Digital lending platform Capital Float has announced its partnership with Amazon India to disburse thousands of loans to e-sellers. The company - the only fintech startup to partner with the e-commerce giant - has also partnered with other leading online platforms including PayTM, Snapdeal and Shopclues.
Capital Float has designed a collateral free credit facility for online sellers called Pay Later that helps them make supplier payments within 24 hours.
"E-commerce merchants require quick, short-term credit that can be used to boost their inventory in order to meet the spikes in demand," said co-founder and MD of Capital Float, Gaurav Hinduja. "We customize the credit underwriting parameters using cutting-edge technology and Big Data analytics to assess e-sellers individually, based on which we are able to offer customized working capital finance to these sellers," he added.
India is expected to become the world's fastest growing e-commerce market, driven by robust investment in the sector and rapid increase in the number of internet users. In fact, e-commerce revenue is expected to jump from $30 billion in 2016 to $120 billion in 2020, growing at an annual rate of 51% - the highest in the world.
With a loan size of Rs 2 lakh and above, the initiative is helping finance e-sellers who are part of the electronics, consumer durables and fashion verticals of AmazonIndia.
"This easy access to credit has enabled sellers on our platform to expand operations and effectively manage seasonal spikes," said GM and Director Seller Services of Amazon India, Gopal Pillai. "This is essential in helping sellers source or manufacture products to meet the increasing demands from millions of customers. This is also an enabler in achieving our vison of transforming the way India buys and sells," he added.