Godrej Capital, the financial services arm of the Godrej Industries Group, has entered the Supply Chain Finance (SCF) segment through its subsidiary, Godrej Finance, strengthening its focus on MSME lending. The company plans to build a ₹6,000 crore SCF portfolio over the next five years, with the business expected to account for nearly 8 per cent of Godrej Finance’s overall assets under management (AUM).
The new business is designed to improve working capital access for dealers, vendors, suppliers and buyers connected to large corporates by offering faster, technology-led financing based on trade transactions. As India’s supply chains continue to formalise through GST-led digitisation and digital financial infrastructure, the offering aims to bridge the financing gap faced by many MSMEs despite healthy business operations.
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 includes Dealer Financing, Vendor Financing, Purchase Invoice Financing and Sales Invoice Financing, covering both payables and receivables financing. Loan sizes range from ₹10 lakh to ₹25 crore and are targeted at businesses operating within the supply chains of BBB to AAA-rated corporates.
Built on cashflow and transaction-based underwriting rather than collateral, the platform offers a fully digital journey from onboarding to disbursement. Godrej Finance is already engaging with more than 30 anchor corporates and plans to further strengthen the offering through factoring, reverse factoring and participation on the Trade Receivables Discounting System (TReDS).
