Capital Wings, an initiative by ShopClues which provides easy financing solutions to sellers on India's first and largest managed marketplace, is looking to disburse Rs. 5000 crore worth of loans to its half a million merchant base to accelerate growth and increase the prominence of their business online.
For Capital Wings, ShopClues has partnered with several NBFCs and nationalized banks to facilitate easy working capital loans for its empanelled vendors. Sellers are being given the opportunity to avail low interest rates and customized solutions for repayment and prepayment of loans.
More than 1200 merchants have benefitted from the Rs. 100 crore worth of loans that have been disbursed so far through this initiative. Amongst the prominent partners of ShopClues are banks such as SBI, ICICI and NBFCs such as Capital Float, Indifi and FlexiLoans.
"At ShopClues, the interest of our merchants has always been a top priority. As 80 percent 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 EMI options," said AVP-Merchant Services, Ganesh Balakrishnan.
"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 1200 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," said Ganesh Balakrishnan.
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.
"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," said Co-founder Capital Float, Gaurav Hinduja.
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. The marketplace plans to achieve a target of Rs 200 crore disbursed in loans by Diwali.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)