27, February 2017: Small businesses in India can now apply for loans onMarketFinance to fund their activities and pursue further growth. MarketFinance offers a wide range of funding mechanisms for businesses including equity funding, angel funding, bill discounting, dynamic discounting and working capital loans which are collateral free.
Although small businesses make up 45 percent of India’s industrial output, they don’t have access to enough capital that will help them grow. Established by two INSEAD students AshwinChalam and Sawan Shah who share the same desire to help businesses grow, MarketFinance was built to enablesmall businesses in India get the capital they need to succeed. MarketFinance serves as an online marketplace that connects small businesses owners with Banks, NBFCs, angel investors and otherfinance companies in India.
Ashwin and Sawan combine their financial and entrepreneurial experience to revolutionize the country’s working capital financing space. MarketFinance makes it easier for business owners to apply for business loans in India. They have formed partnerships with 15 banks and NBFC lending companies. Additionally, with Bill Discounting, MarketFinance has created a mechanism to allow individual retail investors to purchase invoices issued by small businesses to larger clients. This enables cheaper interest rates and faster processing times. Their network of partners is continuously growing, which means that small businesses have a higher chance of getting a loan faster and at a better interest rate.The principle of competition is central to the ethos of MarketFinance. By bringing more lenders and investors to the platform, the company has helped increase amounts funded, reduced turnaround time and reduced the cost of capital. At the same time, MarketFinance adopts a stringent principle of due diligence to really help lenders, investors and insurance providers with the best matches available.
In addition to debt, MarketFinance help early stage companies raise equity funding. Angel investorsprovide funding for businesses with high growth potentialwho may not have steady cash flows as yet.They look at investing in companies for a period of 2-5 years and exit at a much higher valuation thus giving them a significant return on their investment. Angel investors can sell their stake in the business through a merger or acquisition with another company, the company launching an IPO or Venture Capital/PE firms investing in the company and buying out the existing stake of these angel investors.The platform has many angel investors in India who are willing to invest in startups, as long as they meet certain criteria.
MarketFinance has helped a number of businesses get access to funding. In fact, more than 3,000 businesses have applied to them for funding. They hope to help 1m small businesses in the next 3 years.
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Company: Market Finance India