Small Enterprise Magazine - December'22

VOLUME - IX, ISSUE - VI SME BANKING & FINANCE Ajay Thakur Head SME, BSE SME THE EVOLVING LANDSCAPE Exchange Partner Industry Partner Support Partner Knowledge Partner Industry 4.0 Partner Digital transformation Business Spend Industry Alliance Partner partner Partner Nov’22 - Aug’23



EDITOR’S NOTE www.smallenterpriseindia.com Dear Readers, EDITORIAL TEAM It is ever-evident that small and medium-sized enterprises have Dojo Jose : Editor-in-Chief & Publisher unique needs and challenges. A comprehensive strategy for SME [email protected] credit lending requires a unique value proposition and a tailored N Mahesh : Associate Editor approach to the client. Banks that are successful in this arena invest Dhanya Menon : Features Editor in technology and digital engagement. In addition, they focus on Vaibhav A : Copy Editor defining a sweet spot and integrating these investments into their Sandeep Kumar : Sub Editor/ Deputy Editor existing systems. Digital engagement is now mandatory for SME Babu S : Senior Correspondent lending, as it cuts down on manual processes for approval. SMEs should make sure they present a clear succession plan for their SALES & MARKETING company. Most SMEs are family businesses, and the owners often Sonali fail to implement a solid succession plan. This creates a risk for Manager - Partnerships & Alliances lenders who worry about the risk of the owner/promoter leaving the business in a vulnerable position. However, with a succession plan in ADMIN place, SMEs can demonstrate their ability to grow and expand Sudha - Assistant Manager - Admin & HR without risking the future of the business. SME customers want to work with a bank that understands their FINANCE needs. They want to work with a bank that provides the support they Balraj M.S : Finance Manager need to grow. Banks should provide more than just a product; they should become trusted business partners. Banks should also act as IT DEPT trusted advisors and develop a customized strategy for each SME Raheel Mohammed - Manager - IT client. A bank that targets the SME market should tailor its approach to the Design local circumstances. Rather than investing in a wide range of Parithimal E : Senior Designer products and methods, the financial institution should target a specific market and determine its objectives and resources. By MANAGEMENT working with the SME sector, a bank or NBFC can create a more Dojo Jose : Founder & Publisher profitable business. Tapasya Ravishankar : Co-Founder & Director Identifying the right strategy can help SMEs define objectives, Doramma Jose : Managing Director product lines, and dedicated distribution channels. Other important areas of technical support include credit risk management and CONTRIBUTORS reducing operating costs. These services will help businesses achieve Archana : Mumbai their goals and grow sustainably. Harpreet Kaur : Mumbai With the hope that you have already taken a quick dip into the sea Mamta Sharma : Ahmedabad of information that we are about to propose to you, we invite you to Gagneet Singh : Mohali indulge in this descriptive saga that we have carefully crafted while Itishree S : Hyderabad keeping the complete SME scenario in mind. Jill Shah L: Ahemedabad Nidhi Arora : New Delhi Let’s get going! Happy reading Nidhi Vats : Gurgoan Priya Ravindran : Bangalore Happy Reading! R.Sundararajan : Coimbatore Rajesh Kumar : Kolkatta Dojo Jose Rekshma A : Chennai Smitha Venkiteswaran : Goa Editor-in-Chief Viraj Desai : Delhi Abha Chopra : Delhi Shalini Jyothi : New Delhi Priyanka Bhowmick : Guwahati COLUMNISTS Smitha Hari : Mumbai Akshatha Sajumon : Bengaluru Rashida Khilawala : Ahemedabad Chackochen Mathai : Chennai MAGAZINE SUBSCRIPTIONS To subscribe to Small Enterprise magazine, please email us at [email protected], “[email protected] HOW TO CONTACT US: Aspire AEONIAN LLP (formerly Aspire Media) #630, DHI Innovation Park, Bannerghatta Main Road, Bangalore - 560 076, Email: [email protected] Web: www.smallenterpriseindia.com Disclaimer : This publication may not be reproduced or transmitted in any form in whole or in part without the written permission of the publishers. The Publishers regret that they cannot accept liability for errors or omissions contained in this issue. The opinions and views expressed within this publication are not necessarily those of the publishers or the editor. The editorial items appearing in this publication are the copyright property of Aspire AEONIAN LLP. All rights reserved.

VOLUME - X, ISSUE - IV December 2022 | `150/- 06 10 NEWS INTERVIEW 06 FUND OF FUNDS FOR START-UPS – 10 SPOTLIGHT: SANDIP CHHETTRI, CEO, HELPING REALIZE THE VISION OF $5 TRADEINDIA.COM TRILLION ECONOMY 16 HEADSTART HS.X 2022 – CELEBRATING 15 07 THE FIRST EDITION OF INVESTOR CAFÉ BY YEARS OF ENTREPRENEURSHIP SATHYABAMA – TBI, A GRAND SUCCESS 20 PAYAL JAIN CEO & COFOUNDER FUNNGRO 08 UPSCALE BY CREDABLE LAUNCHES 22 ASHISH CHAWLA FOUNDER 1729DIGITAL NEW E- INVOICING SOLUTION TO HELP SMEs 25 MEHUL KUMAR CO-FOUNDER AND CHIEF STRATEGY OFFICER EXPERTPOINT.IN 28 SRAVAN APPANA CEO & CO FOUNDER IGOWISE MOBILITY PVT. LTD 32 VIKASH KUMAR FOUNDER BIBO: DIGITAL PLATFORM FOR RESPIRATORY HEALTH

24 ENTREPRENEURSHIP 46 COVER STORY 34 STRENGTHENING INSTITUTION INDUSTRY INTERACTIONS THROUGH ACADEMIC INNOVATIONS AND INCUBATORS 39 MANAGEMENT 46 THE SME BANKING AND FINANCE LANDSCAPE TODAY 49 SMES AND THE MISSING MIDDLE 39 THINGS THAT SMALL BUSINESSES CAN ADOPT FROM 52 THE SME BANKING OPPORTUNITIES LARGE CORPORATES 55 BANK APPROACHES TO THE CHALLENGES OF SERVING 42 MARKETING SMEs 58 BRIDGING THE MIDDLE- SME BANKING TODAY 42 THE LAZY CUSTOMER MODEL 62 BANKING THE SME MARKET 65 SMES DIFFICULTIES IN ACCESSING FINANCE 97 TECHNOLOGY 69 WHY SME LOANS GET DENIED 72 SME CREDIT RATING 75 MANAGING CREDIT RISK 79 RISK MANAGEMENT 81 EMBEDDED FINANCE FOR SMEs 84 BILL DISCOUNTING 87 JOURNEY TO SME BANKING TRANSFORMATION 91 REMEDIES FOR TACLING SMEs DIFFICULTIES IN ACCESSING FINANCE 94 GOVERNMENT SUPPORT OF SME FINANCE 101 SME ROAD SHOW 97 AI & AUTOMATION REDEFINE CX COPY 101 SME ROADSHOW - MUMBAI 109 SME ROADSHOW - BANGALORE

NEWS FUND OF FUNDS FOR STARTUPS – HELPING REALIZE THE VISION OF $5 TRILLION ECONOMY SIDBI organized an Investor Connect event which was Start-up ecosystem shall fulfill the vision of Hon’ble PM attended by over 150 representatives of various and help India achieve its goal of $5 trillion economy by Alternative Investment Funds, Commercial Banks and 2025.” He further acknowledged the robust structure NBFCs were present. The event was organized to that has emerged via Venture Investment in order to disseminate information about the Fund of Funds for reach the Start – ups.  Start-ups (FFS) and the newly launched Credit Guarantee Scheme for Start-ups (CGSS). Smt. Shruti Singh, Joint Secretary, DPIIT, in her opening remarks appreciated the progress made by FFS Small Industries Development Bank of India (“SIDBI”),  in acting as a multiplier in raising much needed capital the principal financial institution engaged in the for the Start-ups. She mentioned that the number of promotion, financing and development of Micro, Small Start-ups has grown from 452 in 2016 to 84,012 as on & Medium Enterprises (MSMEs), organized an Investor November 2022. This significant rise in the number of Connect event on December 17, 2022, in Mumbai in start-ups coincides with the implementation of Start-up which over 150 representatives of various Alternative India Action Plan. FFS and CGSS are a part of the same.  Investment Funds, Commercial Banks and NBFCs were present. The event was organized to disseminate Shri Anurag Jain, Secretary, DPIIT interacted virtually information about the Fund of Funds for Start-ups (FFS) with the participating representatives and sought their and the newly launched Credit Guarantee Scheme for suggestions on making these two schemes even more Start-ups (CGSS).  successful. He mentioned that India has taken over the Presidency of G20 this year and makes the chances of Shri Subramanian Ramann, CMD, SIDBI set the context developing a Global Digital Infrastructure much more of the event and said, “The event has been organized to promising with the mega success of Adhaar, UPI and provide a platform for the AIFs to interact on CoWIN platforms, The new tech Start-ups are working one-to-one basis with the dignitaries from Department towards this end. Thanks to the exemplary success of for Promotion of Industry & Internal Trade, Ministry of ‘Digital India’, India is ready to demonstrate the power Commerce & Industry, GoI and officials of SIDBI. As of an inclusive citizen-centric innovation framework to declared by the Hon’ble Prime Minister, this decade is the world. being called the ‘Techade of India’. We feel that the 06 \\ Small Enterprise \\ Dec 2022

NEWS THE FIRST EDITION OF INVESTOR CAFÉ BY SATHYABAMA – TBI, A GRAND SUCCESS On 17, December,’22, Sathyabama - TBI organised 9 startups have made a Fundraising Pitch to the the first edition of Investor Cafe, an initiative to Investor Panel. Ashwin Ganesh from We Founder support startups in investment insights and investor Circle, Nawin Krishna from Kongu Angels, Adil and connects in association with IDFC First Bank and Abishiek from Grad & Company has served as Startup TN Chennai Metro Hub at Col.Dr.Jeppiaar Mentors & Potential Investors. Kavin Managing Research Park, Sathyabama Institute of Science and Partner - Startup Banking of IDFC First Bank also Technology. About 65 startups from different sectors participated in the session and provided On-Spot of Biotech and Life sciences across South India and 4 startup banking support to the participants. Startup Investment Networks have participated in the event. TN Chennai Metro Hub has supported on-spot Free DPIIT registration to the Non-DPIIT recognised startups in the event.\" 07 \\ Small Enterprise \\ Dec 2022

