Godrej Capital Launches Supply Chain Finance for Indian MSMEs

Godrej Capital, through its subsidiary Godrej Finance, has officially entered the Supply Chain Finance (SCF) market to provide comprehensive working capital solutions to Indian MSMEs. The company aims to build a ₹6,000 crore SCF portfolio over the next five years, targeting a contribution of approximately 8% to its total Assets Under Management. This strategic expansion focuses on bridging the liquidity gap for high-potential small businesses by leveraging trade transaction data and digital credit solutions.

Godrej Finance’s new SCF business is designed to address the persistent liquidity challenges faced by MSMEs despite advancements in India's financial infrastructure and GST-driven digitalization. By offering collateral-free credit based on cash flow and trade transaction data, the firm aims to provide a more accessible alternative to traditional asset-backed lending. Pankaj Gupta, MD and CEO of Godrej Finance, emphasized that the initiative provides a seamless digital experience for vendors and buyers of anchor corporates, positioning the company as a long-term growth partner for the MSME sector.

The SCF program offers a versatile range of products, including dealer financing, vendor financing, and invoice discounting, covering both payables and receivables. To ensure credit quality, Godrej Finance is targeting businesses operating within the supply chains of large corporate entities that boast annual revenues between ₹500 crore and over ₹1 lakh crore and maintain credit ratings from BBB to AAA. The entire process, from customer onboarding to loan disbursement and servicing, is fully digitized to facilitate rapid decision-making and efficient capital flow.

Currently, Godrej Finance has established collaborations with more than 30 major corporate entities to strengthen value-chain relationships. Looking forward, the company plans to expand its service suite by integrating Factoring, Reverse Factoring, and the Trade Receivables Discounting System (TReDS). These future enhancements are intended to further optimize working capital management and broaden credit access for MSMEs across the Indian industrial landscape, supporting sustainable business growth within the broader supply chain ecosystem.