ReshaMandi, India’s largest farm-to-fashion natural fibre digital ecosystem, unveiled its new venture ReshaMudra, which offers personalised credit solutions for the textiles industry. ReshaMudra will give business partners across the ecosystem access to working capital solutions as well as long-term loans, enabling them to secure crucial funding to help them grow their businesses or tide over challenging times. All of these offerings are subject to regulatory approvals from respective authorities.
The suite of services offered by ReshaMudra are aimed to be cost-effective with quick turnaround time, thereby creating an engaging customer experience.
A majority of India’s micro, small and medium enterprises currently face working capital pressures as they lack access to credit. Today, only 20% of their credit needs are met by the formal sector and 40% by the informal sector. ReshaMudra aims to bridge this need gap, enabling MSMEs to expand their operations and thereby boost revenues, margins and profits.
ReshaMandi’s Founder and CEO, Mayank Tiwari said, “India’s textile sector is on course to becoming a $190 billion powerhouse by 2025-26. But lack of access to credit could stifle that potential as nearly 80% of the country’s MSMEs today are faced with this challenge. Our vision is to be the partner of choice to stakeholders across the textile industry by providing customised, financial products that are cost-effective and easy to use. ”
Kshitij Kuthiala, AVP, ReshaMudra, says “With the textile industry picking up pace, it is imperative to provide the stakeholders in the supply chain with credit solutions that cater to their needs and facilitate their growth. With 75% of their costs being towards the inputs they purchase, working capital support is crucial for their growth. At ReshaMudra, our aim is to address the credit needs of Bharat-first textile entrepreneurs across the country so their businesses can thrive and the textile industry can fulfill its immense promise. We aim to provide financing solutions that are less dependent on a wide range of documents and bring more awareness around efficient use of credit to increase their annual turnovers. With more than 70 lakh+ stakeholders, half of which are underserved or under banked, ReshaMudra aims to become the go to player for all things credit across this complex market.”
ReshaMudra with its strong focus on PSL and MSME segment for lending across Tier II – IV cities aims to have exclusive tie- ups with banks and NBFCs to facilitate business growth with moratorium period upto 3 months, attractive interest rates and a turnaround time of seven days for farmers, yarn manufacturers, manufacturers, exporters, traders/distributors and mill owners.
In an industry-first, ReshaMudra will also offer short-term financing in the form of the Buy Now, Pay Later (BNPL) scheme. This is a type of financing that allows consumers to make purchases and pay for them at a future date. Buy Now, Pay Later in B2B is the key to unlocking SME growth, as it frees up inclusive credit to the underserved SMEs in India.
The pandemic has reinforced the need for a planned health insurance programme at organisations. In addition, when employees feel they are being taken care of, they are motivated and committed to the company’s success. ReshaMudra’s customised solutions also include a health and wellness insurance policy, developed in collaboration with Onsurity, called ReshaSuraksha. This will also help SMEs insure their employees and enable them to give the right healthcare benefits for their employees.