Flipkart has revamped its seller financing programme -- Growth Capital to let its sellers avail credit facility at 'competitive interest rates' from 10 NBFCs and banks.
E-commerce major Flipkart has revamped its seller financing programme — Growth Capital to let its sellers avail credit facility at ‘competitive interest rates’ from 10 NBFCs and banks. The credit will now be approved in a day’s time and transferred to the seller’s bank accounts in 48 hours. Flipkart currently has more than 1 lakh sellers retailing products on Flipkart Marketplace.
Growth Capital is part of Flipkart’s support offered to its seller community, which are largely micro, small and medium enterprises, to tide them over their working capital challenge and also when demand increases.
There is minimal documentation for the programme for which Flipkart has tied-up with several public and private lenders, and digital lenders including State Bank of India, Bank of Baroda, Axis Bank, Aditya Birla Finance, Tata Capital, Flexiloans, SIDBI, LendingKart, Indifi and Happy Loans., the company said in a statement. Sellers can avail loans up to Rs 3 crore at 9.5 per cent interest rate. The average loan amount is Rs 7 lakh while the duration on the term loan and credit line options is up to 12 months.
Through Growth Capital Flipkart helps sellers to “scale their businesses, prosper, create more employment opportunities,” said Kalyan Krishnamurthy, CEO of Flipkart adding that the programme is part of Flipkart’s “core mission of developing shared value in the ecosystem”.
The programme for Flipkart gains significance in order to reach “a traditionally underserved market and make financial services more accessible to all,” according to Ranjith Boyanapalli, Head of Fintech and Payments Group, Flipkart.
The company has created an end-to-end API integration, from application to disbursal, with banks and other lending partners focusing on offering “a complete digital loan application experience for the sellers,” Flipkart said. Sellers would be able to access and track their loans directly through the company’s seller portal. Flipkart’s in-house technology also analyzes sellers’ performance metrics for lenders to “enable real-time credit offers.”