Seeds Fincap, British International Investment and Lok Capital Partner to Bring Tailored Financial Solutions to Small Retailers in India

2024-11-08 11:25:05 Business

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India, November 06,2024: Seeds Fincap Pvt. Ltd.(Seeds), a leading Non-Banking Financial Company (NBFC), has partnered with British International Investment (BII), the UK's development finance institution and impact investor, through Lok Capital to launch a pioneering Supply Chain Finance initiative, providing tailored financial solutions to small retailers in India.

Many small retailers currently use unsecured individual loans as working capital, due to lack of access to better loan products. Therefore, the new initiative is designed to provide the much-needed working capital for inventory, operations, and expansion along the supply chain, addressing long-standing credit access challenges.

Lok Capital, a key investor in Seeds, facilitated this collaboration through BII's technical assistance programme – BII Plus – with the aim to unlock capital which will enhance its portfolio's performance. Seeds' initiative is also supported by M2i Consulting, which providing the technical support in developing this product.

Through BII Plus, BII is also supporting technology enhancements, market research, and capacity building, enabling Seeds to broaden its reach and strengthen its service offerings. This will demonstrate a new model to help India's micro, small and medium-sized enterprises (MSMEs), which contributes to nearly a third of the country's GDP.

Subash Acharya, Managing Director of Seeds Fincap, shared:
"Through our collaboration with BII, we are not only offering financial support but also enabling small retailers to think bigger and bolder. We're empowering them to chart their own course and take the lead in driving local economic transformation, ultimately reshaping their futures and communities."

Simon Meier, Director and Head of BII Plus at British International Investment, said: At BII, we are committed to supporting innovations that help the growth of MSMEs in a sustainable and inclusive way. Our partnership with Seeds will pilot a new approach to improve access to working capital which small retailers currently find challenging to secure. This will empower them to grow faster and stronger, contributing to a more inclusive economy."

Rajat Bansal, Director at Lok Capital added: "The gap in working capital solutions for retailers is significant, and we are pleased that, through our technical assistance platform, Seeds Fincap will be equipped to address these critical needs. This partnership of Seeds and BII is instrumental as it extends beyond mere financial support, fostering long-term growth and sustainability in emerging markets by empowering businesses with tailored resources and tools."

About Seeds Fincap Pvt. Ltd.

Seeds Fincap Pvt. Ltd. is a leading Non-Banking Financial Company (NBFC) dedicated to empowering entrepreneurs and providing innovative financial solutions to underserved businesses across India. With a strong focus on supporting small enterprises, Seeds Fincap aims to foster entrepreneurship, drive sustainable growth, and promote economic development in diverse regions. By offering tailored loan products and dedicated support, the company seeks to enable businesses to thrive, ultimately contributing to a more inclusive financial ecosystem in India.

About British International Investment

British International Investment is the UK's development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII's total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women's economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion.

About Lok Capital

Lok Capital, founded in 2004, is a pioneering India-based VC fund established in 2004. Lok makes early-growth stage VC / PE investments into fast growing impact sectors of financial inclusion, fin-tech, health-tech, agri-tech and climate-tech & sustainability in India. Across 4 funds, Lok has made 45 investments, 29 profitable exits & 8 IPOs. Lok IV is a 2X Challenge qualified fund and aims to be SFDR Article 9 compliant. Visit the website here and follow Lok Capital on LinkedIn and X to stay updated.