Flipkart, Davinta collaborates for credit facilities to MSMEs, kiranas
- ByStartupStory | September 20, 2021
Flipkart Wholesale, the advanced B2B commercial center of Flipkart Group, has collaborated with Davinta, an SME loaning stage, to offer the ‘Buy Now Pay Later’ (BNPL) credit office to its retailers, the organization said in a media discharge.
BNPL will allow retailers across the country to unlock themselves from cash constraints while purchasing supplies and enjoy simple one-click credit access and also allow more and more of Flipkart’s Kirana and MSMEs members to enjoy the benefit of accessible and affordable credit in the pursuit of their growth on the platform. They are proposing this as an alternative to customers who are struggling to procure traditional credit instruments such as credit cards.
Considering almost 60 million small businesses in India, a huge percentage of which are unable to secure traditional credit, BNPL provides a significant opportunity to drive financial inclusion. It gives these small business owners much-needed access to affordable credit. With the economy gradually returning to normal and the festive season approaching, customer demand is increasing, as is the curiosity for credit among retailers.
SMB lending platform Davinta is based in Bengaluru and was founded by Garikipati, and Raj Vattikuti, Davinta is two years old, and “its flagship product Vyaapaar Shakti is a BNPL credit facility. It is designed for small retailers to be utilized as an instant credit facility while purchasing supplies from offline wholesalers or on digital marketplaces.
Flipkart Wholesale is expected to grow 58 percent in 2021, which will further boost the local business ecosystem as well as livelihoods. The company recently rebranded its Best Price cash-and-carry business which it acquired from Walmart India in 2020.
Flipkart Wholesale witnessed 17 percent growth in its Kirana customer base in January-June 2021 compared to the same period last year. The Kirana customer base is projected to further grow by 33 percent in July-December 2021, compared to the same period last year.
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