Mastercard Incorporated MA has joined forces with U GRO Capital, a leading NBFC specializing in MSME financing, to provide essential financing solutions to small businesses in India. This collaboration aims to address the significant challenges faced by MSMEs in accessing capital, particularly in a country where only 14% of more than 64 million MSMEs have access to credit.
A Holistic Digital Solution for MSMEs
The strategic partnership seeks to offer a holistic digital supply chain financing solution. U GRO Capital will use its data tech platform and innovative underwriting model, the GRO Score, to extend short-term credit to various segments of small businesses, including dealer distributors, last-mile retailers and women entrepreneurs. Mastercard, through its vast network, will bring together stakeholders from both the demand and supply sides, creating a common platform for driving economic empowerment and an environment where small businesses can flourish and contribute meaningfully to the nation’s economic landscape.
Shared Commitment to Innovation
The alliance between Mastercard and U GRO Capital is rooted in a shared commitment to innovation, which is a cornerstone in addressing the intricacies of credit needs within the MSME sector. U GRO Capital’s forward-thinking approach, encapsulated in its proprietary underwriting model and data-driven solutions, complements Mastercard’s commitment to driving digital inclusion for small businesses across India. The fusion of these innovative forces positions the partnership as a potential game-changer for Indian MSMEs.
Global Commitment to Small Business Empowerment
Mastercard’s global commitment to bring one billion people and 50 million micro and small businesses, including 25 million female entrepreneurs, into the digital economy by 2025 further underscores its dedication to small business empowerment. This collaboration with U GRO Capital is a tangible manifestation of this commitment. By leveraging its influence and network, Mastercard aims to become an enabler of growth, providing not just financial resources but also the connectivity and support needed for small businesses to flourish in the evolving economic landscape.
Seizing Opportunities in India’s Booming Digital Economy
Mastercard’s robust digital suite plays a pivotal role in establishing a strong footprint in the dynamic landscape of India. Through strategic investments and partnerships, Mastercard has crafted a comprehensive suite of digital solutions that resonates with the evolving needs of businesses and consumers in the country. This September, Mastercard joined forces with Agri Entrepreneur Growth Foundation to introduce Bharat Kisan Manch, a pioneering digital platform poised to revolutionize the landscape for millions of Indian farmers and agricultural entrepreneurs with seamless connectivity to markets and formal financial services.
Zacks Rank & Price Performance
Shares of Mastercard have gained 16.8% in the past year compared with the industry’s 13.4% increase. MA currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Business Services space are Limbach Holdings, Inc. LMB, Republic Services, Inc. RSG and Rollins, Inc. ROL. While Limbach sports a Zacks Rank #1 (Strong Buy), Republic Services and Rollins carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Limbach outpaced estimates in each of the last four quarters, the average surprise being 92.10%. The Zacks Consensus Estimate for LMB’s 2023 earnings is pegged at $1.75 per share, which indicates an increase of nearly three-fold from the year-ago reported figure. The same for revenues suggests growth of 1.6% from the year-ago reported number. The consensus mark for LMB’s 2023 earnings has moved 28.7% north in the past 30 days.
Republic Services earnings outpaced estimates in each of the trailing four quarters, the average surprise being 8.94%. The Zacks Consensus Estimate for RSG’s 2023 earnings suggests an improvement of 11% from the year-ago reported figure. The same for revenues suggests growth of 10% from the prior-year reading. The consensus mark for RSG’s 2023 earnings has moved 2.2% north in the past 30 days.
The bottom line of Rollins outpaced estimates in three of the last four quarters and matched the mark once, the average surprise being 7.20%. The Zacks Consensus Estimate for ROL’s 2023 earnings suggests an improvement of 18.7% from the year-ago reported figure. The same for revenues suggests growth of 13.7% from the year-ago actuals. The consensus mark for ROL’s 2023 earnings has moved 4.7% north in the past 30 days.
Shares of Limbach, Republic Services and Rollins have gained 254.9%, 16.9% and 0.1%, respectively, in the past year.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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