Solving the Funding Challenges of Indian MSMEs: The Advantages of Founder-Friendly Non-Dilutive Financing
About 30% of India’s GDP is generated by micro, small and medium enterprises (MSMEs), which provide jobs for more than 110 million people and account for around 50% of the country’s exports. But as Bhavik Vasa at GetVantage points out, a drop in private equity and venture capital investments has led many of these entrepreneurs to shift towards more founder-friendly types of non-dilutive capital. He discusses the funding challenges facing Indian MSMEs, and why alternative forms of non-dilutive financing are uniquely suited to these businesses’ needs.