MSMEs Embrace Digital Solutions and Credit to Boost Festive Sales

The festive season in India, spanning from Onam to Durga Puja, Diwali, and Christmas, plays a pivotal role, contributing to approximately one-third of the e-commerce industry's annual sales across various categories. According to the data by Datum Intelligence, online festive season sales is set to touch $12 billion this year, a 23% increase from last year's $9.7 billion.

For MSMEs in India, this is not only a season of joy but is also one of the busiest times of the year, as, with great opportunity come great complexities, particularly in managing working capital, inventory, managing day-to-day operations and preventing themselves from frauds. 

To fuel their businesses in the festive season MSMEs will require adequate capital as well as efficient digital tools to streamline their operations digitally. Working capital is the means of survival for the business; increased revenue also raises operational costs, necessitating effective cash flow management and advance planning. Easy access to credit will help MSMEs to capitalize on the festive mood. Banks and NBFCs can deploy AI and ML-led solutions provided by fintechs to make informed credit decisions. Fintech credit assessment APIs that utilize alternative methods to evaluate MSMEs can assist banks and NBFCs in streamlining their lending processes and providing loans to eligible small business owners more efficiently

Consequently, MSMEs are exploring various financing options. With internet access expected to rise to 80% by 2027, more MSMEs are likely to adopt digital solutions. However, while approximately 60% of MSMEs plan to digitize their processes, many remain uncertain about which tools to choose due to a lack of awareness.

 Building upon this wanted to explore story around “How MSMEs can gear up for the festive season by embracing digital business tools and easy access of credit that streamline operations, reduce costs and time, and enable smoother workflows—positioning them to scale and grow efficiently during this critical period."