Mahindra Group has partnered with IBM to develop a blockchain-based supply chain finance solution.
Enhanced security, transparency and operational processes will be the result of the deployment of this cloud-based application.
This will be one of the first projects of its kind in India outside of traditional banking. The blockchain solution is designed to transform supplier-to-manufacturer trade finance transactions through a permissioned distributed ledger.
The blockchain-based supply chain finance solution will enable all parties involved in the transaction to act on the same shared ledger, with each party updating only their part of the process, ensuring efficiency, consistency, trust and transparency, while safeguarding sensitive information.
This solution aims to enable more suppliers to access credit, with the goal of driving more financial inclusion throughout the supply chain. Supplier-to-manufacturer invoice discounting processes have been slow and risky, requiring each party to maintain and manually update separate ledgers.
“The Mahindra Group is pioneering the use of blockchain to disrupt its traditional businesses and drive future growth. We are looking at other applications across the Group in financial services, auto, mobility and agritech,” said Anish Shah, group president (Strategy), Mahindra Group.
Blockchain technology can help enable Mahindra Finance access transactions recorded on a shared ledger in near real-time, enabling it to develop and offer new products to small and mid-sized enterprises.
“The work with Mahindra has the potential to fundamentally transform the way businesses interact with one another and their customers and suppliers, and we’re confident that this engagement can be replicated not just in the finance industry but across other sectors as well,” said Lula Mohanty, managing partner of IBM Global Business Services, IBM ISA.