121 Finance, a leading NBFC-factor, has crossed ₹10 crore in cumulative disbursements through GeM Sahay, the credit facility integrated with the Government e-Marketplace (GeM). NBFC-factor is a specialised non-deposit-taking financial institution that improves business liquidity by purchasing outstanding invoices

The company has disbursed over 2,600 loans to more than 400 MSMEs across 173 cities in 27 States, helping small suppliers access working capital against confirmed government purchase orders.

Built on the Open Credit Enablement Network, GeM Sahay enables eligible MSMEs to access collateral-free, short-term financing in minutes by leveraging transaction data from government procurement orders. 121 Finance was the first lender to go live on GeM Sahay and remains the largest lender on the platform.

The company has focused on serving small-ticket credit needs, often underserved by traditional lenders. Its collection-controlled lending model routes repayments through cash flows generated from government orders, enabling faster and more efficient underwriting while reducing credit risk.

It has built its own technological backbone to meet high-volume micro-ticket transactions efficiently. With GeM Sahay, 121 Finance has shown how underwriting and disbursing loans of as small as ₹127 can be made possible by digital public infrastructure.

Dr Ravi Modani, Founder & Managing Director, 121 Finance, said the company’s focus remains on enabling seamless, transaction-based working capital financing for MSMEs across the country.

The company’s expertise in technology-enabled factoring and cashflow-based lending has enabled to develop scalable financing solutions that align with the business cycles of MSMEs and provide access to formal credit where it is most needed, he said.

Sagar Parikh, Core Volunteer at iSPIRT, the institution behind OCEN and India Stack said GeM Sahay demonstrates how OCEN can enable highly personalised, cashflow-based lending at scale. By combining transaction-linked underwriting with controlled repayment mechanisms, it helps expand credit access while improving portfolio quality, he said.

Building on its experience with GeM Sahay, 121 Finance is exploring opportunities to extend similar purchase-order-linked financing solutions across other government procurement ecosystems, further supporting MSME growth and financial inclusion.

Published on June 8, 2026