KredX, a supply chain finance platform, said on Tuesday it will disburse Rs 2,000 crore in working capital to serve the working capital demand of businesses before the three-month festive period starting September.
The announcement is part of the company’s ‘KredX Spark’ initiative.
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KredX last year disbursed more than Rs 1,500 crore as working capital to 650 micro, small, and medium enterprises (MSMEs) across various sectors.
“We are partnering with multiple companies to ramp up their supply chain and build up their inventory in this period. This year, we are hoping that we will cross more than 1000 MSMEs,” said Kumar.
KredX said its study showed an average consumer durables business generates 40-50 per cent of its annual sales in the festive period. An apparel business gets about 35-45 per cent of its annual sales during the same time.
“Demand in terms of fashion, consumer durables and electronics has increased a lot on the tier-two side … as disposable income has increased (in these places). Moreover, MSME clusters are not placed in metro towns but are in satellite or tier two towns. That is why we see a demand on the tier two side,” said Kumar.
Maharashtra, Tamil Nadu, Gujarat, Karnataka, Andhra Pradesh and Telangana are expected to make a majority of the working capital demand.