Active Stocks
Fri Sep 22 2023 15:58:38
  1. Tata Steel share price
  2. 126.7 -0.86%
  1. HDFC Bank share price
  2. 1,529.2 -1.57%
  1. State Bank Of India share price
  2. 598.1 1.67%
  1. Power Grid Corporation Of India share price
  2. 199.1 -1.34%
  1. Tata Motors share price
  2. 621.1 -0.93%
Business News/ Companies / Start-ups/  Light Microfinance, IppoPay to offer digital loans to MSMEs

New Delhi: Light Microfinance has partnered Chennai-based fintech firm IppoPay to power digital lending to micro, small and medium enterprises (MSMEs) in rural and semi-urban micro-markets of Tamil Nadu, Andhra Pradesh, Telangana and Karnataka.

Coinbase Ventures and Better Capital-backed startup Ippopay offers payments solutions to about 400,000 merchants. According to the company, this partnership brings together Gujarat-based NBFC’s expertise in lending services and IppoPay’s fintech platform to offer MSME loans.

"At Light, we have always been committed to going deeper into the rural and semi-urban geographies," said Rakesh Kumar, CEO of Light. "Our partnership with IppoPay will deliver credit to merchants in a simple, efficient and technology-driven manner when they need it and where they need it."

"We are excited to join hands with Light," said Mohan K, CEO and co-founder of IppoPay Technologies. "Our shared commitment to innovation and merchant-centricity will enable us to make a significant impact in the rural lending space."

The country’s digital lending market grew at a compounded rate of nearly 40% over the last 10 years and was worth $270 billion in 2022, according to a report by Experian, a consumer credit reporting company. 

The lending potential of Indian MSMEs can reach $3 trillion by FY23, the government’s chief economic advisor, V Anantha Nageswaran had said last year.

Following back-to-back digital lending guidelines from the Reserve Bank of India, most fintechs – which don’t have their own NBFC – are partnering with regulated entities and working as a customer acquisition and collection agent for NBFCs.

Last year, Light Microfinance raised 196 crore in a Series B funding round led by UK’s impact investor British International Investment (BII), where existing investors Nordic Microfinance Initiative (NMI), Triple Jump BV and Incofin IM also participated.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Updated: 16 Aug 2023, 06:39 PM IST
Next Story
Recommended For You
Switch to the Mint app for fast and personalized news - Get App