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121 Finance becomes the first lender on GeM Sahay 2.0, which is built on the OCEN framework.

Banking & Finance | Dated: 06 Feb 2025

In January 2025, 121 Finance Private Limited, based in Jaipur (Rajasthan), India’s first Reserve Bank of India (RBI) registered Non-Banking Financial Company (NBFC) Factor, partnered with Government e-Marketplace (GeM), an initiative by the Ministry of Commerce and Industry (MoC&I). Along with Perfios Software Solutions Private Limited, based in Bengaluru (Karnataka), and Tata Consultancy Services (TCS) from Mumbai (Maharashtra), they developed GeM Sahay 2.0.

🎯 Key Highlights:

  • - GeM Sahay 2.0 aims to improve financial inclusion by making the platform easier to use and more effective for Micro, Small, and Medium Enterprises (MSMEs), while providing a smooth experience for lenders.
  • - 121 Finance played an important role in the pilot phase of GeM Sahay, setting a standard for digital lending with real-time, technology-driven financing, making it more accessible and useful for MSMEs.

💡 Other Important Facts:

  • (i) 121 Finance, India’s largest independently owned NBFC-Factor, focuses on solving B2B (Business to Business) trade credit challenges faced by MSMEs.
  • (ii) This partnership creates specialized loan products with smaller amounts, and works as key partners in the Open Credit Enablement Network (OCEN) framework.
  • (iii) The OCEN framework demonstrates how digital platforms can change lending in India. Its flexibility and scalability will support more projects, helping MSME growth and financial inclusion.

📚 Test Your Knowledge:

Which financial institution recently became the first lender on GeM Sahay 2.0?

Correct Answer: 121 Finance

🚀 Quick Recap: