Online business-to-business (B2B) marketplaces have found easy business in financial inclusion for small and medium businesses (SMBs) which struggle for capital from banks. Tie-ups with Non-Banking Financial Institutions (NBFCs) and lending platforms work both ways for the online B2B platforms -ensuring a behavioural change in SMBs to shop online for their sourcing needs by extending credit facilities, as well as arming the marketplaces with data on SMBs to create a significant creditscoring mechanism for the small merchants.
“Six months back, the revenue from sharing data on SMBs looking for loans was zero. Currently , it forms 20% of our Gross Merchandise Value,“ says R Narayan, founder of Power2SME which recently raised an undisclosed round from existing investors Accel Partners, Kalaari Capital and on-boarded Nandan Nilekani as a strategic investor. The company will clock in a GMV of ` . 350 crore for the financial year ending March 2016.Read More +