delhi, Apr 12 () The MSME sector will tide over the huge blow caused by the lockdown, and reduce chinese import dependence by ramping up domestic manufacturing with the government support, Union Minister Nitin Gadkari has said.In a video-conference with , the MSME minister said the government was working on a "war footing" to resolve issues - like working capital crunch and access to affordable financing - faced by the sector, as millions of units stare at staggering losses.Gadkari said the committees constituted by the Prime Minister's Office are continuously monitoring and assessing the situation on the ground and would suggest if and when the lockdown can be lifted in certain sectors for normal operations to resume, and added that "work should begin where possible while keeping the virus at bay".The MSME Minister said nearly 8-10 lakh units will be restructured in the coming days, asserting that owners will have to take care of their workers and put in place mechanisms for proper sanitisation as a preventive measure once they return to work.Gadkari also informed that a Rs 10,000 crore "Fund of Funds" has been approved by the Finance Committee and will be placed before the Union Cabinet for approval. This fund, he said, will facilitate MSMEs to raise money from the capital market, as a portion of their equity will be purchased by the government."We will encourage MSMEs to enter the capital market and attract foreign investments, increase exports from the sector through large-scale production and create jobs," the minister said.He observed that the government was well aware of the issues faced by micro, small and medium enterprises, and packages announced by the Finance Minister will set in motion a recovery for the sector.Gadkari said that recommendations of the UK Sinha Committee appointed by the Reserve Bank of India will soon be implemented.The minister said he has directed district officers to go to banks and facilitate paper work and coordination for loans to be cleared as fast as possible, and a "branch-wise" monitoring was underway to ease the credit woes of the MSME sector.Referring to reports of nearly 20 lakh migrant labourers living in shelter homes across the country, Gadkari admitted that this was a "serious issue" but said state governments will have to evolve guidelines towards their safe return and factory owners will have to undertake measures to rebuild their confidence.Highlighting that several nations want to source medical devices, masks and ventilators from India in the wake of the virus outbreak, the minister said this was a "golden opportunity" for the country's MSMEs to enhance their production capabilities for the future. RSN BAL

MSME sector will tide over coronavirus crisis: Gadkari

<keyword id="2573068" type="General" weightage="100" keywordseo="kinara-capital" source="Orion">Kinara Capital</keyword>, which offers unsecured business loans for MSMEs, on Friday said it has raised Rs 200 crore led by British International Investment (BII), the UK's development finance institution and impact investor. Existing equity investors <keyword id="4657434" type="General" weightage="50" keywordseo="nuveen" source="Orion">Nuveen</keyword> and the ASN Microkredietfonds advised by Triple Jump also participated in the funding round. With this funding, <keyword id="1280640" type="General" weightage="80" keywordseo="kinara" source="Orion">Kinara</keyword> Capital aims to grow 5 times by 2025 and reach an asset under management (AUM) of Rs 6,000 crore. "The combined expertise and capital infusion from BII, Nuveen and Triple Jump, will expand Kinara Capital's offerings to meet the rising demand of the MSME sector in India. With this support, we, at Kinara Capital, are further motivated to deliver on our mission of financial inclusion," said Hardika Shah, Founder and CEO of Kinara Capital. More than 300 MSME sub-sectors across manufacturing, trading and services sectors can digitally avail 'myKinara' collateral-free business loans in the range of Rs 1-30 lakh. Kinara Capital plans to reach over 2,00,000 MSMEs across more than 100 cities in the next three years. The social impact of this growth is expected to support over 1 million jobs in local economies and generate over Rs 3,000 crore in incremental income for small business entrepreneurs, said the company. "Women-led fintech company Kinara champions female empowerment and provides easier access to capital for small entrepreneurs across India. The British Government is proud to support the company through BII's investment," said Alex Ellis, British High Commissioner to India. Kinara Capital's other main equity investors include Gaja Capital, GAWA Capital, Michael &amp; <keyword id="867407" type="General" weightage="50" keywordseo="susan-dell-foundation" source="Orion">Susan Dell Foundation</keyword> (MSDF), and Patamar Capital. "We are happy to participate in this round of investment for Kinara Capital which we consider to be at the forefront of driving financial inclusion with its digital processes combined with a personalised approach," said <keyword id="15370820" type="General" weightage="50" keywordseo="rekha-unnithan" source="Orion">Rekha Unnithan</keyword>, Managing Director and Co-Head of Private Impact Investing, Nuveen. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ttk-healthcare-logs-rs-7-91-cr-net-shares-flares-up/articleshow/95142324.cms">TTK Healthcare logs Rs 7.91 cr net, shares flares up</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/global-health-that-operates-medanta-hospitals-to-open-its-2205-cr-on-november-3/articleshow/95142371.cms">Global Health that operates Medanta Hospitals to open its ₹2,205 cr on November 3</a>

Women-led Kinara Capital raises Rs 200 cr to empower MSMEs in India

New Delhi, Feb 2 () The Union Budget 2020-21 has earmarked an all-time high allocation of Rs 7,572.20 crore for the Ministry of Micro, Small and Medium Enterprises while announcing a string of initiatives for the sector including raising the turnover threshold for audit of their accounts to Rs 5 crore and a scheme to provide subordinate debt to MSME entrepreneurs.
 The flagship employment generation scheme of the ministry, Prime Minister Employment Generation Programme, has got an all-time high allocation of Rs 2,500 crore for generating self-employment opportunities through establishment of micro-enterprises in non-farm sector by helping traditional artisans and rural/urban unemployed youth.
 "Currently, only businesses having a turnover of more than Rs 1 crore are required to get their books of accounts audited by an accountant. In order to reduce compliance burden on small retailers, traders, shopkeepers who comprise the MSME sector, I propose to raise by five times the turnover threshold for audit from the existing Rs 1 crore to 5 crore," Finance Minister Nirmala Sitharaman said while presenting the Budget in Parliament on Saturday.
 She said a scheme will be introduced to provide subordinate debt to MSME entrepreneurs.
 Besides, the government has also asked the Reserve Bank to extend the debt restructuring window for MSMEs by a year to March 31, 2021, Sitharaman said.
 "An app-based invoice financing loans product will be launched. This will obviate the problem of delayed payments and consequential cash flow mismatches for the MSMEs," the finance minister said.
 She further said necessary amendments will be made to the Factor Regulation Act 2011 to enable non-banking financial companies (NBFCs) to extend invoice financing to MSMEs through TReDS, thereby enhancing the economic and financial sustainability.
 A scheme of Rs 1,000 crore was also announced to extend hand holding support to mid-sized companies in selected sectors such as pharmaceuticals, auto components and others for technology upgradations, R&amp;D, business strategy, among others, to make them export competitive.
 The Khadi Vikas Yojana and Gramodyog Vikas Yojana has been allocated Rs 472 crore to develop a sustainable model of Khadi based business enterprises in the villages.
 The allocation under MSE-Cluster Development Programme has witnessed an increase of 71 per cent to Rs 391 crore from Rs 228 crore in 2019-20 for enhancing productivity, competitiveness and capacity building of Micro and Small Enterprises (MSEs).
 Allocation for 'Scheme of Fund for Regeneration of Traditional Industries' (SFURTI) has gone up to Rs 465 crore from Rs 125 crore in the previous year to help traditional industries become more productive, profitable and capable of generating sustainable employment for artisans.
 Besides, Rs 805 crore has been allocated under Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS) to improve competitiveness of MSMEs through various interventions aimed at upgrading technology. 
 The National Scheduled Caste/Scheduled Tribe Hub is given Rs 150 crore to provide professional support to SC/ST entrepreneurs and capacity building among existing and prospective SC/ST entrepreneurs through training programmes. RSN RVK

