Mastercard Incorporated (NYSE:MA) has entered into a strategic partnership with U GRO Capital, a leading NBFC specializing in MSME financing, to provide crucial financing solutions to small businesses in India. This collaboration aims to address the significant challenges faced by MSMEs in accessing capital, especially in a country where only 14% of the over 64 million MSMEs have access to credit.
A Comprehensive Digital Solution for MSMEs
This partnership seeks to offer a holistic digital supply chain financing solution. Leveraging U GRO Capital’s data tech platform and innovative underwriting model, the GRO Score, the collaboration aims to extend short-term credit to various segments of small businesses, including dealer distributors, last-mile retailers, and women entrepreneurs. Mastercard, with its extensive network, will bring together stakeholders from both the demand and supply sides, creating a common platform for driving economic empowerment and an environment where small businesses can thrive and contribute meaningfully to the nation’s economic landscape.
Shared Commitment to Innovation
The alliance between Mastercard and U GRO Capital is grounded in a shared commitment to innovation, a cornerstone in addressing the complexities of credit needs within the MSME sector. U GRO Capital’s forward-thinking approach, encapsulated in its proprietary underwriting model and data-driven solutions, aligns with Mastercard’s dedication to driving digital inclusion for small businesses across India. This amalgamation of innovative forces positions the partnership as a potential game-changer for Indian MSMEs.
Global Commitment to Small Business Empowerment
Mastercard’s global commitment to bringing one billion people and 50 million micro and small businesses, including 25 million female entrepreneurs, into the digital economy by 2025 underscores its dedication to small business empowerment. This collaboration with U GRO Capital is a tangible manifestation of this commitment. By leveraging its influence and network, Mastercard aims to become an enabler of growth, providing not only financial resources but also the connectivity and support needed for small businesses to flourish in the evolving economic landscape.
Seizing Opportunities in India’s Booming Digital Economy
Mastercard’s robust digital suite plays a pivotal role in establishing a strong footprint in the dynamic landscape of India. Through strategic investments and partnerships, Mastercard has crafted a comprehensive suite of digital solutions that resonate with the evolving needs of businesses and consumers in the country. In September, Mastercard joined forces with the Agri Entrepreneur Growth Foundation to introduce Bharat Kisan Manch, a pioneering digital platform poised to revolutionize the landscape for millions of Indian farmers and agricultural entrepreneurs with seamless connectivity to markets and formal financial services.
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