KredX’s ‘Spark’-ing Growth: Unveils ₹2000 Crores Working Capital Infusion for Festive Season; Manufacturing & Ecommerce to lead working capital demand as per KredX study
KredX, India’s largest supply chain finance platform, unveiled its plans to disburse ₹2000 crores in working capital, over and above the usual disbursement, in order to meet the growing working capital demands of businesses ahead of the upcoming festive season. This year, the efforts will be held under a new initiative called ‘KredX Spark’, with plans to boost Indian businesses ahead of the festive season. Notably, in the previous year, the company had disbursed 1500 crores of working capital to approximately 650 Micro, Small, and Medium Enterprises (MSMEs) across various sectors, highlighting their commitment to supporting businesses in their financial endeavors.
The 2nd edition of KredX’s festive season working capital report indicates that manufacturing and ecommerce industries are expected to spearhead the demand for working capital ahead of the festive season. Specifically, the manufacturing industry is projected to be at the forefront due to a significant surge in exports observed throughout the year. Key commodities driving this demand include electronics, automotive, engineering, chemicals, pharmaceuticals, and consumer durables. The focal regions expected to generate this demand are Maharashtra, Tamil Nadu, Gujarat, Karnataka, Andhra pradesh and Telangana. In 2022, KredX noticed a significant surge in working capital demand from tier 2 cities. Based on the noted trends, this year, tier 2 cities are expected to lead with a 35% increase, followed closely by tier 1 cities at 20%.
The significance of MSMEs within the manufacturing sector cannot be understated, as they constitute an integral part of it, with 31 percent of the 633 lakh MSMEs in India engaged in manufacturing activities. KredX’s study further reveals that the manufacturing industry, contributing to 17% of the nation’s GDP and employing over 27.3 million workers, experiences a 30% increase in sales during the festive season, emphasizing the potential impact of this working capital disbursement.
On the other hand, the ecommerce segment, particularly the consumer durables and apparels industries, is poised to benefit significantly during the festive season, both from online and offline platforms. According to KredX’s study, an average consumer durable business generates approximately 40-50% of their annual sales during the festive period, while the average apparel business sees about 35-45% of their annual sales during this 3-month timeframe. However, it is noteworthy that there exists a substantial credit gap for these businesses, estimated to be around 200-300%, approximately.
KredX has consistently been at the forefront of providing accessible working capital to businesses of all sizes. This year, KredX aims to further cater to the comprehensive credit needs of these businesses through a well-designed program offering attractive cash back incentives and low discounting rates, thereby enhancing the appeal of their quick and collateral-free credit options.
Manish Kumar, Founder & CEO at KredX said, “As we embark on this extraordinary journey, I am delighted to announce KredX’s commitment to empower Indian businesses with an unparalleled infusion of ₹2000 crores in working capital. With unwavering dedication, we stand ready to support enterprises during the forthcoming festive season, fueling their growth and success. Our vision is to fortify the foundation of commerce, enabling the manufacturing, and ecommerce industries to flourish and thrive. Through innovative financial solutions and our unyielding belief in the potential of Indian businesses, we aspire to leave an indelible mark on the nation’s economic landscape.”
About KredX:
Founded in 2015 in Bangalore by Manish Kumar and Anurag Jain, KredX is India’s largest supply chain finance platform accelerating finance through the use of cutting-edge technology and data. The company offers a host of customisable solutions ranging from enterprise finance and cash flow management solutions to working capital and channel financing solutions for businesses, large and small, operating within the supply chain ecosystem while offering unique alternative debt investment solutions to investors worldwide. Through the use of reliable technology to accelerate customer growth, the company aims to become the world’s fastest operating system for supply chain finance.
