Godrej Capital Launches Supply Chain Finance for Indian MSMEs

Godrej Capital, the financial services arm of the Godrej Industries Group, announced the launch of its Supply Chain Finance (SCF) business through its subsidiary, Godrej Finance. This move marks a strategic expansion of the company’s commitment to providing comprehensive working capital solutions to the MSME sector.

The company has set an ambitious target to build an SCF portfolio of ₹6,000 crore over the next five years, which is expected to contribute approximately 8% to Godrej Finance’s total Assets Under Management (AUM).

Addressing the Working Capital Gap:
Despite the boost in digitalization via GST and improved financial infrastructure, many high-potential MSMEs continue to struggle with liquidity. Godrej Finance aims to bridge this gap by offering fast, technology-driven credit solutions based on actual trade transactions.

Pankaj Gupta, MD and CEO of Godrej Finance, stated, “MSMEs are the backbone of the Indian supply chain. Our new SCF business provides a seamless digital experience for vendors and buyers of anchor corporates. We aim to be a long-term growth partner by making these enterprises more efficient and future-ready.”

Key Features of the SCF Offering:
The program is designed to support both payables and receivables, including dealer financing, vendor financing, and invoice discounting.

Loan Range: Facilities range from ₹10 lakh to ₹25 crore.

Target Eligibility: Tailored for businesses operating within the supply chains of large corporates (annual revenue ranging from ₹500 crore to over ₹1 lakh crore, with credit ratings of BBB to AAA).

Collateral-Free: Credit is based on cash flow and trade transaction data rather than traditional asset-backed collateral.

Seamless Digitalization: The entire journey from customer onboarding to loan disbursement and servicing is fully digitized, enabling rapid decision-making.

Ecosystem and Future Outlook:
Currently, Godrej Finance is already collaborating with over 30 major corporate entities. By focusing on the ecosystem led by large corporates, the company seeks to strengthen value-chain relationships and support sustainable business growth.

Looking ahead, Godrej Finance plans to further diversify its SCF capabilities by integrating Factoring, Reverse Factoring, and Trade Receivables Discounting Systems (TReDS). These enhancements are expected to significantly broaden access to credit and optimize working capital management for MSMEs across India.