Flipkart Wholesale, SME lending startup Davinta partner to offer credit facility to MSMEs, kiranas
Flipkart Wholesale partnered with SME lending platform Davinta to offer a 'Buy Now Pay Later' (BNPL) credit facility to its retailers.
Digital B2B marketplace of the Flipkart Group, Flipkart Wholesale, has partnered with SME lending platform Davinta to offer a 'Buy Now Pay Later' (BNPL) credit facility to its retailers.
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.
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.
As this partnership is strengthened, this construct will allow more of Flipkart Wholesale's kirana and MSME members to enjoy the benefit of accessible and affordable credit in the pursuit of their growth on the platform, he added.
'Buy Now Pay Later' or 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 six 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 small business owners.
"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," Davinta CEO Ravi Garikipati said.
He added, "With BNPL, the company is now allowing retailers across the country to unlock themselves from cash constraints while purchasing supplies and enjoy simple one-click credit access."