Udaan Capital, the eB2B major’s fintech arm, announced on Wednesday that it has facilitated working capital disbursements worth over ‘4,000 crores to over 2,500 micro, small, and medium enterprises (MSME) buyers over the last two years. The company also stated that it has now added 100 active brand partners to its supply chain financing program.
Udaan Capital is a lending program that connects lenders and borrowers while also leveraging in-house digital underwriting collection capabilities for over 8,000+ PIN codes. Chaitanya Adapa, head, of Udaan Capital, said the arm has demonstrated a clear impact on the revenue and profitability of its partner brands by bringing bad debts to “near zero” and improving the payment cycle by “an average of 20%–30%.”
Distributors and retailers require working capital to purchase and stock inventory, but financing from banks and NBFCs is difficult for kiranas (small shop owners), according to the company when asked about the need for Udaan Capital. Udaan Capital was initially started as an in-house pilot, Vaibhav Gupta, CEO, of Udaan, had earlier