Nandan Nilekani-backed marketplace partners with industry body for MSMEs to source raw material easily
Technology for MSMEs: B2B marketplace for MSMEs Power2SME and industry association PHD Chamber of Commerce & Industry (PHDCCI) on Thursday signed a Memorandum of Understanding (MoU) to offer its enterprise-grade solutions to MSME members of PHDCCI. The MoU, announced in a statement, will also enable the exchange of market knowledge between Power2SME and PHDCCI to support MSMEs for their raw material, finance, and other requirements. The cooperation will be with respect to “raw material procurement and facilitating funding support to PHDCCI members from banks and NBFCs for the financing of such Raw materials,” said Dr D.K. Aggarwal, President, PHDCCI.
The alliance is aimed at empowering member MSMEs of PHDCCI and others in sourcing a variety of raw materials like Metal, Polymers, Yarns, Chemicals and materials through Power2SME that also offers access to finance for MSMEs at competitive rates. “Both Power2SME and PHDCCI will create a business-friendly ecosystem for MSMEs to flourish and boost their contribution towards India’s GDP,” said R Narayan, Founder & CEO, Power2SME.
Power2SME had last year had reportedly signed an MoU with the Indian Industries Association to help MSMEs in procuring raw material and working capital. Backed by Nandan Nilekani, Inventus Capital Partners, Kalaari Capital, IFC, and Accel Partners, Power2SME helps MSMEs in sourcing input raw materials at the most competitive price points across multiple products. The company has over 200 employees in India and works with suppliers including SAIL, TATA Steel, ESSAR Steel, JSW, Rathi Steel etc. MSMEs currently have a share of 29 per cent in Indian GDP and 50 per cent share in exports and have generated 11 crore jobs. MSME Minister Nitin Gadkari has aimed for an increase in GDP share to 50 per cent, 75 per cent in exports and an additional 5 million jobs by MSME sector ahead.