Srinagar : udaanCapital, one of India’s leading fintech players, today announced that it has facilitated disbursals of over INR 170 crores of working capital to the distribution network of Saint- Gobain Glass Business, a subsidiary of Saint-Gobain, one of the world’s premier glass manufacturers.
The disbursals were enabled through a partnership with Saint-Gobain for their distributors and retailers via udaanCapital’s Channel Financing program for Micro, Small, and Medium Enterpises (MSMEs). As part of this collaboration, approximately 200+ distributors of Saint-Gobain have been successfully onboarded by udaanCapital over 20 months, spanning 122 cities and 23 states across India.
Post Covid, brands have been keen to explore solutions that boost the liquidity in their MSME buyer base without building up receivables on their books or taking excessive credit exposure. Saint-Gobain’s core objective while evaluating a channel financing partner was to ensure widespread adoption of the program pan India and a technology enabled solution capable of leveraging their existing cash discount structures for the MSME buyers. udaanCapital emerged as a preferred partner to create a win-win proposition for the brand and their MSME buyers udaanCapital’s app seamlessly onboards borrowers and facilitates immediate invoice payments to Saint-Gobain, this fosters cash flow management, boosts sales, and strengthens relationships with channel partners. The program allows access to inventory without upfront payment, facilitating a smooth flow of goods and contributing to business growth.
As more distributors join the financing program, liquidity increases, enabling higher purchases from Saint-Gobain. udaanCapital’s customized solution plays a key role in reducing Saint-Gobain’s Days Sales Outstanding (DSO), providing buyers with an extended credit period. Additionally, buyers have flexible payment terms or incentives in form of cashback for early payments. The credit limits tied to purchases are reusable upon repayment, further contributing to the overall efficiency of the financial process.
Anand Santhanam, Chief Sales and Marketing Officer, Saint-Gobain India Glass Business, said, “At Saint-Gobain, we believe in true partnership with our customers. One of the best demonstrations of partnership is business growth. Channel Financing and thereby effective working capital management is integral to the business growth of our partners and we believe that our partnership with udaanCapital will foster an environment that nurtures distributors while facilitating the smooth flow of goods throughout the distribution chain. udaanCapital was our preferred partner because they are known for their quick disbursal, fast turnaround time & low default rate. So far, our distributors across 100+ cities have been successfully onboarded to enjoy collateral-free loans, access inventory and sell products without upfront payment.”
Chaitanya Adapa, Head, udaanCapital said, “At udaanCapital, we believe in forging strong partnerships to advance our goal of building next-gen working capital products for India’s trade. Our Saint-Gobain program is a testimony of how we’d want our ideal brand partnerships to look like – thanks to the clarity and commitment that the Saint-Gobain team had in supporting their channel partners. We are very glad to have partnered with them in that journey & are committed to deepening our engagement.”
The introduction of udaanCapital’s technology-driven behaviour shaping has accelerated sales for Saint-Gobain, especially among their trade partners. This collaboration aims to empower MSMEs across India by transforming the landscape of channel financing.
About udaanCapital
udaanCapital is a fintech focused on addressing the working capital needs of small businesses. India has millions of small retailers and distributors who serve the consumption needs of their neighborhoods. These distributors and retailers need working capital to purchase and stock inventory. However, working capital financing from banks and NBFCs is hard to come by for this segment. udaanCapital leverages its core capabilities of lender and brand partnerships, robust automation-based credit scoring, and deep collection network to solve the working capital requirements of MSME buyers across India. Today, more than a third of sales on udaan, India’s largest B2B e-commerce platform, is powered by udaanCapital.
About udaan
Founded in 2016 with a vision to transform the trade ecosystem and empower small businesses by leveraging technology, udaan is India’s largest b2b eCommerce platform. It has operations across categories including lifestyle, electronics, home & kitchen, staples, fruits & vegetables, FMCG, pharma, toys and general merchandise. udaan has over 3 million retailers and thousands of sellers on the platform across the country. The platform enables supply chain & logistics operations, focused on b2b trade and built on strong technology, for daily delivery across 1200+ cities and 12,500+ pin codes. udaan enables financial products and services to small businesses, manufacturers, and retailers through udaanCapital to grow their business.
udaan is headquartered in Bangalore with offices in all leading metros and major cities across India.
About Saint-Gobain
Worldwide leader in light and sustainable construction, Saint-Gobain designs, manufactures and distributes materials and services for the construction and industrial markets. Its integrated solutions for the renovation of public and private buildings, light construction and the decarbonization of construction and industry are developed through a continuous innovation process and provide sustainability and performance. The Group’s commitment is guided by its purpose, “MAKING THE WORLD A BETTER HOME”.
