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<ul><li>Indian <keyword id="3665772" type="PERSON" weightage="20" keywordseo="medtech">medtech</keyword> platform – <keyword id="2797821" type="PERSON" weightage="20" keywordseo="Wellness-Forever">Wellness Forever</keyword> had an annual turnover of ₹8 crore in 2008, when it was founded. </li><li>Gulshan Bakhtiani, director of the company, shares his experience of having grown the company without the <keyword id="6358354" type="UNKNOWN" weightage="20" keywordseo="MSME">MSME</keyword> tag. </li><li>Wellness Forever has over 160 centres, with most of them in Mumbai.</li></ul>An Indian drugs retail chain, and now a medtech platform, Wellness Forever, had an annual turnover of ₹8 crore in 2008, when it was founded. Today, the annual revenue is close to ₹1000 crore ($133.3 million). The co-founder Gulshan Bakhtiani revealed to Business Insider that he made this stupendous journey without the tag or benefits of being a micro, small and medium enterprise (MSME) in India. This may not be an option for most small business owners who may not be from the big cities, or for those who do not have access to the rich or privileged. However, the experience of Bakhtiani has some nuances and useful lessons to understand ground realities and different approaches to the issue of uplifting small businesses. . The size of the problem Bakhtiani chuckled as he remembered a popular advice in his early years. “Don’t grow your business beyond ₹40 lakh, they would say. This is because beyond a certain revenue, MSMEs wealth has to be audited by a CA,” he shared in a chat with Business Insider. Bakhtiani himself is a chartered accountant. <div type="twitter" handle="BiIndia" handlename="Business Insider India🇮🇳" image="http://pbs.twimg.com/profile_images/1232926719016718336/sfffJHNV_normal.jpg" favoritecount="60" retweetcount="7" status="#EmpoweringBusiness | The MSME Exchange: Your problem, their solutions— @BiIndia's @iyer_sriram in conversation wit… https://t.co/sJVeTotL5G" createdat="1593775942000" id="1279015122548125697"></div> There is growing cry for additional support for India’s millions of MSMEs struggling to survive during the COVID-19 pandemic and the subsequent lockdown. On May 13, the Indian government allowed companies up to a revenue of ₹100 crore to be classified as MSME for subsidised loans and preferential treatment for tenders worth up to ₹200 crore. The banker approving the loans is looking at many more things other than these definitions and thresholds The banks prefer bigger businesses with more assets available for collateral. “If you look at the statistics more thans 95% of the businesses in the MSME sector are in the micro space and 98% of them employ less than 10 people. But the bane of the industry continues to be the lack of capital. If your creditworthiness is good, you’ll get those loans. But we need to address the issues – what’s going wrong with the companies that are not being able to maintain the working capital cycle,” said Anupam Prasad of AP Law Chambers. <div type="Article" hostid="261" msid="76809382" title="A banker's checklist for MSMEs who want a loan" mstype="2" mssubtype="0"></div> It’s not just the banker <a href="https://www.businessinsider.in/finance/news/only-5-of-the-governments-msme-emergency-loan-package-is-disbursed-after-a-month/articleshow/76437386.cms">Existing relationships</a> with banks matter but many small businesses, particularly the micro ones, still stay away from banks as they can. “A businessman just wants to make money – he doesn’t understand terms like debt, debt equity ratio or more,” he said. Wellness Forever is backed by the family offices of several high net worth individuals including Adaar Poonawalla. That’s a problem for the banker and rightly so. “ There are two components in the way businesses are run today – an equity portion that a promoter brings in and a debt that the firm brings. There is promoter money and the money from the bank in the business. Today, the problem in the ecosystem is that the lines are blurred. For MSMEs to expand, they should have avenues to raise equity,” said Sunil Daga, Sr EVP and Head, Business Lending solutions at Kotak Mahindra Bank. The solution, according to Bakhtiani, is for banks to conduct financial literacy courses and, possibly, a ‘lender maturity programme’. Aspiration to leave the comfort zone Most small businesses are modelled around the sops. Growing bigger would mean losing some of the benefits and, for many, it’s a question of survival. “MSMEs should internally decide the time for which they want to be in one particular bracket. This time frame will help them plan better,” he said. It’s easier said than done for many; it's definitely a good idea for those who can aspire. In 2008, Wellness Forever started with three stores. Today, it has over 160 centres, though most of them in Mumbai, Bakhtiani’s home. But the company has <a href="https://www.moneycontrol.com/news/business/companies/pharmacy-chain-wellness-forever-eyes-triple-store-count-in-next-three-years-4494541.html">plans</a> to scale up the business to 400-500 stores in the next two years. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/unicorns-like-byjus-first-cry-and-zomato-got-a-big-chunk-of-startup-funding-in-2020/articleshow/76868237.cms">Unicorns⁠ like Byju’s, First Cry, and Zomato bagged one in every three dollars invested in startups this year</a> <a href="https://www.businessinsider.in/business/startups/news/instamojo-ceo-explains-how-the-startup-turned-cash-flow-positive-during-the-lockdown/articleshow/76865741.cms">Instamojo CEO explains how the startup turned cash flow positive during the lockdown</a>