NEWS UPSCALE BY CREDABLE LAUNCHES NEW E-INVOICING SOLUTION TO HELP SMEs The newly launched solution will help India’s 70 MN+ SMEs  to easily and securely create & manage their E-invoices. Keeping up with the government of reducing the man-hours required for crore starting in January 2023. Right India’s bullish stance on digital invoice processing, approval, now, it is only required for transformation, UpScale by tracking, and chasing invoices and businesses with an annual turnover CredAble, a business growth app, human errors, thus resulting in a of Rs 10 crore or more. This has left has launched its new e-invoicing much faster turnaround time.   SMEs looking for a simple and solutions for SMEs. The solution inexpensive solution.  helps businesses with financial In the coming few months, a large operations management assistance  number of SMEs are expected to Highlighting the significance of as per the rules led by the face challenges in finding a solution overcoming the obstacles faced by Government of India. that is both uncomplicated and SMEs in the new digital ecosystem,  affordable. This is where UpScale by Mr. Nirav Choksi, Co-founder, and According to a recent government CredAble steps in. directive, e-invoicing will be mandatory for certain businesses Launched in November 2021 by beginning January 1, 2023. This CredAble, India’s largest working includes businesses with a capital technology platform, UpScale cumulative yearly turnover of over provides SMEs with quick access to Rs. 5 crore and above in any working capital, trade support, and previous financial year from 2017–18 opportunities, as well as an to 2021–22.  affordable payments solution that includes invoicing management.   With e-invoicing, organizations would be able to streamline their E-invoicing will be required by the invoice processing cycles, further government for businesses with an annual turnover of more than Rs 5 08 \\ Small Enterprise \\ Dec 2022

CEO at CredAble said, “CredAble you store all your e-Invoices for CredAble is the only business has consistently been a leader in easy and safe retrieval anytime in application that has over 30 banking adopting the most recent the future. Retrieve all your past partnerships to help SME owners technology standards rapidly and e-invoices with a signed QR.  access working capital in various has established itself as vital for the forms - both secured and unsecured companies seeking to operate Smart Error Validations - UpScale business term loans, invoice efficiently.\" We believe that pre-emptively validates your data discounting, Buy Now Pay Later UpScale’s e-invoicing solution is a to identify violations, incorrect programs, etc.  necessity and is made specifically data entry, and missing keeping SMEs in mind. It provides mandatory fields. Over 250,000 potential businesses one-of-a-kind solutions to assist have already been evaluated using them in adhering to government Share via WhatsApp, Email and UpScale's proprietary technology. It regulations in the simplest and most SMS - One-click communication analyzed credit facilities from over secure manner possible, at a very Send an email, SMS and 700 lenders, bank transactions worth low cost. We’re glad that our WhatsApp to all your customers more than Rs 5,000 crores, and more exposure and expertise in the on a single click. Share signed QR than a million invoices worth INR business ecosystem helped us e-invoice PDF to your customer. 10,000 crores or more to find the understand the challenges Indian best match between borrowers, SMEs face, which eventually inspired Multiple GSTIN support -  lenders, and lending products. us to create UpScale. In addition to UpScale’s e-Invoicing Solution bridging the gap between credit and provides e-Invoicing enablement  UpScale also has powerful solutions, cash flow management, the for all your GSTINs at once.  such as the GST Super Search tool application also contributes for quick vendor verification, B2B pro-actively to the digital Thrilled to speak on the launch,  payment solutions like automated transformation movement that is Mr. Nitin Sharma, MD of UpScale payment reminders, online currently shaping the next ten years collections and reconciliation, for SMEs in India.” and CPO at CredAble, said, “ As vendor management, and more.  India walks into a new era of With the new solution, an UpScale managing and growing a business, it Moreover, UpScale by CredAble user can generate an e-invoice for all is now crucial for all SMEs to start aims to help SMEs that either create applicable GSTINs in just two ways -  using e-invoicing as well. By the next their invoices in Excel, or use an ERP fiscal year, it is expected that that is not compliant with 1. Generate the IRN for invoices E-invoicing will be a mandate for e-invoicing. created on UpScale   businesses with a turnover and  exceeding Rs 1 crore. We’re With e-invoicing being the most 2. Generate IRNs in bulk through an extremely delighted to launch our sought after feature after the excel file upload  new e-invoicing solution. It's also government’s mandate for certain Following are the key benefits of worth noting that, along with our businesses, UpScale by CredAble has using UpScale for e-invoicing: E-Invoicing Solution, businesses now taken a lead in providing an have free access to UpScale’s optimum solution in the market. Bulk IRN Generation: UpScale Payables & Receivables Solution as Unlike other applications, UpScale allows you to bulk generate well. UpScale helps SMEs with billing looks at the key indicators of holistic e-invoices using and invoicing management, growth for SMEs. With easy access Government-mandated fields.  payments solutions, and easy access to working capital and a smooth to business credit. And now that flow of financial information and Send Invoices to IRP in single businesses will have to sync up with operations, UpScale is set to become click - You can create invoices on the e-invoicing site in order to get the most trusted technology UpScale and send them to the invoice reference numbers. application for SME growth. e-invoicing portal in a single click. UpScale’s e-invoicing solution will help them do all of it easily and Real-Time Data Backup -  accurately.  Automatic cloud storage helps It is noteworthy that UpScale by 09 \\ Small Enterprise \\ Dec 2022

Sandip Chhettri, CEO, TradeIndia.com 10 \\ Small Enterprise \\ Dec 2022

An accomplished e-commerce and business strived for innovation and success. Chhettri truly expert, Chhettri is a well-known face in the MSME believes that innovation is the driving force for sector, having over 16 years of experience in the growth and [that] one has to keep innovating to space. Currently, he manages and oversees the stay relevant and competitive in a changing overall operations of the company and directs landscape. The team has been able to skill and agendas to drive profitability for India's leading digitally transform 77,00,000+ SMEs. B2B marketplace. His knowledge and expertise in Additionally, he was able to build the sector have enabled him to develop and high-performing teams from 10 people to 3000+ implement strategies while managing the across 41+ cities in India. It is noteworthy that organizational structure at Trade India. Under his the company's vision is to enable 63 million SMBs leadership, TradeIndia team has continuously with technology-driven solutions. Excerpts from our exclusive tradeindia.com has created a was to bring businesses online. interview: niche as India's largest B2B There was a lack of awareness Q.When and why was marketplace, offering about digital platforms. TradeIndia formed? What was comprehensive business Businesses were apprehensive. the objective when TradeIndia solutions to the global EXIM The online penetration was low started and what was the community through its wide as the decision makers of strategy adopted to reach out array of online services, MSMEs during those days were to the 6 cr+ MSMEs in India directory services and not internet-savvy. Plus, a lot of today? facilitation of trade SMEs were operating from small The challenging opportunities promotion(al) events. Our portal cities where internet and new avenues cropping up is an ideal forum for buyers and connectivity was a challenge. in the corporate arena in sellers across the globe to diverse sectors demand the role interact and conduct business As a strategy, TradeIndia first of a common mediator to act as smoothly and effectively. began by sending inquiries via the bridge between buyers and fax. We reached out to each sellers, importers and exporters, With technology and innovation business associated with us on and the like. This service as enablers, we endeavour to the call and replied to their facilitates the creation of a help our users reinvent queries manually. Our service common platform for the businesses to compete and win, teams used to visit the business world, thus turning the with digitization at the core. We customers to understand their geologically colossal earth into also pride ourselves to be the individual business needs and a tiny global village. Tradeindia only marketplace offering 360° educated them on the is a major entity involved in this digital marketing solutions to importance of going digital in task bringing manufacturers, MSMEs to help them be today’s age. We extended all buyers and sellers under one tech-enabled. With a robust the required support, from umbrella. pan-India as well as a global creating their email IDs to presence in 10+ countries, we helping them understand how Infocom Network Private also assist global buyers to to use email as a channel to Limited was established in the locate Indian suppliers, communicate, etc. It was an year 1990 and is identified by manufacturers and exporters. excellent collaboration between people at large as us and businesses and hats off tradeindia.com, thanks to our Q. Kindly give us an overview to these business people who very popular B2B website of the of the challenges came forward to embrace the same name. Launched in the TradeIndiahas faced initially new concept of taking their year 1996 to offer the Indian and how did you overcome businesses online so positively. business community a platform those? to promote themselves globally, The first and foremost challenge 11 \\ Small Enterprise \\ Dec 2022

Q. According to you, how did The better products one is our approach to offering an the retail industry evolve and delivers at a faster speed will all-in-one experience to where do you see the stand out.Additionally, businesses which includes transformation in the coming personalization will take the digitization and financing. We years? front seat and is going to be the understand the growing needs See, retailers operate in a highly key differentiator. Therefore, it of businesses and have recently dynamic and competitive will be highly imperative for introduced TradeIndia Lending, landscape. Like all businesses retailers to understand the a digital lending solution for today, they too need to stay in customers’ profiles better. small businesses. MSMEs in step with constant technology India face a colossal credit gap upgrades to stay relevant. From Q. How is TradeIndia’s B2B of Rs 20-25 lakh crores and the brick-and-mortar set-up to platform different from other some of the key reasons behind today’s multi-channel similar platforms in India? the lack of access to capital are digitization, the evolution of We are one of India’s first B2B the absence of collateral, retail business has been E-commerce portals with a incomplete books of accounts, dramatic. Now they can sell to legacy of more than 3 decades. preference for cash transactions anyone, anywhere,with a single We have 10 million+ registered and lack of credit history. With click. Additionally, they can also users, comprising both TradeIndia Lending, we are promote their business across suppliers and buyers. When it trying to solve this challenge. (?) and increase their horizon. In comes to differentiating tandem, payments have also ourselves from similar Q. Can you give an example gone digital. The future looks platforms, we can say that we of any customer who has amazingly promising for have very strong access to the excelled in the business using retailers because of the market across regions as well as TradeIndiafeatures and can constant evolution of across borders. This helps us you give any statistics on the technology. Since the and businesses grow hand in same? expectation from a modern hand.Secondly, with strong There are plenty of customers retail store is going to be too finances and technology in who have excelled with us. high, retailers will need to focus place, we are growing to help Recently, one such client who is a lot on speed and convenience. SMEs become digitally strong. a leading manufacturer of ‘Test Equipment’ has talked about Additionally, what sets us apart their success journey. One of the major challenges they were facing before joining TradeIndia was to reach out to the right set of customers. This was a roadblock in their business growth. The organization joined hands with TradeIndia two decades ago. Starting with reaching the right audience, increasing inquiries and getting more sales, they were even able to tap the international export market. Their business reached new heights with 10X faster growth with the addition of new units. The revenue growth was 12 \\ Small Enterprise \\ Dec 2022

