Online marketplace Snapdeal has helped over 150 sellers on its platform raise a total of over Rs 50 crore through its Capital Assist Initiative. According to Snapdeal, small and medium sellers on its platform have been able to double their turnover within 2 months of availing assistance through this initiative.
For now, Snapdeal claims to have partnered with over 12 banks and NBFCs including Axis Bank, ICICI Bank, HDFC Bank, RBL, Religare and L&T Finance for funding this initiative. These finance institutions provide financing to sellers depending on their current and future business requirements. Snapdeal mentions that it has clearly defined eligibility criteria for sellers to avail this service, however it seems like this document is available only to sellers.
Current schemes introduced on Capital Assist include a dedicated program for the ecommerce industry, specific programs for sellers with limited years of experience, pre-approved loans for small sellers with limited documentation and unsecured funding up to Rs 100 lakh and various financing products based on repayment capacity.
Snapdeal mentions that it aims to provide loans to over 1,000 sellers over the next year while extending its network to 25 banks and NBFCs in the same time frame. The company currently claims to have over 100,000 sellers on its platform, which it is looking to scale to 250,000 by the end of the year and a million within the next three.
It’s worth noting that Snapdeal had tied-up with Capital Float to launch Capital Assist back in August last year, with the purpose to provide sellers with access to working capital loans. The next month, Flipkart Marketplace, which was launched in 2013, started offering loans through lending partners Capital Float and Lendingkart. Capital Float would offer working capital loans of up to Rs 1 crore with tenures of 30-180 days. It also claims that once the loan is approved, the funds will be released within 24 hours.
Capital Float funding: The Bangalore-based digital SME finance company has been on a funding overdrive in recent times. Just last month, the platform raised $13 million in a round of funding led by SAIF Partners and Sequoia Capital, with participation from existing investor Aspada Investment. In August last year, it raised $1 million from SAIF Partners, barely a month after it had raised $2 million from Aspada Investment Company. Capital Float had also raised an undisclosed amount of angel investment in early 2014.
– Earlier this month, Snapdeal partnered with IndiVillage to let the former’s sellers outsource image tagging, transcription and content development for product descriptions to IndiVillage. As a pilot, Snapdeal will outsource above mentioned “cost effective” operations to IndiVillage.
– In January this year, Snapdeal.com launched a variety of products from the manufacturers at Dharavi for sale on its website. The company mentioned that it had tied up with DharaviMarket.com for the same. As a part of this initiative, Snapdeal would list Dharavi artisans and SMBs and create an exclusive store for them called ‘Dharavi – Snapdeal store’.
– The same month, Snapdeal.com signed an MOU with the Footwear Design and Development Institute (FDDI) and the Ministry of Commerce and Industry, for training design students. As a part of this deal, Snapdeal will let FDDI students under the social and artisan development program sell merchandise through its website.
– In November last year, Snapdeal partnered with FINO PayTech to launch assisted e-commerce centres in semi-urban, rural and low-income residential areas across India.
– In October last year, India Post signed an MOU with Snapdeal.com & shopclues.com, as per which it would offer their e-commerce business a wider reach and network. This MoU follows a pilot between Snapdeal and India Post last year for e-commerce deliveries.