Ecosystem

With a focus to creating value and building a supportive financial infrastructure for the growth and development of the MSME sector in the country, SIDBI has adopted a SIDBI PLUS Approach and propagated institutions building by way of formation of a network of strong associates and subsidiaries that have become instrumental in realising the inclusive growth targets.

These subsidiaries are thoughtfully diversified to reach out to and address both conventional and unconventional needs of MSMEs and start-ups at different growth curves. While some of these are independent SIDBI initiatives, there are others that have been formed through alliances with several state and international entities, all driven by a single point focus to create value, accelerate growth and generate maximum financial, social and environmental benefits to all stakeholders involved.

Ecosystem

Mudra

Micro Units Development & Refinance Agency Ltd. (MUDRA)

Micro Units Development & Refinance Agency Ltd. (MUDRA) was set up on April 08, 2015 as a wholly owned subsidiary of SIDBI for “funding the unfunded” micro enterprises in the country. MUDRA has been supporting Banks, Micro-finance Institutions (MFIs), NBFCs and other lending institutions through refinance assistance for onward lending to micro/ small business entities engaged in manufacturing, trading, service sector activities, activities allied to agriculture.

MUDRA services also include social empowerment initiatives through financial literacy, inclusion and other social support services, in addition to the financial assistance by way of credit plus policies.

MUDRA, currently with an authorised capital of INR 5,000 crore and a paid up capital of INR 1,675.93 crore, works closely with Banks, MFIs and other lending institutions at the state/ regional level to provide micro finance support to the growing micro enterprise sector in the country. It is also the primary vehicle to manage data under the Pradhan Mantri Mudra Yojana (PMMY) by managing the web portal, facilitate offering guarantees for loans granted under PMMY and take up other activities under the PMMY, from time to time.

 

MUDRA Impact:

  • MUDRA’s refinance support has facilitated cheaper funds to lending institutions for expanding their lending up to INR 10 lakh. This has further helped in reducing cost to the ultimate beneficiaries.
  • Close monitoring of lending at the ground level through PMMY has resulted in cumulative lending of INR8.93 lakh crore to 18.24 crore borrower accounts (as on 31.03.2019). Out of these, 70% borrowers were women, 26.5% were new loan accounts and 52% were SC/ST/OBC category.
  • MUDRA has disbursed refinance of INR 20,159.75 crore till March 31, 2019 to various MFIs, NBFCs, Scheduled Commercial Banks including Regional Rural Banks and Small Finance Banks.

    For more details kindly visit http://www.mudra.org.in/

SVCL

SIDBI Venture Capital Limited (SVCL)

SIDBI Venture Capital Limited (SVCL), a wholly owned subsidiary of SIDBI, was set up in July,1999 as an Investment Management Company for managing Venture Capital Funds (VCFs). Since inception, SVCL has continued to provide growth capital to deserving and profitable MSEs across diversified sectors. Currently, SVCL is a prominent Investment Manager for seven funds with a total corpus of INR1,754 crore. The funds managed by SVCL have been instrumental in generating a valuable growth momentum among key sectors of the economy.
Impact of SVCL:

  • SVCL managed funds have assisted MSMEs in various sectors like manufacturing, technology, services, etc.
  • SVCL has led the path by being the first investor in most of its investee companies or a sector, making way for other funds to follow and assist development of a successful investees.
  • Most of SVCL funds have significant focus on manufacturing businesses which are generally starved for equity capital.
  • Several companies in which SVCL’s Funds have been invested have grown to respectable sizes.
  • Samridhi fund was the first social impact fund under the new AIF guidelines. It has assisted companies in diverse sectors like financial inclusion, healthcare, drinking water, organic food, agri processing and clean energy etc.
  • Through Samridhi Fund, SVCL has invested in 5 MFIs. Two of them have transformed into Small Finance Banks (SFB). The MFIs and the SFBs have helped financial inclusion, especially of rural poor women in multiple geographical locations.
  • With a track record of over 125 investments and over 55 (full + partial) exits so far, SVCL has made remarkable contributions towards the growth of traditional sectors like manufacturing and textiles while also pioneering the wave of new technology enabled start-ups, social enterprises, women entrepreneurs and innovative products and services enterprises across healthcare, logistics, education, water etc.

For more details kindly visit http://www.sidbiventure.co.in

CGTMSE

Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)

CGTMSE was set up in 2000 by Ministry of Micro, Small and Medium Enterprises, Government of India (GoI) and SIDBI with an initial committed corpus of INR 2500 crore which got augmented to INR 5000 to facilitate credit guarantee support to collateral free / third-party guarantee-free loans to the Micro and Small enterprises, who are generally considered to be a high risk lending, especially in the absence of collateral. It facilitates access to finance for un-served and under-served geographies, making availability of finance from conventional lenders to new generation entrepreneurs and under privileged, who lack supporting their loan proposal with collateral security and/or third- party guarantee.

CGTMSE introduced the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) which guarantees credit facilities up to INR 200 lakh on automated digital platform, extended by Member Lending Institutions (MLIs) to those MSE loans, which are not backed by collateral security and / or third-party guarantees. The main objective of the scheme is that lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The other objective is that lender availing guarantee facility should endeavour to give composite credit (term loan and working capital facilities from single agency) to the borrowers.

In its over 18 years of operations, CGTMSE has approved over 31 lakh of guarantees covering loans amounting to over ₹1.53 lakh crore on cumulative basis. The units supported by CGTMSE have generated employment to the tune of above 1 crore and export earning of ₹8,980 crore. Approximately, 16% women and 8% SC/ST/Minorities entrepreneurs have been benefited by the scheme.

