udaanCapital, the fintech arm of e-commerce firm udaan, said it has facilitated disbursals of over Rs 4,000 crore of working capital to over 2,500 MSME (micro, small and medium enterprise) buyers the past 24 months. The disbursals were made via tie-ups with brand partners under the firm’s supply chain financing programme.
udaanCapital said it is uniquely positioned to tap the $380 billion working capital opportunity in India’s MSME segment. It aims to do this by externalising its core capabilities of providing credit to retailers on udaan, the largest business-to-business e-commerce company in the country. udaanCapital has also achieved the milestone of onboarding 100 active brand partners on its supply chain financing programme.
“Funding receivables and managing them is an industry-wide problem,” said Chaitanya Adapa, Head, udaanCapital. “We have witnessed strong demand from brands across mobile phones, consumer electronics, appliances, hardware, electricals and other categories for our programme.”
In India, a large gap exists in trade financing, especially in tier-2 and 3 towns. This requirement is generally funded via informal trade credit channels extended by manufacturers and brands. Both regional and national brands are looking at partnering with financial institutions to increase access to formal working capital for their buyers.
udaanCapital’s lending programme enables the extension of credit by bringing together lenders and borrowers. It leverages in-house digital underwriting and extensive collection capabilities across 8,000 pin codes.