MSMEs play a critical role in rural development by creating jobs and fostering industrialization at the grassroots level. Find out five startups that are helping MSMEs with business automation, thereby boosting their productivity.
India has 63 million Micro, Small, and Medium-sized enterprises (MSMEs), which generate around 6.11 percent of the manufacturing GDP, 24.63 percent of the GDP from service activities, and 33.4 percent of India’s manufacturing output.
The MSME sector is not being left behind as India undergoes a digital transformation.
Artificial Intelligence (AI), Augmented Reality, Data Analytics, Financial Accounting, and Machine Learning are examples of cutting-edge technology that have spawned new business models and empowered small enterprises.
These technologies can assist MSMEs in automating and generating data from their everyday operations, as well as connecting with stakeholders (such as financial institutions, customers, or suppliers) in order to boost efficiency, grow, and innovate further.
Here are several startups that offer everyday operations solutions to MSMEs:
Anand Jajodia and Samir Garg created Delhi-based AlignBooks in 2017 as a software-as-a-service (SaaS) firm that provides accounting software to MSMEs to help them manage invoicing in an automated and digital-first manner.
It also provides an integrated GST utility via a single dashboard within the accounting and ERP (Enterprise Resource Planning) solution.
Furthermore, it offers a variety of functions, including billing, linked banking, POS, sales, multi-currency transactions, receivables and payable management, CRM, HR, multi-location account management, and auto bank reconciliation. AlignBooks’ clientele include distributors, traders, manufacturers, and other service providers from a variety of sectors. It includes an audit module and CVSS (Customer Vendor Self Service) to differentiate the offering.
Harish Mamtani and Winny Patro created Hyderabad-based Recordent in 2018 to assist small and medium-sized businesses manage and monitor their credit risks using data. The company’s products include cRediEye, E-arbitration, Legal Notice, and cRediDue. By issuing legal notices, these tools assist MSMEs in generating invoice reconciliation notifications and creating consumer credit histories.
Previously, Recordent claimed to have generated over 71,000 invoices and Rs 2 crore in business credit reports throughout the years. In November 2021, the firm secured $400,000 in an angel round from IIM Calcutta Innovation Park, Kantamaneni Family Office, and other Indian and US investors for technological development and client acquisition.
Haqdarshak, a mobile and online technology firm located in Pune created in 2016 by Aniket Doegar, Asha Krishnan, and PR Ganapathy, promises to bring government and private initiatives and services to qualified consumers. Haqdarshak is intended to assist MSMEs, with its physical card enabling discovery and access to government and private social programs through a QR code. The startup’s Yojana Card seeks to provide access to government initiatives and services to every small company and individual in India by facilitating discovery and access via a QR code.
Haqdarshak provides MSMEs with customized implementation programs such as scheme application and on-the-ground support.
It also works with financial institutions and other suppliers to supply small companies with their goods and services. Haqdarshak raised Rs 6.65 crore in a Pre-Series A financing in May 2021 from The Deepak Group, Impact India Investment Partners, Beyond Capital, and other investors.
Arjun N established Bengaluru-based SolutionBuggy in 2016 as an AI-based platform that bridges the knowledge gap among MSMEs in the manufacturing industry by providing consultations and strategies for growth, technology adoption, company development, and more.
The startup links MSMEs with consultants or professionals in industries such as automotive, FMCG, defense, aerospace, textiles, and others.
SolutionBuggy allows small company owners to submit their requirements and be linked to a consultant who can assist them in overcoming their challenges and providing a clear route to their goals. The SolutionBuggy consulting aggregation platform assists small and medium-sized firms in the manufacturing industry in addressing their difficulties by offering subject expertise.
Brego, situated in Mumbai, was created in 2019 by Mihir Lunia and Rehan Netarwala to assist small businesses gain real-time insights from their financial data. The startup wants to assist small and medium-sized businesses grow by giving them simple access to their financials, including profit and loss statements, sales, cash flow, receivables, and more.
Brego allows small company owners to track their finances without having to rely on their accountants. It interacts with Tally accounting software and provides all of the essential important statistics and analytics to business owners. Managers may engage with team members regardless of team size, and they have access to specialized data that they can share with suppliers and customers. The firm provides a seven-day trial period before charging Rs 2,999 for a yearly membership.