After announcing flexible benefits for its employees, Flipkart has now turned to its sellers to provide them with ease of procuring capital.
The e-commerce giant announced that all the sellers associated with it will now be able to secure loans at competitive interest rates from NBFCs and banks within just 48 hours.
The sellers are facilitated to avail loans of up to Rs. 3 crore at an interest rate of 9.5 per cent for a period of up to 12 months. This comes as an effort to revamp its seller financing programme ‘Growth Capital’ to empower MSMEs.
MSME sellers need to go through a minimal documentation process for getting the loan and this move will benefit more than 1 lakh sellers on the platform. Financial partners include State Bank of India, Bank of Baroda, Axis Bank, Aditya Birla Finance, Tata Capital, Flexiloans, Small Industries Development Bank of India, Lending Kart, Indifi and Happy Loans.
Flipkart CEO Kalyan Krishnamurthy said the programme will help sellers meet working capital requirements and demand spikes. “Small businesses are the backbone of our economy and being a homegrown company, Flipkart is committed to helping sellers all across India grow. Our knowledge and understanding of the Indian ecosystem allow us to construct frameworks such as ‘Growth Capital’, through which sellers can scale their businesses, prosper, create more employment opportunities and continue to transform the country’s economy. This is a part of Flipkart’s core mission of developing shared value in the ecosystem and helping digitise India through the latest technology and innovations,” he said in a statement.
Meanwhile, Ranjith Boyanapalli, Head of Fintech and Payments Group of Flipkart, said that the key aim of the Fintech arm of Flipkart is to use technology to power financial inclusion within the country.
“The ‘Growth Capital’ programme will help us reach a traditionally under-served market and make financial services more accessible to all. Through this, the seller community on Flipkart will be able to transform their businesses and realise their growth aspirations. It is a natural progression of our Fintech journey to reach out to the seller community and empower them with easily accessible low-interest financing options,” he asserted.