Fintech company MODIFI expansion of its presence in India, focusing on pharmaceuticals, chemicals, and renewables.
The company plans to triple its operations in the country by 2025, leveraging India’s strong export orientation to fuel its growth.
Accelerating Cash Flow for SMEs
MODIFI’s flagship invoice factoring service addresses a critical pain point for small and medium-sized enterprises (SMEs) by providing immediate cash flow. The service enables SMEs to sell their invoices and receive instant payments instead of waiting 60 to 120 days for funds from overseas buyers.
“For pharmaceutical SMEs, this solution enhances cash flow, allowing them to reinvest in operations and handle larger overseas orders,” said Matthias Hendrichs, MODIFI’s Chief Commercial Officer.
He emphasized that the company’s services empower SMEs, particularly in the pharmaceuticals and renewables sectors, to scale operations and manage finances more effectively.
Strengthening Focus on Pharmaceuticals
Since its inception, MODIFI has financed over $3 billion worth of invoices globally, with pharmaceuticals accounting for 10-15% of its funding.
This translates to several hundred million dollars directed toward supporting pharmaceutical exports.
India’s pharmaceutical industry, a global hub for generic medicines and specialty drugs, exported $27.9 billion worth of goods in FY24, achieving a 9.67% year-on-year growth.
The United States, which contributes 31% of India’s pharma exports, is the largest market, followed by the United Kingdom, Netherlands, South Africa, and Brazil. Monthly exports typically range between $2–3 billion.
Hendrichs noted that SMEs play a vital role in pharmaceutical trade, particularly in niche areas such as rare disease treatments.
He said, “Our focus aligns with India’s potential as a pharmaceutical hub, where cash flow challenges often prevent smaller companies from scaling effectively”.
Opportunities in the Chemical Industry
India’s chemical industry, contributing approximately 13% of global exports in specific segments, is another area of focus for MODIFI.
As reported by businesstoday.in, SMEs account for 45% of the country’s chemical exports, with significant activity in packaging and infrastructure.
“The chemical and pharmaceutical industries are deeply interconnected and are key drivers of India’s economic growth,” Hendrichs explained.
He highlighted the rising demand for chemicals driven by evolving supply chains, which creates new opportunities for MODIFI’s financing solutions.
Strategic Partnerships and Expanding SME Support
To broaden its reach, MODIFI has partnered with supply chain finance platforms such as RXIL, VTX, and M1.
These collaborations enable the company to support a more extensive network of SMEs, helping them access global markets more effectively.
MODIFI aims to assist approximately 500 SMEs in India, strengthening its commitment to empowering exporters.
According to Hendrichs, this approach will play a crucial role in the company’s long-term success in the Indian market.
Alignment with Government Policies
MODIFI expansion strategy aligns with India’s national initiatives, including the “Make in India” campaign and renewable energy policies.
The company collaborates with government bodies and SME associations to promote export growth while contributing to national economic objectives.
Hendrichs highlighted MODIFI’s dedication to addressing the needs of Indian exporters while ensuring their efforts align with the country’s development goals.
Overcoming Challenges and Building a Long-Term Presence
Despite challenges such as global interest rate fluctuations and the complexity of India’s diverse SME ecosystem, MODIFI remains optimistic.
“India offers significant potential. Currently, only a fraction of the market is being served, and we are committed to building a long-term presence here,” Hendrichs stated.
With its robust strategy and targeted investments, MODIFI expansion is well-positioned to drive growth in India’s export sectors and empower SMEs to thrive in global markets.
