Credit in 2 minutes for 1.5 minutes of kiranas under the new plan of Flipkart Wholesale

Flipkart Wholesale, the digital B2B marketplace for e-commerce company Flipkart Group, announced the launch of industry-first credit programs aimed at helping kiranas manage their working capital needs and grow their business . Over 1.5 million kiranas and retailers will be able to access credit in just two minutes thanks to Flipkart Wholesale’s partnership with lending partners and fintech institutions.

Flipkart Wholesale’s credit offerings, including “Easy Credit” in partnership with IDFC FIRST Bank, are in line with a series of initiatives undertaken to address local kirana issues in India. The company said it aims to increase their prosperity by facilitating their business with the help of technology.

With these new offerings, kiranas can get credit in just two minutes at no cost, thanks to end-to-end digital integration in partnership with our preferred lending partner, IDFC FIRST Bank and other reputable financial institutions. The line of credit will range from Rs 5,000 to Rs 2 lakh with an interest-free period of up to 14 days. Kiranas can also enjoy the benefits of flexible refund options via cash and online transfers as well as instant refunds in the event of order cancellation. They can easily keep an eye on their credit balance and bills.

“Our main goal at Flipkart Wholesale is to make it easier for kiranas and retailers to do business and to drive their growth,” said Adarsh ​​Menon, senior vice president and director of Flipkart Wholesale. “We believe our new credit plan is designed to address the local challenges facing Kiranas in India and will help them manage their cash flow and improve their shopping experience on our platform, thereby ensuring the benefits of digitization is rippling through the entire B2B retail ecosystem. “

Flipkart Wholesale serves over 1.5 million members across the country, which include kiranas and retailers, HoReCa (hotels, restaurants and cafeterias) and O&I (offices and institutions).

Flipkart Wholesale customers have access to a range of value propositions. These include a wide range of quality products guaranteed by Flipkart, easy and convenient order returns, and prompt delivery of products directly to their stores with ease of order tracking and better margins on every product.

Amit Kumar, Head of Retail Liabilities and Bank Branches – IDFC FIRST Bank, said India’s kirana stores make up more than two-thirds of the country’s retail landscape. This traditional business is evolving today in terms of distribution formats and business models.

“As a bank with a digitally-driven and service-oriented approach to the retail ecosystem, we want to contribute to the growth of this segment,” said Kumar. “The partnership with Flipkart gives us the opportunity to enable kiranas to access formal credit and develop their businesses.”

With the change in consumer behavior after coronavirus disease (Covid-19), offline retail is becoming the new battleground for e-commerce giants such as Amazon, Flipkart, Reliance’s JioMart and Udaan.

This year, Amazon Pay, the digital payment arm of the e-commerce giant, said it would make small loans and insurance difficult for Kirana stores. The company said it has equipped more than 5 million neighborhood stores and businesses with its digital payments infrastructure. These SMBs (Small and Medium-Sized Businesses), most of which previously conducted only cash transactions, can accept payments from their customers using Amazon Pay’s QR (Quick Response) code.

Bengaluru-based business-to-business e-commerce startup Udaan plans to seize a $ 100 billion opportunity over the next few years. The goal is to have 10% of total transactions ($ 1,000 billion) on the Udaan platform over the next few years. Most of this growth would come from Bharat, where most of the kiranas are based. He built a ladder and created logistics and lending capabilities such as UdaanExpress and UdaanCapital. UdaanCapital has increased 30 times in AUM (assets under management) and 40 times in lines of credit over the past 2 years.

Flipkart Wholesale recently announced plans to more than triple its geographic footprint in India to nearly 2,700 cities. The goal is to make business easier and bring prosperity to small business lakhs and Kiranas across the country.

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