MODIFI eyes India’s SME export growth in renewables, pharma, chemicals

Netherlands-based fintech company MODIFI is strengthening its foothold in India, targeting the pharmaceuticals, chemicals, and renewables export markets with plans to triple its Indian operations by 2025.
 
India’s export orientation makes the country an attractive destination for MODIFI’s investment. The company’s invoice factoring service provides small and medium-sized enterprises (SMEs) with immediate cash flow by purchasing their invoices, allowing them to get paid immediately instead of waiting 60 to 120 days for payments from overseas buyers.

“For pharmaceutical SMEs, this improves cash flow, enabling them to reinvest in operations and take on more overseas orders. This solution accelerates growth and helps these companies manage their finances more effectively,” said Matthias Hendrichs, MODIFI’s Chief Commercial Officer, highlighting the company’s focus on empowering SMEs, particularly in the renewables and pharma sectors, as part of its broader growth strategy.
 
Since its inception, MODIFI has financed invoices over $3 billion globally. Pharmaceuticals represent 10-15% of their overall funding, amounting to several hundred million dollars. This focus on the pharma sector aligns with India’s role as a pharmaceutical hub, where cash flow challenges often restrict smaller companies from scaling up, he said.
 
India’s pharmaceutical exports reached $27.9 billion in FY24, growing at 9.67% compared to the previous year. Major markets include the United States, United Kingdom, Netherlands, South Africa, and Brazil, with the US contributing 31% of the total. Monthly exports generally range between $2–3 billion. In the chemical sector, India holds a significant position, contributing approximately 13% of global exports in specific segments. SMEs play a crucial role in these industries, accounting for about 45% of chemical exports and actively participating in pharmaceutical trade, particularly in specialised areas like rare disease treatments and specialty chemicals.
 
The chemical industry also holds potential. Hendrichs highlighted opportunities in India’s chemical sector, particularly in packaging and infrastructure. “The chemical and pharmaceutical industries are interconnected, and both play an important role in India’s economic development,” Hendrichs said. As supply chains evolve, the demand for chemicals is expected to grow, creating opportunities for MODIFI’s financing solutions.

To expand their reach, MODIFI has partnered with supply chain finance platforms like RXIL, VTX, and M1. These partnerships allow the company to support a broader network of SMEs and help them access global markets more effectively. According to Hendrichs, this approach will be a key factor in their success in India. He further said that the company is aiming to support around 500 SMEs. 
 
Government alignment is another important part of MODIFI’s strategy. “The company supports Indian policies such as “Make in India” and renewable energy initiatives, working with government bodies and SME associations to promote export growth. This alignment ensures their efforts contribute to national objectives while addressing the needs of Indian exporters,” Hendrichs said.
 
Despite challenges such as global interest rate fluctuations and steering India’s diverse SME ecosystem, MODIFI remains optimistic. “India offers significant potential. We see only a fraction of the market being served right now, and we are committed to building a long-term presence here,” Hendrichs said.