Capital Float, one of the largest digital lending platform to SMEs in India, has announced that it has partnered with Amazon India to enable e-commerce sellers to effectively manage their dynamic working capital requirements.
The company claims to be the only fin-tech startup to partner with Amazon India Marketplace. It further says that it has successfully disbursed thousands of loans to e-sellers on the B2C platform since the start of the partnership in October 2016. The company has also partnered with other leading e-commerce platforms, including PayTM, Snapdeal, and Shopclues.
Gaurav Hinduja, Co-founder and Managing Director of Capital Float, said,
E-commerce merchants require quick, short-term credit that can be used to boost their inventory in order to meet the spikes in demand. We designed a customized solution called Pay Later, a collateral free credit facility for online sellers that helps them make supplier payments within 24 hours. We customize the credit underwriting parameters using cutting-edge technology and Big Data analytics to help us assess e-sellers individually. Basis the underwriting, we are able to offer customized working capital finance to these sellers in a timely and efficient manner.
Gopal Pillai, GM and Director Seller Services, Amazon India, said,
The easy access to credit offered by Capital Float has enabled the sellers on our platform to expand operations and effectively manage seasonal spikes. This is essential in helping sellers get access to working capital, source or manufacture products to meet the increasing demands from millions of customers, essentially resulting in sellers being successful on Amazon India. This is an enabler in achieving our vison of transforming the way India buys and sells.
With loan sized Rs 2 lacs and above, the initiative is helping finance e-sellers who are part of the smartphones, consumer electronics, consumer durables and fashion verticals of Amazon India. In 2017, Capital Float says that it will expand this partnership to finance more e-sellers across verticals, strengthening its position as the largest financier for e-sellers in the country.
India is soon expected to become the world’s fastest growing e-commerce market, driven by robust investment in the sector and rapid increase in the number of internet users. E-commerce revenue is expected to jump from $30 billion in 2016 to $120 billion in 2020, growing at an annual rate of 51 percent. Capital Float further says that digital lenders will play an integral role in creating an inclusive financial ecosystem for merchants to support this growth.
Founded in 2013 and based in Bangalore with offices in New Delhi and Mumbai, Capital Float is an online platform that provides working capital finance to SMEs in India. It offers flexible, short-term loans that can be used to purchase inventory, service new orders or optimize cash cycles. Its mission is to bridge the current gap in the market with innovative and flexible credit products for SMEs, delivered in an efficient and customer-friendly manner.