impressive as they went to requirements with Assisted products on Google shopping. crores from lakhs with this Buying. With Assisted With this, we aim to enhance association. E-commerce, buyers can the online visibility of procure anything from raw businesses and their products. Q. What kind of support have materials to final products at you got from the ecosystem the best prices. Another initiative, and the Government to take GetDistributors.com is an online your initiative to the next Q. Being an online platform, platform that helps brands and level? can you give us an insight manufacturers to find TradeIndia has digitally into the types of technology distributors.With TradeKhata, transformed 10 Million+ SMEs investments made and how it one can digitize business and has a vision to make 63 has helped you grow? transactions and manage Million SMBs digitally We understand that technology invoices systematically. empowered. The government's is the key to growth for any Digital India campaign is in business. So, we constantly Q. Is TradeIndiaplatform alignment with our vision. The keep updating our tech game. user-friendly for MSMEs? Government of India has One such important feature that How do you cater to the designed a few ecosystem we have designed is the non-English speaking departments like the ‘Tracking Feature’ that enables community? Department of Agriculture, tracking buyer interactions. It has been designed keeping Cooperation & Farmers Welfare Additionally, Instantly Connect our users, primarily MSMEs, in (DAC&FW) and Small Farmers' and Instant Messaging helps mind. We have 29+ branches Agribusiness Consortium (SFAC) connect buyers and sellers across the country. All our that are supporting agricultural directly on call and WhatsApp. branches have a team of industries to become digitally experts who help us to cater to active. This is in sync with our Q. Do you think TI has played the requirements of businesses aim of making the agriculture a critical role in your irrespective of their regions, and industry self-sufficient. customers’ Digital even their fluency with English. Transformation drive? If yes, Since we have our regional Q. You have stated that “We can you explain how, with an teams in place, we can manage will move from discovery example? cultural nuances and work with platforms to B2B transaction.” We are committed to enabling businesses as one of them. Our Could you please elaborate on SMEs to enhance their mobile app also has this journey? technological capabilities and culture-specific strings that help In the last 32 years of its focus a lot on their digital to translate as per the language journey, TradeIndia has evolved inclusivity. Once a business is of the user. a lot. We started as an online registered on our platform, it directory service for the global gets an online presence as per Q. You have tried and tested export-import community. Since its category and location. We many ideas to take TradeIndia then, it has been widely used to not only hand-hold the ahead. One such activity was search for manufacturers, businesses to bring them the Virtual tradeshow. Virtual exporters, and suppliers across online; we also help tradeshows were a great the globe. themmanage their online option during Covid. How did promotions, create their online the first Virtual tradeshow go As we enter into a new phase, catalogue, manage their and do you see the we are looking at simplifying inquiries, etc. We are helping opportunity for the same now the process more. We have businesses to stand out by and in future? already started the pilot for listing their businesses on Today after hosting more than fulfilling B2B bulk buying Google and featuring their 15 virtual shows, I can say that 13 \\ Small Enterprise \\ Dec 2022

technology in the form of three days. We were the first in Q. What’s TradeIndia’s growth ‘virtual trade shows’ came to India to host a virtual B2B event. Y-o-Y in the last 3 years? Can the rescue of small businesses Since then, in just two years, we you give the growth as per during the pandemic. Our have hosted 15 virtual trade the top 5 business categories? dependence on technology has shows covering different User registrations have grown grown manifold during the industries. The response has from 5 Million to 10 Million in pandemic. With the absence of been good. Going forward I can the last three years. physical trade shows, virtual see virtual trade shows have a Additionally, there has been a trade shows provided the good future as the medium is surge of 41% in inquiries over muchneeded platform for small cost-effective, can be accessed the last three years. Agriculture, businesses to showcase, interact from anywhere and has the Chemicals, Industrial Supplies, and grow their business ambience of a physical trade Hospital & Medical Supplies, virtually. Our first virtual show show. People will slowly get and Electronics & Electrical “Covid -19 Essentials Expo” was accustomed to virtual trade Supplies are some of the hosted in July 2020. The event shows as more and more events top-performing categories. The went very well and we got a will take place. But I am very future is bright. huge response from both positive about anything that exhibitors and visitors. The uses technology. - Dojo Jose, event saw over 70,000 visitors in Editor-in-Chief, Small Enterprise India 14 \\ Small Enterprise \\ Dec 2022

Powering Digital Transformation for Smart Growth through data and AI-driven insights Consolidate Activate Analyze Audience Data True Omnichannel AI, Machine Learning & Management Orchestration Deep Analytics Get a single view of Reduce the cost of customer Detailed attribution analytics - customer acquisition Campaign/Channel/Customer Sharper segmentation Seamless, automated Customer journey analytics Progressive profiling campaign operations Descriptive, Predictive & Identity management Save cost of communication Prescriptive Analytics Highly contextualized engagement Hyper personalization Key Company Highlights What we enable Placed in 892+ Launched in Global partner with for Multichannel Marketing brands Hubs for six years in a row 30% Recognized by Customer Strategic partner with Serving 200+ Data Platform Institute cost savings brands worldwide 45% incremental ROI 1.8Bn audience engaged 23Bn communications/week Our Experiences Copyright © RESULTICKS Solution Inc | [email protected]

STARTUP HEADSTART HS.X 2022 CELEBRATING 15 YEARS OF ENTREPRENEURSHIP HeadstartHS.X 2022 concluded successfully on Government Decision Makers. 15th October’22 at the IIIT Bangalore campus. The journey started in 2007, by getting all This year, the event saw a total footfall of1500+ stakeholders of the startup ecosystem together, to (including participants, visitors, investors, govt. initiate Startup conferences. Since thenHeadstart officials, incubators, and AICs). 51% of the have expanded to 23 cities across India. They footfall numbers were by founders. have created over 20 different initiatives to add value to early stage startups in the country. Entrepreneurs must understand that evaluating IP implications is not just about protecting the work The massive event, Headstart HS.X 2022, was a you are doing but, it is also very essential to true spirit of entrepreneurial celebration. An check whether someone else has an IP for the extremely well-curated event, that enabled same work. Very often, there could be people in networking with the who’s who from India’s top different parts of the world working on the same startups, VCs & angels, Corporate CXO and idea 16 \\ Small Enterprise \\ Dec 2022

Headstart.HSX 2022 had Bankbrought out the best enablers “15 years of Volunteering & something unique this year such as Incubators, Accelerators, Paying it forward at Headstart has “Start-up Showers”. This was Corporates, Investors, Government been synonymous with the growth inspired by Elon Musk’s bodies, and other organizations of the Indian startup ecosystem. mention\"Instead of baby showers, working towards enabling the Headstart is now replicating its let's host business showers\". The Startup Ecosystem and community volunteer model across multiple startup community came together in the nation to recognize them geographies starting with UAE and as one and showed amazing love and motivate them to continue to Europe. The org shall focus more and support for the products (an make India grow and evolve day on People, Programs, and entrepreneurs' baby) of 11 startup by day towards the next startup Playbooks in the upcoming year, founders. nation of the world. building focused programs for startups and enabling other Bharat Pitchathonat the event saw Amit Singh, Founder & Director, startup ecosystem enablers to a total of16 startup pitch sessions, of Headstart, said, “What started amplify their impact”, says which were mentored and trained as a simple catch-up to bring Gautham Sivaramakrishnan, to be pitch ready by various struggling & aspiring founders Director at Headstart. experts arranged by Headstart. together to meet and learn from There were about the experienced ones, has turned Small Enterprise India, had caught 30+Investorswho had attended into a massive movement that's up with a few of the Startups at the pitch (representing various VCs hosted over 2500+ Startup events, headstart HSX. 2022 event and and angel syndicates). where 1 in every 4 startups that had an insight into their successful were incorporated in India in the journey. Enabler Awards 2022, an initiative last decade would have been a of the Headstart Network part of a Headstart program”. Foundation powered by DBS Amit Singh Gautham Founder & Director, of Sivaramakrishnan, Director at Headstart. Headstart, Amit Singh, Founder & Director, of Headstart, said, “15 years of Volunteering & Paying it forward at “What started as a simple catch-up to bring Headstart has been synonymous with the growth of struggling & aspiring founders together to meet and the Indian startup ecosystem. Headstart is now replicating its volunteer model across multiple learn from the experienced ones, has turned into a geographies starting with UAE and Europe. The org shall focus more on People, Programs, and massive movement that's hosted over 2500+ Startup Playbooks in the upcoming year, building focused programs for startups and enabling other startup events, where 1 in every 4 startups that were ecosystem enablers to amplify their impact”, says Gautham Sivaramakrishnan, Director at Headstart. incorporated in India in the last decade would have been a part of a Headstart program”. Small Enterprise India, had caught up with a few of the Startups at headstart HSX. 2022 event and had an insight into their successful journey. 17 \\ Small Enterprise \\ Dec 2022

Name of Org Category of the Award AIC-Nalanda Institute of Technology Foundation Best Incubator - Corporate Engagement IIT Madras Bioincubator Best Incubator - MedTech AIC-RNTU Foundation Best Incubator - Startup Program Afthonia Lab Pvt Ltd Best Incubator - Fintech DERBI Foundation Best Incubator - Social Impact Jain University Incubation Centre Best Incubator - Investor Relations Atal Incubation Centre - CCMB Best Incubator - Government Relations Krishna Institute of Medical Sciences \"Deemed to be University\" Best Upcoming Incubator Crescent Innovation and Incubation Council Best Incubator - Innovation Atal Incubation Center ALEAP WE Hub Best Incubator - Women Program 18 \\ Small Enterprise \\ Dec 2022



