UdaanCapital, the fintech firm of e-commerce, recently announced that it has facilitated disbursals of over Rs 4000 cr of working capital to over 2500 MSME customers in the last 2 years. These transactions were made possible by engagements with brand partners through the supply chain finance programme of udaanCapital. By integrating lenders and borrowers, the firm lending programme supports the extension of credit. It also makes use of its in-house digital underwriting and strong collection capabilities over more than 8000 pin codes.
The Fintech firm claims that it’s well positioned to capitalise on the USD 380 billion working capital opportunity in India’s MSME segment through externalization of its core capabilities of granting credit to retailers on udaan. UdaanCapital’s head, Chaitanya Adapa said in a statement that funding receivables and managing them are problems that affect the entire business and the company has witnessed considerable interest from brands across mobile phones, consumer electronic items, appliances, hardware, electricals and other categories for our program.
UdaanCapital lending programme supports the extension of credit
The company are thrilled to have been able to assist the brand partners to reduce and eliminate receivables and concentrate more of their energies on the main business. In India, there is a significant gap in trade financing, particularly in the tier II & III towns. Generally, manufacturers and brands offer informal trade credit channels to fulfil this requirement. Furthermore, there has been a continuous push for rural market penetration by major corporations and local brands, which has resulted in fragmented distribution channels and difficulties with timely dues collection in the smaller areas. As a result, both regional and global brands are considering partnering with financial institutions to expand their customers’ access to formal working capital.
UdaanCapital’s lending programme makes it possible for credit to be extended
With the help of its in-house digital underwriting, wide collecting capabilities, and access to more than 8000 pin codes, UdaanCapital’s lending programme makes it possible for credit to be extended. Smaller buyers from Tier 2/3/4 Indian cities can extend working capital due to this initiative. The supply chain finance programme is also designed to encourage borrowers to return faster by providing a flexible cash discount structure in partnership with brands, which helps companies address the issue of payment discipline. This accelerates sales rotation and top-line development for the brands.