Fintech startup EnKash launches credit card for MSMEs, startups
Mumbai-based fintech startup EnKash, run by Nehat Tech Solutions, has launched a corporate credit card for the micro, small and medium enterprises (MSMEs) and startups called Freedom Card.
The card is capable of automating payment and collection transactions, an official statement said.
The card features short duration revolving credit limit to service business payments, the statement added.
It also comes with features like flexible payment cycles and augmented credit lines to help service payments made by players in the MSME sector.
“We realised that specific products are required to address use-cases which are peculiar to underserved SMEs and startups as their requirements are different. These segments are not able to benefit fully with the existing solutions in the market, be it for enhancing their short-term credit requirements or convenience or just simply getting access to a commercial credit card,” said Naveen Bindal, co-founder, EnKash.
Founded in 2017 by Bindal, Hemant Vishnoi, and Yadvendra Tyagi, EnKash has been facilitating business-to-business (B2B) payments and other transactions for travel, entertainment expenses and cloud payments. The startup claims to have over 50,000 businesses on its platform.
EnKash also helps businesses track B2B payments and provides facilities for analysis and management of purchase orders and invoices.
In April, EnKash raised $3 million in its Series A round of funding led by venture capital firm Mayfield India and seed fund and accelerator platform Axilor Ventures.
The company had said it would leverage funds raised in the Series A round to improve its technology infrastructure and make hires in leadership positions.
A report jointly published by the Internet and Mobile Association of India and IndiaMart InterMesh said digital services market is expected to grow to $29 billion at a compound annual rate of 39%. The report attributed the impact of the SME sector on digital payments to the wide adoption of digital marketplaces.
Another report said digital lending to MSMEs in India can grow 10- to 15-fold by 2023. The study, jointly conducted by investment firm Omidyar Network and Boston Consulting Group (BCG) said digital lending to MSMEs is driven by the launch of the unified payments interface platform and the goods and services tax legislation.