INTERVIEW: FUNNGRO Payal Jain | CEO & Co-Founder | Funngro Brief intro about you and the created an impact on the lives India and that is a goal worthy company, your team, and of hundreds of Teenagers in enough to focus on me. your journey so far. the last few months and super Funngro as the name suggests excited to expand this to lakhs What purpose does your – Fun N Grow. We are making and crores now. brand solve? Which industry it fun to grow for Teenagers does it fall under? and helping them get What made you become an Our mission is to help experiential learning by entrepreneur? teenagers and companies working with startups on a real The challenge of solving a achieve their full potential. We project. We call it Teenlancers, large-scale problem with a connect smart and talented Teens who are ready to think significant impact on the next Teenagers with companies that innovatively, bring fresh ideas, generation was my primary can use these skills on a project and have the intent to learn driver towards basis. Our proprietary and add value to companies entrepreneurship. The scale of algorithm makes the right are the ones we help. what we are doing will change connection and helps the lives of 20 Crore teenagers companies with innovation, I am truly happy to have and Lakhs of companies in fresh ideas and cost-effective 20 \\ Small Enterprise \\ Dec 2022

delivery while allowing and getting experiential worthy of all the sweat and Teenagers to learn while learning. Additionally, we will blood that you will have to put working with real companies. enable companies to use smart into making it work. The talent to achieve their business startup is fancy only from the Have you raised any funding goal. Our clear focus on outside, one has to be ready earlier? If yes, what was your enabling Teenagers and for the real grind and have the experience and how many Companies to achieve their full commitment to making an investors did you meet until potential makes us stand out impact. A startup journey is the final meet clicked? and our product journeys, really rewarding when you see We have largely funded the match-making algorithm and the impact you are creating for business on our own with help execution capability make us the consumers, simply forget of a few angels who have stand apart. We do not have everything and focus only on helped us in the early stage direct competition in this space the impact you will make for and believe in the mission that and hence are truly excited to that one stakeholder – the we are working on. We have be a category creator with a customer. not closed the formal funding deep impact on the future of round yet and have worked on our country. CCD as the format to access funds. How was your experience at Headstart HS.X 2022? If you haven’t raised any Headstart was a great funding, what are your plans opportunity to meet for fundraising? like-minded people. Great to We will continue to raise see the wide spectrum of through CCD for the time problems being solved by such being before closing our round talented people. Also really in the last quarter of this happy to see an ecosystem financial year. We do have soft being developed by Headstart commitments from well-known to help the community. angel investors. Please share your Briefly explain your Business advice/suggestion for those plan – Why your brand, aspiring Startups competition, USP and how I would not presume to advise do you see it growing in the others but would want to next 5 years? simply say, one should take the Funngro will impact the lives of route of starting a company 10 Mn Teenagers in the next 5 only if you are solving a years giving them the first problem that you think is experience of earning money 21 \\ Small Enterprise \\ Dec 2022

INTERVIEW: 1729 DIGITAL Ashish Chawla Founder 1729Digital 22 \\ Small Enterprise \\ Dec 2022

Brief intro about you and the me the perfect platform to remainsto find partners who company, your team, and execute my thoughts and drive are aligned with the core your journey so far. me towards implementing principles that our company Hi, I’m Ashish Chawla, founder, unique solutions to everyday advocates. and CEO of 1729 digital. We are problems. a digital persona management Briefly explain your Business company catering to personal What purpose does your plan – Why your brand, branding for individuals and brand solve? Which industry competition, USP and how do professionals. 1729 Digital does it fall under? We are a you see it growing in the next started as a passion project for digital persona management 5 years? me and Prachi Jaruhar who is and content creation company Many of the great business the Co-founder and Creative for professionals. We propose stories and insights have been director of the company. At to fix up this problem by left unsaid because either the 1729 Digital we believe that helping people in curating a person in question doesn’t 'relationships move the world.' digital persona that not only have time for it or they do not We assist leaders and brands in aligns with their stupendous have the right talent to word nurturing their connections and personality but also gets up their thoughts and ideas expanding their businesses by reflected in their online profile- and steer their career and presenting their best selves eventually helping them reach business in the right direction online. We are a team of 17 out to their audiences and tell due to the lack of this crucial members with 50+ clients the ‘real story of them-personal ability. This trend has led to a across 8 countries. Our journey as well as professional’. So now dearth of quality information so far has been an exciting one. we are guiding people by and content for people to We started as a team of 2 and carefully auditing and analyzing consume and get insights and have now grown and their digital presence and findings. Content marketing is progressed while getting the coming up with their persona one of the most important opportunity to focus on management plan- wherein we aspects of individuals and individual growth. I can proudly help them improve the three businesses, but finding the time say that we have been able to elements of their digital to create quality content can be foster an environment that personality – Deep, Wide, and challenging. We found a sheer largely focuses on learning and Warm by conscious, strategic, lack of talent and technology development while delivering and continuous efforts. that can bridge the gap and organic and unique content to perform this task – somewhat our clients. Have you raised any funding automated but with human earlier? If yes, what was your creative precision. We are an What made you become an experience and how many early entrant in the market entrepreneur? investors did you meet until which is a niche in itself. It After working for consulting the final meet clicked? gives us an advantage that is firms for over 14 years, I was We have not raised any unique to early entrants. We privileged to have diverse funding yet. work with CEOs, lawyers, exposure to various business chartered accountants, models and their working. This If you haven’t raised any educators, consultants, and experience resonated with my funding, what are your plans physicians to improve their innate need to improve the for fundraising? digital presence. We're heavily efficiency and value of any Since we have moved from the invested in the process of operation. I realized validation stage to scalability building a platform that is both entrepreneurship, would give mode, we intend to start the technologically advanced and fundraising exercise shortly. However, our objective 23 \\ Small Enterprise \\ Dec 2022

GPT-3 enabled for creating approach. engaging. organic content. How was your experience at Please share your This will enable our clients to Headstart HS.X 2022? advice/suggestion for those create robust and organic Our experience at Headstart X aspiring Startups. content that will get distributed 2022 was a remarkable one. on various online channels Getting the opportunity to a.Stay focussedon your giving them a competitive connect with several objectives. advantage over others in entrepreneurs and learn more thought leadership as well as about their businesses was an b.Be patient while walking the reach and connectivity to their enlightening experience. HSX startup path. target audiences. We're 2022 gave us a great platform working on an in-house to network and create brand c.Be sanguine to the voice of framework that will handle awareness while several people your customer. content creation, execution, understood the importance of and monitoring on blogs and our niche and showed interest social networking sites like in our services. It gave the team LinkedIn, Twitter, Quora, an excellent overview of the Medium, ResearchGate, and current startup landscape and others. The solution will up the provided an efficient organic content, remove introduction to other plagiarism, and reduce human entrepreneurs leading their errors to a very large extent. companies in new and innovative ways. Overall our With a growth of 10% every experience at HSX 2022 passed month, we plan to expand our our expectations, and the event services and stay aligned with was fun, informative, and our organic content-driven 24 \\ Small Enterprise \\ Oct 2022

INTERVIEW: EXPERTPOINT.IN Mehul Kumar Co-Founder and Chief Strategy Officer Expertpoint.in Brief intro about you and growth trajectory. Mehul Kumar is a Chartered the company, your team, Accountant (CA), Certified and your journey so far. What I do: Information Systems Auditor Mehul Kumar is Co-Founder With his highly analytical and (CISA) from USA, ISO 27001 and Chief Strategy Officer of out of the box thinking Lead Auditor, UK, Certified Expertpoint.in blended with his strong Information Privacy execution skills - He has been Professional (CIPP/E), Who I am: working with aspiring Certified Information Privacy Mehul is a serial entrepreneurs and Manager (CIPM), EU GDPR entrepreneur, visionary, a established businesses as Certified Expert Practitioner critical thinker and a Business business mentor, Business (CEP). He is also a member of Strategist known for turning Coach, startup coach, startup ICAI-India, ISACA-Chennai business ideas to a consultant, business Chapter and life member of sustainable and successful consultant, business advisor Society of Auditors, Chennai. businesses by building to simplify the way scalable business models, businesses are started, Our Company: planning for effective Managed and grown in India Expertpoint.in is a unit of execution strategy and and across the globe Traecit Business Consultants attaining ambitious business LLP launched in 2015. How I keep myself updated: 25 \\ Small Enterprise \\ Dec 2022

Expertpoint.in is a business marketing professionals. platform and vendor which enabling start-up studio provides 100+ business helping aspiring What made you become an services under one roof entrepreneurs and entrepreneur? which includes Business established businesses to Indian economy is at pivotal Registrations, Licenses, Start, Manage, Protect and point of growth and is well Accounting, VCFO, Taxation, Grow their business by established to become HR and Payroll, Compliance offering 100+ business epicentre of entrepreneurship Management, Legal Services, services under one roof in coming years. This requires Marketing, Branding and provided under a single for strong support system for Designing Services, platform by a single vendor. businessman to make this Intellectual Property, dream come true. Technology and Web When Mehul Kumar and Expertpoint.in seeks to fit the Support, Information VinodhSoundararajan, business ecosystem and Security, Investments and co-founders of Expertpoint.in needs of the businesses by Funding assistance and the were asked about their vision providing 360-degree growth list goes on and on, but the of providing 100+ services at help with a team of skilled service does not end here. one stop, they said, resources. “Coordinating with multiple No multiple office visits or no vendors is a tedious task and Personally, being part of the waiting in queues, can result in loss of critical start-up ecosystem is exciting Expertpoint.in provides productive hours - Thereby as you keep learning from services digitally within costing entrepreneurs, loss of inspiring entrepreneurs who seconds and delivers you the holistic, futuristic, and are working on some brilliant best results. continuing growth vision of and mind boggling business their core business idea” ideas to solve real issues and Have you raised any Hence, there was a critical ultimately contribute to the funding earlier? If yes, what need for a one-stop solution growth of the nation by was your experience and to enable ease of doing fostering and supporting the how many investors did business. start-up eco-system in the you meet until the final country and across the globe. meet clicked? Customer Focus and Indeed a Dream come true. We are bootstrapped Professional Team. From start-ups to What purpose does your If you haven’t raised any well-established businesses brand solve? Which funding, what are your to government PSU to MNCs, industry does it fall under? plans for fundraising? Expertpoint.in has served Expertpoint.in is a business We are bootstrapped everyone — every industry enabling Startup Studio and sector in India and across fostering true ease of doing Briefly explain your the globe. business by providing Business plan – Why your 360-degree support from brand, competition, USP Services are provided by Incorporation to IPO. and how do you see it subject matter experts and a growing in the next 5 team of skilled resources like Unlike the conventional years? – Chartered accountants, US players in the market who In the long term, we are CPAs, Lawyers, Company provide bits and pieces of looking to expand our Secretaries, financial advisers, service and businesses has to services PAN India and across Human resources, coordinate with 8-12 the globe and be the go to information technology different vendors – company for starting, experts, Branding and digital Expertpoint.in is a single managing, protecting and 26 \\ Small Enterprise \\ Dec 2022

