Ziploan: Financial services platform StrideOne and MSME lender ZipLoan enter strategic partnership

Technology-led financial services platform StrideOne and MSME lender ZipLoan have formed a strategic partnership to drive deeper penetration of the MSME lending space. ZipLoan is a fintech focused on providing working capital solutions to India’s 8 million MSMEs. Currently, ZipLoan has 11,000 customers in five key markets with an asset base of Rs 150 crore. StrideOne is building a digital banking suite for startups and their ecosystem. This partnership will double the synergies between ZipLoan and StrideOne and accelerate StrideOne’s push into the MSME startup ecosystem.

“Combining StrideOne’s acumen and understanding of the entrepreneurial ecosystem in India with our experience from serving 11,000 MSMEs in key markets will help us expand both our reach and product range,” said Kshitij Puri, co-founder and CEO of ZipLoan.

In a statement, Ishpreet Gandhi, Founder of StrideOne, said: “With the evolving Indian startup landscape and the rise of several unicorns, many opportunities have also opened up for MSMEs. However, despite their promise, MSMEs remain credit poor and struggle with access to working capital. In line with our overall goal of boosting India’s entrepreneurial ambitions, our partnership with ZipLoan is a strategic move to improve financial inclusion for MSMEs.”

MSME companies are typically overlooked by traditional financial institutions due to various underwriting challenges including lack of collateral, fiscal year history, documentation of expertise and more. Through its bespoke underwriting algorithm – ZipScore, digital sourcing and operations – ZipLoan has successfully underwritten creditworthy but underserved MSMEs, enabling affordable, formal lending solutions for this segment. Currently, their product range includes lines of credit, equipment financing and term loans for manufacturers and dealers. It has paid out Rs 650 crore over the last five years and raised equity from well-known investors such as Matrix Partners, Elevation Capital, Waterbridge Ventures, Whiteboard and growX.

StrideOne has previously launched supply chain finance solutions for startups. Through its anchor-based approach to lending, StrideOne brings a nuanced understanding of the startup and MSME ecosystem required to create intelligently designed, bespoke lending structures that address the diverse capital requirements of Indian MSMEs. It has paid out Rs 650 crore in the past 8 months with an AUM of Rs 300 crore. It has raised equity from Elevar Equity in the past.

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