SIDBI partners with MonetaGo to secure MSME lending

By Vriti Gothi

The Small Industries Development Bank of India (SIDBI) has partnered with MonetaGo to implement its globally recognised digital public infrastructure solution aimed at de-risking trade finance. This collaboration marks a pivotal milestone in India’s ongoing digital transformation of credit access for Micro, Small and Medium Enterprises (MSMEs), creating a secure, standards-based ecosystem designed to enhance trust, efficiency, and transparency in lending.

This initiative represents the first-ever deployment of MonetaGo’s solution by a Development Financial Institution (DFI), setting a benchmark for secure and scalable MSME financing across India’s financial landscape.

Established in 1990 by the Government of India and regulated by the Reserve Bank of India, SIDBI serves as the principal financial institution dedicated to promoting, financing, and developing MSMEs nationwide. As the nodal agency implementing key government programmes for the sector, SIDBI continues to bridge credit gaps, enable entrepreneurship, and foster inclusive, technology-driven growth.

“SIDBI is committed to promoting cash flow-based, digitised 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 Y M Kumari, CGM, DIV SIDBI. “We are proud to partner with MonetaGo as a service provider for an interoperable solution to cater to the requirements 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.”

MonetaGo’s Secure Financing system has been a cornerstone of India’s digital trade finance infrastructure since 2018. It prevents fraud and duplicate financing by validating transactions across multiple platforms, providing a shared and interoperable layer of trust for financial institutions.

“We are pleased to welcome SIDBI to MonetaGo’s Secure Financing platform,” said Neil Shonhard, CEO, 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.”