growing your business. If you Recognized start-up by to companies burning are doing business – Think government of India in enormous amount of cash to Expert Point Dubai Expo 2020 – survive in the market. Represented by our As part of the expansion plan, co-founder Mehul One of the first and major we are looking forward to Kumartalking on building a piece of advice that, We collaborate with Government sustainable business. would like to give our new Agencies, Business age entrepreneurs is that Eco-system enablers, Private How was your experience always focus on building a Investors, financial at Headstart HS.X 2022? sustainable business for long Institutions, PE Funds, It was a wonderful term survival with a scalable Venture capitalists, Angel experience, wherein we got and stable revenue model. Funds to deliver holistic value to meet different Investors will automatically to business man. stakeholders of the start-up be attracted towards you. eco-system and lot of new Recognitions and Future start-ups. Well organized and Plans on boarding experience was smooth. Looking forward to Expertpoint.in has been be part of many such events. recognised by the Government of India and Please share your DPIIT as a Start-Up. advice/suggestion for those aspiring Startups Best-Emerging Company – These days entrepreneurs / business accelerator Start-ups are more focused category by the on being investor ready and Nationwide SME Award. building a business to attract big valuation and providing Entrepreneurs of the year exits to Investors. This has 2021 by International shifted focus from core art of Business network (IBN – doing business itself and led MSME) 27 \\ Small Enterprise \\ Dec 2022

INTERVIEW: IGOWISE MOBILITY Sravan Appana CEO & Co-founder iG- owise Mobility Pvt. Ltd Brief intro about you and the Most importantly, we enjoy wanted to dive into the mobility company, your team, and your building impactful products, industry to explore the world of journey so far. together. The 30-member is a autonomous mobility We are entrepreneurial engineers healthy mix of energetic young and innovators with a keen talent from institutes such as IIT Suresh, a hard-core engineer, business sense. We understand Patna, VIT etc. and functional after working in the public the customer experience and experts from across the industry engineering space (Indian listen intently to our customer's including Tata Motors, Bosch, Railways) and on the corporate problems, both stated and Mahindra and Mahindra, PwC side (Adani) started his unstated. We are dreamers and India just to name a few. decade-long successful are restless until we execute our entrepreneurial journey working dreams.We are curious, always I am an alumnus of the Indian in engineering services for all the learning & relearning. We love to School of Business with 12+ years major metros in India and even experiment. of experience building world-class the high-speed rail project of products in different domains. Mumbai-Ahmedabad bullet train Customer delight is the game we Having built technology products in partnership with the Japanese. play. Technology is just our most in enterprise order management, His seamless ability to bring valuable weapon. Fintech, IOT & Cloud space, I concepts from other domains and 28 \\ Small Enterprise \\ Dec 2022

industries coupled with his insights from his journey so far. elevate the social status of the ingenuity of frugal engineering And 2 years down the line, we are household. got him 20+ patents in the building our shared mission mobility space together. Our all-weather all-terrain bike is going to provide an alternative What made you become an What purpose does your brand for people who are looking for entrepreneur? solve? Which industry does it the comfort, convenience and I’ve been an explorer. I’ve fall under? weather protection of a car. We explored 20 different countries, Safe, Sustainable, Smart mobility! are in the mobility space. We offer worked in 6 different industries, That is our mission. a chance towards dignified, smart, even got schooled in 7 schools, sustainable & safe mobility for and built various technology 1.5 lakh road accidents in India everyone irrespective of age, products centred around the core equivalent to one Pandemic gender and economic class human experience.I’ve always every 3 years. been termed different by my Have you raised any funding peers. There’s always been a 2 wheeler users are 30X more earlier? curiosity to do things differently. prone to fatality in an accident We are frugal innovators and ‘Why not?’ This has been the compared to any other vehicle have iterated four generations of phrase I’ve known for my prototyping just by teachers, my colleagues and even 70% of the 2-wheeler fatalities boot-strapping. We pooled funds my parents.I’ve observed that involve a young bread-winner earlier from some Angels, friends 1000s of folks work in the for the family & family for setting up our mobility sector. Hardly anyone infrastructure. We have secured a trying to solve the bane of human That is the mission we set out for convertible note from my AIC ISB existence, traffic congestion. I ourselves. And we are incredibly part of the Seed-fund-India envisioned and conceptualized a proud to introduce our Trigo scheme.We have just started our system that addresses both parts which is 5X more stable, 3X more fundraising journey to scale up to of the problem, vehicle and Spacious, 5X more fire-resistant the next level. infrastructure.In my quest, I met and 3X more long-lasting than this veteran entrepreneur who other 2-wheelers in the world. A If you haven’t raised any was already building the complete family vehicle with funding, what are your plans autonomous lightweight shuttle unique AFO tech allows women for fundraising? pod system that I envisioned. I and the elderly to ride it without As we are ramping up our reached out just to pick some fear. Built for the Indian roads and production & manufacturing non-existent parking spaces. Truly capacity, we’ve started exploring a multi-functional vehicle that can both Venture capital as well as Venture Debt.Including Angels, VCs, AIFs and even grants and schemes for startups. We’re also exploring crowdfunding to pool funds from our early adopters and customer ambassadors to make them part of our growth journey. Briefly explain your Business plan – Why your brand, competition, USP and how do you see it growing in the next 5 years? Our eventual goal is to provide access to dignified mobility to the 29 \\ Small Enterprise \\ Dec 2022

common rural aspirational our all-weather all-terrain bike is like parenting. You put the needs household.But we will enter the going to give a run for the money and aspirations of your market with a narrow focus on for the entire car industry by customers, your investors, your being the SUV among reducing the need to upgrade to employees and your partners motorcycles for urban joint a personal car by manifold.While before yourself. Create an families that value the safety, helping reduce the road footprint environment for them to grow space and status of an SUV car. and thus traffic congestion on our and nurture naturally. And you congested city roads. will receive a lot of fulfilment as While others are content with well as actual returns. But if you offering a little bit more range, a How was your experience at only do it for the returns or worse, little bit more speed or charging Headstart H.S.X 2022? because everyone in your peer time, with our unique patented It was a great experience here group is doing it, it can be an AFO technology, we are offering meeting people from different incredibly stressful experience what no one else could match. industries and networking with them.It’s the first-ever public Aim high! Better safety and stability even on exhibition of our product. We’ve muddy roads, best-in-class received rave reviews, great leads, Keep moving forward with groundclearance, Ultra-low CG, helpful connections and some small and consistent steps! best-in-any-class ergonomics, really valuable constructive unparalleled acceleration, 12o feedback as well. We are so glad Keep building resilience to gradient steep hill-climb, 300L for the incredible opportunity survive the external winds luggage space to carry entire and waves! aeroplane baggage on Please share your advice for TrigofamilyEV.Elderly Saree-clad aspiring startups women can also travel quite There is no guarantee of success. comfortably on our Trigo without But if you have figured out a way sitting sideways. to enjoy the journey, the destination can be a bonus We may be initially competing benefit that can pleasantly with the 2-wheeler manufacturers surprise you. Starting up is a lot in India. You can mark our words; 30 \\ Small Enterprise \\ Dec 2022

Your Project Associate OUR SERVICES PROJECT MANAGEMENT CIVIL & STRUCTURAL DESIGN YOUR BACK OFFICE PMO Planning & Scheduling Architectural Design Monitoring & Tracking 3D Models & Walkthrough Real-time Project Dashboard Construction Management Civil & Structural Design Automatic Planner Quality Control Design of Material Handling Auto report generation Budget & Cost Control Structures Risk Management Design of Specialized Structures Scheduling through Gantt Chart Contract Management Fabrication drawings in TEKLA Quantity Based Planning Collaborative Progress Update MECHANICAL DESIGN ELECTRICAL DESIGN Effective Issue Tracking P&ID preparation HV System Design Objective Contract Management Equipment selection & sizing Transformer Sizing Photo Gallery on a Timeline Utility System Design LT System Design Transparency in the system Piping Engineering Switchgear selection & sizing Piping Stress Analysis Illumination Design Zero Hardware Footprint Fire Fighting Systems Earthing & Lightning Protection. No Maintenance hassles HVAC design Electrical Studies Attractive Pricing Plant Layout & 3D Models Vessel Design (Pressurized & atmospheric) OTHER SERVICES Feasibility Studies & DPRs Owner's Engineering Services Contracts & Claims mgmt. Pre-Bid Engineering Support Delay Analysis Procurement Assistance Design Review and vetting Tender Preparation GET IN TOUCH BASELINE PROJECT MANAGEMENT SERVICES LLP 334, Fortune Gateway, Chhani Main Road, TP-13, Vadodara, Gujarat - 390024 +91 997 899 1264, +91 992 500 1066 [email protected]

