Flipkart is connecting its sellers to different banks and non-banking financial companies to get loans within two days. The initiative was taken by the homegrown e-commerce major with an aim to ease the liquidity burden faced by more than one lakh micro, small and medium enterprises (MSMEs).
Flipkart is trying to bridge a gap between financial institutions and the underserved sectors through technology and e-commerce. It is trying to pull the attention of the MSMEs by allowing them the platform and the liquidity to scale their business through the e-commerce major. The aim of the company is to invest in creating sellers from the reported six crore MSMEs by the government, across the country.
Kalyan Krishnamurthy, the CEO of Flipkart, said, "Our knowledge and understanding of the Indian ecosystem allows us to construct frameworks such as 'Growth Capital' through which sellers can scale their business, prosper, create more employment opportunities, and continue to transform the country's economy."
The e-commerce giant has partnered with the State Bank of India, Bank of Baroda, Axis Bank, Aditya Birla Finance, Tata Capital, Flexiloans, Small Industrial Development Bank of India, LendingKart, Indifi, and Happy Loans to finance the sellers. This program is in focus to create a digital India through the latest tech and innovations.
Flipkart is leading the Indian e-commerce with the acquisition of Jabong, Myntra and PhonePe. The group has about 15 crore registered customer base buying from about eight crore products among 80 categories. The total annual revenue of Flipkart in the financial year 2018 was about Rs 26,925 crore excluding subsidiaries like Myntra and Jabong.
