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SBI ties up with Snapdeal for Seller Financing

| | May 21, 2015, at 11:44 pm
#SBI # Snapdeal # Seller Financing # SBI tie up # Snapdeal
Kolkata, May 21 (IBNS) India's biggest lender State Bank of India (SBI), which is a pioneer & market leader in financing MSMEs in India, took one more strategic step towards structured financing to MSMEs as it entered into a preferred partnership agreement with e-commerce giant Snapdeal on Thursday for financing their sellers under Snapdeal- Capital Assist program.

SBI now has an MSME loan book of approx. Rs.1679 billion as on 3rd quarter of FY 14-15.

In the presence of  Arundhati Bhattacharya, Chairman, SBI  and Kunal Bahl, CEO, Snapdeal, the agreement was signed.

"We have 150,000 successful entrepreneurs with us and it is targetted to go up to 1 million in another three years. MSMEs are our main business," said Bahl after the signing at a press conference in Kolkata.

He said the  Chinese online retail giant Alibaba Group Holding Ltd is a big inspiration for them. 

 
He said it will be a win win situation for them since liquidity is a big problem for the small entrepreneurs. 
 
E-tailers like Snapdeal or Flipkart's main revenue model is commission from sellers through their platform.

This is currently the first and only such agreement for seller financing entered into by SBI keeping in the view of specific requirements of sellers in e-commerce industry. With this, the existing customer base of approx. 9 lakh MSMEs of SBI will record further growth and the robust technology platform of SBI will comfortably manage the same. 
 
E-commerce is currently the future of business in India and State Bank of India has been always committed to adapting to such new business trends.

It will benefit the sellers as Snapdeal- Capital Assist Program will be offering digital platform with SBI for instant loan approval and customized product for e-commerce industry. Bank will provide hassle free loans to the traders and manufacturers, under the Snapdeal- Capital Assist platform to scale up their business levels. 
 
Bahl said they are also helping the sellers by an eco-system of digitized catalog providing photographers and even content writers besides accounting support and mobile apps to track their sales.
 
According to a media release by Snapdeal, pricing under the scheme is very competitive. Further, there will be concession of 0.25% in interest rate for Women Entrepreneurs. 
 
For manufacturing units, no collateral security will be required upto the limit of Rs. 100 Lacs as it will be covered under CGTMSE scheme. CGTMSE fee will be absorbed by the Bank. For Traders, there is no requirement of Collateral Security upto the limit of Rs. 25 Lacs. Snapdeal has now become a preferred partner for SBI and the bank aims to enter in many such strategic agreements with Snapdeal in next financial year.

Snapdeal’s vision is to create India’s most impactful digital commerce ecosystem that creates life-changing experiences for buyers and sellers. In February 2010, Kunal Bahl along with Rohit Bansal, started Snapdeal.com - India’s largest online marketplace, with the widest assortment of 11 million+ products across 500+ diverse categories from thousands of regional, national, and international brands and retailers. 
 
With millions of users and 10,000 sellers, Snapdeal is the shopping destination for internet users across the country, delivering to 5000+ cities and towns in India. With its acquisition of Freecharge in 2015, a leading mobile transactions platform, Snapdeal has become the largest mCommerce company in the country. In its journey till now, Snapdeal has partnered with several global marquee investors and individuals such as SoftBank, BlackRock, Temasek, eBay Inc., Premji Invest, Intel Capital, Bessemer Venture Partners, Mr. Ratan Tata, among others.

 

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