Axis Bank limits support for snapdeal’s seller financing programme.

Axis Bank has withdrawn its credit limit to some sellers on e-commerce firm Snapdeal’s platform over falling sale numbers, a report by a financial daily stated.

The private sector lender even asked sellers to repay outstanding loans, an Economic Times report stated. The merchants had availed loans through Snapdeal’s Capital Assist programme.

“What we have found is that for some sellers, the transaction flow was not as per our expectations, so as a matter of prudence, the sanctioned credit limit is being withdrawn,” said Rajiv Anand, executive director of Axis Bank, told the financial daily.

Through the Capital Assist initiative, the Jasper Infotech Pvt Ltd-owned Snapdeal partnered with 27 banks and non-banking finance companies (NBFCs) including State Bank of India (SBI), HDFC Bank, ICICI Bank, Yes Bank, Tata Capital, Reliance Capital, and L&T Finance, Hero Fincorp, Aditya Birla Finance, Lending Kart and Capital Float among others to facilitate these loans. The company claims to have disbursed loans worth Rs 450 crores to more than 2,200 small and medium-sized enterprises in September last year.

Snapdeal did not respond to emailed queries at the time of writing this report.

Only last month, a group of sellers on Snapdeal approached commerce minister Nirmala Sitharaman to protect their interests due to increasing troubles at the e-commerce firm. The association estimates that in any given month, Snapdeal holds Rs 300-400 crores in the form of outstanding dues and goods in transit or refunds.

The All India Online Vendor Association (AIOVA) industry group had, in September 2016, met with the commerce minister to discuss the outstanding payments of sellers after e-commerce firm AskMe shut down.

Separately, news portal Moneycontrol reported last month that only 10% of Snapdeal’s seller base is active. Many of these vendors haven’t sold a single product in the past year.

Snapdeal has been deep in the red. Its consolidated loss for the financial year ended March 2016 widened to Rs 3,315 crore from Rs 1,328 crore in 2014-15.

Last year, Snapdeal claimed to have about three lakh sellers on its platform.

During the annual festive sales last year, Flipkart and Amazon announced several financial incentives to sign up new vendors and also to help the existing sellers stock up on their products in anticipation of a spike in demand from customers. However, VCCircle had reported that these initiatives had received lukewarm response from sellers due to high interest rates and the distrust towards banks as well as the facilitators


XML Sitemap

Dividend tax only on dividend income above Rs 10 lakh
Snapdeal’s Kunal Bahl describes what it takes to get into the haloed club
Time to Surf the ECB’s Market Wave
How to get loan you against PPF – A discussion
Nokia 6 full Phone specifications
Richest man: Here is how much Jeff Bezos is worth
Nokia 3, Nokia 5, and Nokia 6 to Soon Join Android 8.0 Oreo Beta Testing
Alibaba vs Tencent: Who will come out on top in the Indian startup race?
No Preview
Snapchat raised $1.8B in a Series F round; leaked deck reveals revenues
How to Find an Angel Investor
Companies boost green bond offerings on government’s clean-energy push
Alibaba, Ant Financial inject fresh cash into India’s Paytm
BRICS Bank to fund inclusive needs of emerging nations: PM Narendra Modi
How to make money in Real Estate
How to become a Best Real Estate Agent
What Kind Education Do You Need To Become A Billionaire?
Microsoft will stop updating anything older than Internet Explorer 11. But millions are still using the old browsers.
How to get loan you against PPF – A discussion
Google’s Nexus Lineup Offers Better Security Among Android Phones: Cambridge Report
Reliance Jio spending Rs. 1lakh crore on 4G rollout