IIFL Finance partners with FinBox to offer digital credit products to merchants

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  • IIFL Finance, a leading finance and Investments Company has partnered with Bangalore and Gurgaon-based FinTech, FinBox, to offer innovative digital credit products to its merchants.
  • The investment services company will offer digital credit avenues to its merchants, B2B E-Commerce traders, using FinBox’s embedded buy-now-pay-later (BNPL) and working capital credit products.
  • Through this partnership, IIFL and FinBox will disburse INR 1000 Cr in loans over the next 2 quarters, through a completely digital model, the company said.
  • “The FinBox Embedded Finance Platform powers credit on multiple B2B E-Commerce and retailer aggregator platforms. Partnering with IIFL provides us the flexibility and agility to launch innovative credit products for merchants at best-in-class rates.
  • BNPL credit is the lifeblood of B2B E-Commerce and trade. Just like cash-on-delivery kickstarted the Indian B2C E-Commerce story, seamless access to cash flow-based BNPL financing is fueling B2B E-Commerce,” said Rajat Deshpande, Co-founder and CEO of FinBox.
  • “Partnering with FinBox enables us to access borrowers through its deep partner network with a single integration and offer our credit products digitally.
  • We have collaborated deeply with FinBox’s low-code platform to make our lending process entirely digital and hassle-free.” said Sanjeev Srivastava, Chief Risk Officer, IIFL.
  • He further added that FinBox’s  AI/ML powered underwriting capability will enable to extend credit even to MSMEs with thin-to-no credit history. They are launching multiple new-age credit products for the retailer and MSME space through the FinBox Embedded Finance Platform.
  • The company further added that B2B BNPL is garnering increasing attention globally as people shift their purchase and expense habits owing to COVID-19’s repercussions on liquidity.
  • BNPL products enable merchants to manage fluctuations in demand, keep a well-stocked shop, and expand as needed during the festive season, all the while reducing cash collection and logistics complexities for their distributors.
  • The FinBox Embedded Finance Platform helps every company become a lending company by solving the most complex parts of the value chain and bringing them together on a low-code platform.
  • Using the FinTech startup’s offerings, lending organisations can benefit from lower costs per loan, thereby increasing their profitability by as high as 55 percent.
  • Lenders, NBFCs, banks and startups in the space have also reduced delinquency/default rates by 22 percent owing to FinTech’s low-code, high-efficiency tech stack that brings precision and credit data from over 10,000 data indicators.
  • “Our partnership-driven model enables us to incorporate platform data to create innovative credit products that engender a win-win dynamic between digital platforms, borrowers, and lenders.
  • Embedded credit is the next big wave in FinTech. This partnership will play a crucial role in transforming the credit ecosystem in India,” added Deshpande.
  • Source : w.media

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