A drug retail chain grew from ₹8 crore a year to ₹1000 crore without the MSME tag⁠— the founder has lessons to share with other small biz

<ul><li>Some of the biggest banks in India are joining hands to create a new company that will leverage the power of <keyword id="6357624" type="UNKNOWN" weightage="20" keywordseo="blockchain-technology">blockchain technology</keyword> to speed up the processing of Letters of Credit (LCs).</li><li><keyword id="36838" type="COMPANY" weightage="20" keywordseo="indian-banks">Indian Banks</keyword>' Blockchain Infrastructure Company Private Limited (IBBIC) is a coalition of 15 banks, including <keyword id="6653" type="CITY" weightage="20" keywordseo="ICICI-bank">ICICI Bank</keyword>, <keyword id="6357149" type="COMPANY" weightage="20" keywordseo="hdfc-bank">HDFC Bank</keyword>, <keyword id="2179992" type="PERSON" weightage="20" keywordseo="RBL-Bank">RBL Bank</keyword>, SBI and Canara Bank.</li><li>The system will be based on Infosys’ Finacle Connect, a blockchain-based platform that enables digitisation and automation of trade-related finance processes.</li></ul>Banks in India are coming together to use blockchain technology to solve a central problem in traditional banking — the processing of Letters of Credit (LCs), GST invoices, and e-way bills. India’s largest public sector bank, the State Bank of India (SBI), along with ICICI Bank, Kotak Mahindra, Axis Bank, and 11 others have <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/15-banks-to-start-new-trade-finance-system-using-blockchain-tech/articleshow/83545043.cms?from=mdr">formed</a> a new company called the Indian Banks’ Blockchain Infrastructure Company Private Limited (IBBIC) that will be at the helm of this transformation. The move is expected to eliminate paperwork, reduce transaction processing time, and offer a secure environment. Moreover, it could be a boon for medium and small-scale enterprises (MSMEs). For those who aren’t familiar with LCs, these are letters from a bank that guarantee that a buyer will pay the seller on time, and for the correct amount. Currently, the process of issuing an LC is relatively slow and requires human intervention to prevent frauds, authenticate transactions, and balance the ledger. Using blockchain to issue LCs would potentially solve these issues. Even elemental fraud like the issuance of two LCs on a single invoice can be easily prevented with the help of this blockchain technology. <div type="ExtQuote" text="“Disbursements on domestic LCs, which used to take four to five days, can be done in four hours.”" auname="Varun Bakshi, head of products and transaction banking at RBL Bank, said in a statement"></div> The new system is expected to go live within a year and each bank has an equal stakeholdership of 6.66%. It’ll be designed to be open, making it seamless for other banks to join anytime in the future. What do MSMEs have to gain from this? The technology is purely based on the concept of tokenisation. This helps turn sensitive data into nonsensitive data that can be leveraged by multiple parties in a series. It also helps preserve the authenticity of data and indirectly enables digitisation. Simply put, a basic invoice can be turned into a token, which can then be used to settle payments, overheads, and other adjustments. For medium and small scale enterprises (MSMEs), this could be a game-changing innovation. Through all of its transactions, assets, liabilities, and more, tokenisation would make approvals quick, disbursements and settlements would be instantaneous, and the chances of fraud are minimised. The incorporation of IBBIC is starkly similar to that of the National Payments Corporation of India (NPCI), which is an umbrella organization that handles critical real-time products like RuPay, UPI, and FASTag. It was formed in 2008 and initially had just 10 banks as stakeholders. The cooperative model has been widely acclaimed as banks kept aside their individual ambitions and collaborated at an unprecedented scale. With the adoption of <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">blockchain</a>, banks are again presenting a unified front. And, as the industry benefits, each bank will have something to gain as well. If they try to undermine each other, nobody wins. <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">Cryptocurrencies</a>, which are based on this technology, have grown exponentially in the last year. However, conventional financial intuitions are yet to take advantage of it. While the authorities figure out a way to <a href="https://www.businessinsider.in/cryptocurrency/news/infosys-co-founder-nandan-nilekani-wants-crypto-in-india-to-be-treated-as-an-asset-class-but-not-a-currency/articleshow/83311045.cms">regulate cryptocurrencies</a>, banks are taking a step forward and bridging the gap from a technology point of view. Who are the stakeholders? Out of the 15 banks, eleven are privately held by investors while four are public sector units. The private banks include HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, IDFC Bank, South Indian Bank, and Federal Bank. And, the public sector units encompass Bank of Baroda, SBI, Canara Bank, and Indian Bank. American lender Standard Chartered is the only international player in the consortium. The system will be based on Infosys’ Finacle Connect, a blockchain-based platform that enables digitisation and automation of trade-related finance processes. The technology has already been deployed or piloted by the likes of SBI and Axis Bank at an individual scale, but an industry-wide alliance is a first. Letters of Credit are only the beginning Domestic LCs are just the tip of the iceberg. The industry has been exploring more complex use-cases such as collateralised loan disbursal, deeper credit rating, and even transaction traceability. Tokenisation of assets like stocks, bonds, registration certificates, and more can make them instantly available as collateral, making deals far safer for lenders. At the same time, smart contracts ensure frauds are minimal. While these case studies are still in a nascent form, the future looks promising as the traditional institutions converge with millennial engineers and the cutting-edge of technology. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/dodla-dairy-ipo-price-gmp-should-you-subscribe/articleshow/83548332.cms">Dodla Dairy IPO – find out if you should subscribe to this Hyderabad-based dairy company’s stock</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/kims-ipo-price-gmp-should-you-subscribe/articleshow/83547843.cms">KIMS IPO – most analysts are bullish on the hospital chain’s prospects</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/policy/news/china-will-not-buy-iron-copper-aluminum-zinc-and-some-other-commodities-from-foreign-countries/articleshow/83565216.cms">China has decided to take global commodity bulls by their horns ⁠— to protect the profit margins of its small businesses</a>

