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SHOPX launches'SHOPX Suvidha' to offer organised credit to small retailers

By Chanda Kumar | Vjmedia Works | June 01, 2017

SHOPX solves the credit problem of retailers by launching SHOPX Suvidha which will bring organized credit to 12 million retailers in India

SHOPX, India’s fastest-growing digital offline platform, announced the launch of ‘SHOPX Suvidha’, a credit marketplace for fueling the digital retail economy in India. SHOPX operates through the 12 million mom-and-pop stores spread throughout the country. The new credit marketplace introduced by SHOPX will provide an access to formal and easy credit for SHOPX retailers. Through its banking, SHOPX can extend Rs. 100 Crore of loans- this capital acts as a force multiplier in the retail consumption space. SHOPX will offer competitive interest rates of 1.5-2% per month through an easy and hassle-free process along with easy repayment terms.

A large portion of the retail trade is dominated by small retailers, however, most of them do not have access to formal credit options. As per the recent NBFC partners reports, small size of loans, high underwriting, transaction and acquisition costs, lack of collaterals are some of the key deterrents for financial institutions to offer loans. Additionally, lack of a formal credit rating and perceived high risk leads to further complexities. Absence of formal credit facilities have compelled small retailers to opt informal sources of credit, which are expensive, restrictive, and not available to everyone.

Commenting on the launch of the new offering, Amit Sharma, CEO, and Co-Founder, SHOPX said, “Small retailers form an integral part of the Indian economy; however, they are mostly underserved by formal lending institutions. Factors like non-availability of reliable credit history have so far hindered their growth and scalability. With easy access to credit at competitive rates and hassle-free repayment terms under SHOPX Suvidha, we aim to empower these small retailers to fulfil their growth aspirations. We believe that SHOPX Suvidha will act as a catalyst in building an organized credit ecosystem and play a pivotal role in organizing the unorganized retail ecosystem in India. SHOPX Suvidha is yet another step in our vision to build an alternate e-commerce ecosystem based on the “Digital Offline” model.”

“We are confident that the new initiative will find wide acceptance among our 45,000 plus retailer base across 230 towns and accelerate their growth," he further added.

SHOPX is backed by strategic investor Nandan Nilekani, and mentors including Jagdish Kini [former CEO, Airtel (South Region), Managing Director, Gillette India], and Pramod Varma [former Chief Architect, UIDAI Aadhar Project, CTO Sterling Commerce] and advisor B.S. Nagesh [Founder of TRRAIN]. Within 24 months of its launch, SHOPX has empowered 45,000 plus small retailers in 230 towns across 10 states in the South and West of India; serving more than 3 million customers. SHOPX aims to provide the 400 million middle-income population in India (as against the current 50 million active Internet buyer base) access to e-commerce through its retailer networt.

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