Mobikwik, a digital payments and financial services company, has announced that it is venturing into B2B merchant lending. The company will offer loans to small and medium-sized enterprises (SMEs) to help them with their working capital needs.
Mobikwik has partnered with a number of banks and non-banking financial companies (NBFCs) to offer these loans. The loans will be available to SMEs across India and will be disbursed through Mobikwik’s digital platform.
The interest rates on the loans will be competitive and the terms will be flexible. Mobikwik will also offer a number of value-added services to its SME customers, such as business advisory services and insurance.
The move into B2B merchant lending is a strategic one for Mobikwik. The company is looking to expand its financial services offerings and tap into the growing demand for working capital loans by SMEs.
SMEs are the backbone of the Indian economy and they play a vital role in job creation and economic growth. However, SMEs often face challenges in accessing credit. Mobikwik’s B2B merchant lending offering will help to address this challenge and provide SMEs with the financing they need to grow their businesses.
The B2B merchant lending business is expected to grow rapidly in the coming years. The Indian market for working capital loans is estimated to be worth around $1 trillion. Mobikwik is well-positioned to capitalize on this growth opportunity. The company has a strong customer base of SMEs and a proven track record in the financial services industry.
The B2B merchant lending business is expected to boost Mobikwik’s revenue streams. The company is targeting to disburse loans worth $1 billion in the next three years. The new business is also expected to help Mobikwik to cross-sell its other financial services offerings to its SME customers.