Supply Chain Finance (SCF) in India saw remarkable growth in FY 2024–25, with rapid adoption across industries, increased participation from MSMEs, robust regulatory support, and widespread digital innovation. What was once a niche financial tool is now a mainstream strategy for unlocking working capital and enhancing supply chain resilience.

This blog covers the key highlights from FY 24–25, offering a clear picture of how SCF evolved and why it continues to be a strategic lever for growth.

1. Industry Surge: Manufacturing, Auto, Pharma & FMCG Lead the Way

This financial year saw a surge in SCF adoption across core sectors, particularly automotive and FMCG, where managing high-volume dealer/vendor networks required flexible and fast financial solutions. The pharmaceutical and manufacturing sectors also leveraged SCF to navigate rising input costs while maintaining production agility.

This surge in adoption stemmed from the need to optimize working capital, reduce vendor churn, and stabilize fragmented supply chain ecosystems. As PwC India highlights, this trend was particularly evident among anchor corporates aiming to streamline financial flows.

Meanwhile, MSMEs became more deeply integrated into formal supply chains, empowered by digital platforms that simplified access to financing. This not only strengthened supply chain reliability but also enabled smaller vendors to scale sustainably.

2. Digitalization & Vendor Onboarding

Digital transformation was the core driver of SCF’s expansion this year. From real-time invoice tracking to e-documentation and digital KYC, the process of onboarding vendors and disbursing funds became faster, more transparent, and more accessible.

This tech-first approach removed long-standing friction for both anchor companies and their suppliers. Importantly, it made SCF scalable even for decentralized, tiered vendor networks—a critical advantage in industries like auto and manufacturing.

Reflecting this shift, India’s trade finance market—including SCF—was valued at USD 2.06 billion in 2024 and is projected to reach USD 3.18 billion by 2030, growing at a CAGR of 7.56%, according to TechSci Research.

3. Tailored Solutions & Tech-Led Innovation Took Center Stage

FY 24–25 marked a breakthrough year for product innovation in SCF:

• Anchor-led models enabled corporates to leverage their creditworthiness for the benefit of smaller suppliers.
• Customized financing structures based on supplier category, seasonality, and order volume became more common.
• Platforms adopted AI for fraud detection, blockchain for traceability, and IoT integrations for real-time visibility into goods and payment timelines.

According to IBS Intelligence, Indian fintech’s are now actively modernizing SCF with advanced analytics, embedded finance, and seamless integrations—pushing the envelope of what SCF can deliver.

4. Government & Policy-Led Acceleration of SCF

FY 24–25 saw an unprecedented policy-level push to scale up SCF in India. Government initiatives spanned financial inclusion and industrial incentives:

• Credit Support for MSMEs: Expanded MUDRA loan limits (₹2 million) and new credit guarantees encouraged lender participation, improving credit access for smaller suppliers.
• Capital Expenditure Surge: The Interim Budget 2024–25 allocated ₹11.11 lakh crore towards capital expenditure, energizing vendor demand in infrastructure, logistics, and industrial sectors.
• PLI Scheme Boosts: Allocations to Production Linked Incentive schemes saw significant increases—e.g., semiconductors (up 359%) and auto components (up 623%)—enhancing domestic manufacturing and SCF reliance.
• Regulatory & Ecosystem Support: The RBI enhanced scrutiny on NBFCs for better transparency, while SIDBI deepened its presence in underserved MSME hubs, supporting formal vendor financing.

Together, these interventions made SCF more accessible, transparent, and aligned with India’s broader economic priorities.

5. ESG and Green Financing: Catalysts for Responsible Supply Chains

With climate goals intensifying and sustainability rising on corporate agendas, ESG (Environmental, Social, and Governance) factors are becoming critical in supply chain finance. Enterprises are increasingly adopting ESG-linked SCF programs to encourage responsible sourcing and reduce carbon footprints across their vendor networks.

Financiers are also aligning credit scoring models with ESG metrics, offering better terms to companies with strong sustainability practices. ESG-linked SCF models are projected to comprise 15% of the market by the end of 2024, reflecting a growing investor preference for ethical and green investments.

This shift transcends compliance—it’s becoming a competitive advantage. By embedding ESG into their SCF practices, businesses can future-proof their operations, enhance transparency, and improve access to capital.

6. Infrastructure Boom Drove SCF Demand

India’s infrastructure and industrial development boom played a pivotal role in expanding SCF demand. With long-gestation projects in roads, power, and logistics underway, companies required capital-efficient ways to fund subcontractors and raw material suppliers.

As per PIB, the industrial sector was projected to grow at 6.2% in FY 24–25, driven by policy pushes in steel, cement, energy, and logistics.

SCF became a go-to financing mechanism for managing the stretched payment cycles typical in large-scale infrastructure and EPC projects, especially when working with Tier 2 and Tier 3 vendors.

7. Emerging Tech: Blockchain & AI in SCF

India’s SCF market has witnessed significant growth, fuelled by rapid digital adoption and next-gen technologies like blockchain, AI, and machine learning. According to DVMarketResearch, the market is projected to grow from USD 403.51 million in FY 2024 to USD 918.29 million by FY 2035 (CAGR of 11.14%).

Blockchain, in particular, is gaining prominence for its ability to enhance transparency, security, and real-time trust in SCF transactions. By 2024, it could power up to 30% of large-scale SCF transactions, facilitating faster, fraud-resistant verifications and smoother stakeholder collaboration.

8. Enhanced Accessibility for MSMEs

Fintech innovations have significantly improved SCF accessibility for Micro, Small, and Medium Enterprises (MSMEs). Platforms like the Trade Receivables Discounting System (TReDS) have been instrumental, enabling over USD 2 billion in financing monthly for MSMEs’ working capital requirements.

These digital platforms simplify credit assessments and reduce onboarding costs, allowing MSMEs to access timely financing.

9. Mynd Fintech’s Growth: Empowering Supply Chains at Scale

Amidst this transformative shift, Mynd Fintech emerged as a leading partner for businesses looking to harness the full potential of SCF. This year, Mynd achieved:

• ₹425 crore in throughput—its highest-ever monthly volume in March 2025
• ₹3,400 crore in cumulative incremental throughput across FY 24–25

By offering risk-adjusted credit models, fully digitized workflows, and deep anchor-supplier integration, Mynd Fintech has become a vital bridge between enterprise finance and MSME empowerment.

Conclusion: FY 2024–25 Marked a Turning Point for SCF

This financial year was not just about numbers—it was about transformation. From MSME inclusion to ESG-linked innovation, SCF matured into a strategic enabler of business continuity and supplier growth.

For both large enterprises and emerging vendors, adopting SCF strengthens financial resilience, streamlines operations, and future-proofs supply chains.

Ready to transform your supply chain financing?

Connect with Mynd Fintech to explore customized SCF solutions for your business.