udaanCapital partners with Northern Arc Capital to facilitate disbursal of credit to over 50,000 kiranas on their platform

BENGALURU: udaanCapital announced that it had partnered with Northern Arc Capital Limited and facilitated disbursal of credit to over 50,000 kiranas & small retailers.

udaanCapital enables such retailers to make purchases for their stores from a wide array of suppliers on the udaan platform with credit lines provided by its lender partners. Thereby udaanCapital also catalyses kirana commerce on the udaan platform. Today, more than a third of sales on udaan, India’s largest B2B commerce platform, is powered by udaanCapital.

The company currently facilitates disbursal of over Rs 8000 crore of credit per annum to over 1.5 lakh kiranas/small businesses across the country. The credit limits offered range from Rs 10,000 to Rs 25 lakh and the credit tenures offered are short term.

In a statement, Chaitanya Adapa, Head – udaanCapital said, “Our mission has been to empower and drive kirana ecommerce by providing formal credit to the small retailers of our country. We have always believed that the right solution to closing the working capital gap in small retailers lies in taking a trade-centric view to risk management – and just as importantly helping our lender partners take a similar view. In Northern Arc we found a like-minded partner, who shared our vision and came onboard at a very early stage.”

Northern Arc is a financial services platform with a diversified business model that provides credit to MSMEs, households, financial institutions and emerging businesses. Over the past year, it has disbursed over 5 million loans across business loans, personal loans and BNPL facilities, through a completely digital journey. By leveraging its data insights & scorecards, Northern Arc has cumulatively raised over Rs 1 trillion in funds for its clients since the inception of its platform in 2009. Through the AltiFi platform, it offers fixed income investments for individual retail investors. Along with its asset management subsidiary that manages seven AIFs, the company manages a total AUM of over Rs 9,000 crore. It is backed by marquee equity investors like Sumitomo Mitsui Banking Corporation, LeapFrog, IIFL, Accion, Augusta Investments (known as Affirma Capital), Dvara Trust and Eight Roads.

In a statement, Ashish Mehrotra, MD & CEO, Northern Arc Capital said, “At Northern Arc, we aim to be pioneers in finding innovative solutions to enable finance for MSMEs and the next billion households. We do this directly and through exciting partners like udaan.

, our digital platform helps us integrate seamlessly with partners, ensuring instantaneous disbursements and best in-class experience for borrowers.”

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