Cash Suvidha, a trade name of Usha Financial Services, announced its partnership with rural digitisation and commerce optimisation platform, StoreKing, to jointly disburde loans worth nearly USD 6 million by the end of the current financial year.
Going forward, the company plans to extend loans worth Rs. 30-40 crore to over 2500 retailers per year.
StoreKing, a technology-enabled distribution platform, is connecting small towns and villages across the country to a range of products and services, all via an app. With its strong network of 47,000 stores across 10 states, StoreKing has been enabling retailers to sell more products and services to the walk-in customers.
On the other hand, Cash Suvidha has a strong presence in North India, empowering more than 32,000 SMEs, providing a variety of loans to small and medium-sized enterprises (SMEs) and individuals, particularly in Delhi NCR, Bengaluru, Pune, Hyderabad, Mumbai, and Rajasthan. Through its tie-up with StoreKing, Cash Suvidha is being able to tap into new markets and geographies such as the rural parts of Gujarat, Karnataka and Tamil Nadu.
"We have achieved full data integration with StoreKing, allowing us to use our proprietary Artificial Intelligence (AI) driven systems to determine the best leads for credit, and match them with the perfect kind of product," said Head of the Alliance from Cash Suvidha, Utkarsh Gupta.
"We chose to partner with Cash Suvidha because of its convenient and effective financing options. This is critical in building retailer loyalty to our company, giving them the confidence to increase their overall GMV, positively impacting revenues both for them and us. Through this partnership, Cash Suvidha has provided collateral free loans to our retailers who are mostly underserved by traditional financial institutions. Adding to the value of their services, Cash Suvidha provides loans within 48 hours which is perfect for retailers in the rural market, owing to their simple working capital requirements," added StoreKing CEO, Sridhar Gundaiah.
Cash Suvidha receives around 15,000 plus loan applications per month and disburses loans within two working days. Since its inception in 2016, the company has raised a total debt of USD 5.2 million and has successfully disbursed a total amount of Rs.154 crore. With its vision to provide easy access to credit and working capital to SMEs, 80 percent of its loans are targeted towards the SME sector in India.
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