The Growth Story Of India’s Largest Business E-commerce Platform With KredX
Being India’s largest business e-commerce platform, this company features an exclusive range of industrial goods. They aim to inculcate and introduce the concept of industrial supply chains in India by bridging the gap between consumers and B2B merchants through an exclusive online-trade ecosystem catering to the diverse needs of buyers and sellers. Currently, the platform caters to over 1.5 million products across over 45 categories and plans to grow and expand the portfolio further.
Snapshot Of The Company:
Product: E-commerce platform for industrial products
On The KredX Platform Since: 17 January 2018
Invoice Amount Discounted Till Date: ₹59 Cr
A Quick Glimpse Of The Business E-Commerce Platform’s Journey So Far With KredX
Being an unprecedented e-commerce marketplace means having a fleet of clientele on a daily basis. In such cases, the payment cycle can be spread over a few weeks. For any business to expand and grow, it requires them to deal with large vendors whose payment timelines may vary, ultimately impacting their liquidity.
The company approached Banks & NBFCs in search of solutions that could help address their needs but there were several challenges with the offerings, primarily the time involved in the process. Some other added drawbacks were:
- Lower funding limit as per existing norms and procedures
- The company was required to furnish collaterals and financial history to avail traditional offerings
- Other forms of short term and long term borrowing were expensive
- Challenges availing funds for liquidity and growth
The KredX Offering:
KredX helped the business e-commerce platform by providing a “Receivables Financing” solution to take care of their e-commerce working capital requirements in the interim to solve the issue of liquidity. This, in effect, better suited the requirements of this growing business without impacting the balance sheet which acted as a catalyst to the company’s growth and expansion.
- Client places an order for industrial equipment on the company’s online platform
- The company sources the equipment and dispatches equipment to the client
- The company uploads its discounted invoices (receivables) on the KredX platform for a stipulated time
- KredX’s investors purchase the invoices & the company receives funds in 24-72 hours
- At the end of the stipulated time, KredX investors receive the principal amount invested + profit earned when the end client makes the payment.
How We Helped:
Through the KredX platform, the e-commerce marketplace was able to better manage its overhead costs on time due to increased revenue creation. In addition to this, this also led to the fulfillment of the company’s growth and expansion plans.
The e-commerce business started from a ₹3 Cr sanctioned limit with KredX that has now increased to a ₹10 Cr limit, a clear indication of massive business growth in a short span of time. With prompt payment procedures and better liquidity management, the company was able to set up tangible growth parameters and expand its business.
