MSME Working Capital Landscape

India’s lending market has witnessed remarkable growth, surging ~100% between FY17 and FY22, reaching an impressive ~INR 174T. Within this vast expanse, we find three key pillars: Retail lending, Microfinance lending, and Commercial MSME lending. Retail and Commercial lending, each contributing ~49% and MFI ~2% of the total lending market as of March 2022, are the twin engines propelling India’s financial landscape.
This report aims to shed light on these growing opportunities and the ways in which technology is reshaping the financial landscape for MSMEs.