India's largest online marketplace has secured a deal with Small Industries Development Bank of India (SIDBI) to help the country's MSMEs secure financing easier, The Economic Times reported.
The deal between SIDBI and Snapdeal will enable India's state-owned financial institution to team up with the company on its Capital Assist initiative to provide more funding to SME enterprises, as well as have the ability to lend credit to MSMEs that use Snapdeal to make transactions. Now, the state-owned institution can join the other financial groups that are already operating under Snapdeal's program.
The program also helps Snapdeal sellers choose financing options that better fit their needs, specifically tailored toward what type of business they are in and how much financing is needed. This, in turn, can help those enterprises grow their businesses and reach more customers. According to The Economic Times, the other banks that are part of the program are the State Bank of India, Axis Bank, ICICI Bank, HDFC Bank, RBL, Religare and L&T Finance.
"Through this partnership with SIDBI, Snapdeal will provide small and medium-sized businesses the necessary financial and non-financial support to help expand their business and reach," Kunal Bahl, Snapdeal cofounder and CEO, said in a press release.
And as more banks get involved, that could trigger more funding for SMEs as the industry grows.
"India is a powerhouse of talent and resources, and if channelized well, the SMBs community in India has the caliber of being one of the front runners in the digital story of the country," Bahl said.