Capital Float, Payworld tie up to boost kirana stores business

Digital lending platform Capital Float has partnered Payworld to provide kirana stores with convenient financing options, enabling them to expand business operations.

Small retailers can now avail working capital from Capital Float, which will help them manage inventory and cash flows with added scalability, Capital Float said in a statement.

Payworld helps customers in remote locations with limited access to electronic payment methods, perform daily transactions like booking bus tickets or paying mobile bills via Payworld's network of retail points, which includes kirana stores.

"Due to the lack of established lending norms and consequent delay in financing activity, existing and new players in the retail space have lesser access to credit, which affects their growth and expansion plans," said Gaurav Hinduja, Co-Founder, Capital Float.
 

"With Payworld, we have simplified the lending process so that neighbourhood kirana stores are able to fulfil their financial needs and better service their customers," he added.

There are estimated to be over 12 million small retailers in India who can benefit from the tie up and avail collateral-free loans, which will help to increase their capacity to do business on the Payworld platform.

"We have partnered with Capital Float to provide the retailers in our network the support they require to boost their business. This is critical in building retailer loyalty to our platform, giving them the confidence to increase the number of transactions, positively impacting revenues for them and us," said Praveen Dhabhai, COO, Payworld.

Once a loan is approved by Capital float, the retailer can request for funds using the Capital Float mobile app and the funds are disbursed within 10 minutes, Capital Float said.

A proprietary algorithm developed by Capital Float helps build a personalised credit profile and provide customised finance options to the retailer, it added.

As per the statement, in the long term, this will also build an official credit profile for these retailers, to help them access credit products from traditional financiers.