How Maadhyam uses AWS to replace the middleman with middleware
Running your own business always takes time, commitment and vision. But it’s equally important to have enough working capital, not only to get started, but also to ensure that it achieves sustainable growth.
Although access to this capital in India has traditionally been through banks, the fintech industry has helped disrupt this space and enabled many micro, small and medium-sized enterprises (MSMEs) and banks to connect and meet their business needs. Even though the COVID-19 pandemic has hit many businesses, loans worth Rs 9.5 lakh crore have been disbursed to MSMEs in fiscal year 2021rising from Rs 6.8 lakh crore in the previous year.
This, even though most lenders have to deal with more than a third of loan applicants unable to find the right documentation, and more than a quarter of them ineligible for the amount they need.
Maadhyam, the latest offering from fintech platform Biz2X, bridges the gap between lenders and borrowers. Launched late last year, the SaaS platform helps reduce loan disbursement times for small and medium-sized enterprises (SMEs) by partnering not only with borrowers and lenders, but also with intermediaries such as than aggregators, helping all parties improve their working capital. flow and cash flow, and enabling the growth of the entire ecosystem.
Create your own ecosystem
“Maadhyam is like a catalyst that creates its own ecosystem of lenders and borrowers in a B2B setup,” said Vineet TyagiCTO at Biz2Credit and Biz2X. “If you are a banker and want to increase your business credit portfolio without a big bill – say, Rs 5 lakh or less than that, what we do is connect borrowers through established businesses and marketplaces.”
The company partners with marketplace aggregators such as Retailio, the B2B arm of online pharmacy platform PharmEasy, to offer financing solutions to SMEs from their ecosystem. They can then apply for credit through their own platform. “This will go directly through the Maadhyam platform, and the bankers attached to [the aggregator’s] network can see a lead that was generated. The bank can see the entire underwriting process and can then disburse the required loan,” Vinet explains.
Moving from a lender-oriented to a borrower-oriented approach
While most of Biz2X’s other products help banks and financial institutions with services such as lending, cash management, and others that are particularly aimed at banks to improve customer experience, Maadhyam includes borrowers in the process. “Maadhyam not only enables banks, but also a whole other set of businesses [including] marketplaces of all kinds because we do invoice financing,” said Vinet.
As part of Biz2X’s $100m investment commitment to India last year, Maadhyam’s strength lies in its ability to connect diverse SMEs that do not have access to formal loans through banking channels. , as well as speeding up the loan disbursement process through automation and a digital underwriting process.
Since its launch in January 2022, Maadhyam has already integrated Retailio on the aggregator side of the market and is in advanced talks with 10-15 other such aggregators. They also work with top banks and NBFCs (non-bank financial companies) to ensure SMEs get a good return on investment for their capital needs.
Reliable technology thanks to a partnership with AWS
To ensure that their platform runs smoothly, Maadhyam, through Biz2X, works closely with AWS. Describing it as a healthy relationship, Vineet says AWS was clearly their first choice, even after trying other cloud computing solutions.
Biz2X uses AWS services such as Amazon Elastic Kubernetes Service, which automates key tasks such as patches, node provisioning, and updates; Amazon Simple Storage Service for scalability, data availability, security, and performance; as well as a number of other native AWS security tools that remove the layers of management and maintenance, and the need for other third-party tools.
“In terms of deployment, AWS is our key partner and whenever we host or provide a service to the customer, it is only through AWS,” he says.
Business Empowerment in ‘Aatmanirbhar Economy’
Already in discussion with lenders, marketplaces and borrowers, Maadhyam’s long-term vision also includes eventually becoming a direct financier for SMEs. Vinet says, “Maadhyam will soon go straight into the lending space, as we did through Biz2Credit in the US”
“We want Indian SMEs to be aatmanirbhar, that’s what we believe in. We’ve done it in the US as well and it fits our long-term vision – It’s what we’re working towards,” said Vinet.