SOLV launches instant invoice financing platform for Indian MSMEs
B2B ecommerce platform for micro, small and medium enterprises (MSMEs), SOLV, announced the launch of its instant invoice financing platform—Buy Now, Pay Later (BNPL)—for small and medium enterprise buyers and sellers listed on the platform.
The launch of this platform is aimed at helping these enterprises restart and recover financially from the impact of the coronavirus pandemic.
As part of the first phase, fintech service providers and Non-banking Financial Company (NBFCs), which are a part of SOLV's network, will offer credit to small and medium business owners through the BNPL platform. According to a statement released by the company, the ticket size of these loans is as low as Rs 3,000, with a credit period of 15-60 days.
Commenting on the launch of this new offering, Jiten Arora, Venture Lead, SOLV and Global Head for SME Platforms, SC Ventures said, “SOLV is at the forefront of leading digital transformation for the MSME sector and bringing this large, underserved category into the formal financing fold. Our newest offering is another step towards this goal. This product provides both convenience and financial flexibility, which results in growth, even in these challenging times. Going by the trend, every one out of three MSMEs will avail this product by the end of 2021."
He also added that BNPL is expected to contribute business worth Rs 100 crore to SOLV this year. It has partnered with three existing players in the digital lending space including Indifi, ePayLater, and Davinta.
SC Ventures, launched in 2018, is a business unit and a catalyst for Standard Chartered, aimed at promoting innovation, investing in disruptive financial technology, and exploring alternative business models.
SOLV, SC Ventures’ debut venture, focusses on Indian MSME’s growth by helping them digitise their traditional supply chains, and giving them access to affordable finance and customised business services. It has over 15,000 users listed on the platform.
Edited by Kanishk Singh