Godrej Capital launches Supply Chain Finance business to strengthen working capital access for India’s MSMEs
Godrej Capital, the financial services arm of the Godrej Industries Group, through its subsidiary Godrej Finance, today announced the launch of its Supply Chain Finance (SCF) business, marking a strategic expansion of its MSME lending franchise. Through a comprehensive suite of working capital financing offerings, the business will support anchor corporates, dealers, vendors and suppliers with faster, technology-enabled access to credit. The company aims to build a ₹6,000 crore SCF portfolio over the next 5 years, with the business expected to contribute 8% to Godrej Finance’s overall Assets Under Management (AUM).
As India’s supply chains become increasingly formalised through GST-led digitisation and digital financial infrastructure, many MSMEs continue to face working capital constraints despite strong business fundamentals. Godrej Finance’s Supply Chain Finance proposition addresses this gap by enabling faster access to formal credit based on underlying trade transactions.
Pankaj Gupta, MD & CEO, Godrej Finance, said, “MSMEs are the backbone of India’s supply chains, yet access to timely working capital remains a key challenge for many businesses. With the launch of our Supply Chain Finance business, we are enabling vendors and buyers of anchor corporates to access faster financing through a seamless digital experience. We aim to support MSMEs with value-added services that help build more resilient, capable and future-ready businesses, reinforcing our commitment to being a long-term growth partner across the supply chain ecosystem.”
The proposition serves the full supply chain ecosystem across both payables and receivables financing. Through Dealer Financing, Vendor Financing, Purchase Invoice Financing and Sales Invoice Financing, it helps businesses manage procurement, inventory and receivables more efficiently while enabling vendors and buyers to unlock liquidity against genuine trade transactions. With loan ticket sizes ranging from ₹10 lakh to ₹25 crore, the offering is designed for businesses operating within the supply chains of large anchor corporates, spanning BBB to AAA rated companies with annual revenues ranging from ₹500 crore to over ₹1 lakh crore. Built around anchor-led ecosystems, the proposition strengthens relationships across the value chain and supports sustainable business growth.
Unlike traditional collateral-led lending models, the offering is underpinned by cashflow and transaction-based underwriting, enabling businesses to unlock working capital against genuine trade activity. The company is currently engaging with over 30 anchor corporates across captive and non-captive ecosystems. The business also offers a fully digital customer journey spanning onboarding, underwriting, disbursement and servicing, while leveraging transaction-led data and end-use monitoring to enable faster credit decisions and responsible deployment of funds.
As part of its long-term roadmap, Godrej Finance also plans to expand its Supply Chain Finance proposition through factoring, reverse factoring and participation on the Trade Receivables Discounting System (TReDS). These capabilities will further strengthen credit access for MSMEs and support a more efficient working capital ecosystem.
