Excelsior Correspondent
JAMMU, Feb 13: udaanCapital, one of India’s leading fintech players, today announced that it has facilitated disbursals of over Rs 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.
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, “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.”
Chaitanya Adapa, Head, UdaanCapital said, “ 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 and are committed to deepening our engagement.”
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