udaanCapital partners with Northern Arc Capital to fund 50,000 kiranas
udaanCapital, one of India’s leading fintech players, said it has partnered with Northern Arc Capital Limited and facilitated the disbursement of credit to over 50,000 kiranas and small retailers. udaanCapital, which is the fintech arm of e-commerce company udaan, enables these retailers to make purchases for their stores from a wide range of vendors on the udaan platform with lines of credit provided by its lending partners. Thus, udaanCapital also catalyzes kirana trading on the udaan platform.
“Our mission has been to strengthen and boost Kirana’s e-commerce by providing formal credit to small retailers in our country. We have always believed that the right solution to closing the working capital gap at small retailers is to take a business-centric view of risk management – and equally important to help our lending partners take a similar view. said Chaitanya Adapa, head – udaanCapital. “At Northern Arc, we found a like-minded partner who shared our vision and joined us early on. I am very pleased to see our partnership take this important step of putting productive capital in the hands of 50,000 small businesses.”
Today, more than a third of sales on udaan, which is India’s largest B2B (business-to-business) commerce platform, is powered by udaanCapital. udaanCapital is currently facilitating the disbursement of over Rs 8,000 crore of credit per year to over 150,000 kiranas and small businesses across the country. The credit limits offered range from Rs 10,000 to Rs 25 lakh and the credit terms offered are short term.
“At Northern Arc, we aim to be pioneers in finding innovative solutions to enable financing for MSMEs and the next billion households. We do this directly and through exciting partners like udaan,” said Ashish Mehrotra, MD and CEO of Northern Arc Capital. “We are delighted to have joined forces with udaanCapital since its inception and to serve the credit needs of over 50,000 kirana stores across the country.”
Northern Arc is a financial services platform with a diversified business model that provides credit to MSMEs, households, financial institutions and emerging businesses. Over the past year, it has disbursed over 5 million loans for business, personal loans and BNPL facilities, through a fully digital journey. By leveraging its data insights and dashboards, Northern Arc has accrued over Rs 1 trillion in funds for its clients since launching its platform in 2009. With its asset management subsidiary which manages seven AIFs (alternative investment funds), the company manages a total AUM (assets under management) of over Rs 9,000 crore.