Pushkar Mukewar is the co-founder of Drip Capital Inc., a global money generation company that provides unsecured financing to small and medium-sized homeowners (SMEs) in India, Mexico and the United States.
The Palo Alto-based company provides operating capital to small business homeowners who want liquidity credits for export. It uses generation to assess the threat every time a business owner applies for credits and provides financing through an end-to-end virtual process.
By investing in emerging markets such as India, Mexico, and evolved markets such as the United States, Mukewar has developed a deep understanding of the desires of the global money market.
During his 13-year career, Mukewar began researching credit threats to the subprime client loan business of The US company Capital One.
His role as venture capitalist at Saama Capital has helped him work with Indian startups such as Paytm, Snapdeal and Bluestone.
He has been a member of Oliver Wyman in the United States, United Arab Emirates and Switzerland, and holds an MBA from Wharton School at the University of Pennsylvania.
He loves to experiment and is a new converted vegan.
In a verbal exchange with Forbes Advisor India, he talked about the opportunities that generation can create for the Indian monetary sector and why it is interested in gathering the credit wishes of small and medium-sized enterprises.
India, like many other emerging economies, has faced credit challenges. We have been a poor market in credit, in terms of loans to SMEs.
There are apparent reasons: the first is that maximum operating banks are not comfortable offering a type of credit unless the SME has promises and a source of collateral in terms of physical assets. Unless you are a manufacturer, it’s hard to have a physical asset to stock up on a bank.
The explanation for the moment is that when you think of small businesses, they may not be smart enough to organize their finances or corporate governance, and their documentation does not satisfy the wishes of brands when assessed in terms of solvency.
These two demanding situations are in a giant component of the credit-free SME market.
With regard to the wider credit space, classic players do not fill the void and this creates opportunities for lenders or suppliers of the new era, based on knowledge and technology to fill the void. The opportunity is enormous, and given that there has been a very strong movement towards the digitization of knowledge, it is a mixture of untapped market opportunities and favorable winds in terms of digitization of knowledge.
Overall, in the marketplaceplace environment that exists with the COVID-19 crisis, we see that banks remain very conservative and the challenge is that they do not have a wonderful path to those who are solvent, this leaves a giant component of the marketplaceplace. misplaced.
As a result, many new-age companies will have to marry giant long-term lenders to provide credit.
India has about $200 billion to $300 billion in exports, 50% of which comes from SMEs. Numerous studies mean that at least some of these SMEs face a bank rejection of their industry financing applications. So the hole we’re talking about is huge; up to $75 billion to $80 billion in the industry, which is funded through classic funding channels.
Ultimately, smaller players in the new era will need to be larger than generation providers to more classic credit establishments that will be able to channel credits so that new players eventually become the subscription provider.
One is the distribution channel; Since India is such a giant country at some point when SMEs in Tier III and IV cities, the main source of funding will be public sector banks (SMEs). For a new-age company, getting the visitor to the last mile is a challenge.
I think the way this challenge can be solved is to take advantage of the existing infrastructure we have. When it comes to PSBs, associating them with new-age players can be a big help. Banks have a massive force, which is their distribution network. Many players from the new era would be missing, so how can the government announce this? When it comes to PSB to make any kind of innovation, the impetus will have to come from above.
The domain of the moment is regulation. While there is a regulation of the procedural industry that invites reflection, I believe that creating a balance helps. Strict regulation prevents innovation, so it is essential to achieve a balance.
What we need is to foster innovation while having the right controls for the country’s monetary ecosystem. I think we still have a surplus of regulations in India to other countries like Mexico.
When we communicate about technology, 3 facets of credits play a role: one is the capture of visitors, the time is the visitor service and the third is that you manage everything at the backend level.
I’d say in India we started from the backend. In the maximum fintech companies, the highest technologies are followed in the backend: you automate your evaluation engine, automate your analytics, knowledge mining, among others.
In visitor service, some players are already innovating. In the customer space, it is completely digital; SMEs, it is partly digital.
The third facet is how to win customers. In the customer space, we are more virtual than in the SME space. This is due to the fact that the loan requirement is particularly higher for an SME than for a non-public loan for a customer.
Technology has a very important role to play. In the app, our SMEs have not yet been fully informed about the virtual and have an end-to-end virtual credit path. COVID-19 has replaced it to some extent.
Entrepreneurship is very exciting. I grew up seeing access to SME credits and the demanding situations associated with it. After my MBA, I realized I was looking to go back to India.
I’ve been looking to create anything sturdy and from scratch. We (our business spouse and I) ended up expanding exports to SMEs because we saw it as a wonderful opportunity, and the broader facet is that exports make up a significant percentage of a country’s GDP.
I am very passionate about solving challenges for India. If we (Drip Capital) can have an effect on India’s economic growth, it will have a genuine effect on.
Aashika is the editor-in-chief of Advisor India. He has spent the last 12 years in business journalism. He began his career on India’s largest economic news channel, CNBC-TV18,
Aashika is the editor-in-chief of Advisor India. He has spent the last 12 years in business journalism. He began his career on India’s largest economic news channel, CNBC-TV18, worked with Thomson Reuters Global News Feed and prolonged his enjoyment of virtual journalism in India Economic Times’s largest economic newspaper and the Indian edition of American magazine Entrepreneur. You can stay with her on Twitter .