In India, where small businesses serve as the engine of growth for the economy, most of the nano entrepreneurs (small-scale business owners) are still struggling to operate their businesses efficiently. Unfortunately, they face immense challenges when they seek financial support.
Only 10 to 15% of nano entrepreneurs' credit requirements are fulfilled in India; the remaining either run their businesses at a tortoise pace or eventually shut down their businesses. The rigid requirements of traditional financial institutions restrict their growth potential and turn out to be dream breakers for nano entrepreneurs.
This is where, Rupitol, a tech-powered NBFC backed by Amit Bolia, has stepped in to offer an innovative ‘phygital’ lending solution with a mission to fulfil the credit needs of nano entrepreneurs.
“India is home to 63 million MSMEs. These MSMEs contribute about 30% of the GDP of India and employ more than 1/3rd of the workforce. Among them, 11 million nano entrepreneurs are struggling to get funding to streamline their business operations. The credit demand of nano enterprises is nearly Rs 2 trillion, much of which is fulfilled through informal sources such as friends, family, etc. They sometimes end up losing everything with the undying hope of getting funding assistance. We are striving to resolve this financial problem through our Phygital lending model.”Amit Bolia, Founder of Rupitol
Rupitol’s Phygital Lending Model: Merging Tech and Human Touch
Rupitol’s Phygital Lending Model blends the best of both physical as well as digital lending ecosystems. This innovative model is meant for nano entrepreneurs, especially those residing in rural or semi-urban regions. Such areas may lack digital literacy, or internet connectivity may be weak in such regions.
Most of the fintech platforms rely solely on digital channels, Rupitol ensures that there is a physical presence, with customer support hubs and local agents. India’s digital divide stays as a real barrier for many. The emerging NBFC makes sure that through its phygital lending approach, the funding requirements of nano entrepreneurs get fulfilled.
Amit Bolia further said, “We are revolutionizing the digital lending space with our Phygital lending initiative with an intent to enable nano entrepreneurs who lack access to smartphones or don’t want to get stuck in the complex process of getting business loans to grow and scale up their business. Along with digital expansion, we are expanding our physical reach, starting with 200+ villages in Bihar, Uttar Pradesh, Rajasthan, and Madhya Pradesh. The idea is to bridge the credit gap in such places and create a growth line for small business owners facing roadblocks in their business operations. Our Rupitol team ensure that no one is left behind in the progressive digital revolution.”
Empowering Nano Entrepreneurs with Data-driven Lending
The secret to the growth of Rupitol lies in its data-driven lending approach. This NBFC doesn’t rely on conventional metrics such as collateral or credit scores. It relies mainly on leveraging alternative data points such as transaction histories of businesses, social profiles, and payment behaviour. They assess the creditworthiness of a business owner in a holistic manner.
This approach has turned out to be transformative for many nano entrepreneurs, some of whom are excluded from traditional banking due to the absence of a formal business structure or a proper credit history. Rupitol utilizes these alternative data points in order to assess the risks involved and approve loans, extending financial flexibility to nano businesses to grow.
With 6+ years of successful lending experience, Rupitol has disbursed over crores of loans to nano entrepreneurs across 50+ cities in India. Its lending capabilities are not just confined to cities but it extends beyond and touches the villages as well.
“Traditional lenders would ask for credit scores and require extensive documentation, but most of the small business owners in villages and semi-urban areas don’t have that. Rupitol team look at their day-to-day business operations, go through the transactions history, and assess their business activity in such a manner that facilitates us to offer credit to those who otherwise be excluded due to traditional lending mechanism, “says Amit.
Rupitol is Defining Growth Route for Nano Businesses in India
The impact of Rupitol is beyond the scope of providing business loans. It has created a ripple effect on the local economy. By facilitating funding to nano entrepreneurs, Rupitol empowers them to grow their business ventures and make an incredible contribution to the growth of local communities.
Their loan offerings by Rupitol, available for all the players in the MSMEs, are allowing nano entrepreneurs to invest in inventories, expand their business operations, and hire staff.
“The effect of supporting a nano entrepreneur ripple through the entire ecosystem- suppliers, employees, and customers. At the grassroots level, it creates a positive impact and contributes to economic growth. We believe that no business dream will die, and every Indian with a passion for doing business gets timely funding with Rupitol. “Amit Bolia concluded with this statement.
Compared to traditional NBFCs, Rupitol accelerates loan disbursal, minimizing wait times for borrowers. Also, its phygital model (100% digital & physical) ensures digital convenience with offline assistance for the timely disbursal of loan amounts. Let’s hope that Rupitol is able to live up to the expectations of Bharat and fulfil thousands of business dreams with its phygital lending solutions.