Mumbai: In order toensure small retailers and corner stores access to short term credit, Peel-Works Pvt Ltd., a Mumbai headquartered B2B e-commerce grocery firm has tied-up with leading non-banking finance companies (NBFCs) like RBL, Karbon Cards and Indifi.

Under the partnership, NBFCs will provide credit to the tune Rs. 50,000 to Rs. 2,50,000 for a period of 7 days to 15 days at an interest rate of 18% to 28%, depending on the retailers’ purchase history and credit score.

To begin with, the credit will be made available to retailers in Delhi -NCR, Chandigarh, Bengaluru and Chennai. The facility will slowly be rolled out to other cities soon.

Close to 20,000 retail outlets that are registered on Taikee app, which is the retail management arm of Peel-Works, would benefit immediately as they can access to credit with just one click on the app. The model will work like a closed wallet, where retailers can avail credit to utilize it on the Taikee platform itself. A retailer can consume it multiple times against each purchase, but not beyond the aggregate Credit Limit assigned. The payment will be collected automatically from the retailer’s account after a fixed tenure of 7 to 15 days with pro-rata nominal interest charges.

Commenting on the partnership with NBFCs, Mr. Sachin Chhabra, Founder, Peel-Works Pvt. Ltd said, “Small retailers have long been known to operate on credit due to lack of working capital but historically they have to pay interest in the range of 40-100%. With our partnership with NBFCs, retailers can enjoy credit at a much lower interest rate, which will reduce their cost of operations significantly.”

“The freed-up working capital can then be used by the retailer for growth – to digitise their stores, run promotions, bundle offers, upgrade their merchandise display, sell high-quality private label goods, offer long tail items and procure the latest products in the market. This will help them compete with modern trade by behaving like mini supermarkets,” added Nidhi Ramachandran, Co-Founder, Peel-Works Pvt. Ltd.

The partnership is a win-win for all stakeholders – Peel-Works, NBFCs, retailers and the end consumers. NBFCs will get access to a universe of stores and can quickly scale up their loan book. As a business, having an NBFC option will enable us at Taikee, to increase our footprint in existing geographies and well as new ones. The retailers get easy access to credit, to focus on growth. Lastly, the end consumers get to experience instant gratification, without having to go too far or waiting for days for their orders to be delivered.

Co-Founded by Sachin Chhabra and Nidhi Ramachandran in 2010, Peel-Works enables better lives for Corner stores. The company has a direct tie-up with leading FMCG brands, making it convenient for retailers to source a wide assortment through a single app – Taikee – instead of interacting with multiple brands’ salesmen.

The company has been on high growth trajectory, clocking a monthly turnover of over Rs 100 crore ever since the lockdown. Recently, Peel-works has secured venture debt of around $ 3M from BlackSoil Capital and others.