Udaan Capital, the eB2B major’s fintech arm, on Wednesday said it has facilitated disbursals worth over `4,000 crore in working capital to more than 2,500 micro, small and medium enterprise (MSME) buyers over the last two years. The company further said it has now onboarded 100 active brand partners to the supply chain financing programme.
Udaan Capital is a lending programme that facilitates an extension of credit by bringing together lenders and borrowers and leverages in-house digital underwriting collection capabilities at over 8,000+ PIN codes.
Chaitanya Adapa, head, Udaan Capital, said the arm has demonstrated a clear impact on the revenue and profitability of its partner brands by bringing the bad debts to “near zero” and improving the payment cycle by “an average of 20%-30%”.
Distributors and retailers need working capital to purchase and stock inventory, but those financing requirements from banks and NBFCs is hard to come by for kiranas (small shop owners), the company said when asked about the need for Udaan Capital.
Udaan Capital was initially started as an in-house pilot, Vaibhav Gupta, CEO, Udaan, had earlier told FE. “Udaan Capital is similar to Amazon
Started in 2019, Udaan Capital now has a `400-crore loan book.