INTERVIEW: BIBO Vikash Kumar-Founder Bibo: Digital Platform for Respiratory Health Brief intro about you and the Brand in India in Nov 2021 the condition that after visiting company, your team, and your the factory you would not even journey so far. - Times of India Business Award feel like buying medicine Hey, we are Bibo! BIBO stands for for Digital Pharma Innovation anymore. Breathe In Breathe Out. As the in 2022 name suggests we stand for best While the sourcing problems can respiratory for one and all. Bibo Over 2+ years of the launch, we be solved, I also found that the was launched in 2020 with a vision have touched more than 3.4 Lakh Indian market has a strong gap in to make meaningful and consumers and achieved more value-added products and also value-added products available than Rs. 3.5 Crs in gross sales. has no category brand concept in for Indians. We have a strong Pharma. Over 2 years, worked on research-led approach to making What made you become an my thesis, validated it with some effective products for people entrepreneur? industry experts and launched suffering from chronic issues such I was into investment banking for Bibo,a digital-led pharma as Asthma, Sinus or even people 10 years before founding Hilt company to make the best quality with simple cough & cold. Brands. I was mainly advising products available for Indian pharma and healthcare companies consumers at the right pricing. Bibo is based in Bangalore. We in transactions and my work have been supported by leading required me to visit pharma What purpose does your brand investors and incubators including facilities etc. I would have visited solve? Which industry does it Ah! Ventures and SR Innovation at least 70 pharma units during fall under? Exchange (SRIX). We are 10 those days. And I was quite taken Currently,the Indian market of members team and have made aback by seeing so much consumer health products is our mark felt in the market with a difference between the USFDA infested by me too products and few recognitions including: plant meant for US exports and brands. Most of the products look Indian GMP Plants. the same, have the same - YourStory Top 100 Challenger ingredients and are priced at the Some Indian plants are so bad in 32 \\ Small Enterprise \\ Dec 2022

same levels. Whereas we find that and many more. ensures we have a good match consumers have moved with the target audience and get significantly in their aspirations We had a success rate with the good traction. and awareness. people we spoke with. And also would recommend meeting Overall gross margin is pretty Many ingredients which are relevant people not just for good to ensure we can share with already proven to have side funding but to discuss ideas. trade channels and remain effects are still sold in Indian Some of these discussions positive on the product level. markets. And various products graduate into funding. have unknown side effects which In the next 5 years, we aspire to people have slowly started being Briefly explain your Business achieve more than INR 700 Crs in aware of. We aim to bring plan – Why your brand, sales and with strong grit and a products with the best quality and competition, USP and how do unique business model, we are at the right price and provide a lot you see it growing in the next 5 confident of getting there. of content to the consumers for years? spreading more awareness. So, the sourcing is outsourced. We How was your experience at work with reputed vendors with a Headstart HS.X 2022? Further, the whole offering is too strong B2B focus to get the best It has been amazing hearing segmented/fragmented. At Bibo, quality. Our vendors are approved about many entrepreneurs, and we offer everything a respiratory by the US and EU-based buyers. people from the ecosystem. And patient needs, be it doctor we could make many people consultations, diagnostics, Our main competence and role aware of our brand from the medicines and even yoga advice isresearch, marketing, sales and event. It was worth it and we look for better breathing. distribution. We research forward to doing this more often. formulations, current market In terms ofthe industry, we can be offerings and how we can give the Please share your considered a digital therapeutics best to people. We work with a advice/suggestion for those player with a focus on products. reputed innovator from Kerala, Mr aspiring Startups As a segment, it is nascent in India Saji of Advanced Herbal Remedies The MOST and ONLY thing which with few startups. You can visit to pursue modern Ayurveda drives the journey: is your our portal to get a good view of product innovations. confidence-conviction in your how different we are in products endeavour and persistence with and also positioning: We pursue both online and offline the vision. I don’t mean granular www.bibo.health. markets to ensure good visibility vision here but the broader one and fast availability of the while detailing of course change. Have you raised any funding products. For pharma products, earlier? If yes, what was your fast availability is the key. We also Plan your finances well and focus experience and how many work with like-minded doctors on hiring future leaders who can investors did you meet until the who are willing to offer better think and act and not just a few final meet clicked? products to their patients. sincere ‘employees’. Yes, we have raised angel capital. We were supported by a few On the online front, we sell on established angels from Day zero. Amazon, Pharmeasy, Flipkart and And later were backed by SRIX, other platforms including our Ah! Ventures Investors and also website. We ensure good content some notable names such as and placement with the right Anand Anupam (Angel Investor keywords for products to appear and Serial Tech Entrepreneur), on top in searches. Srikanth Iyengar (MD, QA Ltd, UK), Suhas Donthi (Owner, Emmvee), Further, we work on the offline front in select pharmacy stores. Following the curated approach 33 \\ Small Enterprise \\ Dec 2022

Entrepreneurship STRENGTHENING INSTITUTION INDUSTRY INTERACTIONS THROUGH ACADEMIC INNOVATIONS AND INCUBATORS The relationship between academia and industry incubators and to highlight the challenges faced. is a well-known concept. However, improvement This work enhances the existing body of literature is necessary to move from the traditional and knowledge regarding collaboration and exchange of funding for research to the creation offers concrete steps to be taken for effective of long-term strategic partnerships incubators collaboration between universities and industries and innovation activities in the academic and hence improving the global economy. organization. The purpose of this study is to explore and design an innovative and sustainable Keywords: University spin-off, incubation framework to improve the industry-academia strategy, university, firm, technology transfer, link by leveraging academic innovations and university-industry relations, IPR, Innovations. 34 \\ Small Enterprise \\ Dec 2022

Background: Late during the 19th century, that's increasingly global (Saleh, Academia and industry are two Bayer - the German pharmaceuti- 2002). The prosperity of a nation important pillars of our economy. cal firm, formed relationships with is predicated more and more on a strong collaboration between universities. During World War I, the two will augur well for our the National Research Council of its ability to mobilize and exploit developing economy, enabling the US got together scientists in innovation, growth within the research-oriented universities knowledge-intensive assets. education system and producing with those in industries to an employment-ready workforce. support the war effort (Rast et al., During a global economy, regions It’s time to create a nurturing 2012). However, such partner- environment where the industry ships weren't very frequent. seeking to compete more and the academia can work Nowadays, and since the increas- hand-in-hand. Corporations are ing influence of knowledge on effectively need to build soft starting to realise the significance economic growth, creating more and engage in more and more and more partnerships is signifi- structures that support knowl- research-based projects. Addi- cant to any economy. tionally, government projects like edge creation and enable firms to Start-up India and therefore the Globalization and therefore the strengthen a region’s capacity for Prime Minister’s Fellowship pressure of international compe- knowledge creation and innova- Scheme for Doctoral Research will tition is dissolving boundaries tion (Cairney, 2000). Policymakers help bridge this gap and inculcate between nations, institutions and in developed countries began to innovation across industries/sec- disciplines, creating a disturbing tors. knowledge production system formulate laws and regulations governing the exploitation of Intellectual Property (IP) to enhance the contribution of a national university system to industrial innovation. Consistent with Cairney, this approach to regional development requires an environment of trust between the 35 \\ Small Enterprise \\ Dec 2022

general public and private sectors between the simple exchanges of and new technologies. Industrial and between universities and the funding for research. firms might use partnerships to regions. Fundamentally, a university must create their reputation and image view companies as partners in its as well. The capacity of On one hand, universities are research and education mission, universities to adapt and play a looking for new ways to remain not simply as an alternate much bigger role in global key players in the knowledge revenue source. On the opposite knowledge production is crucial economy. Thus, they have to hand, firms face fierce to defining their role in the generate more funding for their competition and need to survive national economy. Universities very costly research. Furthermore, in a fast-changing environment were historically an area where collaboration offers students and characterized by fast knowledge was sought by an schools the chance to solve technological progress. They’re elite few. it had been protected practical problems and generate increasingly realizing that they and passed on to restricted more employment opportunities cannot exclusively rely on their communities. However, for fresh graduates. Additional internal Research & Development universities are now expected to fundraising was a primary reason (R&D) to successfully innovate. supply the regional communities behind the collaboration of Forming partnerships with with knowledge, research and universities with the industries universities allows companies to development activities. Thus, the since funding from the industries access an unlimited pool of skills difficulty of strategic partnerships involves less bureaucratic work and talents. Thus, universities between universities and industry compared to public funding. might be considered strategic becomes vital. Universities are However, there's a huge partners for firms in the industry expected to inform their difference between building a offering them access to highly academics to focus more on strategic partnership between trained students, faculty, facilities, diversifying into a profitable universities and firms and 36 \\ Small Enterprise \\ Dec 2022

business. they're expected to inventions, and innovations are leaders must foster such a culture develop links with businesses to systematically channelled from of innovation on their campuses. boost their institution’s income. universities into industrial Creating a culture of innovation Researchers need to prove that applications and want to develop means that leaders encourage their research has an economic an entrepreneurial economy. the following: impact outside of their institution. Defining success in Higher Education system & Rewarding innovation, even if academic technology transfer Innovations it fails. depends on defining what Change is difficult in any organi- outcomes are desired, and then zation; people resist change. As Training faculty and staff in tracking and measuring Lloyd Armstrong writes, “Individ- Design for Innovation performance using metric models uals are often wary of changes techniques. in the light of those desired that challenge old assumptions outcomes. and require new skills to succeed. Fostering cross-departmental An organization is a collection of teams to solve problems. Consequently, universities have individuals and therefore reflects the potential to act as strong the interests of each individual”. Clearly defining problems that drivers of growth by educating Higher education institutions are must be addressed. people with high skills in research filled with highly educated people and by commercializing and with advanced degrees; many of Understanding your customers applying new knowledge to them are considered national (students). reinforce prosperity and quality experts in their fields by a variety of life. this needs an integrated of scholars. Additionally, through Providing time for unstruc- innovation system of research research at colleges and universi- tured time. centres, universities and ties, many of the innovations we businesses/industries. see in thousands of products in Not imposing too many rules. use around the world have been According to World Economic made possible by innovative Listening with an open mind Forum data, if an area’s average professors in our labs. . These income per capita is over 9000 people are creative. That's why Encouraging prototypes. US dollars, then knowledge and with so many highly educated technological innovation are and creative people, colleges and These techniques are both simple going to be the most important universities will be innovative and complex. For some manag- forces driving its economic institutions. They will have ers, this means thinking different- growth. In Taiwan, 98% of the disruptive cultures of creativity ly and for others, it means letting businesses are small and medium and innovation that will set new go, which can be difficult. enterprises (SMEs), and they play standards for education world- University Innovation: Transform- a fundamental role in the wide. However, for the most part, ing faculty from providing sustainable development of institutions are studying different outstanding students to a model Taiwan’s economy, but thanks to aspects of innovation by includ- that drives innovation, helping limited funding, only a few of ing it in the regular credit businesses transform while them have established research program. creating innovative new business- and development (R&D) es. We need to create resources departments. Over 70% of the R Focus on Innovation at the university that can deliver & D resources in Taiwan are held Colleges and universities are full POC (proof of concept) research by universities, which became of bright, creative people. The that leads to innovations. hubs for new knowledge and challenge is to harness this technologies. Through creative intelligence and energy Ecosystem bootstrap and university-industry collaboration, to develop a culture of innova- maintenance (BUILD) original and breakthrough ideas, tion. College and university First, we need a set of simple and transparent rules that will help participants navigate the complex environment of academia — business relations and the transfer of academic IPs. 37 \\ Small Enterprise \\ Dec 2022

