EnKash Launched India’s first Corporate Credit Card for SME’s and Startups

EnKash announced the launch of India’s first Corporate Credit Card for SMEs /MSMEs and Startup – aptly called the Freedom card. The Freedom card would give the SME’s and Startups the freedom to avail credit facility for immediate needs and to manage their financial liquidity.

EnKash Freedom Card offers customized billing cycle based on the repayment ability of the businesses. EnKash believes that not every business can fit into the standard 30+15 days credit cycle which is the standard billing cycle for every bank and hence, EnKash has come up with a corporate card to cater the varied billing cycles as per the working capital cycles of different businesses, which is a first in India. Freedom Card is especially designed to fulfil the credit requirements of SMEs & StartUps segment, which are highly underserved at present.

There are around 42 million MSME enterprises in India contributing 6.11 % of the GDP in manufacturing and 24.63 % of the GDP to the service sector. Access to credit is essential to MSMEs, as lending in this sector has been dominated by informal financial entities and almost 40% of credit allotment to MSMEs in India is through informal channels. It is estimated that the market potential of digital lending is estimated to be between $80 to $100 Bn by 2023.

At the same time, the Startup sector is booming in India at a tremendous pace, according to the latest KPMG report on the Indian Startup Ecosystem, the number of startups in the country has gone up from 7,000 in 2008 to 50,000 in 2018, a growth of over 7 times in the last decade. As the number of startups grows further it will require easy access to credit.

‘Freedom Card’ is the brainchild of Naveen Bindal, Co-Founder of EnKash, who has an experience of over two decades in the cards and payment industry, across card issuance and acquiring. It was the last twenty years which convinced him that India is now ready and needs a true commercial credit card to provide credit options for Start-ups and SMEs, who have faced challenges with conventional cards.

Naveen along with other co-founders Hemant Vishnoi and Yadvendra Tyagi came up with EnKash Freedom Card, a feature-rich and user-friendly solution for credit facilitation which comes with free access to feature-rich EnKash platform that automates entire accounts payables or collection process for businesses.

Talking about the Freedom card – Naveen said, “Currently Banks offer corporate credit cards and Enkash partners with most of them to enhance the experience. While we will continue enhancing our capabilities for these Bank partnerships, we realized that specific products are required to address cases which are peculiar to underserved SMEs & Startups as their requirements are different. These segments are not able to benefit fully with the existing solutions in the market, be it for enhancing their short-term credit requirements or convenience or just simply getting access to a commercial credit card”

He further added, that “Enkash is making significant progress in the B2B Payment space and is emerging as one of the market leaders within two years of its operations and this growth gave the founders the confidence to offer a unique and a clutter-breaking financial product like the Freedom Card.

The launch of the EnKash Freedom Credit Card is a natural evolution for the Company in its mission towards solving the problem of working capital and in increasing efficiencies through a payments mechanism which till now was accessible only to businesses of a certain large size.

“We partnered with EnKash early on and are deeply committed to support the team in their journey,'' said Vikram Godse, Managing Partner, Mayfield who is also on the Board of EnKash.