BANGALORE, January 25, 2017 /PRNewswire/ --
- Roll out Will Target 500+ Exclusive TTK-Prestige Dealers Across India
- Successful Pilot Launch Completed in Bangalore in Q2'16, National Expansion Underway in Phased Manner
- With Credit Limits of up to Rs. 20 lac, Dealers can use These Loans Against any Current or Pending Invoice from TTK Prestige
- Usage Pattern Similar to Normal Credit Card - can be Used Anytime for any Number of Loan Transactions Within Credit Limit
- Solution Works on Innoviti's Unique smelending.com Platform that Links 3 Parties: Dealers, Their Principal and Banks/NBFCs, in a Win-win Partnership
- Platform Leverages Aggregation and Non-traditional Credit Data Flows Between the 3 Parties, to Make This Unsecured Lending Economically Viable for Lenders
Innoviti Payment Solutions, India's leading Payment Solutions Company has tied up with kitchen appliances major, TTK Prestige to roll-out a unique channel financing solution for their dealers. The unique new dealer lending model which runs off Innoviti's smelending.com platform digitizes key loan operations process like dealer enrolment, credit evaluation, loan origination and disbursement, which greatly reduce both the risk and operational costs involved in lending to this highly fragmented market segment. Currently targeted at the over 500+ 'Prestige Smart Kitchen (PSK)' exclusive brand outlets of TTK Prestige, this Innoviti-TTK program will enable dealers to conveniently access pre-approved, collateral-free 30-day loans, which they can use for financing their trade ordering cycle with TTK Prestige.
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Under the Innoviti-TTK partnership, qualified TTK Prestige dealers are given a SMElending card which they can swipe in a similar manner to a normal credit card, for taking an instant 30-day loan against any current or past invoice from TTK Prestige. Unlike traditional lending models, the smelending.com platform uses a unique 3-party model which links key credit-related data flows between the dealers, their principal (TTK Prestige), and the lending partner, Kotak Mahindra Bank. This enables use of non-traditional credit evaluation data points like a dealer's past business history with his principal, to help reduce the lending risk.
The initial pilot rollout of the program was completed in Bangalore in Q2'16, and currently covers over 80+ dealers actively using their allotted credit limits of over Rs. 2 lakh each on average per dealer. Dealer response to the new program has been very enthusiastic with over 70% average m-o-m growth in total credit utilization since launch. Since launch, the program has seen over 60% average credit limit utilization with a zero credit delinquency rate. Credit qualification rate amongst applicant dealers is also 60%+.
Talking about the partnership, Ms. Amrita Malik, Business Head - SMELending at Innoviti said, "Even though the SME segment contributes 30% to India's GDP, their demand for capital is largely unmet by the banks. With the smelending.com platform, we hope to take a positive step towards addressing this systemic gap. We are delighted to partner with TTK Prestige in providing a convenient financing solution that will fuel the entrepreneurship of their dealer channel!"
Mr. K.G George, Senior VP- Retail at TTK-Prestige says, "We have built a network of 530 Prestige Smart Kitchen stores pan India over the last 13 years. Back then, dealers would invest Rs. 5 lakh to stock up their store, nowadays even Rs. 15-20 lakhs is not enough to showcase our entire range. That's why getting convenient access to working capital loans for financing their invoice cycles is a very important business growth enabler for our dealers. With this partnership, we are looking to significantly enhance same store sales growth over the next 12 months."
Mr. Bhupal Reddy of Imperial Kitchens (a PSK in Bangalore) says , "These 30-day loans are very helpful in growing my business. I can now increase my inventory spread and also stock up more, which leads to more customer satisfaction. One really good part for small merchants like me is that the 30-day period starts only after order delivery." Based on success of the Bangalore pilot, the Innoviti-TTK program is now being expanded across all 500+ TTK Prestige PSKs nationwide in a phased manner.
By leveraging both aggregation benefits as well as access to non-traditional data points like a dealer's past transaction history with his principal, the smelending.com platform successfully lowers the lender's credit risk and operational cost barriers in lending to this large but fragmented market segment. This innovative model opens up tremendous possibilities in the sphere of organized sector lending to such small businesses/SMEs, since currently less than 7% of the nearly 40m SMEs in India have access to organized credit as per the Ministry of MSME (Micro, Small and Medium Enterprises) annual report for 2014-15.
About Innoviti Payment Solutions Pvt. Ltd., Bangalore, India.
Innoviti Payment Solutions Pvt. Ltd. (formerly Innoviti Embedded Solutions Pvt. Ltd.) has been a pioneer in the use of technology to solve real-world payment acceptance problems of merchants. Using its indigenous developed technology and constant innovation, Innoviti has delivered differentiated solutions for payments automation, consumer credit distribution and SME lending that have become a benchmark in their markets. Innoviti processes over Rs. 8,000 cr. of payment transactions annually including Rs. 1000 cr. of credit. Innoviti's smelending.com is #1 in the segment of SME lending, processing over Rs 400 cr. per year. uniPAY is India's only omni-channel payment platform for managing payment automation. The company has won Deloitte Asia Pacific award three years in a row and Red Herring Asia award twice. Innoviti is backed by marquee investors such as Titan Company (JV between Tata Group and TIDCO), Catamaran Ventures and New India Investment Corporation, Canada.
About TTK Prestige Ltd.: (http://www.ttkprestige.com)
TTK Prestige Limited is part of TTK Group. Over the past six decades TTK Prestige Limited, has emerged as India's largest kitchen appliances company catering to the needs of home makers in the country. Every Prestige brand product is built on the pillars of safety, innovation, durability and trust, making the brand the first choice in millions of homes. In April 2016, TTK Prestige launched 'Prestige Clean Home', a range of innovative home cleaning solutions.
Media Contact:
Sarath Chandra Nerella
[email protected]
+91-7795348478
Marketing Manager
Innoviti Payment Solutions Pvt. Ltd.
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