News | December 15, 2022

Over 90% Startup Founders Believe Credit Line Best Financial Product For MSMEs

Over 90 per cent of the startup founders felt that working capital (WC) and the credit line is the most attractive financial product for micro, small and medium enterprise (MSME) businesses, revealed a survey by StrideOne.

The survey report named— Startup Economy Report 2022 stated that 43 per cent of the industry stakeholders from the textile industry cited access to formal credit products as the main reason for joining a startup platform.

The report said, "And 67 per cent of the startup platforms facilitated a formal credit line to MSME businesses."

According to the report, 28 per cent of MSME business (on average) in the textile industry is sourced from a startup platform. Over 90 per cent of founders (fast commerce startups) reported that gig workers form more than 70 per cent of their employee base.

A total of 70 per cent of founders believe that structured demand visibility is the most important value-add for their fleet owners/drivers.

Also, 62 per cent of the drivers/fleet owners have noticed a positive impact on their monthly income after joining the startup platform.

"And 25 per cent of the gig workers reported an increase of more than 50 per cent in their monthly income as compared to their previous mode of livelihood," it added.

Meanwhile, 48 per cent of the gig workers received access to short-term credit products from their employers (startup platforms). At least 40 per cent of the gig workers cited personal loans and vehicle loans as the top two relevant financial products.

Ishpreet Singh Gandhi, Founder, StrideOne said, “Indian startups have stepped onto the global stage. The rapid growth phase and maturity of the ecosystem have unlocked tremendous appetite for scalability, alternate funding options, expansion into the global market and the capacity to enable millions of jobs."

Gandhi stated that this meteoric rise of startups has made India the 3rd largest startup ecosystem in the world and has significantly impacted the Indian economy showcasing the ability to contribute approximately 4-5 per cent to the GDP of India.