Use Case
Channel Financing in FMCG
Enable seamless access to working capital for all partners in the system, empowering their financial capabilities.
Supercharge business growth with channel financing.
It accelerates the cash flow for businesses and offers credit flexibility to distributors, partners, and retailers.
Background
India's leading FMCG brand boasts an extensive portfolio of 536 SKUs divided across 8 product categories, ranging from essential staples to flavourful spices and condiments, from nourishing honey to herbal products and wholesome dry fruits. With a robust dealer distribution network comprising over 125 MSME dealers and a multitude of retail outlets, the brand has successfully expanded its presence beyond national borders, venturing into lucrative international markets.
Rooted in its commitment to quality, the company places a strong emphasis on harnessing the power of natural ingredients and traditional Ayurvedic practices in its manufacturing process. This unwavering dedication reflects the brand's mission to offer consumers healthier, more wholesome alternatives for a fulfilling lifestyle.
Rooted in its commitment to quality, the company places a strong emphasis on harnessing the power of natural ingredients and traditional Ayurvedic practices in its manufacturing process. This unwavering dedication reflects the brand's mission to offer consumers healthier, more wholesome alternatives for a fulfilling lifestyle.
Challenge
The extensive dealer network across the country faced challenges securing reliable working capital, leading to delays in inventory procurement and supplier payments, which hindered overall business growth.
Turning to informal financing sources incurred elevated financing costs, compounded by delayed payments that extended days of sales outstanding and heightened overall business risks.
Turning to informal financing sources incurred elevated financing costs, compounded by delayed payments that extended days of sales outstanding and heightened overall business risks.
Approach
Cashinvoice, in collaboration with a prominent financial institution, provided essential trade advances to distributors of the company, effectively resolving the pressing issue of working capital finance. This strategic partnership brought much-needed financial relief to the ecosystem, allowing for seamless access to funds.
Our innovative platform not only connected the entire business ecosystem with financial institutions but also streamlined processes. It empowered distributors to effortlessly validate invoices, request draw-downs, and secure working capital for inventory procurement, thereby catalysing accelerated growth and bolstering the financial stability of all involved.
Our innovative platform not only connected the entire business ecosystem with financial institutions but also streamlined processes. It empowered distributors to effortlessly validate invoices, request draw-downs, and secure working capital for inventory procurement, thereby catalysing accelerated growth and bolstering the financial stability of all involved.
Result
- Partnership with a leading financial institution streamlined supply chain financing.
- Over 125+ MSME distributors linked with the company gained access to credit, expediting inventory procurement and fostering growth.
- Capital that was previously tied up in the supply chain was unlocked.
- Financing costs were lowered by 4-6% through the platform's innovative approach.
- The platform acted as a catalyst for efficient working capital management within the supply chain.