Academia as an innovation Cultivating scalable research the university increases the driver. outcomes and start-ups employability of its graduates. (INCUBATE) Finally, university-industry links Connecting to the right link advances in knowledge with business partners (CONNECT) Making academia and compa- advances in practice. Working nies innovate together to scale together on a problem exponen- Promotion of research and tially increases the chances of transfer capabilities (PRO- We need to make academia starting a new business. MOTE) better in delivering innovations to the industry at - Dr. Kirankumari Patil Values Director REVA NEST, Department level University Industry Capacity building (PEOPLE) Interaction Center, Meta-university level REVA University Educating students and staff towards delivery for compa- Faculty level nies and commercialization (TEACH) Global scale. Attracting talents and senior Universities can benefit in many experts (COME) ways from this interaction with industry. First, scholars must have Retention and systematic practical problems to apply their development of research knowledge. When universities capacities (STAY) connect with industry, they are inundated with practical prob- Diversity lems to be solved. Additionally, the university has a reliable data Impact on business and source through its links with society (IMPACT) industry. Second, universities may revise their curricula to allow for Supporting fundamental interaction with industry. Thus, research leading to applica- tions (INVENT) 38 \\ Small Enterprise \\ Dec 2022

Management THINGS THAT SMALL BUSINESSES CAN ADOPT FROM LARGE CORPORATES Small business owners often dismiss certain best business owners and Startup founders, I have practices, processes, technologies etc. as not identified a few things that small businesses can being relevant in a smaller ecosystem. They may adopt from large corporates. They may require a have created a handicap for themselves with this little bit of adaptation, but they contribute to the thought process. Over my years coaching SME overall success and growth of the business. I am sharing a list below and Results- OKRs achieved results. Writing down would invite the readers to add This includes, documenting plans and expectations may to the list. goals, plans and objectives seem very cumbersome and along with the expected and resource-consuming to a small Clear Objectives and Key 39 \\ Small Enterprise \\ Dec 2022

business owner, but organization offers to beyond HR is responsible for monitoring is incomplete employees, differentiating hiring, salary disbursement and without knowing what is yourselves from the employee documentation. planned/ expected and what is competition. And if small achieved, in real-time. Again, it businesses are struggling to An experienced HR head or is equally important to hire and retain employees, manager is valuable to ensure propagate this across all levels, employer branding is even that the right people are hired from leadership to interns. more important to them. and retained; Employees are engaged and motivated to The value received is clarity on Employer Branding is also so contribute to the success of the what is expected from much more than high salaries organization; People policies individuals, when is it expected and swanky offices. It is about are designed and executed and how can one plan and the experience and learning fairly; Performance and execute it. that you offer. In small Development plans are in place businesses, it’s also the access to optimize contribution. Structured Review System to leaders, the knowledge Compensation strategies are A continuation of the above sharing and the responsibilities fair and compelling.Employee point is a regularised review that embolden employees grievances are addressed: and calendar for employees, teams quickly. so much more. and projects. It is equally important to understand that Customer Profiling Competition Mapping the review sessions are not for Large corporates spend huge Knowing who your competition finding faults or lapses in resources on research and is, is key to creating employee performance. Rather study of their customer competitive differentiation. It’s the emphasis should be on segments. While it may not be even more important to identifying areas that need possible for SMEs to make understand, who your improvement through such investments, it is customers consider your real-time feedback, support important to invest time in competitors. and mentoring. One of my understanding the customers coacheessaid, “During the one is serving. The irony is that Once the competitors are weekly review, I can pluck out there is a large amount of identified, the next step would the things that the team was unprocessed customer data be to create a visible doing inadequately and guide lying around with businesses, differentiation that matters to them so that they did a better and this can be a great place to the customers. This is easier job next time”. start the process of ‘Getting to said than done. However, this know your Customers very competitive differentiation It would be time-consuming to Intimately”. After all, wouldn’t can impact the success rate of establish these review systems any business want to know if your sales and marketing initially. However, small they are spending their efforts. businesses can easily identify precious resources on reaching the top 1 to 5 things that out to the right set of Marketing Plans contribute to the success of the customers, who value their Marketing and Advertising activity and spend only 15 business offerings and are budgets are often miniscule or minutes reviewing these. willing to pay an amount that even non-existent in the SME’s is profitable to the business? balance sheets. This is often Employer Branding one of the reasons that SMEs Employer Branding is not just HR Function have, what I call- “Sometimes about huge hoardings of SMEs often undervalue the HR ON and Sometimes OFF smiling employees. It is function and rarely think Marketing”. marketing the value that your 40 \\ Small Enterprise \\ Dec 2022

Again, Marketing is not just value of the business. of options that can confuse about lead generation, but also customers on which about lead conversion. This is Investing in Technology technologies to use. SMEs can especially challenging for small Technology is needed to hence utilize the freemium businesses that have a long automatethe process, draw out options, user reviews or even sales cycle. Without a good insights, engage with bigger customer education programs marketing plan, the sales team elements, and simplify complex to learn about the technologies land up hounding potential situations. While manual and invest in the right ones. customers to “Buy, Buy, Buy methods may still work, they Now”, rather than engage the often limit the outputs in terms audience through a of quality, quantity, time etc. well-planned lead conversion process. The good thing is that with the current SAS models, A small regular budget aptly technology has become utilized will go a long way to affordable. The not-so-good bolster sales and the brand thing is that there is a plethora - Neetu V. Bansal Marketing Coach, Marketing4Sales 41 \\ Small Enterprise \\ Dec 2022

Marketing THE LAZY CUSTOMER MODEL Have you noticed that most start-ups today are segments. Do read my earlier write up “Things solving problems that ease the lives of their customers. From ordering a cab to your doorstep Small Businesses can adopt from Large Corpo- to software that can automate all tasks, business- rate”.Continuing that theme, one of the things es are making our (customers) lives faster, easier, safer, and simpler. SME Business owners can learn from Start-Ups is to rethink the Customer’s Needs. Easier said than As a Business Coach working with SME Business done! I know. And that’s why I developed “The owners, I propagate learning from other Lazy Customer Model” The model alters the way options, and more access. Referrals or Earn More Profits! businesses think about their Does this sound familiar? customers. Its starts with Quite a paradox, right? And yet, accepting that “Customers are both the statements are true. Additionally, this deluge of Lazy” along with 2 statements. information paralyzes the Unfortunately, most businesses decision-making powers of a Statement 1: Customers simply have figured out how to serve the customer. The buying decision do not have the energy, intention, 2nd statement, by giving more of gets postponed or even cancelled or time to think about your everything. More features, More products and services in the same plans, More models, More The missing link is the first way that you do. content, More channels. More. statement, so let me re-iterate that More. More! And still, this is not - Customers simply do not have Statement 2: Customers need/ enough to get More Leads, the energy, intention, or time to demand more information, more Convert More Business, Get More think about your products and 42 \\ Small Enterprise \\ Dec 2022

services in the same way that you An audit of complexity is the place about the customer’s preferences do. In other words- Customers to start when we want to make and issues. Are Lazy! things easier. Examine your business and ask these questions. Think beyond your product and So, what does this mean to you, service. The Path to Purchase, is a the business owner? What are the steps my series of steps the customer takes customers take to find me and before and after your product. It means that your business needs contact me? Can I reduce the Look into your marketing to work so much harder to serve number of steps? communication. How easy is it for its customers. It means that you your customers to see your need to do the heavy lifting, so How do my customers evaluate marketing communication and that your customers have it easier. my products/ services? Can I make the purchase? How efficient Let’s try and break this down simplify the information is your payment system? What are further. required to evaluate my the questions that your customers products? Remember Quality is may have before and after the Step 1- Know Thy Customer better than Quantity. purchase? How can you deliver You cannot redefine your this information proactively before Customer Strategy, without Do my customers trust my they ask for it? knowing your customers product / industry? What can I intimately. Businesses need to do to make it easier for them to Evaluate your competitor’s invest time and effort in diving trust me? customer experience. Visit them as below the tip of the iceberg. a customer and identify what are Evaluate your Customer’sPath to they doing to reduce the friction It’s not enough to just know who Purchaseand identify how to make in the Path to Purchase. Adapt and your customers are? Businesses it faster, clearer, and safer. Remove adopt their best practices. need to know why are they your any additional steps that could customers? What do they expect cause any inconvenience for the Think of the various ways in which when they do business with you? customer. Talk to your customer customers use your products or What needs do you fulfil and what facing teams to get these insights. services. Can you help them with needs do you not fulfil? Who else You will be surprised at the wealth their “Jobs to be done”? Can you serves them (competition?) Why of information that they have do the customers go to our competitors? How do customers find you or your product? What are their perceptions of the value you provide? What is their intention at the point of contact with you? What do customers really want, when do they want it, where do they want it,why do they want it, how do they want it? Like I said you need to do all the heavy lifting! No customer is going to fill up a survey form and share all this information. Step 2- Make it Easier to do Business with you. One of the parameters of “Easy” is Simple. 43 \\ Small Enterprise \\ Dec 2022

help meet their goals easily and common service requests? - Neetu V. Bansal quickly? A word of caution. Do not fall International Business Coach, Talk to your Customers. The prey to “The Lazy Entrepreneur” Happy and the Unhappy. Don’t’ syndrome that prevents business Mentor and Author. just fill up a form but have a owners to delve deeper into the candid open conversation with information collected. Deficiency Neetu V Bansal is an international them. Ask them, what convinced of Depth is the most common Business Coach, Mentor and them to buy from you? reason for failed research and lack Author. She works with Early- She of insights. works with small and medium If possible, talk to ex customers or business, startups and early-stage potential customers who did not This intensive audit will give you a organizations helping them buy from you at all. Find out what plethora of ideas to make your generate more leads, close more stopped them from buying from customer’s life easier. Implement sales and ultimately earn more you? these ideas in a staged manner. revenues and profits. She is Position each new process as a passionate about applying Customer Connect the dots from your value add to your customer. You Perspectives in business and marketing to sales to delivery to will land up creating an propagates this framework to solve service. Is your delivery interlocking grid of processes, Marketing challenges. mechanism convenient for your values, services that improve the customers? Do they have to wait a life of your customers. long time to receive your product and wait a longer time to use it? Remember “A lazy customer is Can your customers access your beneficial to your business”. It service teams quickly and easily? allows you to control the direction Do your service teams respond to and density of your customer support requests quickly and interaction. It hence is in your efficiently? Do your service teams hand to decide how hard you are get the same type of requests willing to work to help this lazy always? What can you do to customer. proactively address some of these 44 \\ Small Enterprise \\ Dec 2022

