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). According to reports from The Hindu BusinessLine, 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.
121 Finance was the first lender to go live on GeM Sahay and remains the largest lender on the platform. As reported by The Hindu BusinessLine, the company has built its own technological backbone to meet high-volume micro-ticket transactions efficiently, demonstrating how underwriting and disbursing loans of as small as ₹127 can be made possible by digital public infrastructure.
Built on the Open Credit Enablement Network, GeM Sahay enables eligible MSMEs to access collateral-free, short-term financing in minutes by leveraging transaction data from government procurement orders. According to the report, 121 Finance's collection-controlled lending model routes repayments through cash flows generated from government orders, enabling faster and more efficient underwriting while reducing credit risk.
Dr Ravi Modani, Founder & Managing Director of 121 Finance, stated that the company's focus remains on enabling seamless, transaction-based working capital financing for MSMEs across the country. As reported by The Hindu BusinessLine, the company's expertise in technology-enabled factoring and cashflow-based lending has enabled scalable financing solutions that align with MSME business cycles and provide access to formal credit where it is most needed.
Sagar Parikh, Core Volunteer at iSPIRT, highlighted that GeM Sahay demonstrates how OCEN can enable highly personalised, cashflow-based lending at scale. According to the report, 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.
