Mumbai: SIDBI and Global Alliance for Mass Entrepreneurship (GAME) here recently onboarded the first cohort for the NBFC Growth Accelerator Program (NGAP), which has been designed to scale small NBFCs through design interventions that enable them to apply for institutional funding based on holistic evaluation parameters.
The five-month intense program, that includes mentoring from domain experts on: Risk, Operations, Governance and Technology, has been structured to encourage and facilitate peer learning, reviews and networking through a blend of in-person, virtual and individualized sessions.
Ravi Venkatesan, Founder, GAME, said only 15% of MSMEs are able to access credit formalities. “SIDBI and GAME are creating this NBFC accelerator to identify growth-oriented MSMEs and strengthen their capacity through this program to make them more credit-worthy.”
He said “We are hopeful of atleast 80% of the cohort receiving funding after the program and, over the next year, we will have a larger pool of lendable NBFCs who can service a large number of MSMEs. The aim is to build capacities of a 100+ NBFCs in 3 years, thereby enhancing the credit flow to MSMEs.”
Sivasubramaniam Ramann. CMD, SIDBI, said that the NGAP fundamentality is all about the capacity-building of small but deserving NBFCs.
“The program will enhance the fund flow for the MSME sector by enabling NBFCs to get institutional funding. In this cohort, participating NBFCs will benefit significantly from specific advice, informal interactions with peers, structured reviews and evaluation.”
“We have built in the process to ensure that participants demonstrate action to be eligible for continuing to the next stage and mentors endorse and support them ensuring accountability,” he added.
Lauding this SIDBI-GAME initiative, Umesh Ravenkar, Chairman, FIDC and Executive Vice-Chairman, Shriram Finance Ltd, said it would help a large number of MSME-focused NBFCs to enhance their internal risk management systems, improve corporate governance and adopt appropriate technology for business – thus making them more bankable NBFCs with more funds to enhance the flow of credit to micro enterprises.
GAME is a non-profit operating as a project under Junior Achievement India Services.
GAME’s mission is to catalyze an India-wide entrepreneurial movement and favourable conditions for the growth of existing and new enterprises, thus resulting in 50 million new jobs by 2030 including a significant percentage of new businesses that are women-owned.
It is also looking at inspiring and supporting similar movements around the world that are facing similar challenges.