SBI, HDFC, ICICI and 12 others banks are joining forces to use blockchain to power Letters of Credit — a move that could be a boon for MSMEs

New Delhi, Advocating DPI's potential in helping nations leapfrog digital transformation, a <keyword id="42981" type="General" weightage="20" keywordseo="G20" source="Orion">G20</keyword> document prepared by <keyword id="6354424" type="General" weightage="20" keywordseo="world-bank" source="Orion">World Bank</keyword> has praised India's approach in unlocking the power of digital public infrastructure, including Aadhaar and UPI, for financial inclusion. The impact of DPI goes beyond inclusive finance, to supporting health, education, and sustainability, says the foreward of the document 'G20 policy recommendations for advancing financial inclusion and productivity gains through DPI'. "The India stack exemplifies this approach, combining digital ID, interoperable payments, a digital credentials ledger, and account aggregation. In just six years, it has achieved a remarkable 80 per cent financial inclusion rate-a feat that would have taken nearly five decades without a DPI approach," it said. India's digital ID system Aadhaar, digital payment system UPI, data-exchange platform Digilocker and its other showcase platforms have found a special mention among the examples of DPIs "all of which play a leading role in the advancement of financial inclusion in many countries". Other systems mentioned were Singapore's Singpass, the Philippines' PhilSys, and the UAE's UAE-Pass among the digital ID systems; Brazil's Pix, India's UPI, Turkiye's FAST, the European Union's TIPS, and Thailand's PromptPay under fast payment systems; as well as Estonia's X-Road, Singapore's MyInfo, Australia's Customer Data Right, and the UK's Open Banking. Put simply, Digital Public Infrastructure (DPI) refers to blocks or platforms such as digital identification, payment infrastructure and data exchange solutions that help countries deliver essential services to their people, empowering citizens and improving lives by enabling digital inclusion. DPIs are interoperable, open, and inclusive systems supported by technology and provide essential, society-wide, public and private services that play a critical role in accelerating this digital transformation in an inclusive manner. The document also cites India's Data Empowerment and Protection Architecture (DEPA) and India's Account Aggregator (AA) Framework. On Fast Payment Systems, it noted that in some countries, such as India and Brazil the adoption has been "particularly quick and transformative". UPI, it said, has been widely adopted, benefitting from a user-friendly interface, open banking features, and private sector participation. "The UPI platform has gained significant popularity in India; more than 9.41 billion transactions valuing about Rs 14.89 trillion were transacted in May 2023 alone. For the fiscal year 2022-23, the total value of UPI transaction was nearly 50 per cent of India's nominal GDP," the report said. The document goes on to say that an aspect that makes DPIs unique, and that can further reduce existing constraints, is their ability to complement each other or be integrated in end-to-end workflows. One such service enabled by the interaction of open APIs and digital ID systems is the e-KYC or remote authentication services. A case in point is India's Aadhaar biometric identification system, which covers over one billion people and supports APIs, enables remote identification and authentication, it observes. Financial service providers can thus authenticate an individual's identity remotely, even by using selfie-based mechanisms to substitute for in-person customer due diligence verification requirements, it said. India has also figured prominently in the section on 'DPIs' Potential Added Value for the Private Sector', that cites how FSPs and MSMEs could benefit from these digital networks. "For some nonbank financial companies (NBFCs) in India, the AA ecosystem enabled an 8 per cent higher conversion rate in SME lending, a 65 per cent savings in depreciation costs, and a 66 per cent reduction in costs related to fraud detection. According to industry estimates, banks' costs of onboarding customers in India decreased from USD 23 to USD 0.1 with the use of DPI," it said. Through open application programming interface (APIs), India's Open Credit Enablement Network (OCEN) enables MSMEs participating in digital markets to secure credit by using information about their business history, rather than pledging physical assets as collateral. According to the document, in India, the implementation of various DPIs is considered to have played a critical role in the increase in account ownership from just one-fourth of adults in 2008 to almost 80 per cent a decade later "a journey that it is estimated would have taken up to 47 years without DPIs".

