Cygnet.One Launches MSME Invoice Financing in strategic partnership with Ratnaafin at GFF 2024

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Cygnet.One, a leading player that empowers organizations to achieve business process digital transformation through co-ideation, co-creation, co-innovation, and co-evolution, has partnered with NBFC Ratnaafin to offer credit access to MSME through invoice financing via Cygnet BridgeCash, an advanced platform designed to enable MSMEs’ financial inclusivity.

The credit supply-demand gap for MSMEs is estimated to be $530 Bn and even steeper with micro-enterprises. 30 to 40% of loans get denied, citing lack of credit history, and hence, MSMEs are constrained for working capital. Thankfully, with the recent mandates from the Govt., such as e-invoicing under the GST regime, Invoice financing will now ease credit access to MSMEs.

With a 24-year legacy in compliance transformations and digital transactions, especially as an IRP and GSP, Cygnet. One already processes 15-19% of India’s e-invoices, uniquely positioning them to lead the charge in financial inclusivity to bridge the working capital gap /stress. This launch marks a milestone in fintech, as Cygnet BridgeCash combines technology and expertise to simplify credit access through anchor-based invoice financing.

They have access to over 30,000 subscriber GSTINs from all industries and their 4000000+ vendor and customer ecosystem, Cygnet.One has an opportunity to enable nearly INR 5 Bn+ invoice financing monthly.

As a distinguished non-banking financial company (NBFC), Ratnaafin is committed to empowering MSMEs across India with comprehensive financial offerings. From business, machinery, and working capital loans to loans against property, Ratnaafin provides the financial backbone that small and medium enterprises need to thrive.

In addition to traditional lending, Ratnaafin champions sustainable energy initiatives through its solar loan program and offers specialized solutions like supply chain finance, designed to meet the unique needs of businesses in today’s dynamic market.

By focusing on quick approvals, competitive interest rates, and personalized financial services, Ratnaafin ensures that businesses and individuals can unlock growth opportunities and achieve their financial objectives efficiently.

As Ratnaafin looks forward to potential partnerships, such as with Cygnet, they continue to drive innovation and growth within the financial sector, furthering their mission to make financial empowerment accessible to all.

Malav Desai, Director at Ratnaafin, shared his thoughts on the partnership: “Our collaboration with Cygnet.One is a significant step toward enhancing financial access for MSMEs. Combining Cygnet’s technological expertise with Ratnaafin’s deep understanding of MSME financing, we are poised to offer innovative solutions to empower businesses to thrive in today’s competitive landscape.”

Unlike other players in the MSME financing sector that focus on small-value, paperless loans, Cygnet BridgeCash takes advantage of Cygnet.One’s deep integration with India’s e-invoicing ecosystem for sourcing. They have built a technology-backed end-to-end digital financing platform, ensuring a seamless and transparent approach for buyers and sellers.

With Ratnaafin as their strategic partner and a credible NBFC, Cygnet BridgeCash brings faster, tech-driven financial inclusivity solutions to the MSME sector. The platform leverages Cygnet.One’s longstanding leadership in digital transformation, offering MSMEs a more structured path to working capital through consent-driven financing, ensuring trust and efficiency in the process.

“We’re excited to build on our strong foundation in digital transactions with Cygnet BridgeCash and drive the future of financial access for businesses,” said Niraj Hutheesing, Founder and Managing Director of Cygnet.One.

The platform facilitates analytics through GST Business Intelligence in a consent-driven flow and leverages AI-driven Banking IDP analysis to assess creditworthiness. Lenders benefit from the ability to add custom underwriting rules on the pre-integrated platform or integrate their underwriting system.

The API-first digital platform provides a seamless interface for sellers, buyers, and lenders to execute and monitor invoice financing effectively. Cygnet BridgeCash is poised to set the standard for digital invoice financing in India, making Cygnet.One a trailblazer in this rapidly evolving industry.