Indian Online Retailer Flipkart Expands Benefits With Vendor Funding
Flipkart has forged various new partnerships under the Working Capital Loans program to increase the range of options and opportunities available to lakhs of these sellers in the market, through multiple lenders, depending on their specific business needs, the company said in a press release.
The Growth Capital program allows sellers to obtain secured and unsecured loans at an interest rate as low as 9 percent. Thanks to technological synergies across the ecosystem, sanctions are instantaneous and disbursements within 24 hours of request. It is designed specifically to enable financial inclusion and independence for MSMEs that operate online. The selling partners reaped the benefits of the program, resulting in an average loan size increase of 18% year-over-year.
The program also aims to bridge the gap between financial institutions and underserved people. With technology as a catalyst, a new product called “Early Settlement” was introduced as part of the program. This will help sellers manage their cash flow and procurement needs without a financial burden. Selling partners who opt for the product will also benefit from processing fee waivers during this period, the release said.
“E-commerce has played a transformative role for sellers and MSMEs in recent years, especially since the pandemic, providing them with new avenues for their growth and expansion. The reach and benefits of the Growth Capital program will help them accelerate cash flow and better manage purchasing. The application process is now faster and they can choose from a wide range of lenders according to their needs, ”said Ranjith Boyanapalli, senior vice president – Markets, FinTech and Payments Group, Flipkart.
Flipkart plays a vital role in ensuring that all of its sellers, regardless of vintage or company size, have access to affordable credit. The application process has also been simplified for them. Flipkart automatically and immediately redirects interested sellers from its portal to the lender’s portal, enabling faster processing of requests and improving sanction and disbursement times.
Fibre2Fashion News Desk (KD)
The Indian e-commerce marketplace Flipkart has extended its benefits under its vendor finance program, Flipkart Growth Capital, to support the business continuity and growth of its vendor partners. It is forging new partnerships to offer new credit options to sellers in the range of ₹ 5 lakh to ₹ 5 crore, and has also introduced early settlement options.