Shiprocket to Disburse Rs 100 Crore to SMBs

Dec 05, 2023 19:26

Shiprocket plans to disburse Rs 100 crore to small and medium businesses (SMBs) in India through its financing platform, aiming to democratise access to collateral-free capital.

Mumbai, Dec 5 (PTI) E-commerce platform Shiprocket on Tuesday said it plans to disburse around Rs 100 crore to the small and medium businesses (SMBs) in the country through its financing platform to democratise access to collateral-free capital.

In its pilot phase, the company has enabled around 150 SMBs with access to vital growth capital and disbursed over Rs 35 crore via Shiprocket Capital with plans to disburse around Rs 100 crore by December 2024, the platform said in a statement.

In order to enable seamless capital disbursement, the platform said it has partnered with a host of domestic non-banking financial companies as well.

The move is aimed at ease of doing business for Indian merchants, it said and added that Shiprocket Capital wants to transform the financing landscape for emerging e-commerce businesses by enabling financing that is easy, quick and collateral and liability-free.

India is home to over 5,00,000 e-commerce businesses, but traditional financing methods have long presented challenges for the entrepreneurs in this segment. Offering a swift and efficient means of accessing much-needed capital, revenue-based financing is increasing the startup growth by up to 30 per cent, the platform quoted from an IBF report.

Shiprocket Capital presents a big opportunity for the 3 lakh merchants on the platform with a gross merchant value of over Rs 30,000 crore to scale their business and secure up to Rs 10 crore in revenue-based financing, it stated.

"India is on track to build a thriving ecosystem of 1 million e-commerce businesses by 2025. As an e-commerce enablement platform, we aim to empower them with flexible capital to grow their businesses and prove to be their partner in growth through Shiprocket Capital," Saahil Goel, Co-founder and CEO of Shiprocket, said.

Shiprocket Capital caters to e-commerce businesses operating across diverse categories, including fashion, consumer electronics, beauty and personal care, home and kitchen, and jewellery and accessories, according to the statement.