Peel-Works Pvt Ltd., a B2B e-commerce grocery firm, has tied up with non-banking finance companies (NBFCs) such as RBL, Karbon Cards and Indifi to provide short-term credit to small retailers and owners of corner stores.
Under the agreement, these NBFCs will provide credit to the tune ₹50,000 to ₹2.5 lakh for a period of 7-15 days at an interest rate of 18%-28%, depending on the retailers’ purchase history and credit score.
To start with, the credit would be made available to retailers in Delhi -NCR, Chandigarh, Bengaluru and Chennai. The facility would be available at other cities soon.
“Close to 20,000 retail outlets that are registered on Taikee app, the retail management arm of Peel-Works, would benefit immediately as they can access to credit with just one click on the app. The model will work like a closed wallet, where retailers can avail credit to utilise it on the Taikee platform itself,” the firm said in a statement.
“A retailer can consume it multiple times against each purchase, but not beyond the aggregate credit limit assigned. The payment will be collected automatically from the retailer’s account after a fixed tenure of 7 to 15 days with pro-rata interest charges,” it added.
Sachin Chhabra, founder, Peel-Works Pvt. Ltd said, “Small retailers have long been known to operate on credit due to lack of working capital but historically they have to pay interest in the range of 40-100%. With our partnership with NBFCs, retailers can enjoy credit at a much lower interest rate, which will reduce their cost of operations significantly.”
“The freed-up working capital can then be used by the retailer for growth,” said Nidhi Ramachandran, co-founder, Peel-Works Pvt. Ltd.
