ShopClues recently announced it plans to disburse Rs.5,000 crore worth of loans to merchants selling on its platform under its financing initiative Capital Wings.
Of this, Rs.200 crore will be disbursed ahead of this year’s Diwali festival.
Shopclues launched Capital Wings last year and has partnered with lenders including State Bank of India, ICICI Bank Ltd, Capital Float, Indifi Technologies and FlexiLoans to facilitate these loans.
Under this initiative, sellers are offered working capital loans at low interest rates and customized solutions for repayment and prepayment of loans.
ShopClues claims to have half a million merchants on its platform selling 50 million products.
“In the past one year, Capital Wings has disbursed Rs.100 crore worth of loans to more than 1,200 merchants, ShopClues announced in a press note.
“As 80% of our merchants are from tier-II and tier-III cities, the core challenge for them was to arrange working capital for starting and scaling their online business. Capital Wings was launched with the intent of making working capital available for merchants with flexible equal monthly instalments options. Through the easy financing solutions on offer, merchants no longer need to worry about their cash flows. They can focus single-mindedly on their business and on driving sales. This initiative has already bolstered the business of 1,200 merchants so far, and in view of the upcoming festive season, we aim to enable more merchants with the requisite finance to meet the high demand,” Assistant vice-president, merchant services, Ganesh Balakrishnan, said in an official statement.
Capital Float, one of the NBFC partners for Capital Wings, is a digital finance company which provides working capital finance for SMEs in India. The company’s mission is to bridge the current gap in the market with financial products for SMEs and deliver capital in an efficient and customer-friendly manner.
With the peak festival close on heels, ShopClues has further plans to strengthen its seller network and tie up with more finance partners to ensure robust sales.
Co-founder, Capital Float, Gaurav Hinduja, said, “We are delighted with this opportunity to partner with ShopClues, one of India’s premier e-tailers, on their Capital Wings initiative. This partnership is a reflection of our commitment to effectively address the needs and requirements of our customers, and we are confident that it will go a long way in paving the way for future collaborations within India’s e-commerce ecosystem. We wish ShopClues all the best on this venture and look forward to working together to usher in a new wave of growth and success.”