What are the best ways to underwrite and acquire micro and small businesses today on digital platform?
Seeing and hearing a lot of: "oh MSMEs are not digital in India", "Need a big field sales team", and "Have to go and physically collect documents to make it work" ideas
Any best practices that you have seen work apart from the orthodox?
Partner with large distributors. That the harsh truth. Their field force will do the ground work for you.
Much of this is also in cash. As small users are just traders with thin margins. A 2% interest loan just kills the business.
Been there, done that!
Harsh truth - You will need field sales for sure,
Easy acquisition - Piggyback any B2B eComm player (likes of Ninjacart, udaan, dealshare..), yes they will ask for commission. Good part is you have to pay commission once and still retain the good customers.
Build a marketplace like acquire.com , sorely needed
I think Bajaj and L n T finance already doing same smartly.
Bharatpe QR was successful amongst msmes for lending purpose as well.
Think from a msme owner perspective u will get lot of ideas 💡
