Alok Mittal, Co-founder of Indifi Technologies, a digital lender funding MSMEs says that there’s a definite impact of lockdown and second wave of pandemic on the small and medium enterprises ecosystem.
While on one hand the positive impact has been on how the digitisation efforts are being taken. He said, “E-KYC have gone up from 35 to 85% in the last 9-12 months and the rest 15% are through physical format. The turnaround time for sanctioning a loan from onboarding and disbursal and the money getting deposited in a clients account is 2-3 days.”
On how the disbursements have been faring he said referring to the last lockdown that the first half of financial year FY21 the disbursal was minimum as it was a complete lockdown with issues around repayment and moratorium and credit performance was also not good. He added, “15% of MSMEs had to shut down business though the company has managed to survive it is a reflection of what is happening to customers on the ground. We did write off loans for them.”
Alok also explains that there’s a shift in consumer behaviour when it comes to accessing digital lending services. They’ve also gone ahead and done changes in their overall product offering as before Covid-19 they were servicing liquidity for short-term requirements and now they’re banking for more on cash-flow driven disbursals.
They have additionally gone through some changes in opting for some specific industries and building depth of knowledge in food delivery restaurants, e-commerce sellers, retailers, groceries and electronics along with heathcare and have started financing pharma retailers and distributors.
He said, “Around 35000 loans done till date in one full quarter it is an encouraging mix of business in terms of growth curve we are looking at 8-10% largely distributor to the retailer level.”
He further adds, “Access to whole-sale capital happened despite the regulator trying to fix, while there were schemes like LTRO, ECLGS because of the design and distribution challenge never reached fintech msme lenders and younger offline NBFC because of the rating constraints which should be a wakeup alarm to start wholesale capital allocation.”