SnapBizz, India’s leading retail digitization company, Samhita-CGF’s REVIVE Alliance (a blended finance facility restoring COVID-19 affected livelihoods of informal workers and entrepreneurs) global market intelligence company Nielse and leading national banks are enabling the digitization of small retailers, to stimulate the adoption of digital tools and practices among the small kirana merchants to improve business outcomes and profitability.
Headquartered in Bengaluru, SnapBizz provides new age solutions to convert the neighbourhood Kirana stores into smart stores and enable them to leverage their current strengths to gain competitive edge and increase store profitability and growth.
The collaborative has kicked off with a pilot rollout poised for a scale up and is supported by noteworthy philanthropic, development and corporate organizations – Nielsen, TRRAIN (Trust for Retailers & Retail Associates of India), Michael & Susan Dell Foundation (MSDF), United States Agency for International Development (USAID), British High Commission, New Delhi and United Nations Development Programme (UNDP).
The initiative targets small and local merchants in the lower income bracket, having a net income of INR 20-25k a month, and aims to ease their access to working capital and supply chain challenges. SnapBizz, with a goal of digitizing a million small merchants, will provide the digital solution for local merchants. Samhita-CGF, through the REVIVE Alliance, a blended finance platform supported by United States Agency for International Development (USAID), MSDF, Omidyar Network India, British High Commission and UNDP, will provide financial assistance, through Returnable Grants and incentives, for small kirana merchants to access the digital solution & training. TRRAIN will support the initiative through self-help videos for merchants on modern retail practices. Nielsen will provide store acquisition and data evaluation support in the program. Further, National Banks and SnapBizz are collaborating in the roll-out and subsidizing the digital solution for the program.
The solution will give comprehensive support to the merchants – to manage their stores efficiently and effectively, help the store go online with their own storefront, give them access to suppliers of goods and working capital finance. The solution will enable merchants to sell more & acquire new customers by going online and enabling home deliveries, manage the store billing, inventory, accounting and compliance and optimise the access and supply of goods and money. They would also be provided with financial incentives such as a digital adoption reward of INR 1,000 at the end of four months by Samhita-CGF and the REVIVE Alliance and other performance rewards and ongoing incentives and promotions from Banks and Brands. The initiative is also expected to open newer in-store promotion avenues for FMCG brands by allowing them to collaborate with local merchants and drive targeted promotions.
The Returnable Grant, a zero-interest credit instrument provided by Samhita-CGF’s REVIVE Alliance, will be revolved to support each incoming merchant in adopting the technology. The merchants would be expected to return the money in instalments once they see success. Once returned, the money would be used to fund a new batch of merchants, creating a system where funds would be used and reused, driving a multiplier impact to the fund invested.
Commenting on the initiative, Prem Kumar, Founder & CEO, SnapBizz says, “Our collaboration with Samhita-CGF and National Banks is to ensure that every Kirana has a fighting chance to face the growing world of e-commerce and online marketing. We are privileged to have partnered with these organizations as it brings us closer to our vision of driving inclusive growth and integrating small merchants with the larger ecosystem. We are working together towards a digitally enabled India for all segments of the society.”
Priya Naik, CEO & Founder, Samhita says, “Small kiranas are the backbone of the retail business, and they’ve been at the frontline during the COVID-19 crisis, staying open through lockdowns and providing households in their localities with essential goods, with great risk to their business and health. Digitisation could help them modernise their trade and improve business outcomes on both the supply and demand sides in the current pandemic, from ordering online to customer acquisition to accepting digital payments.
Diptanshu Ray, Retail Intelligence Lead – South Asia at Nielsen says, “The REVIVE Alliance is thrilled to partner with SnapBizz and National Banks to create a better normal for small kiranas across the country, accelerating their digitisation and business growth and enabling them to compete with modern commerce.”
This collaborative aims to empower millions of small kiranas by equipping them with the latest digital tools and timely financial support, that will help them sustain through this crisis and thrive while meeting changing consumer demand in the present and for the future.