With a contribution of $0.6 trillion to the GDP of India, the MSMEs, largely informal is the backbone of our nation.
These micro-entrepreneurs are bravely providing essential services, they are one of the soldiers who are on the forefront battling against COVID-19.
Because of high uncertainly in the market, they are facing social, health & financial challenges. To say the least, they are no longer getting access to credit, credit advances to pay off the stock they had collected, and in some cases, they have to incur additional cost to go and collect the goods ordered because of transportation lockdown.
These micro-entrepreneurs are taking a chance with their lives only to serve the society around them and to sustain their families. They are at a high risk of contracting the disease, and in case they do, they will need medical expenses support.
Other micro-entrepreneurs whose businesses are shut in the lockdown are facing cashflow problems, they don’t have funds to fulfill their daily needs. In fact, their businesses run the very risk of shutting down permanently due to lack of working capital. They are also grappling with problems like low liquidity or cash flow and lack of workforce as the daily-wagers have gone to their villages. This, in turn, has the potential to destroy the livelihoods of lakhs of micro-entrepreneurs, their staff and their families.
We spoke to 250 micro-entrepreneurs and data from this research suggests 96% of the businesses are negatively impacted by the lockdown. 70% of the shopkeepers said their expenditure has consistently been larger than income during the period, suggesting that household reserves are being eroded steadily. And a business loan now, would help in easing their cash flows.
Motivated to provide the financial rescue and much needed instant cash relief to micro-entrepreneurs, HAPPY, a digital lending Fintech, has designed the “LOCKDOWN LOAN”. This credit facility is a unique combination of working capital loan and full cover insurance against Covid-19.
HAPPY has always been inspired by the micro-enterprisers & their resilience. We are serious about our commitment to serve micro-entrepreneurs across segments such as banking correspondents, grocery, pharmacy, restaurants, tours & travel, apparel stores. Our objective of large-scale impact is core to our business model design and to deliver access to instant credit to millions of micro-entrepreneurs through the Lockdown loan is evidence of our unparallel support to prevent them from shutting down & insuring the health of business owners.
However, like everything you need an extended community to help us reach as many micro-entrepreneurs as possible. We need help from collaborators, funders and donors.
Become a COVID Warrior – a COVID impact investor
This loan combo to be offered to millions of micro entrepreneurs across India. This means the insurance will help cover the loss on loan that arises from customers who contract Covid – 19. HAPPY has the risk appetite to take up to 5% of the losses that would arise from economic slowdown & we are seeking help from you to cover an additional loss of 1% in this social initiative, which translates to INR 30 Lac ($40k) on loan disbursement of INR 30 cr ( $ 4 Mn) to reach 10,000 micro entrepreneurs, impacting 2 Mn households.
Prevent a micro business from shutting down today,
Protect the micro business owner,
Help a household to sustain & be safe
Be COVID Impact investor
We at HAPPY are already doing our bit, You too can!
Happy a digital lending fintech start-up inspired by the millions of MSME building our nation. Our sole objective is inclusive finance with focus on building an alternate and friendly credit ecosystem. Our target is a multi-billion-dollar credit gap for India’s micro businesses that account for 99 % of total MSMEs, 28.9% GDP and 97% of total employment of the sector