udaanCapital injects over Rs 170 Cr in Saint Gobain’s distribution network via MSME channel financing

Fintech firm udaanCapital said it has facilitated disbursals of over Rs 170 crore of working capital to the distribution network of Saint-Gobain Glass Business, a subsidiary of glass manufacturer Saint-Gobain.

The disbursals were enabledt hrough a partnership with Saint-Gobain for its distributors and retailers under udaanCapital’s Channel Financing programme for Micro, Small, and Medium Enterprises (MSMEs). In 20 months, udaanCapital onboarded more than 200 Saint-Gobain distributors across 122 cities and 23 states in India.

Post-COVID-19, brands have been keen to explore solutions that boost the liquidity in their MSME buyer base without building up receivables on their books or taking excessive credit exposure.

Leveraging udaanCapital’s app, MSME buyers can onboard borrowers and facilitate immediate invoice payments to Saint-Gobain. This approach not only fosters effective cash flow management but also results in increased sales and strengthened relationships with channel partners. The programme allows access to inventory without upfront payment.

The fintech player said its customised solution helped reduce Saint-Gobain’s Days Sales Outstanding (DSO), providing buyers with an extended credit period. 

“Channel Financing and thereby effective working capital management are integral to the business growth of our partners and we believe that our partnership with udaanCapital will foster an environment that nurtures distributors while facilitating the smooth flow of goods throughout the distribution chain," Anand Santhanam, Chief Sales and Marketing Officer - of Saint-Gobain India Glass Business, said.

“At udaanCapital, we believe in forging strong partnerships to advance our goal of building next-gen working capital products for India’s trade," Chaitanya Adapa, Head – of udaanCapital said.