Interviews

Empowering Indian SMEs: Air8’s Tech-Driven Approach to Sustainable Financing

CXOToday has engaged in an exclusive interview with Mr. Ankit Verma – Business Development Lead , Air8

 

  1. How does Air8 tailor its financing solutions to address the challenges SMEs face in rural and semi-urban India, particularly those with limited access to traditional financial services?

To address the challenges SMEs face in rural and semi-urban India, particularly those with limited access to traditional financial services, Air8 tailors its financing solutions by utilizing technology-driven, data-based approaches. Traditional financial institutions often struggle with limited access to reliable financial data from SMEs, making it difficult to assess creditworthiness. Air8 overcomes this by leveraging alternative data sources, such as transaction history, supply chain performance, and local market conditions, in combination with financial information, allowing for more accurate risk assessments.

Moreover, Air8 incorporates industry-specific insights, understanding the unique challenges faced by SMEs across various sectors. This enables a more comprehensive evaluation of risks, tailored to the SME’s operating environment. In addition, Air8’s platform streamlines the KYC and onboarding processes, making it more cost-effective for financial institutions to serve SMEs in rural and semi-urban areas. By reducing operational costs and providing better visibility into SME performance, Air8 makes it easier and more viable for financial institutions to finance these underserved businesses.

 

2. What specific products and services does Air8 offer that cater to SMEs across sectors like fashion and general merchandise industries, particularly those focused on sustainable and eco-friendly practices?

Air8 offers a range of tailored products and services to cater to SMEs across sectors like fashion and general merchandize industries, with a focus on sustainable and eco-friendly practices. By leveraging AI and machine learning, Air8 simplifies the onboarding process for SMEs, reducing paperwork and enhancing efficiency. The platform uses data from multiple sources, including credit bureaus and public databases, to create detailed supplier profiles, enabling more accurate credit risk assessments.This data-driven approach ensures transparency and optimizes decision-making for financial institutions, while also fostering trust through clear, compliant, and transparent processes.

 

3. How does Air8 leverage cutting-edge technologies like AI and machine learning to enhance transparency, efficiency, and risk management in its financing solutions for Indian SMEs?

Air8 leverages cutting-edge technologies like machine learning to enhance transparency, efficiency, and risk management in its green financing solutions for Indian SMEs. This enables faster, more reliable decision-making while minimizing human error.

This combination of technologies streamlines the entire financing process, from onboarding to fund disbursement, ensuring SMEs get timely access to capital while reducing risks for financial institutions. The result is a more efficient and transparent system that supports sustainable growth for SMEs.

 

4. What partnerships or collaborations does Air8 engage in to promote green financing and support sustainable growth among Indian SMEs, particularly in underdeveloped regions?

Air8 engages in impactful partnerships to drive green financing and foster sustainable growth among Indian SMEs, particularly in underdeveloped regions. Earlier this year, Air8 signed a strategic partnership with the International Financial Corporation (IFC) to support SMEs in emerging markets by promoting environmental and social practices. This collaboration enables qualified SME exporters to access the necessary working capital through Air8’s agile supply chain finance platform, empowering them to expand their operations sustainably. Through such alliances, Air8 is committed to enhancing the resilience of SMEs while contributing to broader environmental goals in these regions.

 

5. What strategies does Air8 implement to mitigate risks when providing financing to SMEs in underdeveloped regions, ensuring the sustainability of these investments?

Air8 implements several strategies to mitigate risks when providing financing to SMEs in underdeveloped regions, ensuring the sustainability of these investments. First, it conducts thorough risk assessments by analyzing both the financial health of SMEs and the specific challenges of their operating environments, such as local market conditions and industry risks.

Additionally, it offers flexible loan structures that align with the SME’s cash flow, particularly in the specific industries with cyclical demand. Air8 also works closely with local partners and cooperatives to better understand the unique challenges of these regions, ensuring on-the-ground support and better risk management. These strategies help Air8 balance sustainability with profitability while minimizing risk.


6. How does Air8 ensure that its green financing solutions are adaptable to the evolving needs of Indian SMEs, especially those in industries affected by cyclical demand or seasonal variations, while maintaining a balance between sustainability and profitability?

Air8 ensures that its green financing solutions are adaptable to the evolving needs of Indian SMEs by leveraging technology-driven, flexible financing models that address the unique challenges of industries. Unlike traditional financing platforms, Air8’s innovative approach allows for tailored financial products that align with the cash flow patterns of SMEs, particularly in sectors like fashion and general merchandize industries. By continuously analyzing market trends and utilizing AI and data-driven insights, Air8 adjusts its financing terms and structures to match the unique needs of SMEs, ensuring both financial sustainability and operational efficiency. This adaptability helps SMEs navigate international trade complexities while maintaining a balance between sustainability goals and profitability, making Air8 a reliable partner for long-term growth.