Even though, over 9 million GST-registered Enterprises could become a potential market for advanced offerings from fintech companies, Digital payment technology and payment gateways have turned into a major player in contributing with significant value for micro, small and medium enterprises (MSMEs).
According to the Indian MSME Impact Report 2019 released by a Fintech Company Instamojo, 63 million MSMEs in Indiaare working in a wide category of businesses. This report is a result of an analysis of the MSME sector that was conducted for six months by Instamojo and Valuvox Business Solutions. The survey observed around 400 entrepreneurs during the report making process.
The report while signalled that small enterprises leverage logistics and e-mail apps, task management solutions, online information, social media etc, it also suggested that around 75 percent of MSME respondents hold the view that technology serves as a medium to help the MSMEs in facing several challenges. In fact, they also train the employees on the areas of technology.
The report adds that digital tools for business processes, online sales and payment in India have already been adopted by 50 percent of the MSMEs. In fact, the GST registered MSMEs which are 9.2 million in number is most likely to be potential market for advanced offerings from fintech companies and these offerings could comprise of business analytics tool.