RCF ties up with Snapdeal for commercial finance biz

19 Jan '16

2 min read

Reliance Commercial Finance (RCF) has tied up with e-retail major Snapdeal for supply chain financing for e-commerce vendors. The company is also in talks with various other leading e-commerce players including Flipkart and Amazon, according to an agency report.

A part of the Anil Ambani-led Reliance Group's financial services arm Reliance Capital, RCF will offer supply chain financing to a select set of over 80,000 Snapdeal vendors across the county in teh first phase.

"We have launched a new e-commerce centric supply chain financing product that will help us offer customized options to these vendors. Increasingly we will tie up with prominent e-commerce players to offer this to their vendors," RCF's CEO K V Srinivasan said.

RCF is looking to further expand its e-commerce supply chain financing portfolio and has begun discussions with Amazon and Flipkart as also various other e-commerce firms.

Srinivasan said e-commerce companies manage thousands of vendors across categories and roughly five per cent of these vendors have strong credentials and are eligible for offering financing options.

"This provides a huge opportunity for the lending firms. We see this portfolio growing. Our average financing has been to the tune of Rs 20 lakh and is based on a rating system developed by the platform itself. This helps us get the best in the lot - limiting our risk and exposure," he added.

RCF currently has a Rs 1,000 crore book from supply chain financing and expects to grow this portfolio to Rs 1,500 crore by the end of the calendar year marking a 50 per cent jump.

The company expects over 10 per cent of its total supply chain portfolio to come from supply chain financing for e-commerce vendors by the end of this year. (SH)

Fibre2Fashion News Desk - India

More Textiles News - India...