Created on 13th December 2020
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Majority of the MSMEs and SMBs (Small Businesses) face problems of poor cash-flow management with lack of emergency funds, low financing availability and cash crunch in times of crisis (for eg. COVID 19). Further, the surplus money parked in the current account, yield 0% interest rate, depriving them to a lot of cash which can be earned if parked in liquid mutual funds. With a total 63 Million MSME & SMBs, and with an average current balance of Rs. 50 lakhs, and 8% interest, MSMEs are loosing 25.2 Billion INR every year!
Further, this problem was highlighted by UTI Mutual funds, "MSMEs need to use liquid funds for better cash management" in an article which explains the problem in great depth and lack of an enabler to make it happen.
The first challenge, we faced was meeting the high-standards for UI/UX for Razorpay customers to make sure our solution was easy and intuitive for businesses to understand. Further, we faced challenges on creating a seamless flow for money transfer between the current account of business and Liquid mutual funds using Subscriptions API as we need to debit variable amount along with variable time durations. The biggest technical challenge was to create the front and backend infrastructure for the dashboard that was smooth and glitch-free. The main issue being creating error-free business login in the backend as it involved dealing with multiple real-time transactions as well as reconciliation at multiple steps. We accomplished this using AWS for hosting, as well as MERN stack for front and back-end infrastructure.