Veefin collaborates with PSB Alliance to build PSBXchange platform for MSMEs

In a bid towards advancing MSME financing in India, four public sector banks - Bank of Baroda, Central Bank of India, Indian Overseas Bank, and UCO Bank – on Wednesday signed up for the unified Supply Chain Finance (SCF) platform, PSBXchange by PSB Alliance.

The platform powered by Veefin Solutions, a supply chain fintech startup that is listed on the BSE’s SME platform, will support the financial needs of India's MSMEs and ensure their participation in the digital transformation of credit delivery, according to an exchange filing.

In September 2023, PSB Alliance, comprising 12 public sector banks, selected Veefin to implement a unified, cloud-based SCF ecosystem across India. This new platform will serve as a common technology bridge for banks and NBFCs, streamlining supply chain financing and small business loans.

Anjali Mohanty, Managing Director, of PSB Alliance, said, “By integrating with this unified digital infrastructure, the banks will actively extend credit to a broader and more diverse base of SMEs across India.”

She added that their wide reach, combined with PSBXchange’s digital capabilities, is bringing structured supply chain finance to MSMEs that have traditionally remained outside the formal credit system. “Powered by Veefin’s technology at the backend, we are ensuring that access to working capital remains equitable, data-driven, and accessible across tiers and geographies,” said Mohanty.

Raja Debnath, Chairperson, Co-Founder & CEO at Veefin Group said, “With MSMEs contributing over 30% to the GDP, this platform is set to redefine financial inclusion. By offering MSMEs faster access to higher-quality credit, the PSBXchange platform accelerates their growth while strengthening the entire lending process.”

Veefin is a supply chain finance and digital lending solutions provider, which caters to banks and other financial institutions. Incorporated in 2020, Veefin is headquartered in Mumbai and has offices in Ahmedabad, Dhaka, and Dubai. According to its website, it has over 200 employees.

In November 2024, it picked up a stake in a Singapore-based generative artificial intelligence (AI) startup Walnut, through its subsidiary Estorifi Solutions Pvt Ltd, which bought a 50% stake in Walnut AI for about $2 million (nearly ₹17 crore) in a cash deal. More recently, in February, it acquired a stake of up to 49% in digital marketing agency White Rivers Media Solutions Pvt Ltd for ₹166.6 crore ($19 million), which was the 11th acquisition by Veefin.