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.
Keep updated, follow The Business Standard's Google news channel
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.
To ensure long-term sustainability, IPDC launched two signature propositions: SME Bondhu and IPDC Joyee. These initiatives aim to create an inclusive business model, supporting both traditional CMSMEs and women-led businesses. In addition to smooth financial services, IPDC provides SMEs with market linkage and networking opportunities, documentation support through partners, and even direct business opportunities by listing them as vendors.
Understanding the pressing need for supply chain financing, IPDC also pioneered collateral-free, localised solutions such as factoring, work-order financing, and import duty financing. This proactive stance helped IPDC capture a substantial share of the supply chain financing market, earning strong recognition from SME communities.
Partnerships and inclusion
Strategic partnerships have played a crucial role in IPDC's holistic model. Collaborations with international development agencies and initiatives such as WE-Fi, Access to Green Finance, and Gender-Lens Investing have expanded IPDC's reach and deepened financial inclusion, particularly for micro-enterprises in remote areas.
IPDC has also led efforts to formalise informal businesses in unique clusters, such as silk, jamdani, and light engineering enterprises in Rajshahi, Narayanganj, and Jashore. The aim has been transformational impact, rather than aggressive market expansion. This vision has fostered sustainable business growth while maintaining high portfolio quality.
A powerful example is Towkir Ahmed, owner of a plastic manufacturing SME and beneficiary of one of IPDC's green initiatives, "IPDC helped me realise how much redundant energy my factory was consuming and how much waste could be salvaged. Through IPDC's capacity-building support, I'm redesigning my product line and machinery to reduce both waste and energy consumption. I want my business to be part of a greener future."
IPDC's commitment goes far beyond profit; it is about building a thriving, resilient CMSME ecosystem. After the pandemic, IPDC was the first financial institution to fully disburse the CMSME Covid-19 stimulus package within the government's timeline. The growth of its rural portfolio has nearly quadrupled since the pandemic, further reflecting its confidence in the resilience of the CMSME segment and its desire to be a driver of national recovery and growth.
IPDC Joyee: Empowering women entrepreneurs in Bangladesh
A standout initiative within the SME journey has been the transformation of Joyee, IPDC's loan product for women entrepreneurs, into a comprehensive 360-degree support platform. Initially launched as a financial product, IPDC soon realised that women entrepreneurs face a wide range of barriers, including limited financial literacy, poor documentation skills, and restricted market access.
In 2024, IPDC reimagined Joyee as a 360-Degree Business Enabler Suite, offering four key dimensions of support: Access to Finance, Market, Capacity Development, and Business Solutions.
A landmark step was the inauguration of the Joyee Mirpur 360 Sub-Branch, Bangladesh's first dedicated branch for women entrepreneurs. Since opening in March 2024, this facility has served as a hub for women-led businesses, offering services like:
- Joyee Shokhi Desk – a dedicated helpdesk for financial services and information
- Joyee Alapon – a complimentary meeting room for women entrepreneurs
- Joyee Pathshala – a training wing providing state-of-the-art capacity-building programmes
These pioneering efforts have earned IPDC praise from national stakeholders and encouraged similar initiatives by other financial institutions. Beyond preferential loans, IPDC has supported women entrepreneurs through tailored training, business solutions, and market access.
Beyond finance: A holistic support system
IPDC SME's vision is not limited to financial products. It offers a range of value-added services such as:
- Joyee Privilege Card
- Mental Health and Self-Defence Training for Entrepreneurs
- Mompreneur Support Initiatives
These programmes show IPDC's commitment to supporting not just businesses, but the overall well-being of entrepreneurs and their families. Through such interventions, IPDC has improved the living standards of SME households and created long-term socio-economic value.
Aligning with national goals
IPDC Finance PLC has redefined SME financing in Bangladesh by aligning its vision with national priorities, particularly inclusive growth and women's empowerment. Its customer-centric, sustainability-focused approach has led to not just business success, but also the foundation of a resilient, future-ready CMSME ecosystem.
By embracing innovation, inclusion, and impact, IPDC continues to pave the way towards achieving the Sustainable Development Goals by 2030, not just as a financial institution, but as a partner in national progress.
