SME lending space is heating up globally, see here another example of a new SME platform in India
According to Lunia, there are 57 million enterprises, excluding large corporates, in India. “Banks have funded US$110 billion to small businesses and there is still an unmet need of US$141 billion,” he says. At first, Lunia launched an advisory business designing and arranging credit solutions for small businesses. It specialized in arranging alternative modes of financing for small businesses from institutions like the Small Industries Development Bank of India (SIDBI) and India Finance Corporation Of India (IFCI). However, he realized that there was widespread information asymmetry in the SME lending space. SMEs lacked resources to carry out financing transactions and the ones which did needed hand holding for the processes.