Empowering Growth: The Evolving MSME Landscape in India Through Digitalization and Policy Reform
CXOToday has engaged in an exclusive interview with Yashraj Vakil, CEO of CaptainBiz
How would you describe the current MSME landscape in India?
The MSME landscape in India today is vibrant, poised for accelerated growth, and remains the backbone of the Indian economy. As observed through our interactions with industry leaders and MSME stakeholders, the sector is undergoing a transformative shift, largely driven by digitalisation and evolving regulatory frameworks such as GST and the e-invoicing mandate.
With over 64 million MSMEs, contributing almost one-third of the country’s total GDP and employing over 20 million people, the sector is at a critical juncture. The resilience and flexibility that MSMEs have demonstrated in adopting new technologies and aligning with government initiatives show immense potential for growth. Programmes like Udyam Registration and schemes to improve access to credit are also formalising the sector, unlocking greater opportunities for businesses of all sizes.
Emphasising the importance of technology, digital tools are empowering MSMEs to streamline operations, improve compliance, and enhance efficiency. The ongoing shift towards digital infrastructure is not only simplifying processes but also positioning MSMEs to tap into global markets and scale sustainably.
However, while the future looks promising, challenges such as access to finance, navigating complex regulations, and upskilling remain.
Do you believe GST has played a crucial role in increasing MSME registrations and improving credit access? How is CaptainBiz planning to further support and build on these developments?
Yes, GST has indeed played a pivotal role in increasing MSME registrations and improving credit access in India. By simplifying the tax structure and mandating compliance, GST has pushed many MSMEs to formalise their operations, which in turn has opened up more avenues for financial inclusion. The introduction of e-invoicing and e-way bill systems, particularly for both B2B and B2C transactions, has further enhanced transparency and traceability, making it easier for businesses to access credit and for financial institutions to assess their credibility. As a result, MSMEs are now able to demonstrate a more formal financial history, which is critical when seeking loans and other financial products.
CaptainBiz is well-positioned to build on these developments by providing MSMEs with comprehensive digital tools to manage their financial and compliance needs. Our GST-approved digital billing features allow MSMEs to generate GST-compliant invoices, manage e-way bills, and file GST returns. This ensures that businesses are not only compliant but also benefit from the input tax credit mechanism, which can reduce their operational costs. Through inventory management, CaptainBiz provides MSMEs with real-time insights into their cash flows, outstanding dues, and inventory levels. As MSMEs adopt CaptainBiz they build a digital footprint that can be leveraged as critical documentation to improve creditworthiness for loans and accessing working capital.
CaptainBiz is creating an ecosystem where MSMEs can thrive in the formal economy by providing tools that help with GST compliance, digital record-keeping, and improved credit access. Moving forward, CaptainBiz aims to introduce more automation and AI-driven features that will not only enhance operational efficiency but also provide MSMEs with the insights they need to make better financial decisions.
What steps is CaptainBiz taking to meet the needs of MSMEs in Tier 2 and Tier 3 cities?
CaptainBiz is making significant strides in supporting MSMEs in Tier 2 and Tier 3 cities, where businesses often face challenges such as limited access to technology, formal financial systems, and digital literacy. The cloud-based platform, available on web browsers and mobile devices (Android and iOS) offers a suite of affordable, accessible digital tools that simplify crucial tasks like GST-compliant invoicing, financial management, and inventory tracking, helping MSMEs stay compliant without navigating complex systems.
Recognizing the high mobile penetration in these regions, CaptainBiz has adopted a mobile-first approach, ensuring that the platform works seamlessly even in low-bandwidth environments, making it accessible to businesses in areas with limited infrastructure. This is especially important for MSMEs in regions with limited access to advanced technology, as they can now operate digitally less than the cost of a cup of tea. Additionally, CaptainBiz has deployed an on-ground sales and onboarding team covering over 600+ locations across India. This team provides hands-on assistance, guiding businesses through the transition to digital processes, ensuring smoother adoption of the platform, and fostering long-term growth.
In addition to affordability, CaptainBiz also addresses language barriers by offering multilingual customer support in eight major Indian languages as well as in English and Hindi. This ensures that the platform is accessible to a broader range of users, especially those in semi-urban and rural areas. To further address the gap in digital and financial literacy, CaptainBiz organizes workshops and educational initiatives, helping business owners in these regions adopt digital tools and make informed financial decisions. Moreover, CaptainBiz’s platform helps improve the creditworthiness of MSMEs by digitizing their financial records, enabling them to access loans and financial services more easily, which is critical for growth in these under-banked areas. This multi-faceted approach ensures that MSMEs can overcome traditional barriers, thrive in an evolving digital economy, and contribute to India’s economic growth.
How CaptainBiz is leveraging technology to drive progress for MSMEs while highlighting key features and partnerships that set the platform apart.
CaptainBiz is leveraging technology to drive significant progress for MSMEs by providing a user-friendly, cloud-based platform that integrates advanced features like e-invoicing, GST compliance automation, and real-time inventory management. Recently, CaptainBiz launched an e-invoicing feature that allows MSMEs to generate unlimited e-invoices and e-way bills, ensuring compliance with GST regulations while streamlining invoicing processes. This new feature helps MSMEs easily comply with GST regulations without needing to navigate government portals frequently, automating and streamlining the process of invoicing and compliance. By allowing for automatic data validation and linking e-invoices directly with e-way bills, CaptainBiz saves MSMEs time and effort, further ensuring regulatory compliance. Moreover, the mobile-first, cloud-based platform, accessible via Android and iOS, caters to businesses in Tier 2 and Tier 3 cities, where mobile penetration is high but access to computers is limited. Real-time data synchronization across devices ensures seamless business operations from anywhere.
One of the platform’s standout features is GST compliance automation, which simplifies tax filing by automating invoicing and GST return submissions, including GSTR-1 and GSTR-3B forms. This reduces manual errors and ensures timely compliance, addressing one of the major challenges MSMEs face in a complex regulatory environment. Furthermore, CaptainBiz offers a highly affordable pricing model, with subscriptions starting as low as the cost of a cup of tea, making advanced digital tools accessible to businesses of all sizes.
CaptainBiz is collaborating with Logo Infosoft to leverage its extensive technological expertise in delivering enterprise-grade business solutions tailored for grassroots India. With decades of experience in business software innovation, Logo Infosoft brings advanced tools and systems that are typically reserved for larger enterprises to smaller businesses and MSMEs. This collaboration enables CaptainBiz to provide affordable, scalable solutions that meet the unique needs of MSMEs, ensuring these businesses have access to tools that simplify operations, enhance productivity, and ensure compliance with evolving regulations. CaptainBiz is also recognized by the GST Network (GSTN), which ensures its alignment with evolving tax regulations, bolstering trust among MSMEs. The platform’s on-ground sales and onboarding teams, operating in 600+ locations, offer hands-on support, easing the transition for MSMEs to digital processes. Additionally, CaptainBiz’s multilingual support, available in eight major Indian languages as well as Hindi and English, ensures that language is not a barrier for businesses across India, fostering greater inclusivity.
The platform also offers real-time inventory and sales management, enabling businesses to track stock levels and optimize operations efficiently. With customizable invoicing and real-time business insights, CaptainBiz empowers MSMEs to make data-driven decisions, ultimately improving operational efficiency and reducing costs. Through these features, partnerships, and a strong local presence, CaptainBiz stands out as a comprehensive solution driving digital transformation and progress for MSMEs in India.
