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How AI-powered B2B Finance & OCEN Protocols are driving MSME growth in 2025

January 16, 2025

  • AI
  • Alternative Financing
  • Cash flow based lending
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Bhavik Vasa, Founder, GetVantage, Embedded Business Finance, FinTechBy Bhavik Vasa, Founder, GetVantage, GetGrowth Capital

The landscape of financial technology is rapidly evolving, particularly in 2024, as embedded finance solutions and AI-driven innovations reshape the way Micro, Small, and Medium Enterprises (MSMEs) access capital.

Under Prime Minister Modi’s vision of Viksit Bharat (a developed India), MSMEs are pivotal to achieving the $5 trillion economy goal. To realise this ambition, innovative financial models like cash flow-based financing must lead the way, enhancing accessibility, fairness, inclusion, and transparency for MSMEs.

At GetVantage, we recognise that these advancements are not just trends; they are essential tools for empowering MSMEs and driving economic growth.

The Role of Embedded Business Finance

Embedded finance integrates financial services directly into non-financial platforms, allowing businesses to offer seamless payment solutions without requiring customers to navigate away from their primary service. This model is particularly beneficial for MSMEs, which often struggle with traditional banking processes. By leveraging embedded finance, companies can enhance customer experiences while simplifying access to funding.

AI and Interoperable OCEN Protocols

Artificial Intelligence (AI) plays a crucial role in optimising these embedded finance solutions. At GetVantage, we utilise AI to analyse business data effectively, enabling us to deliver personalised financing options based on real-time insights. This approach not only accelerates approval processes but also minimises the risk of defaults by ensuring that funding aligns with a business’s cash flow capabilities.

Interoperable Open Credit Enablement Network (OCEN) protocols further enhance this ecosystem by facilitating data sharing across platforms. This interoperability allows lenders to assess creditworthiness more accurately while providing MSMEs with access to a broader range of financial products tailored to their specific needs.

Driving Growth for MSMEs

In India, where MSMEs contribute significantly to the GDP yet face a staggering credit gap, these innovations are transformative. By offering cash-flow-based financing (CBF), GetVantage enables businesses to secure funds without equity dilution or collateral requirements. This model aligns repayment with revenue performance, providing much-needed flexibility for entrepreneurs navigating uncertain economic conditions.

Our proprietary platform has successfully reduced the time from application to disbursement from weeks to as little as 48 hours. This efficiency is vital for MSMEs that often require immediate capital to seize market opportunities or respond to challenges.

Supporting Women Entrepreneurs

Recognising the unique challenges faced by women-led businesses, GetVantage has launched initiatives like the INR 100 crore Rise-Up Fund. This fund aims to bridge the funding gap for women entrepreneurs, who represent a significant portion of India’s MSME landscape but often encounter barriers in accessing traditional financing options.

By focusing on inclusivity and support for underrepresented founders, we are not just fostering individual business growth but also contributing to a more equitable economic environment.

Collaborations and Ecosystem Building

The future of FinTech lies in collaboration between startups and traditional financial institutions. At GetVantage, we have partnered with banks, FIs and payment service providers to create a robust ecosystem that enhances access to capital for MSMEs. These partnerships allow us to combine agility and innovation with the scale and trust that established institutions provide.

As we look ahead to 2025 and beyond, our commitment remains steadfast: harnessing technology and strategic collaborations to empower MSMEs across India. By leveraging embedded finance powered by AI and interoperable protocols, we aim to drive sustainable growth and unlock the full potential of this vital sector.

In conclusion, these FinTech innovations are not merely about technology; they represent a paradigm shift in how businesses operate and thrive. As we continue to navigate this dynamic landscape, our focus will be on creating solutions that are accessible, efficient, and tailored to the unique needs of MSMEs. Through these efforts, we believe we can significantly impact the economic fabric of our nation while fostering a vibrant entrepreneurial ecosystem.

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