Amazon is working with Yes Bank in India in order to boost its seller financing program.
Amazon India reportedly struck a deal with the bank to develop SME financing solutions for its online sellers. Reports on Monday (Oct. 3) said Yes Bank will provide financial services to Amazon India sellers, including accounts, forex, payment gateway, trade services and loans.
The companies said they also plan to develop new solutions for sellers working through the Amazon platform.
But their partnership goes two ways; the firms added that Amazon India will provide Yes Bank’s SME customers with “special services” by connecting them with a source of new business via Amazon.
“Through our constant engagement with sellers, we realized that lack of financial expertise can hinder the growth of small businesses as they scale up, which can impact their expansion rate,” said Amazon India Director and General Manager of Seller Services Gopal Pillai in a statement. “To help sellers make the most of the festive season, we have partnered with Yes Bank under our Seller Lending Program to help them catalyze their growth on our platform by offering them a comprehensive suite of financial solutions.”
Amazon India launched its Seller Lending Program earlier this year with a partnership with Capital First, a nonbanking financial company. Amazon has targeted India for new growth and, back in June, announced a $3 billion investment in the country, making the total value of Amazon’s India investment $5 billion.
The company has seen regulatory challenges in the market, however, after the government passed new legislation regulating pricing and sales sourcing. Reports earlier this year said Amazon India was in violation of the new rules, leading the company to criticize India’s decision to enforce the new rules without offering a period of time for companies to get in compliance with them.