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COVER STORY | SME Banking & Finance THE SME BANKING AND FINANCE LANDSCAPE TODAY The SME banking and finance landscape today is continue as more customers prefer card payments highly digitized. Online banking services and and mobile banking. What can SMEs expect from mobile applications have been used by almost these changes? Here are some key points to half of SMEs, and visits to ATMs and branches consider. have decreased by 38%. This trend does set to Digital Solutions have stepped in to fill this gap. innovative propositions at scale, One of the main challenges that However, traditional banks still but if they don't, they're missing traditional banks face when lag behind in terms of their SME out on a multibillion-dollar serving SMEs is aging digital offerings. opportunity. While SMEs haven't solutions. Until recently, banks yet made a rush to leave their tended to focus on enterprise and Banks are already thinking about incumbent banks for new digital high-volume retail segments. how to best position themselves players, Accenture's survey of These limited options available to in this sector and identifying global SMEs indicates that this SMEs, which is why neobanks partners to help them deliver could change in the near future. 46 \\ Small Enterprise \\ Dec 2022

In order to create new customer financial services easier to access mobile banking saves them time. experiences, banks must pay by integrating them into business As a result, more small companies attention to SMEs' needs and infrastructure. Embedded finance should be able to rely on this preferences. These businesses removes the need for customers service. Another study shows that often value transparency, speed, to navigate to a third-party megabanks dominate the market automation, and the ability to destination for financial services. for small businesses, accounting interact with a human being. By Embedded finance is a trend that for over two-thirds. Researchers doing so, they can foster is driving a shift away from do believe that technology plays customer loyalty and enhance traditional banks and enables a vital role in this trend. customer satisfaction. Similarly, innovative business models. banks can enhance their existing Embedded finance is used by SMEs are redefining the channels by leveraging the service providers to integrate relationship with their financial capabilities of their vendors. They their financial services into their institutions. Traditionally, SMEs can also implement new in-house websites or mobile app. were bound by the shackles of solutions to make them more Embedded finance solutions are traditional banking and are appealing to SMEs. an extension of the brand's embracing on-demand, digital identity and provide seamless services that help them manage Embedded Finance customer experiences. their financials more effectively. In Embedded finance is a order to remain competitive in technology solution that removes Online and Mobile Banking this new age, incumbent banks many of the pain points that With the advent of new must evolve and provide new consumers experience. It technologies, financial institutions services to SMEs. They must meet increases brand loyalty and are implementing new features their demands quickly and consumer satisfaction, which in and functionalities to help SMEs compete with fintech firms. This is turn increases the profit from stay on top of their financial not an easy task, but banks must repeat business. With the right transactions. With the growing be quick to respond to changing technology, businesses can need for cash management, cost consumer preferences. understand consumer needs and savings, and a seamless customer spending habits and tailor their experience, SMEs are looking for Distributed Ledger products accordingly. banks that can guide them Technologies through the process. This article The applicability of distributed Embedded Finance enables will examine the best practices for ledger technologies in the SME contextual opportunities for SMEs mobile banking for SMEs. It also banking and finance landscape by providing finance when and discusses the benefits of involves the use of where they need it. Companies borderless accounts. blockchain-based platform that have adopted embedded services to offer a suite of finance have reported increased One of the biggest benefits of financial services to SMEs. The customer engagement and are mobile and online banking for services offered by such platforms winning market share. According SMEs is convenience. SMEs can include asset registration, trade, to a Plaid survey, Embedded complete more banking tasks and logistics information, Finance may capture as much as with less effort than ever. This can regulatory audit, credit 26% of the SME market by 2025, save both money and time. SMEs evaluation, and more. Each node generating revenues worth more have the ability to make decisions on the platform maintains a than $124 million. Traditional faster, allowing them to make shared distributed ledger and organizations need to adapt or more informed decisions. They accesses data based on the needs risk being left behind by this can also access a wider range of of the node. disruptive technology. financial products and services. Moreover, a survey shows that 80 Blockchain-based financing Embedded finance makes percent of companies agree that platforms can improve financial 47 \\ Small Enterprise \\ Dec 2022

credit support for SMEs by finance will not happen overnight, capital and grow their business. reducing information it will be a critical step in the asymmetries and enhancing the evolution of SME banking and Conclusion efficiency of trading. These finance. When it comes to financial applications provide increased institutions, small and visibility into the receivables Stock Exchanges' Focus on medium-sized enterprises are an lifecycle and associated trade SMEs increasingly important market. transaction information, enabling The SME sector is an increasingly These businesses contribute finance providers to make important segment of the stock one-fifth of global banking informed lending decisions. market, with most prime stock revenues and are projected to Additionally, such technologies market operators focusing on the grow seven to ten percent provide verifiable data on SMEs' sector and developing specific annually over the next five years. past payment history and platforms for SMEs. Such However, their credit quality is creditworthiness. By making this exchanges, also known as wildly variable, making it information readily accessible, SME-focused stock exchanges, challenging to find the right finance providers will be able to have fewer admission balance between cost to serve provide better credit assessments requirements than regulated and customer experience. and speed up loan approvals. markets. These exchanges are Unfortunately, many banks have While the adoption of blockchain increasingly a valuable option for not given these customers the technology in SME banking and SMEs in terms of fundraising and attention they deserve. may help them gain access to -AVNI PORWAL 48 \\ Small Enterprise \\ Dec 2022

COVER STORY | SME Banking & Finance SMEs AND THE “MISSING MIDDLE” The term \"missing middle\" is often used to This gap is often referred to as the 'Missing describe the segment of small businesses and Middle' and represents a large gap between micro-enterprises that are not able to access traditional banking and microfinance. Small and formal credit and capital markets. In fact, this medium enterprises contribute 17% of GDP in segment of small businesses is often overlooked. low-income countries but over 50% of the While formal lending is often attainable for large economy in the rich world. In many areas, businesses, small businesses are more limited. Missing Middle is a result of a lack of funding for Without formal financing, they would not be able entrepreneurs. Microfinance providers often have to expand their business to meet growing limited access to traditional banks, while SMEs do demand. Therefore, they must look for alternative not have access to mainstream finance. sources of capital, such as the unsecured credit market. In Southern Asia, the Middle many ways to address the Coping with the Missing East, and Africa, innovative problem of the \"missing Middle service providers are filling this middle,\" experts agree that Many SMEs fall into the gap and promoting inclusive education is an important first \"missing middle\" - the financial services industries. step. Educating emerging segment that neither micro These service providers include market SME owners is one way needs nor requires large angel networks and impact to improve their confidence amounts of funding. These investors. While there exist with lenders. businesses typically employ 49 \\ Small Enterprise \\ Dec 2022

five to 35 people, have economic sector and an Role of Various Financial turnovers between one million essential tool in the fight Institutions and one hundred million rands, against poverty. In both When considering financing, and do not meet the developed and developing there are many things to requirements to obtain countries, their importance is consider. The investor must government grants or recognized. In particular, the have money to invest, while commercial bank loans. expansion of SMEs from their the lender must be able to Examples of these businesses very small size to medium size manage risks and price finance include restaurants that have is of particular interest. In appropriately. Ideally, the SME one or two locations and hair order to overcome this should be in an industry that salons, and boutique clothing asymmetry, the need for offers a sustainable return of stores. financial intermediaries is interest. In order to receive a large. loan, it must also have a good The emergence of urban business plan and good wholesalers has further Access to finance is often administration and be able to disintermediated SMEs and limited for SMEs due to manage the money. And the rural traders. While the insufficient collateral. Usually, investor and lender must have COVID-19 crisis has eased, this problem is due to the right attitude, and the SME many SMEs remain vulnerable inadequate property should be working in a sector to this trend. In addition to definitions, weak land markets, where the investment is likely retail chains, wholesale SMEs or weak ownership rights. to generate a high return of are increasingly involved in Traditional financial institutions interest. production and logistics. For have stricter collateral example, logistics SMEs assist requirements, which exclude Because of this, banks may small farmers in resource large segments of SMEs. want to reconsider their provision. In Nigeria, for Moreover, asset-backed lending practices. Fortunately, example, traders helped small collateral is not accepted by the NBFIs have honed their farmers by providing cold most banks because its value is ability to repackage their storage facilities and other based on the carcass of the lending products as funding services. asset rather than on its market solutions. They allow SMEs to value. choose their own investment To meet the needs of SMEs, strategies and price the risk banks need to design their The World Bank conducted a accordingly. Moreover, most products and processes, so survey of over 10,000 SMEs in NBFIs are now offering they match the unique 80 countries. The survey found unsecured products, making it requirements of each market that SMEs ranked financing easier for firms in the missing segment. These building blocks constraints as the second middle to qualify for such include target segments, pain biggest barrier to growth, loans. points, products, channels, while large firms ranked it processes, and ecosystems. fourth. Firms working in Also, MFIs (Microfinance Each market has its own Eastern and Central Europe, Institutions) could offer exclusive attributes and the former Soviet Union, and support services to SMEs in the intricacies, but there are many South Asia were the most likely form of training services in commonalities that should be to cite financial constraints as credit management. However, considered in designing the their greatest constraint. it is important for MFIs to right product coverage model Consequently, small and improve their service delivery, for SMEs. medium-sized enterprises are for example, by making loan more likely to face financial approvals faster. It is crucial for SMEs are an important difficulties than large firms. the banking sector to act on 50 \\ Small Enterprise \\ Dec 2022