The tie-up is in its first stage and the pilot project is already underway in West India
Power2SME, India’s first ‘buying club’ for Small and Medium Enterprises (SMEs), has inked an agreement with non-banking financial company (NBFC) Vistaar Financial Services Pvt. Ltd., to finance procurement transactions of Power2SME’s SME clients.
The tie-up is in its first stage and the pilot project is already underway in West India, with SME clients in Pune and Nashik hailing from the manufacturing sector. This first stage pilot project for NBFC funding will upto a credit limit of up to Rs. 25,00,000.
Power2SME, now in its third year of operation is committed to addressing the SMEs capital and cash flow issues and its tie up with Vistaar is a step in that direction announced the press release. It further says the tie-up will be particularly beneficial for SMEs seeking to scale up but lacking the wherewithal to do so. With handholding from Power2SME as required and a competitive funding option from Vistaar, SME clients will be in a position to expand their business faster.
Commenting on the tie up, R Narayan, Founder & Chief Executive Officer, Power2SME, said, “With Power2SME aggregating purchases on behalf of numerous SMEs, bulk buying ensures immense discounts and lower rates, which are passed on to SME clients. The tie-up with Vistaar will boost the number of annual transactions by facilitating faster and easier funding thereby providing an impetus to resolving cash flow related issues of SMEs.”
Elaborating on the partnership, Brahmanand Hegde, Managing Director & Chief Executive Officer – Vistaar, said, “With finance and cash flow problems, SMEs need more financial channels that create lending solutions for SMEs. The segment possesses tremendous potential to help fulfil the Government’s ‘Make in India’ campaign, provided adequate financing is available to them. This is the gap that the Power2SME-Vistaar tie-up will strive to fill.”