The largest eMarketplace in India has made another move to help finance the businesses running on its platform. Snapdeal, which inked a deal with the Small Industries Development Bank of India last year, announced Tuesday (Jan. 19) that it will team up with Reliance Commercial Finance (RCF) to further fuel SMEs’ access to working capital.
According to reports, Snapdeal will link its vendors to RCF’s supply chain financing services; in the first phase of its rollout, the program will be available to about 80,000 vendors operating through Snapdeal, the firm said.
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For Snapdeal, this is an extension of similar services that helps its SMEs find financing. But for RCF, this is a new venture, though one the company said will not be its last in this area.
“We have launched a new eCommerce-centric supply chain financing product that will help us offer customized options to these vendors,” said Reliance Commercial Finance CEO K.V. Srinivasan in a statement. “Increasingly, we will tie up with prominent eCommerce players to offer this to their vendors.”
The company said it is in talks with other eCommerce giants, including Amazon and Flipkart, to launch supply chain financing services in a similar fashion to the one rolling out with Snapdeal.
It’s part of RCF’s efforts to tap into the expanding eCommerce market in India, reports said, with about 5 percent of vendors selling their products and services online eligible for supply chain financing products.
“This provides a huge opportunity for the lending firms,” the CEO added. “We see this portfolio growing.”