Indian fintech firm UdaanCapital has facilitated over Rs 170 crore in working capital to the distribution network of Saint-Gobain Glass Business, a subsidiary of the global glass manufacturing giant Saint-Gobain.
The financial infusion aims to enhance liquidity and foster growth within the Micro, Small, and Medium Enterprises (MSME) sector, as per media reports.
Expanding reach across India
In a span of 20 months, UdaanCapital said it has onboarded more than 200 Saint-Gobain distributors, covering 122 cities across 23 states in India. Notably, the expansion focuses on Tier 2, 3, and 4 towns.
Innovative financing for MSMEs
The partnership between Saint-Gobain and UdaanCapital revolves around the latter's Channel Financing programme for MSMEs. The programme is designed to provide immediate financial relief to distributors and retailers by facilitating quick invoice payments, thus ensuring a steady flow of goods and bolstering sales.
The initiative also offers collateral-free loans, enabling businesses to access inventory without the burden of upfront payments.
UdaanCapital's approach leverages technology to streamline the borrowing process, making it easier for MSMEs to manage cash flow and enhance their sales performance. The fintech firm's app plays a crucial role in this process, offering a user-friendly platform for immediate financial transactions.
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