BFP-B (DFID) – Finance for MSEs

The “Finance against Merchandise and Outsourcing Services for MSE E-commerce Retailers” project, implemented by Systems Solutions & Development Technologies Limited (SSDTech) in collaboration with e-Courier Limited and Mind Initiatives Limited, aimed to improve financial access for women-owned Micro and Small Enterprises (MSEs) in Dhaka’s e-commerce sector. These businesses struggled to access formal finance due to insufficient documentation, poor inventory management, and lack of collateral.

To tackle these issues, the project established mechanisms for collateral security and outsourced back-end operations. MSEs were categorized as “bankable” or “non-bankable.” Bankable MSEs received working capital from banks, while non-bankable MSEs received advances from e-Courier.

Outsourcing services included inventory management, fulfillment, payment processing, and financial management, which boosted operational efficiency and allowed MSEs to focus on growth. Capacity-building advisory services were also provided to improve financial management and help MSEs qualify for bank financing.

As a result, 800 merchants began selling through e-commerce platforms, with 50% of them becoming eligible for financing from banks or Non-Banking Financial Institutions (NBFIs). The project disbursed loans totaling Tk. 150 to 160 million, leading to increased sales turnover and facilitating financial inclusion and growth for e-commerce MSEs.