The pioneering buy-now-pay-later financing facility on SOLV’s platform helps MSMEs with-
- Instant invoice financing for as low as Rs. 3,000 and a flexible credit period from 15 - 60 days
- With the alternate data on its platform, SOLV provides segment analysis to match financier and borrower requirements
- SOLV targets INR 100 crore of BNPL credit in 2021
Bengaluru, January 18th, 2021: SOLV, a B2B e-commerce platform for micro, small and medium enterprises (MSME), today announced the launch of a Buy-Now-Pay-Later (BNPL) product for MSME buyers and sellers on its platform. BNPL as a concept has already made big inroads into the consumer retail sector and seen significant success there, especially in the last year. SOLV, in one of the first such moves in the B2B space, now brings the convenience of BNPL to the MSME sector.
In the first phase of the launch, new age
fintechs and NBFCs that are a part of SOLV’s
extensive network of financial service providers,
have started offering invoice financing through BNPL
to small businesses on SOLV’s B2B commerce platform,
giving them a shot in the arm in this period of
COVID19-induced crisis, when many small retailers
are running low on capital and cash to finance their
needs. With the flexibility of BNPL available to
them, small businesses can now service their
immediate requirements without feeling severe
financial strain, with more time at their disposal
to make payments.
Speaking about this new offering, Jiten
Arora,
Venture Lead, SOLV said, “SOLV is at
the forefront
of leading digital transformation for the MSME
sector and bringing this large, underserved category
into the formal financing fold. Our newest offering
is another step towards this goal. The application
of BNPL in the B2B segment has been welcomed by our
buyers and sellers. This product provides both
convenience and financial flexibility to them, which
results in growth, even in these challenging times.
Going by the trend, every one out of three MSMEs
will avail this product by the end of 2021. BNPL is
expected to contribute to SOLV more than INR 100
crore worth of business in 2021.”
BNPL is helping SOLV further reinforce trust on
the platform as it meets the needs of both
parties – sellers who want to be paid upfront
and buyers who want credit for financing their
inventory. For the partnering fintechs and
NBFCs, the BNPL offering helps them increase
their volumes of loan disbursal, as well as
gives them a way to evaluate a customer's credit
behaviour without incurring a big risk, as the
financing is for the underlying business
transactions. SOLV’s technology platform enables
lending partners to lower cost to serve and
thereby finance invoices as small as INR 3,000.
It is therefore a win-win for both small
businesses as well as the lending partners.
At a time when traditional lenders have turned
largely risk averse due to a weak economy, SOLV’s
hassle-free BNPL scheme provides a convenient and
viable way to service the daily operational
requirements of small businesses. New-age digital
lenders have been at the forefront of this concept.
SOLV has partnered with three leading new-age
lenders – Indifi, ePayLater and
Davinta– for this
initiative.
Speaking on the new initiative, Alok
Mittal,
CEO, Indifi Technologies, said, “We are
firm
believers in the need for financial solutions to be
embedded into SME’s everyday life and are delighted
to extend our buyer financing solutions to power
BNPL. Not only will this association accelerate the
recovery process of affected SMEs, but it will also
help us understand their underlying transactions and
accordingly formalize credit for this critical part
of the Indian business ecosystem. With a bundle of
convenience and cost-effectiveness for a full cycle
of B2B transactions, we look forward to playing our
part in helping SMEs win.”
Talking about this development, Akshat Saxena,
co-founder, ePayLater said, “Retail trade in India
is growing at a very fast pace. We are delighted
with our association with SOLV, a leading B2B
marketplace in India. The collaboration will empower
retailers and SMEs across India to avail the benefit
of instant digital credit as they build their
business on SOLV. We look forward to co-creating the
best marketplace and payments experience, and help
customers transition seamlessly into the world of
hassle-free digital credit payments.”
Commenting on the partnership, Ravi Garikipati,
CEO and Co-Founder of Davinta said “At Davinta we
believe accessible and affordable financial services
is key to unlocking the potential of the millions of
small businesses in India. We launched our micro
enterprise focused buy-now-pay-later credit solution
Vyaapaar Shakti to bring on-demand, anytime,
anywhere credit to small business while also filling
a massive gap in the SMB market today. We are
excited to partner with SOLV as we bring the power
of Davinta’s technology and SOLV’s platform to tens
of thousands of retailers across the country and
give them a never before access to credit.”
Bolstering SOLV’s financial services offering
for MSMEs is its proprietary alternate credit score,
SOLV SCORE which uses AI and ML to create a
comprehensive score card for MSMEs with their
traditional and alternate data. SOLV SCORE is aimed
at augmenting and fast-tracking financial services
offerings like BNPL on SOLV’s platform and making
credit flow to the MSME sector more efficient and
effective.
About SOLV:
SOLV is a B2B marketplace for
MSMEs. The SOLV platform
facilitates commerce in a trusted environment, while
easing access to
finance and business services through one seamless
digital experience for
customers. SOLV, registered as Standard Chartered
Research & Technology
India Pvt. Ltd. is a fully-owned entity of the
Standard Chartered Group,
headquartered in London. https://www.solvezy.com/
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