NE BUSINESS BUREAU
MUMBAI, JULY 13
In a major push to strengthen India’s MSME financing ecosystem, Godrej Capital, the financial services arm of the Godrej Industries Group, on Monday launched its dedicated Supply Chain Finance (SCF) business through its subsidiary, Godrej Finance, with an ambitious plan to build a ₹6,000-crore portfolio over the next five years.
The new business vertical is expected to contribute nearly 8 per cent of Godrej Finance’s overall Assets Under Management (AUM), reinforcing the company’s long-term strategy to expand its presence in the country’s rapidly evolving MSME lending landscape.
- Financial services arm of the Godrej Group launches dedicated Supply Chain Finance business through Godrej Finance to unlock faster working capital for MSMEs
- Targets a ₹6,000-crore portfolio over five years, with the new vertical expected to contribute 8% of Godrej Finance’s total Assets Under Management
- Digital-first platform to finance dealers, vendors, suppliers and anchor corporates through technology-driven, cashflow-based lending
- Loan offerings ranging from ₹10 lakh to ₹25 crore aim to bridge India’s persistent MSME credit gap despite rapid supply chain formalisation
- Expansion roadmap includes factoring, reverse factoring and TReDS participation to deepen financial inclusion across enterprise ecosystems
The launch comes at a time when India’s supply chains are becoming increasingly organised through GST-driven digitisation and expanding digital financial infrastructure. Yet, thousands of micro, small and medium enterprises continue to grapple with working capital shortages despite maintaining healthy business fundamentals.
Godrej Finance’s Supply Chain Finance platform seeks to bridge this gap by providing faster, technology-enabled access to formal credit, backed by underlying trade transactions rather than conventional collateral requirements.
Announcing the initiative, Pankaj Gupta, Managing Director & CEO, Godrej Finance, said the company aims to become a long-term financial partner for India’s MSME ecosystem.
“MSMEs are the backbone of India’s supply chains, yet access to timely working capital remains a key challenge for many businesses. With the launch of our Supply Chain Finance business, we are enabling vendors and buyers of anchor corporates to access faster financing through a seamless digital experience.”
Highlighting the company’s broader vision, Gupta added:
“We aim to support MSMEs with value-added services that help build more resilient, capable and future-ready businesses, reinforcing our commitment to being a long-term growth partner across the supply chain ecosystem.”
Designed to serve the entire supply chain network, the new proposition covers both payables and receivables financing through a comprehensive suite of products, including Dealer Financing, Vendor Financing, Purchase Invoice Financing and Sales Invoice Financing.
The platform enables enterprises to optimise procurement, inventory management and receivables while unlocking liquidity against genuine trade transactions.
Godrej Finance will offer loans ranging from ₹10 lakh to ₹25 crore, targeting businesses operating within the supply chains of large BBB to AAA-rated anchor corporates with annual revenues ranging from ₹500 crore to over ₹1 lakh crore.
A key differentiator of the platform is its cashflow- and transaction-based underwriting model, which replaces traditional collateral-centric lending with credit assessment based on verified trade activity. This enables quicker loan approvals while ensuring responsible deployment of funds through transaction-led data analytics and end-use monitoring. The entire customer lifecycle—from onboarding and underwriting to disbursement and servicing—has been digitised to deliver faster turnaround times and a seamless borrowing experience.
Godrej Finance is already engaging with more than 30 anchor corporates across captive and non-captive ecosystems, strengthening financing relationships throughout the value chain.
Looking ahead, the company plans to further broaden its Supply Chain Finance capabilities by introducing factoring, reverse factoring, and participation on the Trade Receivables Discounting System (TReDS), enhancing liquidity access for MSMEs while supporting a more efficient, transparent and digitally connected working capital ecosystem.
With India’s MSME sector increasingly driving manufacturing, exports and employment, Godrej Capital’s latest initiative signals a significant commitment to democratising formal credit and accelerating the next phase of supply chain-led economic growth.
