Ecommerce majors tying up with non-banking lenders to encourage sellers
In a bid to encourage more sellers join their online channels, ecommerce majors including Flipkart, Snapdeal, Amazon and eBay are tying up with non-banking lenders for extending loans to those keen to sell products through these online marketplaces.
Several new-age non-banking finance companies (NBFCs) like Capital Float, NeoGrowth and Capital First, as well as online finance companies such as Lendingkart and loan facilitators like SMEcorner, are tying up with ecommerce players to offer sellers quick and hassle free loans.
“Small businesses struggle to get loans. With ecommerce becoming more mainstream, it is encouraging several entrepreneurs to set up businesses online,” SMEcorner founder and chief executive Samir Bhatia told PTI. SMECorner has tied up with Snapdeal, Flipkart, eBay, Paytm, among other ecommerce players to play a catalyst role to secure easier loans for sellers, he said. It has also partnered with several leading NBFCs.
Lendingkart, which recently raised USD 10 million from PE funding has also tied up with Flipkart, Snapdeal and Amazon to offer easier loans to sellers who want funds in excess of Rs 1 lakh. According to a recent study by the Union MSME ministry, only 6 per cent small businesses get finance from organised lenders, indicating the difficulty of small businesses to get loans.
In May, the nation’s largest lender State Bank of India also jumped on to the bandwagon and tied up with Amazon India to help ecommerce sellers access easy loans. Securing loans for sellers is high on priority for the competing online marketplaces.
Last year, eBay had tied up with the Confederation of All-India Traders (CAIT) representing self-employed traders. CAIT has a membership of over six crore traders. Partnering with SMEcorner is expected to fulfil the funding needs of more than 50,000 sellers estimated to be listed on eBay.
According to PTI, both Flipkart and Amazon had stated earlier this year that they aimed to more than double the number of sellers on their platforms to 1 lakh each by the end of the year, while Snapdeal has targeted to get over 10 lakh sellers on board over the next three years.