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How IPDC transformed its SME business into a journey of success and sustainability
Small and Medium Enterprises (SMEs) contribute around 30% to Bangladesh's GDP and employ over 85% of the country's industrial workforce. Their adaptability, reach across rural and peripheral regions, and entrepreneurial spirit make them a vital pillar of a resilient and inclusive national economy.
For Bangladesh to realise its long-term development ambitions and build economic resilience, the empowerment and sustainable growth of SMEs is not merely desirable—it is essential.
IPDC Finance PLC, Bangladesh's first Non-Banking Financial Institution, has always placed youth, women, and underserved communities at the heart of its vision. Despite their immense contribution, Cottage, Micro, Small, and Medium Enterprises (CMSMEs) have long faced a substantial financing gap. Structural challenges such as informal business practices, high operational costs, and market volatility have left them underserved.
Recognising the potential of this sector, IPDC stepped in with a holistic approach—one that empowers entrepreneurs, closes opportunity gaps, and builds inclusive economic ecosystems. The aim: to ensure meaningful and sustained growth for its SME customers.
Financing with a holistic vision
Following its acquisition by BRAC, the world's largest NGO, IPDC Finance refocused its efforts on SME financing. The institution introduced a dedicated structure and tailored financial products designed to meet the specific needs of SMEs. It segmented its business regions and deployed trained relationship managers, supported by specialised Refinance and Business Planning and Development teams.
This strategic focus has driven remarkable growth. In the past five years, IPDC's SME portfolio has tripled, now representing nearly a quarter of the company's total portfolio. Notably, over 70% of the SMEs financed operate in the manufacturing and service sectors, underscoring IPDC's commitment to national economic development.
IPDC's approach combines both people-centric and process-centric development. It has digitised operations, developed end-to-end processing models, and ensured rapid, customised financial solutions for CMSMEs, offering some of the fastest turnaround times in the industry.