To enable e-commerce sellers to effectively manage their dynamic working capital requirements, digital lending platform Capital Float partnered with Amazon India. Capital Float, which is a digital lender to SMEs is the only Fintech start-up to partner with Amazon India Marketplace and has managed to close thousands of loans to e-sellers on the B2C platform. Other than Amazon India, the fintech company has also partnered with players like Snapdeal and Shopclues.
“The easy access to credit offered by Capital Float has enabled the sellers on our platform to expand operations and effectively manage seasonal spikes. This is essential in helping sellers get access to working capital, source or manufacture products to meet the increasing demands from millions of customers, essentially resulting in sellers being successful on Amazon India,” said Gopal Pillai, GM and Director Seller Services, Amazon India.
Driven by robust investment in the sector and rapid increase in the number of internet users, India is expected to become the world’s fastest growing e-commerce market. Growing at an annual rate of 51%, the highest in the world, E-commerce revenue is expected to jump from USD 30 billion in 2016 to USD 120 billion in 2020. This gives digital lenders a host of opportunities to expand and play an important part in creating an inclusive financial ecosystem for merchants to support this growth.
“E-commerce merchants require quick, short-term credit that can be used to boost their inventory in order to meet the spikes in demand. We designed a customized solution called Pay Later, a collateral free credit facility for online sellers that helps them make supplier payments within 24 hours,” said Gaurav Hinduja, Co-founder and Managing Director of Capital Float.
E-sellers who are part of the Smartphones, Consumer Electronics, Consumer Durables and fashion verticals of Amazon India can get financing of loans size INR 2 lacs and above. Looking to become the largest financier for e-sellers in the country, Capital Float will expand this partnership to finance more e-sellers across verticals.