In order to cover large number of MSEs and improve the ease of delivery, there have been continuous modifications in the product line of CGTMSE. CGTMSE has also introduced some structural changes in the current guarantee schemes, which would make the scheme more attractive to the MLIs and would enable increased credit flow to the MSME Sector.

Impact of CGTMSE

Number of Guarantees approved : 31,06,710
Amount of loan covered through the Guarantees issued ( Crore) : 1,53,415.73
Estimated turnover of guarantee units (` Crore) : 21,51,011.23
Estimated export by guarantee units (` Crore) : 8,980.74
Estimated employment generation : 1,03,37,252
Number of claims settled : 1,83,768
Amount of claim settled (` Crore) : 4,737.01
Guarantees to SC/ST, Women, minority entrepreneurs (% to total guarantee amount) constituted : 24%

For more details visit https://www.cgtmse.in

RXIL

Receivables Exchange of India Ltd (RXIL)

Receivables Exchange of India Ltd (RXIL) was set up on February 25, 2016 as a joint venture of Small Industries Development Bank of India (SIDBI) and National Stock Exchange of India Limited (NSE), with an objective to operate India’s First Trade Receivables Discounting System (TReDS) - an online platform for financing of receivables of Micro, Small & Medium Enterprises. RXIL commenced operations on January 09, 2017.

IMPACT OF RXIL:

TReDS is an online digital platform for the benefit of MSMEs. It facilitates auction of Trade Receivables of MSMEs pertaining to their supplies / services to Corporate and other Buyers, including Government Departments and Public Sector Undertakings [ PSUs ] at competitive rates through online bidding by multiple Financiers (Banks and NBFCs). The main objective is to address the critical needs of MSMEs i.e. promptly finance trade receivables and financing their trade receivables based on Buyers credit rating. Also, it is without recourse to MSME Vendors. TReDS Platform of RXIL shall act as a catalyst in the growth of MSMEs by bringing in transparency in the business eco-system and addressing the issue of delayed payments for MSMEs.

For more details visit http://www.rxil.in

ACUITE

Acuité Ratings & Research Limited

Acuite Ratings & Research Limited (www.acuite.in) is a full service credit rating agency accredited by Reserve Bank of India (RBI) as an External Credit Assessment Institution (ECAI) and registered with the Securities and Exchange Board of India (SEBI). Acuite rates bonds, debentures, commercial paper, fixed deposits and various fund-based and non-fund based bank facilities. Apart from credit ratings, Acuite’s expertise includes, economic research, industry research and risk scores, statistical modelling, model validation and development of software applications.

Acuite’s promoter SIDBI joined hands with Dun & Bradstreet Information Services India Private Limited (D&B India) and other leading banks to set up this institution in 2005. SIDBI is the nodal development finance institution for SMEs. D&B is a global leader in data and analytics and the global pioneer in credit ratings.

SMERA is a division of Acuite. SMERA (www.smeraonline.com/) focuses on eliminating information asymmetry in the SME lending market through ratings, credit reports and its SMERA Terminal platform. These services are aimed at helping MSMEs secure timely and cheaper business loans. By June 2019, SMERA had rated over 47,000 MSMEs.

International Finance Corporation (IFC) recognized SMERA as a novel and sustainable initiative of the Government of India, to improve the credit flow to the MSME sector. In 2007, the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) awarded SIDBI with "Outstanding Development Project Award" under the SME Development Category, for setting up SMERA. This award was a recognition of the Indian initiative to enhance credit flow to credit-constrained SME sector for developing its SME sector. SMERA was also a recipient of the Technical Assistance Grant by DFID, UK under World Bank’s ‘Project on SME Financing & Development’.

Registered and Corporate Office: A-812, The Capital, G-Block, BKC, Bandra-East, Mumbai 400 051

Tel: +91 22 4929 4000

Email: info@acuite.in

ISARC

India SME Asset Reconstruction Company ltd (ISARC) was incorporated on 11th April 2008 by SIDBI, in association with leading Public Sector Banks as the country’s first Asset Reconstruction Company. It commenced business operations on 15th April 2009, with the principal objective to acquire non-performing assets (NPAs), primarily from MSMEs, and accelerate the restructuring of potentially viable units and liquidation of unviable units, so that productive use of the assets is maximized.

As of March 31, 2018, ISARC had Assets Under Management (AUM) of INR 430.55 crore.

For more information, visit http://www.isarc.in

ISTSL

India SME Technology Services Limited (ISTSL) was set up in November 2005 by SIDBI along with Indian Bank, Oriental Bank of Commerce, Indian Overseas Bank and State Bank of India with the primary objective to strengthen and accelerate the process of technological modernization in the MSME sector.

Through key partnerships with national and international organisations engaged in similar activities, ISTSL offers expert technology advisory and consultancy services to MSMEs so as to enable them to make the best of the latest technological developments and remain relevant in the fast changing market place. It also plays a crucial role in providing a platform for MSMEs to tap opportunities at the domestic and global level for acquisition of modern technologies.

Key technical development services offered by ISTSL include sharing of information on technology options, match-making, finance syndication and business collaborations, organising seminars/meets and providing market support. Another key contribution of ISTSL is its strong focus on promotion of energy efficient, and environment friendly technologies in the MSME sector, with considerable efforts being made to facilitate reduction in Green House Gases in the MSME sector.

ISTSL is also providing project management consultancy services for implementation of renewable energy (especially solar rooftop PV system projects).

ISTSL is one among the very few agencies selected for conduction of Zero Defect – Zero Effect (ZED) Scheme Awareness Workshops among MSMEs. ISTSL is also empanelled as a technical inspection agency with “The National Small Industries Corporation Limited” under single point registration scheme.

For more information, visit https://www.istsl.in