udaanCapital, the fintech arm of e-commerce company udaan, has partnered with debt financier Northern Arc Capital and says it has facilitated the disbursement of credit to more than 50,000 kirana stores and small retailers.
The fintech player enables retailers to make purchases for their stores from a wide range of vendors on the udaan platform with lines of credit provided by its lending partners. It also catalyzes kirana trading on the udaan platform.
More than a third of sales on the B2B commerce platform are powered by udaanCapital, the company said in a statement. It is currently facilitating the disbursement of over Rs 8,000 crore of credit per year to over 150,000 kiranas and small businesses across the country. The credit limits offered range from Rs 10,000 to Rs 25 lakh and the credit terms offered are short term.
“Our mission has been to strengthen and boost Kirana’s e-commerce by providing formal credit to small retailers in our country. We’ve always believed that the right solution to closing the working capital gap at small retailers is to take a business-centric view of risk management – and equally important to help our lending partners take a similar view. said Chaitanya Adapa, Head, udaanCapital.
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“At Northern Arc, we found a like-minded partner who shared our vision and joined us early on. I am very pleased to see our partnership take this important step by putting productive capital in the hands of 50,000 small businesses,” Adapa added.
The Northern Arc financial services platform provides credit to MSMEs, households, financial institutions and emerging businesses. Over the past year, it has disbursed over 5 million loans for business, personal loans and BNPL facilities, through a fully digital journey.
“At Northern Arc, we aim to be pioneers in finding innovative solutions to enable financing for MSMEs and the next billion households. We do this directly and through exciting partners like udaan,” said Ashish Mehrotra, MD and CEO of Northern Arc Capital. “We are delighted to have joined forces with udaanCapital since its inception and to serve the credit needs of over 50,000 kirana stores across the country.”
By leveraging its data insights and dashboards, Northern Arc has accrued more than Rs 1 trillion in funds for its clients since its platform was established in 2009.
Along with its asset management subsidiary which manages seven AIFs (alternative investment funds), the company manages a total AUM (assets under management) of over Rs 9,000 crore. It is backed by renowned equity investors such as Sumitomo Mitsui Banking Corporation, LeapFrog, IIFL, Accion, Augusta Investments (known as Affirma Capital), Dvara Trust and Eight Roads.