The Micro, Small and Medium Enterprises (MSME) sector in Tier II and Tier III cities in India are at-par with their counterparts in metros in terms of revenue and growth, according to Bengaluru based on-demand payments firm Instamojo.
"Indian MSMEs in Tier II markets have recognized the potential of the internet and how it can help their business grow. Businesses that have gone digital are now exposed to consumers, manufacturers, exporters and suppliers across the country. Tier II and Tier III markets have the potential to emerge as SME hubs and we, at Instamojo are delighted to accelerate this growth through our solutions", said Sampad Swain, CEO and Co-Founder, Instamojo.
The past one year has witnessed MSMEs in Tier I cities record a 1.15 x growth in their annual turnover, while small businesses from Tier II and Tier III markets were a close second with a 0.75x growth, Instamojo said.
However, in the last quarter MSMEs from the events and financial services sector in Tier II and Tier III markets have witnessed a higher growth than Tier I cities.
Only 32 percent SME in India are online or accept digital modes of business.
Instamojo has provided greater market accessibility to over 80 percent of its merchant base and with its link-based payments, these MSMEs have expanded their customer base and are no longer restricted to geographical boundaries to mark their presence beyond the geographical and regional barriers.
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