MSME Ministry allocated Rs 7,572 cr in Budget

New Delhi, Mar 18 () DMK parliamentarian T K S Elangovan on Wednesday expressed concern over the decline in the share of MSME sector in the country's GDP to 28 per cent from 45 per cent in 2011 and said smaller industries were suffering due to lack of bank financing. Initiating the discussion on working of the Ministry of Micro, Small and Medium Enterprises (MSME), he said the allocation to the sector was lowered in the revised estimate during 2018-19. Elangovan said micro, small and medium enterprises need funds for technology upgradation and infrastructure, but banks were not proving funds. The government should support small industries and banks should lend, he added. Stating that the MSME sector provide huge employment opportunities to people, the DMK leader said the government should re-evaluate its strategy and provide support to this sector for economic development of the country. Countering his charges, Arun Singh of the BJP highlighted various initiatives by the central government to strengthen the MSME sector. He said there was no development in the MSME sector in the last 70 years because of piecemeal approach by previous governments. Participating in the discussion, Amee Yajnik of the Congress said demonetisation has finished this sector and "we have to face it". "You cannot run away, you cannot remain in denial mode," she said, requesting the minister to look into the budgetary allocation and consider simplification of schemes so that it can reach the last person. A Vijayakumar of the AIADMK said Tamil Nadu continues to be a vibrant industrial state with a large base of big factories and small units, with the state having an estimated seven lakh registered MSMEs or 15.1 percent of all such units in the country. "I urge the government to allocate Rs 5,000 crore as one-time special package to support the MSME sector in Tamil Nadu," he said, adding that because of the coronavirus outbreak, the production has been suffering for two months. Ravi Prakash Verma of the Samajwadi Party said MSME units are the backbone of the economy but the sector is facing distress due to various factors. He urged the Centre to raise the budgetary allocation for the MSME ministry. As per Budget estimates, an outlay of Rs 7,572 crore has been earmarked for the MSME Ministry for 2020-21. Sasmit Patra of the BJD said the coronavirus outbreak is going to negatively impact the MSME sector. Elamaram Kareem of the CPIM said MSMEs play a crucial role in providing large-scale job opportunities with the sector employing over 11 crore people. He said the MSME sector has suffered the most due to demonetisation and "unscientific implementation" of the Goods and Services Tax (GST). Anil Desai of the Shiv Sena said consumption slowdown and liquidity constraints have severely impacted the MSME sector. Manoj Kumar Jha of the RJD said the government and Opposition parties can collectively draw a blueprint to help the MSME sector. He said signals are "worrisome" and the sector is going to "bleed" particularly in view of the economic slowdown. Binoy Viswam of the CPI said if the government is serious about MSMEs, first of all it should undertake a study on the impact of demonetisation on the sector. Praful Patel of the NCP said the MSME sector needs to be supported as crores of livelihoods are dependent on it. RSN SMNSMN

DMK MP expresses concern over decline in MSME sector's share in GDP

New Delhi, Apr 7 () Exporters will seek immediate roll out of support measures and permission for opening up their factories with 50 per cent of workforce during a video conference meeting called by Commerce and Industry Minister Piyush Goyal on Wednesday. Representatives from various Export Promotion Councils (EPCs) including from sectors such as apparel and leather will participate in the deliberations, besides the Federation of Indian Export Organisations (FIEO). This will be the third such meeting since March 27. The minister will take stock of the situation and the issues which exporters are facing due to lockdown on account of coronavirus outbreak in the country, an official said. FIEO President S K Saraf said, "Partial opening of factories is very important. We are not able to carry out the maintenance work also. The government should give permission to open factories with at least 50 per cent of our workforce". He said exporters are "eagerly waiting" for roll out of a special package as countries like China have announced huge incentives for their exporters. "To be in the market, we have to start operations. Small and MSME business are not able to pay wages and salaries," he added. Sharing similar views, Apparel EPC Chairman A Sakthivel said the government should pay employers' as well as employees' contribution for Provident Fund and Employees' State Insurance as it would not have much bearing on the exchequer. China is rapidly taking steps to tap global markets and India should also take such steps so that domestic exporters don't lose their buyers and fulfil their export obligations, exporters said. Currently, manufacturing, transportation and trade of essential goods are allowed without any interruption during the lockdown. Saraf also said that as part of a support package, the government should give loans to companies to pay wages, salaries, rent and power bills for six months. The loan should be given without additional collateral or paperwork to all industrial units who have a clean record with banks before lockdown, and the repayment should be in 18 equal installments after an initial moratorium of six months, he added. Ludhiana-based exporter S C Ralhan said fixed charges levied may be waived and industry may be charged only on the actual consumption of electricity, and immediate refund of IGST will help exporters in dealing with liquidity issues. RR RVK

