Saahil Goel, Co-Founder and CEO, Shiprocket says that Shiprocket Capital offers an efficient means for ecommerce entrepreneurs to access vital growth capital, potentially increasing startup growth by up to 30%. “This expeditious access is crucial for businesses facing time-sensitive opportunities or urgent financial needs. Moreover, the revenue-based financing model ensures liability-free financing, with repayments tied directly to a company’s revenue,” he states.
Goel adds that such an approach minimises financial burden on MSMEs, allowing them to repay funds in line with their income generation, a flexibility not typically found in traditional lending methods. “The combination of quick, collateral-free access and liability-free financing makes RBF platforms a transformative force in empowering Indian MSMEs with the necessary capital for sustained growth,” he says.
In its pilot phase, Shiprocket has already enabled around 150 SMBs with access to vital growth capital and disbursed more than Rs 35 crores via Shiprocket Capital.
The criteria for a small business to avail of a loan through Shiprocket Capital involves a process whereby the application process is simplified into three steps: submitting the form, sharing necessary documents, and receiving funds. After the completion of the form, the fund disbursal occurs within 2 days after document submission.
The platform offers flexibility in repayment terms. The repayment structure is tied to a one-time flat fee and a percentage of the revenue generated by the business. This aligns the repayment schedule with the business’s income generation, providing a more adaptable financing solution versus traditional loans or other quick financing alternatives. Goel adds that with India being on track to build a thriving ecosystem of 1 million ecommerce businesses by 2025, the goal is to empower entrepreneurs with accessible and rapid financing options. “We are offering a solution that enables ecommerce innovators to fuel growth without compromising on their vision or equity,” he says. The company has partnered with leading Non-Banking Financial Companies (NBFCs) like InCred, Indifi, Klub, Stride, Vedfin, Velocity, and GetVantage for the purpose.
Prior to this initiative, Shiprocket had been enabling SMEs with marketing automation, WhatsApp commerce, order and supply chain fulfillment, checkout solutions, and shipping. Their new model has been launched now to offer solutions to SMBs in need of collateral free financial aid.
Shiprocket Capital caters to ecommerce businesses operating across various categories, including fashion, consumer electronics, beauty and personal care, home and kitchen and jewellery and accessories.
