Small trading businesses are the backbone of India’s economy and are a critical cog in the wheel for supply chains across industries.

But, the MSME sector faces a staggering credit gap of $530 billion. Because of a lack of formal financing options, small businesses often have to resort to high-interest rates, community-based borrowing, or gold loans for their short-term liquidity needs.

Enter Supermoney which is revolutionizing the financial landscape in India, focusing on the vast network of small businesses and their needs. 

Countless small retailers in India struggle to maintain adequate stock levels due to a lack of working capital, resulting in lost business opportunities. Moreover, the absence of proper documentation and credit history hinders these last-mile retailers from obtaining loans from established financial institutions. 

Supermoney’s suite of products falls into four broad categories: Embedded Supply Chain Finance, Business Loans, ERP/DMS Solutions & Micro-Insurance. These offerings are designed to meet the specific financial needs of retailers and distributors.

Why we invested in Supermoney

• Embedded finance approach: Supermoney is an embedded supply chain fintech company that has strategically partnered with distributors and retailers, collaborating with anchor brands to serve as a financial bridge. At present, the platform hosts more than 22,000 merchants, over 120 distributors, and 24 anchor brands. The company’s unique selling proposition lies in its GenAI-powered assessment and analytics capability to provide tailor-made liquidity solutions for downstream supply chains, thanks to its partnerships with industry leaders such as Amazon, Havells, P&G, Jio Mart, Redington (iPhone Distribution), and Jindal Steel. By integrating into the downstream supply chain with anchor brands, Supermoney gains valuable insights into the complexities of the commodity value chain and its ecosystem players through access to API-linked transaction-level data. This enables the company to accurately predict working capital requirements at various stages of the chain.
• Scalable Model: Supermoney’s low customer acquisition cost (CAC) model is driven by its partnerships with anchor brands. Leveraging enterprise data analytics, the company gains valuable insights into retailers, enabling them to cross-sell financial products and up-sell for multiple brand activations per retailer. This reduces the cost and time of customer acquisition and minimizes risks and collection expenses. Deep integration with anchor partners fosters customer loyalty and stickiness.

Capria Ventures recently participated in Supermoney’s Series A round along with Capital 2B and other existing investors.

We are delighted to support Supermoney in its mission to build financial products that supercharge the self-employed.

You can read the complete announcement here.