Loans to be disbursed to 5 lakh merchant base to boost sales
New Delhi, August 23, 2016: Capital Wings, an initiative by ShopClues which provides easy financing solutions to sellers on India’s first and largest managed marketplace, is looking to disburse Rs. 5000 crore worth of loans to its half a million merchant base to accelerate growth and increase the prominence of their business online. For Capital Wings, ShopClues has partnered with several NBFCs and nationalised banks to facilitate easy working capital loans for its empanelled vendors. Sellers are being given the opportunity to avail low interest rates and customized solutions for repayment and prepayment of loans. More than 1200 merchants have benefitted from the Rs 100 crores worth of loans that have been disbursed so far through this initiative. Amongst the prominent partners of ShopClues are banks such as SBI, ICICI and NBFCs such as Capital Float, Indifi and FlexiLoans.
Forty-one-year-old Neelam of Neelam Garments, Agra, was keen to expand her business footprint and add new products on ShopClues. Having tasted success in the recent past in online selling, Neelam realised the need to step beyond her locality to do business. FlexiLoans, an online lending platform partnered with ShopClues, saluted the entrepreneurial spirit of the woman entrepreneur, and provided her a loan of Rs 50,000 within two days of her online application. The USP of this lending format is that it enables financial support to tier II locations like Moradabad, where large NBFCs do not function.
Neelam said, “Several merchants are keen to expand their businesses, but face roadblocks related to capital. Smaller sellers, like me, find it hard to raise loans or face other problems such as high interest rates, high financial risks and lack of collateral support. By partnering with ShopClues, I received the required funds immediately and the process was hassle-free. I’m now able to fulfil the dream I had nurtured for my business; with a turnover of almost Rs. 5 lakhs a month, my business got the wings it needed!”
Ganesh Balakrishnan, AVP – Merchant Services, said, “At ShopClues, the interest of our merchants has always been a top priority. As 80% of our merchants are from tier 2 and tier 3 cities, the core challenge for them was to arrange working capital for starting and scaling their online business. Capital Wings was launched with the intent of making working capital available for merchants with flexible EMI options. Through the easy financing solutions on offer, merchants no longer need to worry about their cash flows. They can focus single-mindedly on their business and on driving sales. This initiative has already bolstered the business of 1200 merchants so far, and in view of the upcoming festive season we aim to enable more merchants with the requisite finance to meet the high demand.”
Capital Float, one of the NBFC partners for Capital Wings, is a digital finance company which provides working capital finance for SMEs in India. The company’s mission is to bridge the current gap in the market with financial products for SMEs and deliver capital in an efficient and customer-friendly manner.
Gaurav Hinduja, Co-founder, Capital Float said, “We are delighted with this opportunity to partner with ShopClues, one of India’s premier e-tailers, on their Capital Wings initiative. This partnership is a reflection of our commitment to effectively address the needs and requirements of our customers, and we are confident that it will go a long way in paving the way for future collaborations within India’s e-commerce ecosystem. We wish ShopClues all the best on this venture and look forward to working together to usher in a new wave of growth and success.”
With the peak festival close on heels, ShopClues has further plans to strengthen its seller network and tie up with more finance partners to ensure robust sales. The marketplace plans to achieve a target of Rs 200 crores disbursed in loans by Diwali.