The exponentially growing Indian funding market, valued at $300 Billion has been attracting a lot of global players and the latest addition to the list is Biz2Credit, United States based online marketplace for financing the startups and SMEs. The portal will provide loans from $5000 to $5 Million within 24 hours to the SMEs and startups and it is aiming to generate a business of INR 1000 Crores ($150 Million) by the next fiscal year.
Talking about the current scenario, there are over 29 million small and medium businesses in the country which account for over 40% of the total Indian export and 45% of the industrial output.
Speaking on the development, Ramit Arora, President & CoFounder Biz2Credit added that the digital revolution has transformed the way of SME financing. There are a lot more technical factors which have been included like peer to peer landing and use of analytics on a larger scale. He predicts that by 2020, over 10% of the SMEs will be financed by online means and this was the perfect time to enter India.
India has been a major source of revolution, however, the SME financing faces a lot of roadblocks like limited capital and timely banking finance. Ineffective marketing strategy and unavailability of skilled labors are yet another factors adding to the SMEs worries.
Biz2Credit is looking to create a system which is organised and more focused to SME financing. It was established in 2007 and has worked on a great extent to bring together the finance lenders and SMEs who require funds. Few of the offered services include Line of Credit, Equipment Loans, Working Capital and SME Loans.
Boz2Credit boasts of over 1.1 million users along with 1300 lenders and credit agencies. It is using the trademark technology (Biz Analyzer) to connect the SMEs to the credit agencies and the model has been pretty successful till now.