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Mastercard and U GRO Capital Collaborate for MSME Financing

Mastercard, a prominent global technology company in the payments industry, has forged a strategic partnership with U GRO Capital, a Non-Banking Financial Company (NBFC) specializing in Micro, Small, and Medium Enterprises (MSME) financing. This collaboration aims to provide financial solutions to small businesses in India, addressing the longstanding challenge of limited access to capital faced by MSMEs.

MSME Challenges in India:

In India, over 64 million MSMEs encounter significant hurdles, with only 14% having access to credit, according to recent reports. This collaboration seeks to alleviate these challenges by offering a comprehensive digital supply chain financing solution tailored for millions of small businesses in the country.

Holistic Digital Supply Chain Financing:

The Mastercard and U GRO Capital partnership is designed to create a holistic digital supply chain financing solution. This initiative aims to empower small businesses, facilitating their operational maintenance and growth. By leveraging technology and financial expertise, the collaboration intends to bridge the credit gap and foster the growth of entrepreneurial ventures in India.

Innovation and Commitment to MSMEs:

The alliance, grounded in innovation and shared commitment, is poised to play a pivotal role in addressing the intricate credit needs of MSMEs across India. Mastercard, through its extensive network, aims to bring together ecosystem stakeholders on a common platform to facilitate support for the growth of small businesses.

Global Commitment and Financial Inclusion:

Mastercard’s global commitment to bringing one billion people and 50 million micro and small businesses, including 25 million female entrepreneurs, into the digital economy by 2025 aligns with its mission. The collaboration with U GRO Capital underscores Mastercard’s dedication to driving financial inclusion for businesses throughout India.

Questions Related to Exams

Q: Why is the collaboration between Mastercard and U GRO Capital significant for MSMEs in India?

A: The collaboration is significant because it aims to bridge the credit gap for MSMEs in India, where only 14% out of over 64 million MSMEs have access to credit. The partnership seeks to offer accessible working capital solutions to fuel the growth of small businesses.

Q: How does U GRO Capital plan to contribute to the collaboration with Mastercard?

A: U GRO Capital will leverage its proprietary underwriting and cash flow-backed assessment model to offer short-term credit. This credit will be extended to various stakeholders, including dealer-distributors, last-mile retailers, and women entrepreneurs, addressing the diverse financial needs of small businesses.

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