World Bank praises India's digital infrastructure for its transformative potential

Facebook-owned photo-sharing platform <keyword id="819905" type="COMPANY" weightage="20" keywordseo="Instagram">Instagram</keyword> on Wednesday announced that its users in <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> will now be able to view the <keyword id="4114693" type="PERSON" weightage="20" keywordseo="reels">Reels</keyword> within the <keyword id="6662415" type="UNKNOWN" weightage="20" keywordseo="instagram-lite">Instagram Lite</keyword> app. "Now with this update, everyone using the Instagram Lite app in India will be able to view Reels with the Reels tab. This <keyword id="6399502" type="UNKNOWN" weightage="20" keywordseo="feature">feature</keyword> was expedited for India because of the traction Reels is seeing in India, and the early adoption of the new Instagram Lite app," the company said in a statement. The Instagram Lite app began testing in India in December 2020, with the aim of providing an app that's less than 2MB in size and is built to deliver an Instagram experience that remains fast and reliable for more people. The app experience is similar to the core Instagram app experience, though at launch some features were not supported such as Reels and IGTV creation. In addition, Instagram is making changes to its algorithm to get more original posts on its platform. With the help of algorithm, Reels that are mostly covered by text, are blurry, have a watermark or logo, or have a border around it won't be recommended as frequently. The company is also issuing new best practices on its @creators account to give Instagram users tips on how to make content that's likely to be seen and promoted. SEE ALSO: <a href="https://www.businessinsider.in/defense/news/dassault-aviation-has-an-india-it-services-unit-offering-defence-msmes-a-digital-trial-room-where-they-can-test-their-products-to-bag-more-contracts/articleshow/81183313.cms">INTERVIEW: Dassault Aviation has an India IT services unit offering defence MSMEs a digital ‘trial room’ where they can test their products to bag more contracts</a> <a href="https://www.businessinsider.in/india/news/these-indian-states-now-require-you-to-carry-a-covid-19-negative-test-report-for-entry-after-rising-coronavirus-cases/slidelist/81185478.cms">These Indian states now require you to carry a COVID-19 negative test report for entry</a> <a href="https://www.businessinsider.in/stock-market/news/vested-finance-ceo-shares-his-guide-to-us-stock-investing-for-indians/articleshow/81185944.cms">Vested Finance CEO shares his guide to US stock investing for Indians</a>

You Searched For "tips for msmes" and got 4 results

A drug retail chain grew from ₹8 crore a year to ₹1000 crore without the MSME tag⁠— the founder has lessons to share with other small biz

Sanchita Dash

SBI, HDFC, ICICI and 12 others banks are joining forces to use blockchain to power Letters of Credit — a move that could be a boon for MSMEs

Shivam Vahia

World Bank praises India's digital infrastructure for its transformative potential

PTI

Instagram users in India will now be able to view Reels within Instagram Lite app

IANS

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