SIDBI Partners with MonetaGo to De-Risk MSME Trade Financing

SIDBI (Small Industries Development Bank of India) has partnered with MonetaGo to deploy its globally proven digital public infrastructure solution to de-risk trade, marking a major step in India’s efforts to safeguard MSME access to credit through secure, standards-based infrastructure. This is the first time a Development Financial Institution has directly implemented MonetaGo’s solution, setting a precedent for secure MSME financing across the Indian financial ecosystem.

Established in 1990 by the Government of India and regulated by the Reserve Bank of India, SIDBI is the principal financial institution for the promotion, financing, and development of micro, small, and medium enterprises (MSMEs) in India. As the nodal agency for MSME-oriented government schemes, SIDBI plays a central role in translating policy into action, bridging credit gaps, supporting entrepreneurship, and enabling inclusive growth.

“SIDBI is committed to promoting cash flow based, digitized credit flow to MSMEs, which could be further enhanced by building resilience and transparency in the MSME financing ecosystem, more particularly GST-Sahay Invoice Based Financing” said Smt Y M Kumari, CGM, DIV SIDBI. “We are proud to partner with MonetaGo as a service provider for interoperable solution to cater to the requirement of dedupe functionality on the Invoice Dedupe Registry (IDR) of TReDs to avoid double financing. This partnership will reinforce trust in lending, and in turn contribute to greater efficiency and reliability in capital flows, helping unlock the sector’s growth potential.”

“Improving transparency and reducing risk in lending is vital to expanding credit access for India’s MSMEs and boosting their global competitiveness. As SIDBI strengthens support for this sector, de-risking credit flows will be key to unlocking growth and resilience” said Shri Sudatta Mandal, DMD, SIDBI.

“SIDBI’s adoption of MonetaGo’s Secure Financing system marks a turning point in institutional fraud prevention for MSME lending, on the GST-Sahay platform” said Kalyan Basu, Managing Director India, MonetaGo. “MSMEs are the backbone of the Indian economy, and protecting their financing from fraud is essential to expanding access to credit. We look forward to supporting SIDBI’s mission and impact.”

“We are pleased to welcome SIDBI to MonetaGo’s Secure Financing platform,” said Neil Shonhard, CEO of MonetaGo. “This milestone reinforces the vital role of digital public infrastructure in safeguarding lending and supporting economic growth, not just in India, but globally. We are proud to partner with SIDBI in its mission to empower India’s MSMEs." 

MonetaGo’s Secure Financing system has been at the core of India’s digital trade finance infrastructure since 2018. On the Reserve Bank of India-supported MSME financing platforms, which are securely underpinned by MonetaGo’s technology, MSME financing has grown significantly: since the beginning of 2023 the number of MSMEs receiving financing has increased by 216%. These results demonstrate the transformational impact of secure, standards-based infrastructure in expanding access to credit and unlocking growth.