Indian eCommerce platform Tolexo wants more businesses to procure goods online and is now offering a financing solution to attract SMEs.
Reports on Tuesday (Sept. 20) said Tolexo has partnered with Arthashastra FinTech to provide merchant cash advances to its SME shoppers. The company, reports added, is looking towards credit-based buying and other features in an effort to encourage SMEs to procure on Tolexo’s online marketplace.
“Our new offering is in line with Tolexo’s ongoing innovations towards making the B2B eCommerce ecosystem as sustainable and lucrative as possible for all stakeholders,” said Tolexo Founder and CEO Brijesh Agrawal in a statement. “The unique payment solutions will also facilitate the buyers by featuring a simple, one-click checkout and offering aggregated payment options to club their multiple purchases and make a single payment.”
“This is extremely important for frequent buyers whose propensity to purchase increases with such convenient modes of transaction,” Agrawal added.
Tolexo explained that, in addition to merchant cash advances and one-click checkout, its B2B eCommerce portal also offers documentation-free credit, as well as the option for companies to pay for their purchases post-delivery.
Its credit-based buying offering enables businesses to access interest-free credit for up to 23 days, a timeframe Tolexo added aligns with B2B trading practices. “By emulating the traditional ways of doing business, Tolexo aims to further enhance the propensity of India’s B2B players to leverage the benefits of technology and online commerce by enabling an experience similar to offline transactions,” the report noted.
Last year, Tolexo said it aimed to hit the $1 billion benchmark in gross merchandise value by 2017 and to hit $10 billion worth of transactions by 2020. Reports said it could happen if its parent company, IndiaMART, funneled B2B buyers and sellers onto the Tolexo platform to conduct their business.
Earlier this week, Alibaba announced its own plans to revamp its B2B eCommerce efforts in India by linking up with local banks and logistics providers to provide financing and other services to its online sellers.