Invoicemart, a prominent digital marketplace specializing in invoice discounting, has set an ambitious goal of onboarding one million micro, small, and medium enterprises (MSMEs) by 2030. This strategic move is in line with India’s escalating drive towards digital financial inclusion and the rising acceptance of technology-based lending solutions among smaller businesses. Operated under the Trade Receivables Discounting System (TReDS) framework regulated by the Reserve Bank of India (RBI), Invoicemart provides MSMEs with access to working capital by facilitating the sale of their trade receivables to financiers. Prakash Sankaran, the MD & CEO of Invoicemart, revealed that the platform currently hosts 60,000 MSMEs and aims to reach the coveted 1 million milestone within the next five years. This optimism is fueled by the trend of MSMEs discovering new buyers upon joining the platform, a significant shift from the traditional one buyer, one seller model. Sankaran emphasized the value proposition for sellers in gaining access to multiple buyers through the platform, a factor that boosts confidence among MSMEs to engage with Invoicemart.
### Replicating Success: The Key to MSME Onboarding
The journey towards onboarding one million MSMEs is fueled by the platform’s success in replicating buyers among businesses. This phenomenon not only diversifies the buyer base for sellers but also enhances the overall market reach and competitiveness of MSMEs. Invoicemart’s proactive approach in educating MSMEs about the benefits of engaging with multiple buyers underscores its commitment to fostering a vibrant ecosystem for small businesses. Additionally, the allure of government business presents a promising avenue for growth, with five state governments already onboard the platform. Sankaran highlighted the government segment as a key growth driver alongside corporate partnerships, signaling a multi-faceted strategy to expand Invoicemart’s reach and impact across diverse sectors.
### Empowering MSMEs through Digital Innovation
Invoicemart’s success story is underpinned by its robust governance framework, risk management practices, and unwavering commitment to facilitating liquidity flow for smaller enterprises. With a track record of processing invoices totaling ₹1.60 lakh crore, the platform is poised for substantial growth in the coming years, projecting a 40-50% increase in transaction volumes. The emphasis on mandatory transactions, in addition to onboarding, highlights the platform’s focus on enhancing market participation and driving tangible outcomes for MSMEs. By leveraging cutting-edge technology and fostering strategic collaborations with financial institutions, Invoicemart aims to streamline invoice discounting processes, reduce payment cycles, and catalyze financial inclusion for MSMEs nationwide.
### Bridging the Financing Gap: A Digital Imperative
As India’s MSME sector continues to grapple with a significant financing gap amounting to nearly $530 billion, the role of digital lending platforms like Invoicemart becomes increasingly pivotal. By offering expedited payment solutions, innovative financial products, and personalized support to MSMEs, Invoicemart stands as a beacon of hope in addressing the sector’s persistent challenges. The CEO’s resolute stance on refraining from capital raising underscores the platform’s self-sufficiency and long-term sustainability in driving inclusive growth for MSMEs. Invoicemart’s unwavering commitment to leveraging technology as a catalyst for growth, empowering MSMEs with financial resources, and bridging the formal credit gap signifies a transformative journey towards a more resilient and prosperous MSME ecosystem.
InvoiceMart’s growth strategy hinges on strengthening its technological infrastructure, expanding partnerships with financial institutions, and increasing awareness among MSMEs about invoice discounting. The platform allows enterprises to receive payments for their invoices within days rather than waiting for extended credit cycles from large buyers.
