Credit and Finance for MSMEs: The payment receipt time will be slashed by 76 per cent and will enable sellers to redeploy the capital to expand their business, build inventory and manage other business needs.
Snapdeal had last year added over 5,000 manufacturer-sellers on its platform. (Image: Reuters)
Credit and Finance for MSMEs:Snapdeal’s over 5 lakh small and medium sellers will now have an option to receive their payments faster. The company, under its new initiative Jaldi Payments, would let its sellers get paid for their goods sold on the Ratan Tata and Anand Piramal-backed marketplace within three days instead of the standard seven days. “We often hear from small sellers that they struggle with steady cash flow and it has consistently been an area of big concern. Faster payments enable them to tap the online opportunity by churning their inventories faster and also access some liquidity to plan their future operations,” a Snapdeal spokesperson told Financial Express Online.
However, sellers will be charged a ‘nominal’ fee towards the facility. According to the company, the fee will be a fraction of the cost that they would incur in accessing funds from a bank, NBFCs, or other sources. Through this initiative, Snapdeal said that receipt time will be slashed by 76 per cent and will enable sellers to redeploy the capital to expand their business, build inventory and manage other business needs. Moreover, “65 percent of the sellers in the initial cohort have already opted in for the program. We are subsequently rolling it out to more sellers,” the spokesperson added.
While the pandemic has led to accelerated growth opportunities for online sellers, the easy availability of working capital has been a constraint, especially for small sellers. In a survey conducted by Snapdeal in February 2021, quick and flexible access to finance was identified by many sellers as an important lever of growth. Snapdeal had last year added over 5,000 manufacturer-sellers on its platform selling juicers & food processors, steel & copper utensils, crockery items, bed linen, fashion accessories, kidswear, sarees & suits, casual apparel, and fitness equipment. The company had also expanded its decentralized logistics network by opening new centers in Ahmedabad, Surat, Jaipur, Indore, Hyderabad, Panipat, Gurugram, Mumbai, Bengaluru, New Delhi, Bahadurgarh, Yamuna Nagar, Rajkot, Bhiwandi, Agra, Noida, and Mathura.
Amid Covid, Snapdeal also saw the acceleration and online adoption by sellers. “What that acceleration did in six months (April-September), we would have expected to happen in three years. In the last six months, we’ve seen 20,000 new sellers come onto our platform and 10,000 of them just in the last 90 days…In general, I feel that a lot of these offline businesses are now going to see ‘selling online’ become an even larger part of the business if not exclusively,” Snapdeal Co-founder Kunal Bahl had told Financial Express Online in an interview in October last year.