Craftsvilla has partnered with Lendingkart, an online lending platform for entrepreneurs and small businesses, to offer collateral free business loans to small and medium enterprises (SMEs) and sellers. With this move, Craftsvilla wants to focus on SME development and expanding its seller base.
The companies claim that the credit evaluation process from Lendingkart will take just 3 days, and that loans will be provided at fair interest rates. Note that Lendingkart had entered into a similar partnership with Paytm in November last year to offers loans to its sellers. In September last year, Flipkart Marketplace had tied up with Capital Float and Lendingkart to make loans available for its sellers on its platform.
Lendingkart funding: Lendingkart had raised $10 million from various investors in July last year. At the time, it said it would use the funding for capacity building, its technology platform, adding to its team as well as for an AI big data scoring system. Founded by Harshvardhan Lunia and Mukul Sachan last year, the platform had also raised seed funding worth Rs 3.8 crore the same year.
CraftsVilla funding: In November last year, CraftsVilla raised Series C funding worth ~$33.3 million, after the company raised Series B funding worth $18 million in April the same year. At the time the company mentioned that it planned to expand to other countries in southeast Asia. It had also raised $1.5 million Series A funding back in July 2012.
Earlier this month, the company acquired the on-demand shipping service provider Sendd for $4.5 million. Post acquisition, Sendd would continue to operate independently and offer its services to other firms as well. Craftsvilla mentioned that it would use the acquisition to strengthen its logistics capabilities.
Other lending programmes by ecommerce companies in India:
– In June, Amazon said it would extend its business loan programme to small sellers in India and seven other countries by the end of this year.
– Snapdeal tied up with Capital Float to launch Capital Assist, which essentially serves the same purpose of providing sellers with easy access to working capital loans.
– As part of its trade facilitation centre (TFC), Chinese ecommerce player Alibaba tied-up with ICICI Bank to provide trade finance and with certification company SGS to provide credit checks and inspections for the TFC.