Exporters to raise wages issue, opening up of factories in discussion with Commerce Minister Wed

New Delhi, Dec 26 () Aye Finance, the CapitalG-backed fintech lender, on Thursday said it has raised Rs 107 crore as debt funding from Swiss-based BlueOrchard.
 "BlueOrchard has been supporting Aye in its mission to enable the financial inclusion of micro enterprises since May 2017 and has taken a total exposure of Rs 290 crore in the MSME (micro, small and medium enterprises) lender," according to a statement.
 Aye will utilise the latest round of fund to extend affordable and customised credit solutions in the country, it added.
 Last month, Aye Finance had announced it raised Rs 125 crore from Dutch development bank FMO. In the current year, Aye has raised over Rs 1,140 crore in debt and equity from entities including CapitalG, Falcon Edge, HDFC, ICICI and DCB Bank, other than FMO and BlueOrchard.
 Since its inception in 2014, Aye Finance has provided Rs 2,700-crore credit to over 1.96 lakh grassroots businesses, the statement said.
 "This is the sixth round of funds we have received from BlueOrchard, and I believe this demonstrates their comfort with and commitment to our business," Aye Finance Managing Director and founder Sanjay Sharma said.
 Lending to micro enterprises has been a less-travelled path for banks and financial companies and, hence, it is satisfying to have established an innovative paradigm of lending approach, he added.
 Normunds Mizis, chief credit officer at BlueOrchard, said India is an important market for the company, and it has been actively investing here for almost 20 years.
 "We have been working with Aye Finance since 2017. This additional funding is testament to our conviction in the company's mission to bridge the gap between loans offered by MFIs (microfinance institutions) and those available from commercial banks, offering MSMEs across India access to attractive credit solutions," Mizis said. SR HRS

Aye Finance gets Rs 107 cr in debt funding from BlueOrchard

Mumbai, Jan 10 () Non-banking lender Shriram Transport Finance (STFC) on Friday said it has raised USD 500 million (approximately Rs 3,556 crore) through dollar bond, making it the first international public social bond issuance from the country.
 The money was raised through issuance of 144A/Reg S bonds having a tenor of three-and-a-half years and offering a coupon of 5.1 per cent from investors.
 It received interest from marquee social bond investors including those from Hong Kong, Singapore, London and the US.
 "The proceeds from the bond would be used for employment generation including through MSME financing and microfinance," the company said in a statement.
 The bond was initially priced at 5.375 per cent, but owing to good demand from investors, the company fixed the price at 27.5 basis points lower to 5.1 per cent.
 The bond got overwhelming response from investors with the final order book in excess of USD 2.20 billion and oversubscription of over four times.
 The transaction witnessed 50 per cent participation from the US, 37 per cent from Asia and 13 per cent from Europe, Middle East, and Africa (EMEA) with 85 per cent investment from asset managers and five per cent each from banks and insurance, and 5 per cent from private banks among others.
 "Social impact continues to remain a focus area for the company and we are pleased to have received significant interest for our inaugural social bond," STFC's managing director and CEO, Umesh Revankar, said.
 The joint book-runners and joint lead managers to the issue were Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Emirates NBD Capital, HSBC, ING, J P Morgan and Standard Chartered Bank.
 With this issuance, the company has raised USD 1.65 billion through dollar bonds since 2019.
 It had raised USD 400 million in February, USD 500 million in April and USD 250 million in July.
 Besides, it also raised USD 145 million in November 2019 and USD 90 million in January 2020, through loan route from multilateral agencies.
 The company raised these funds under its USD 2,000 million global medium term note programme (GMTN).
 STFC, through its 1,669 branches, provides finance to commercial vehicle industry.
 As of September 2019, its total assets under management stood at Rs 1,08,120.24 crore as compared to Rs 1,04,379.83 crore in the year-ago period.
 Its net profit increased by 25.50 per cent to Rs 765.05 crore in the second quarter of the current fiscal from Rs 609.58 crore in the same period of the previous year. HV ANS
ANS

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