Flipkart Wholesale, the digital B2B marketplace of Flipkart Group, on Saturday said it has partnered with SME lending platform Davinta to offer a ‘Buy Now Pay Later’ (BNPL) credit facility to its retailers.
Flipkart Wholesale Senior Vice-President and Head Adarsh Menon said access to affordable and transparent credit is one challenge the company aims to solve.
“Partnering with Davinta will give members on our platform access to credit with a single click. The experience for the retailers is seamless and completely digital and was only possible because both our organizations take a technology-first approach,” he said in a statement.
As this partnership is strengthened, this construct will allow more and more of Flipkart Wholesale’s Kirana and MSMEs members to enjoy the benefit of accessible and affordable credit in the pursuit of their growth on the platform, he added.
‘Buy Now Pay Later’ or BNPL has emerged as a credit innovation from new-age fintechs, who are offering this as an alternative to customers who struggle to be eligible for traditional credit constructs such as credit cards.
With more than 6 crore small businesses in India, a majority of whom struggle to get access to traditional credit, BNPL offers a massive opportunity to drive financial inclusion and provide the much needed affordable credit access to these small business owners.
“We are very excited with the opportunity to partner with Flipkart Wholesale and offer our BNPL product to the over 1.5 million members of Flipkart Wholesale,” Davinta CEO Ravi Garikipati said.
He added that with BNPL, the company is now allowing retailers across the country to unlock themselves from cash constraints while purchasing supplies and enjoy simple one-click credit access.
Bengaluru-based Davinta was founded by ex-Flipkart CTO Ravi Garikipati and US-based entrepreneur Raj Vattikuti. The two-year-old firm focuses on micro-enterprises and its flagship product Vyaapaar Shakti is a BNPL credit facility designed for small retailers.
Centre to simplify Coffee Act to promote ease of doing biz
The government will relook at the coffee law to make it suitable as per the present needs of the sector and facilitate its growth, the commerce ministry said on Saturday.
The issue was discussed, among other things, in an interaction of Commerce Minister Piyush Goyal with coffee growers, roasters, exporters and other stakeholders at Coffee Board Head Office, Bengaluru.
Coffee growers expressed concerns over losing their lands in view of the notices issued by banks under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
The minister assured coffee growers that the issue will be favourably discussed with other ministries concerned and a suitable solution would be found at an early date, it said.
The present Coffee Act was enacted in 1942 and has many provisions which are redundant and are impediments to the coffee trade.
“Therefore, it was decided in the meeting to completely relook at the provisions of the Act and to remove the provisions which are restrictive and regulatory in nature so as to bring out a simple Act that suits the present needs of the coffee sector and facilitates its growth,” the statement said.
Several exporters have raised concern that due to increase in international freight rates, the Indian agri-exports to several destinations have become uncompetitive.
They sought increased assistance under Transport and Marketing Assistance Scheme (TMA).
Goyal assured the exporters that a special package to assist agri-exports at least for one year will be considered under the scheme to tide over the present crisis.
On the issue of Coffee White Stem Borer disease, the minister said a request will be made to Agriculture Department and Indian Council of Agricultural Research (ICAR) to initiate advanced research on this.
Further, the Coffee Board requested the minister to announce restructuring of all existing loans into a single term loan with long repayment period and also extend fresh working capital with soft interest.
Goyal assured them that a feasible package will be worked out after discussion with ministries concerned, it added.
The minister has directed Coffee Board to develop a dashboard for real time updation of extension activities including field visits, workshops, demonstrations, seminars to be undertaken by the extension personnel in the farmers’ fields and to effectively monitor the same.
Dispelling stakeholders’ apprehension that Coffee Board would be closed, Goyal said the government has no such intentions.
However, in order to provide better services to coffee growers especially small growers, it is proposed to shift Coffee Board from Ministry of Commerce to Ministry of Agriculture, the statement said adding this will ensure that benefits of all the schemes for agriculture sector are extended to coffee growers.