Flipkart Wholesale Launches New Credit Program To Support Retailers In India: Check Report

Flipkart Wholesale, the digital B2B marketplace of India's homegrown Flipkart Group, has announced the launch of industry-first credit programs which aim to help kiranas manage their working capital requirements and grow their business. Flipkart Wholesale's credit offerings, including 'Easy Credit' in partnership with IDFC FIRST Bank, are in line with a series of initiatives undertaken to solve local pain points of kiranas in India and boost prosperity for them by making their business easier using technology, according to the press report of Flipkart issued on 24th August 2021.

By this move "Over 1.5 million kiranas & retailers will be able to avail credit in just two minutes through Flipkart Wholesale's partnership with lending partners and fintech institutions, Flipkart Wholesale will enable seamless digital onboarding for kiranas to use this new credit program, enabling ease of managing their working capital requirements and Kiranas can seamlessly track their credit balance and avail benefits of flexible repayment and instant refunds on purchases," according to the press report of Flipkart.

"Through these new offerings, kiranas can avail credit in just two minutes at zero cost, through end-to-end digital onboarding in partnership with our preferred lending partner, IDFC FIRST Bank and other esteemed fintech institutions. The credit line will range from Rs 5,000 to Rs 2 lakh with an interest-free period of upto 14 days. Kiranas can also avail the benefits of flexible repayment options through cash and online transfers as well as instant refunds in case of order cancellation while seamlessly keeping a tab on their credit balance and bills," said Flipkart Wholesale.

"Our key goal at Flipkart Wholesale is to make business easier for kiranas & retailers and boost their growth journey. We believe our new credit plan is tailored to solve local challenges that kiranas in India face and will help them manage their cash flow and improve their purchase experience on our platform, thereby ensuring that the benefits of digitisation trickle to the entire B2B retail ecosystem," Adarsh Menon, Senior Vice President and Head - Flipkart Wholesale, said.

"India's kirana stores account for over two-thirds of the country's retail landscape. This traditional trade is now evolving in terms of retail formats and business models. As a bank with a digital-first approach and focus on serving the retail ecosystem, we are keen to contribute to the growth of this segment. The partnership with Flipkart gives us an opportunity to enable kiranas to access formal credit and scale up business," Amit Kumar, Head-Retail Liabilities & Branch Banking - IDFC FIRST Bank, said.

"Flipkart Wholesale serves over 1.5 million members across the country, which include kiranas/retailers, HoReCa (hotels, restaurants and cafeterias) and O&I (offices and institutions). Flipkart Wholesale customers have access to an array of value propositions, including a wide range of Flipkart-assured quality products, simple and convenient order returns and speedy product delivery directly to their shops with an easy order tracking facility and better margins on every product," according to the media report of Flipkart Group.

Flipkart Wholesale also unveils its plans to more than triple its geographical footprint in India to close to 2,700 cities, with an aim to make business easier and bring prosperity to lakhs of small businesses and Kiranas across the country. "Launched in September 2020, Flipkart Wholesale has witnessed strong growth in the first half of 2021 spearheaded by the adoption of e-commerce by retailers and kiranas. Ecommerce adoption by kiranas on Flipkart Wholesale doubled in January-June this year compared to last year. This is projected to see 180% growth in July-December 2021, as against the same period last year," as per the media report of Flipkart issued on 19th August 2021.

"Flipkart Wholesale has also seen a surge in suppliers that have come onboard on the digital B2B marketplace. The supplier base is expected to grow 58% 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, while staying committed to the growth and prosperity of kiranas in India through an omnichannel business model," according to the official announcement.

"We launched Flipkart Wholesale with an aim to bring prosperity to the B2B retail ecosystem and solve local pain points of kiranas across the country. Despite challenges induced by the pandemic, we have seen a strong response from kiranas who are now realizing the benefits of digitization and warming up to e-commerce as the go-to means of purchase. We will continue to leverage the technology strengths from the Flipkart group and enhance livelihoods and local supplier ecosystems across the country," Adarsh Menon, Senior Vice President and Head - Flipkart Wholesale, said.

"Flipkart Wholesale witnessed 17% 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% in July-December 2021, compared to the same period last year. Kiranas will continue to be Flipkart Wholesale's most important customer segment and will get access to an even better product assortment at great prices, credit offers, payment options and end-to-end service via feet-on-street associates, app and cash-and-carry stores. The rebranding to Flipkart Wholesale will be seamless for kiranas who will enjoy the same convenience as before. With this, all Best Price touchpoints will now be Flipkart Wholesale making it an eminent omnichannel B2B player," according to the press release of Flipkart.