Strengthening MSME Access to Digital Credit
FinTech BizNews Service
Mumbai, 3rd June 2026: 121 Finance, a leading NBFC-Factor, has crossed ₹10 crore in cumulative disbursements through GeM Sahay, the credit facility integrated with the Government e-Marketplace (GeM). The company has disbursed over 2,600 loans to more than 400 MSMEs across 173 cities in 27 states, helping small suppliers access working capital against confirmed government purchase orders.
Built on the Open Credit Enablement Network (OCEN), GeM Sahay enables eligible MSMEs to access collateral-free, short-term financing in minutes by leveraging transaction data from government procurement orders. 121 Finance was the first lender to go live on GeM Sahay and remains the largest lender on the platform.
The company has focused on serving small-ticket credit needs, often underserved by traditional lenders. Its collection-controlled lending model routes repayments through cash flows generated from government orders, enabling faster and more efficient underwriting while reducing credit risk. It has built its own technological backbone to meet high-volume micro-ticket transactions efficiently. With GeM Sahay, 121 Finance has shown how underwriting and disbursing loans of as small as ₹127 can be made possible by digital public infrastructure, demonstrating how even the smallest business finance needs can be met.
Commenting on the milestone, Dr. Ravi Modani, Founder & Managing Director, 121 Finance, said: "India's MSME ecosystem requires credit products that are aligned with business cash flows rather than traditional collateral-based lending. GeM Sahay demonstrates how digital public infrastructure and OCEN can make formal credit accessible to even the smallest enterprises. Our focus remains on enabling seamless, transaction-based working capital financing for MSMEs across the country. Our expertise in technology-enabled factoring and cashflow-based lending has enabled us to develop scalable financing solutions that align with the business cycles of MSMEs and provide access to formal credit where it is most needed.”
According to GeM data, the platform crossed Rs5 lakh crore in Gross Merchandise Value during FY25 and has recorded cumulative transactions exceeding Rs18 lakh crore since inception. With over 11 lakh MSMEs registered on the platform, the opportunity for embedded, cash-flow-based financing continues to expand.
Commenting on the broader significance of the initiative, Sagar Parikh, Core Volunteer at iSPIRT, the institution behind OCEN and India Stack, says, "GeM Sahay demonstrates how OCEN can enable highly personalised, cashflow-based lending at scale. By combining transaction-linked underwriting with controlled repayment mechanisms, it helps expand credit access while improving portfolio quality."
Industry stakeholders view GeM Sahay as one of the first scaled demonstrations of OCEN-enabled lending, showcasing how transaction-based underwriting can improve credit access for underserved businesses while maintaining portfolio quality.
Adding to this, Rahul Bhaik, Volunteer, iSPIRT said "GeM Sahay is one of the first large-scale demonstrations of cashflow lending in India. It shows how verified transaction data can help deliver credit in minutes while creating better outcomes for MSMEs."
Building on its experience with GeM Sahay, 121 Finance is exploring opportunities to extend similar purchase-order-linked financing solutions across other government procurement ecosystems, further supporting MSME growth and financial inclusion.
