Non-Banking Financial Company (NBFC)-Factor 121 Finance has crossed ₹10 crore in cumulative disbursements through GeM Sahay, the credit facility integrated with the Government e-Marketplace (GeM), marking a significant milestone in expanding digital credit access for micro, small and medium enterprises (MSMEs). The company said it has disbursed more than 2,600 loans to over 400 MSMEs across 173 cities in 27 states, helping small suppliers secure working capital against confirmed government purchase orders. Built on the Open Credit Enablement Network (OCEN), GeM Sahay allows eligible MSMEs to access collateral-free, short-term financing within minutes using transaction data linked to government procurement orders. According to the company, 121 Finance was the first lender to go live on the platform and continues to be the largest lender under the initiative.
Commenting on the achievement, Dr. Ravi Modani, Founder and Managing Director of 121 Finance, said the MSME sector requires credit products aligned with business cash flows rather than traditional collateral-based lending. He said the company’s technology-enabled factoring and cashflow-based lending expertise has helped create scalable financing solutions for small businesses.
In Kolkata, the growth of GeM Sahay could benefit thousands of MSMEs engaged in government procurement and supply chains across eastern India. Easier access to working capital is expected to support business expansion and improve liquidity for small enterprises operating in and around the Kolkata market.
GeM data shows the platform crossed ₹5 lakh crore in Gross Merchandise Value during FY25 and has recorded cumulative transactions exceeding ₹18 lakh crore since inception. With more than 11 lakh MSMEs registered on GeM, stakeholders see significant potential for expanding embedded, cashflow-based financing. Industry experts from iSPIRT said GeM Sahay demonstrates how OCEN-enabled, transaction-based lending can improve credit access for underserved businesses while maintaining portfolio quality.