The B2B marketplace of Flipkart Group, Flipkart Wholesale, has partnered with SME lending platform Davinta to offer ‘Buy Now Pay Later’ credit facility to all its retailers.
‘Buy Now Pay Later’ or BNPL has emerged as a credit innovation from new-age fintech, that are offering this as an alternative for customers who struggle to be eligible for traditional credit constructs such as credit cards.
With more than 6 crore small businesses in India, a majority of whom struggle to get access to traditional credit, BNPL offers an opportunity to drive financial inclusion and provide affordable credit access to these small business owners. As the economy slowly limps back to normal and the festive season coming up, consumer demand is increasing and so is the demand for credit among retailers.
Speaking on the partnership, Davinta CEO Ravi Garikipati, said
Adarsh Menon, Senior Vice-President and Head - Flipkart Wholesale, said, “Partnering with Davinta will give members on our platform access to credit with a single click. The experience for the retailers is seamless and completely digital and was only possible because both our organisations take a technology-first approach. As we strengthen this partnership, we are confident that this construct will allow more and more of our Kirana and MSMEs members to enjoy the benefit of accessible and affordable credit in the pursuit of their growth on our platform.”
Davinta, which is based out of Bangalore, was started by ex-Flipkart CTO Ravi Garikipati and US-based entrepreneur Raj Vattikuti. The two-year-old firm focuses on micro-enterprises and its flagship product Vyaapaar Shakti is a BNPL credit facility designed for small retailers to be utilised as an instant credit facility while purchasing supplies from offline wholesalers or on digital marketplaces.
Surge in suppliers
Flipkart Wholesale has also seen a surge in suppliers that have come onboard the digital B2B marketplace. The supplier base is expected to grow 58 per cent in 2021, which will further boost the local business ecosystem as well as livelihoods. The company recently rebranded its Best Price cash-and-carry business which it acquired from Walmart India in 2020.
Flipkart Wholesale witnessed 17 per cent growth in its kirana customer base in January-June 2021 compared to the same period last year; reinstating the trust Kiranas have shown towards the platform. The kirana customer base is projected to further grow by 33 per cent in July-December 2021, compared to the same period last year.
The Flipkart Group includes Flipkart, Myntra, Flipkart Wholesale, and Cleartrip. The Group is also a majority shareholder in the digital payments company PhonePe.