The Soptle Revolution: Transforming Small Business Credit Extension

In India’s dynamic economic landscape, small and medium enterprises (SMEs) play a pivotal role, making significant contributions to GDP, employment, and industrial output. However, despite their importance, SMEs often encounter a major hurdle: accessing timely and cost-efficient credit.

The conventional banking system, characterized by strict criteria and lengthy procedures, struggles to meet the unique requirements of these enterprises. This gap in financial services not only impedes SME growth but also constrains their potential to make a more substantial impact on the economy.

Here comes Soptle, a Gurugram-based B2B credit lending firm, established in 2021 by the enterprising young entrepreneur, Pravas Chandragiri from Balasore.

Who Founded Soptle?

At the young age of 19, Chandragiri embarked on a visionary quest to transform the landscape of credit accessibility for small businesses across India. Recognizing the crucial role SMEs play and the challenges they encounter in obtaining credit, Chandragiri conceptualized Soptle to bridge this gap.

Soptle is dedicated to elevating the financial health of SMBs, enhancing their operational efficiency, and optimizing cash flow, empowering them to thrive in today’s competitive market.

Distinguished by its utilization of cutting-edge technology, Soptle offers a comprehensive suite of financing solutions tailored to the diverse requirements of small businesses. In just two short years, the startup has achieved significant milestones, boasting an impressive annualized Gross Loan Value (GLV) of $30 million.

Providing Tailored Financial Solutions

Soptle specializes in crafting finely-tuned financial solutions to meet the unique needs and repayment capacities of small enterprises and retailers. Our offerings include term loans, invoice financing, and lines of credit.

Term loans provided by Soptle are ideal for businesses seeking to make long-term investments, such as equipment purchases or expansion projects, without the requirement of invoices or collateral. This flexibility empowers businesses to strategize and expand without immediate financial strain.

Invoice financing is another innovative solution wherein retailers leverage invoices as collateral to secure loans. This approach proves invaluable when retailers face cash shortages but need to procure goods from distributors. Soptle’s platform streamlines this process, ensuring swift release of funds to distributors in real-time, thereby sustaining supply chain fluidity.

Lines of credit present a flexible financing avenue, offering businesses a pre-approved credit line that they can access as required. This setup enables businesses to pay interest solely on utilized amounts, rendering it a cost-efficient solution for cash flow management.

Data-Driven Approach

Employing a data-centric strategy, the startup harnesses an AI-powered credit engine to evaluate risk factors and extend collateral-free loans. This innovative approach considers various elements such as credit scores, bank transactions, distributor and brand history, among others. By leveraging technology, Soptle aims to deliver tailored and easily accessible financial solutions to SMEs.

Claiming a substantial user base, including 17 enterprises, over 350 distributors, and partnerships with five modern trade merchants, Soptle showcases its growing influence in the market.

With monthly disbursements totaling Rs 32 crore and an annual sum of Rs 307 crore, Soptle demonstrates rapid expansion. Collaborations with banks and NBFCs facilitate seamless loan disbursal, while its revenue model, hinged on interest rate differentials, ensures long-term viability and profitability.

Funding and Investors

Soptle has secured $1.5 million in funding through two rounds, attracting investments from prominent backers such as Kube VC, We Founder’s Circle (WFC), Iceland Venture Studio (IVS), and Nyra Ventures, among others.

The burgeoning demand for credit among MSMEs signals a market gap estimated at nearly $530 billion. While India boasts a vast number of MSMEs, only a small fraction currently access formal credit. This underscores the substantial market potential awaiting Soptle.

Competitors in the Market

In a landscape brimming with contenders such as Epaylater, Mintifi, Loantap, and Lendingkart, Soptle stands out with its distinctive approach and technology-driven solutions. Beyond just a tale of startup triumph, Soptle’s narrative revolves around empowering the growth and sustainability of SMEs across India.

By tackling the pivotal issue of credit accessibility, Soptle empowers small businesses to unleash their full potential, thereby fostering broader economic development. As Soptle forges ahead, expanding its footprint and pioneering innovations, its transformative impact on the SME sector is poised to be unparalleled, offering a beacon of hope to enterprises grappling with financial intricacies.

The B2B credit market in India is undergoing a significant metamorphosis, fueled by the country’s rapid economic growth and the evolving demands of businesses for more accessible and adaptable credit solutions.

Despite India’s position as one of the world’s fastest-growing economies, there remains a conspicuous gap in accessing formal credit, particularly when compared to developed nations. This gap is being addressed by banks and financial institutions through the introduction of innovative payment products and instruments, with the aim of democratizing.