ReshaMandi, a farm-to-fashion natural fibre digital ecosystem, launched a new venture ReshaMudra, personalised credit solutions for the textiles industry.
ReshaMudra would offer business partners across the ecosystem access to working capital solutions as well as long-term loans to help them grow their businesses during challenging times. All of these offerings would be subject to regulatory approvals from respective authorities, said the company in a statement.
Access to credit was one of the biggest challenges faced by micro, small and medium enterprises in the country in general and only 20% of their credit needs were met by the formal financing sector and 40% by the informal sector, said the company.
ReshaMandi Founder and CEO, Mayank Tiwari said, “India’s textile sector is on course to becoming a $190 billion powerhouse by 2025-26. But lack of access to credit could stifle that potential as nearly 80% of the country’s MSMEs today is faced with this challenge.”
ReshaMudra’s aim was to bridge this need gap, enabling MSMEs to expand their operations and thereby boost revenues, margins and profits, he added
According to Kshitij Kuthiala, AVP, ReshaMudra, inputs purchase costs account for some 75% of the total cost incurred by the textile industry and therefore working capital support was crucial.
We aim to provide financing solutions that are less dependent on a wide range of documents and bring more awareness around the efficient use of credit to increase their annual turnovers,’‘ Mr. Kuthiala said.
