Peel-Works Ties up with 3 NBFCs for Short-Term Loan to 20K Kirana Stores

By 121 News

Mumbai, Dec.11, 2020:- Peel-Works Pvt Ltd, a B2B e-commerce grocery firm, on Thursday announced its partnership with three leading NBFCs to provide short-term credit to mom-and-pop (kirana) stores at reasonable interest rates.

The three NBFCs -- RBL, Karbon Cards and Indifi-will provide credit in the range of Rs 50,000 to Rs 2,50,000 for 7 days to 15 days to the small retailers registered on Peel-Works' mobile App 'Taikee'.

The interest will be 18 percent to 28 percent depending on the retailers' purchase history and credit score.

Sachin Chhabra, Founder, Peel-Works Pvt. Ltd, said that to begin with, the credit will be made available to retailers in Delhi -NCR, Chandigarh, Bengaluru and Chennai.

He added that the facility will be slowly rolled out to other cities soon. Close to 20,000 retail outlets that are registered on Taikee app will benefit immediately as they can access to credit with just one click on the app.

Taikee app is the retail management arm of Mumbai-headquartered Peel-Works.

Sachin Chhabra said that the model will work like a closed wallet, where retailers can avail credit to utilise it on the Taikee platform itself. 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.

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 percent.

Nidhi Ramachandran, Co-Founder, Peel-Works Pvt Ltd said that now with the partnership of Peel-Works with the NBFCs, retailers can avail credit at a much lower interest rate, thereby reducing their cost of operations significantly.

The partnership is a win-win for all stakeholders - Peel-Works, NBFCs, and retailers. 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.

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 USD 3 Million from BlackSoil Capital and others.