Flipkart Wholesale Senior Vice-President and Head Adarsh Menon said access to affordable and transparent credit is one challenge the company aims to solve
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Flipkart Wholesale, the digital B2B marketplace of Flipkart Group, has partnered with SME lending platform Davinta to offer credit facility to retailers associated with it. Flipkart Wholesale Senior Vice-President and Head Adarsh Menon said access to affordable and transparent credit is one challenge the company aims to solve.
“Partnering with Davinta will give members on our platform access to credit with a single click. The experience for the retailers is seamless and completely digital and was only possible because both our organisations take a technology-first approach," he said in a statement on Saturday.
As this partnership is strengthened, this construct will allow more and more of Flipkart Wholesale's Kirana and MSMEs members to enjoy the benefit of accessible and affordable credit in the pursuit of their growth on the platform, he added.
The Flipkart Wholesale-Davinta combine will extend a ‘Buy Now Pay Later’ (BNPL) credit facility to MSMEs and kiranas. BNPL has emerged as a credit innovation from new-age fintechs, who are offering this as an alternative to customers who struggle to be eligible for traditional credit constructs such as credit cards.
With more than 6 crore small businesses in India, a majority of whom struggle to get access to traditional credit, BNPL offers a massive opportunity to drive financial inclusion and provide the much needed affordable credit access to these small business owners.
Bengaluru-based Davinta was founded by ex-Flipkart CTO Ravi Garikipati and US-based entrepreneur Raj Vattikuti. The two-year-old firm focuses on micro-enterprises and its flagship product Vyaapaar Shakti is a BNPL credit facility designed for small retailers.
“We are very excited with the opportunity to partner with Flipkart Wholesale and offer our BNPL product to the over 1.5 million members of Flipkart Wholesale," said Davinta CEO Garikipati.
He added that with BNPL, Davinta is now allowing retailers across the country to unlock themselves from cash constraints while purchasing supplies and enjoy simple one-click credit access.