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US-based Mastercard has partnered with Bizom to provide a comprehensive digital supply chain financing solution to a substantial number of micro retailers and distributors within the Consumer Packaged Goods (CPG) industry in India.
The partnership aims to impact 75 lakh retailers
According to the company's statement, The partnership will impact over 75 lakh retailers and 2 lakh distributors, addressing several challenges they face, such as supply chain disruptions, inventory management, payment issues, and notably, a lack of access to capital, which hinders their operational and growth prospects.
Recent reports highlight that only 14% of over 64 million MSMEs in India have access to formal credit, and this partnership seeks to bridge this gap, fostering growth among retailers.
Vikas Varma, Chief Operating Officer, South Asia, Mastercard, said, “Rapid evolution of the retail sector has necessitated digital adoption by small businesses to derive benefits like operational efficiency and business growth. With this collaboration between Mastercard and Bizom, micro retailers and distributors will embark on a journey of digitization that helps them get online, get paid and get access to capital.”
How will Bizom’s network and SaaS offerings be utilized?
Bizom will leverage its expansive network, which encompasses over 75 lakh retailers and 2 lakh distributors in the CPG industry, to automate route-to-market operations through its top-tier SaaS offerings.
The company aims to streamline operations and enhance efficiency across the board, providing a robust foundation upon which these businesses can build and grow. The SaaS offerings will serve as a pivotal tool in ensuring that the operations of retailers and distributors are not only optimized but also more resilient in the face of future challenges, the company said.
What role will Mastercard play in facilitating digital payments and credit access?
Mastercard will play a crucial role in promoting the adoption of digital payments among micro retailers and connecting them with lending partners to facilitate easier access to credit.
Furthermore, Mastercard will bring its payments expertise to the table, providing retailers within the Bizom network with a virtual card application designed to enable smooth payments and straightforward reconciliation.
Lalit Bhise, CEO of Bizom, said, “We are excited to pave the way for the millions of MSME businesses like retailers, distributors, wholesalers and small manufacturers in Bizom’s network to gain access to formal digital financial products. Through this partnership with Mastercard, Bizom’s digital trade credit service will extend instant financial support to these small entrepreneurs, helping them grow faster.”
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