Ujjivan SFB And Veefin Solution Came Together To Offer Robust Supply Chain Solutions

On March 26, 2024, Ujjivan Small Finance Bank (Ujjivan SFB) entered into a strategic partnership with one of the leading supply chain finance (SCF) companies, Veefin Solutions Ltd, with an objective to offer robust supply chain finance offerings for the working capital needs of MSMEs.

Ujjivan SFB will benefit from Veefin’s platform, which provides end-to-end supply chain finance solutions, through this agreement. This includes Credit underwriting via a Loan Origination Solution (LOS), transaction management via a Loan Management Solution (LMS), supplier and vendor onboarding, and collections handled through a Delinquency Management solution. These components will be further complemented by comprehensive analysis facilitated by Veefin’s Reporting & Business Intelligence solution.

As per reports, there is a credit gap of ₹20-25 lakh crore in the MSME sector, which was estimated by the RBI committee. This partnership will help address this credit gap and extend financial solutions to MSMEs across the nation. This initiative will facilitate Ujjivan SFB in providing working capital loans to MSMEs via supply chain financing, effectively addressing the gaps led by the traditional model.

“We are happy to partner with Veefin Solutions, which will enable us to further enhance the credit accessibility needs of the MSMEs, thereby strengthening our digital MSME offerings. This association will help us build on the operational efficiency, thereby empowering more MSMEs to charter their growth path,” Said Mr Ittira Davis, MD & CEO at Ujjivan Small Finance Bank.

“We are delighted to welcome Ujjivan Small Finance Bank to our ever-growing clientele who have embarked on their SCF journey with Veefin. Financial institutions like Ujjivan SFB play a pivotal role in expanding the SCF ecosystem, reaching out to unserved and underserved customers nationwide. Together, we are poised not only to broaden the SCF landscape but also to drive inclusive growth, reaching even the most marginalised segments of our economy”, said Mr Raja Debnath, Managing Director of Veefin Solutions Ltd.

On March 26, 2024, the share price of Ujjivan Small Finance Bank Ltd opened at ₹46.20 and touched the day high of ₹47.20, while Veefin Solutions Ltd opened at ₹314.90 and reached a day high of ₹318.70 at 10:17 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.