Ecommerce marketplace Flipkart has further expanded benefits under its seller financing program, ‘Flipkart Growth Capital’, to support business continuity and growth for its seller partners.
Flipkart has forged various new partnerships under the Working Capital loans program to increase the breadth of options and opportunities available to lakhs of these marketplace sellers, through multiple lenders, based on their specific business needs, a release said.
These partnerships have enabled the ‘Growth Capital’ program to provide fresh credit options to sellers ranging from less than Rs 5 lakh up to Rs 5 crore.
The program enables sellers to get secured and unsecured loans at 9% interest. With the help of tech synergies across the ecosystem, sanctions happen instantly and disbursals within 24 hours of the application.
The Growth Capital program is designed specifically to enable financial inclusion and independence for MSMEs who operate online. Sellers partners have leveraged the program’s benefits, resulting in an average loan size increase of 18% YoY.
Flipkart Senior Vice President – Marketplace, Fintech & Payments Group, Ranjith Boyanapalli said, “E-commerce has played a transformational role for sellers and MSMEs in recent years, especially since the pandemic, by providing new avenues for their growth and expansion.”
“The scope and the benefits of the Growth Capital program will help them speed up cash flows and manage procurements better. The application process is now faster, and they can choose from a wide set of lenders as per their requirements,” he added.
The program further aims to bridge the gap between financial institutions and the underserved. With technology as an enabler, a new product called ‘Early Settlement’ has been introduced as part of the program. This product will help sellers manage their cash flows and procurement requirements with no financial burden. Seller partners opting in for the product will also benefit from processing fee waivers during this period.
Flipkart plays a critical role in ensuring that all its sellers, irrespective of their vintage or size of business, have access to affordable credit, the release added.
The application process has also further been made simpler for them. Flipkart automatically and immediately redirects the interested sellers from its portal to the lender’s portal, enabling faster processing of applications and improving sanction and disbursal timelines.