Merkado RHA, which offers digital transformation solutions, will work with Singapore-based Kapital Connection to offer inclusive investing and financing services to Indian startups and small- to medium-sized businesses (SMBs), according to a press release.
Specifically, the firms will work with those registered on Gokaddal, the digital cloud program which Merkado operates. The firms will offer short-term equated monthly installment (EMI) loans to companies that are looking to onboard solutions through Gokaddal, the release states. Businesses will be able to save money while still exploring new, digital solutions.
Kapital's platform uses artificial intelligence (AI) to provide working capital loan, invoice factoring, project financing and asset-backed lending in democratic, accessible ways for smaller companies, according to the release. The company only recently began working in India.
Ranjit Singh, CEO of Kapital Connection India, said in the release that the new association with Gokaddal is a "key milestone."
"Gokaddal has most of the emerging and disruptive solutions which are now key to an organization’s sustenance," he said, according to the press release. "This partnership will help solution providers and solution buyers to avail short-term funding as capital leasing or short-term loans to continue their transformation journey."
Ravinder Pal Singh, president and CEO of Merkado, said it is important for businesses to be able to access financing and also digital solutions, particularly during the current pandemic.
"With [the] world moving to a new wave of work and business culture, it is critical that we have some option for [SMBs] and enterprises to make it easy when adopting such solutions," he said, according to the release. "Our engagement with Kapital Connection makes it easy for solutions seekers to adopt transformation solutions."
India has recently introduced a plan to spend $6.6 billion to invite large companies to manufacture smartphones in the country. Prime Minister Narendra Modi has said he wants to make India more self-reliant and create more jobs in the country.