Home Retail Paytm ties up with Aditya Birla Finance to extend finance to SMEs

    Paytm ties up with Aditya Birla Finance to extend finance to SMEs

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    -backed mobile commerce platform, , has tied up with Finance to offer hassle-free finance options to more than 50,000 sellers on its platform. The move is expected to help small and medium sellers to scale up their business, the company said in a press release.

    Alibaba, SAIF Partners to invest US 0 in Paytm's online marketplace unit
    Earlier this week, Paytm launched a separate smartphone app and website—Paytm Mall—for its online marketplace and is aggressively hiring people for expanding the operations

    “We are creating an ecosystem which helps our merchants to grow their business faster,” said , vice present for small and medium business at Paytm. “Accessibility to short-term loans and working capital loans is often a major roadblock for smaller sellers which we are working towards removing.”

    Satti said Aditya Birla Finance was setting up a dedicated system and infrastructure to cater to the financing requirements of smaller sellers.

    “A majority of micro, (MSME) in India do not have access to formal financing channels. The partnership with Paytm also creates the opportunity for ABFL to penetrate the unbanked MSME space faster,” said Aditya Birla Finance Chief Executive Rakesh Singh.

    The move comes on the heels of tying up with Tata Capital to enable its sellers and online merchants to take loans.

     Read: Snapdeal’s launches Capital Assist loan approval facility

    Prior to this Paytm had tied up with fin-tech startup Capital Float in order to provide working capital to small and medium enterprises.