FinTechs push for MSME empowerment ahead of World MSME Day

By Vriti Gothi

India celebrates World MSME Day on 27th June, recognising the vital role played by micro, small, and medium enterprises (MSMEs) in driving the nation’s economy.

As the day approaches, FinTech leaders are amplifying their efforts to highlight the sector’s challenges and the digital solutions needed to unlock its full potential. With over 64 million MSMEs contributing more than 30% of India’s GDP and supporting 110 million livelihoods, these enterprises represent a cornerstone of economic resilience and grassroots innovation. Spread across the country from urban centres to Tier II, Tier III, and rural areas, these businesses continue to face significant hurdles in accessing formal credit, digital infrastructure, and scalable financial services.

Over the past decade, FinTech companies have emerged as catalysts for change, offering digital-first financial services, credit access, and operational solutions that are tailored to the unique challenges of MSMEs. With regulatory support and the rise of platforms like UPI and ONDC, MSMEs are increasingly being brought into the fold of India’s formal financial system. But industry leaders say much more is needed to fully unlock their potential.

Nilay Patel, Founder & Managing Director, EasyPay, said, “India’s 64+ million MSMEs drive grassroots innovation and employment but still face barriers in accessing digital markets, especially in rural areas. Initiatives like ONDC are bridging this gap. At EasyPay, we support MSMEs through localised digital solutions and vernacular training. The future lies in tech-enabled empowerment, and collaboration among FinTechs, policymakers, and platforms is key to helping MSMEs thrive.”

Digital access and financial inclusion remain unequally distributed across the MSME landscape. While enterprises in urban centres have rapidly adopted digital payment systems and online commerce, those in smaller towns continue to rely heavily on informal networks and cash transactions. FinTechs offering data-driven credit models and embedded finance solutions are playing a pivotal role in this transition.

Pallavi Shrivastava, Co-founder, Progcap, said, “MSMEs are vital to India’s growth but struggle with limited access to formal credit, especially in Tier 2 and 3 cities. While government schemes are helping, a large segment remains underserved. FinTechs are bridging this gap through data-led credit and supply chain financing. To build a future-ready MSME ecosystem, we need localised policies, better digital access, and stronger collaboration across stakeholders.”

The government has taken several initiatives to address these structural gaps, including the expansion of the Udyam registration portal, the introduction of credit guarantee schemes, and a notable increase in MSME budget allocations. However, translating policy intent into on-ground impact requires an ecosystem-wide effort.

Akash Sinha, CEO & Co-founder, Cashfree Payments, said, “India’s MSMEs are the economic lifeblood of the country, contributing over 30% to the GDP and supporting 110 million livelihoods. While traditionally limited by informal systems and restricted digital access, FinTech innovations and regulatory efforts like UPI are changing that. Even the smallest businesses can now thrive in a digital-first economy. To realise a ‘Viksit Bharat’, we must unlock the full potential of MSMEs—this is more than transformation, it’s a national movement.”

With the FinTech sector evolving rapidly and government reforms gaining momentum, the stage is set for a new chapter in MSME growth, one where inclusion, innovation, and digital empowerment go hand in hand. As World MSME Day approaches, FinTech leaders are not just celebrating progress; they are urging all stakeholders to act with urgency and purpose.

If India is to achieve its goal of becoming a $5 trillion economy, empowering its MSMEs through smarter finance, stronger policy alignment, and tech-first solutions must be at the heart of its strategy.