Indian festivals are celebrated with fervour, zeal, and excitement. India has entered the digital world and eCommerce has redefined business for Indian customers. During this festive season, there are several ways through which business owners can expand their existing business with SMEcorner.
SMECorner is a company that plans to expand operations to reach 20K customers. Earlier, it had raised $10.7 Mn from Quona Capital and Accion Venture Lab and now the clients of SMEcorner comprise various businesses like chemists, Kirana stores, and other merchants.
SMEcorner is a Mumbai-based lending start-up that has raised $30 Mn in both debt and equity funding, led by Paragon Partners. Samir Bhatia is the founder and CEO of SMEcorner who has also invested in the funding round, along with the company’s existing investors Quona Capital, Accion Venture Lab, and some high net-worth individuals.
SMEcorner plans to provide financial assistance in the form of business loans online to MSMEs to expand its operations and reach out to millions of customers. The small business loan disbursement can go up to as high as Rs 1 Cr by the end of the financial year 2020, ending in March.
Features of SMECorner small business loan for expansion of MSMEs this festive season:
- SMEcorner offers quick business loans online to micro, small and medium enterprises (MSME).
- It envisions to bridge the SME lending gap existing in the country.
- The average rate of interest is 24% and the average amount of small business loans disbursed vary from Rs. 6.5 lakhs to Rs. 1 crore.
- SMEcorner relies on an online platform that amalgamates data science, artificial intelligence – AI, and machine learning.
- Customers mainly comprise of small business owners like those of readymade garment stores, Kirana stores, food and grocery outlets, hardware stores, electronic shop owners, etc.
- It intends to enhance its funding for geographical expansion with 40 new tier-2 and tier 3 cities targeted in 2021. The funds can also be used for updating the technology of businesses.
- SMEcorner has raised about Rs.200 crores in equity and debt.
- SMEcorner currently is providing its services in 13 centres which are spread across 9 cities, working in a total of 3 states in India.
- The company offers a small ticket-size business loan online worth ₹50,000 to ₹25 lakh for a period of 6 to 36 months and has disbursed over ₹225 crores in the last one year.
- SMEcorner uses Optical Character Recognition, proprietary application scorecards, and other forms of artificial intelligence.
- SMEcorner claims to have an outstanding claim disbursal period of 3 days, with the help of technology as compared to the traditional banks that take a minimum of 2 weeks to process the business loan online to MSMEs.
Expansion of Business During Festivals with SMECorner
Businesses, irrespective of their size, work 24 by 7 to enjoy complete benefits of the festive sale season. From electronics to fashion trends to cosmetics and jewellery, everything sells like hot cakes during this season. This is the perfect time to sell your exclusive product range to the target audience and customers and enhance the profitability of your respective businesses.
If in need, SMEcorner is right there to disburse quick financial business loan online to MSMEs to fulfil their needs and help them in providing the best customer experience to their clients. MSMEs can use these strategies to increase sales for your business.
- Collaborate and merge with bigger businesses and portals
It is imperative to stretch the wings of existing businesses and launch them on bigger platforms or compete with the big giants in the market. In 2020, the trend is to go online, so it is highly recommended to put your shops and stores online with various available selling platforms that are giving immense business to MSMEs. A businessman can establish a name for his business and brand by listing his products and reducing costs, thus enhancing the overall profitability.
- Consider a marketplace fulfilment service
This is more like a paid service offered by grand portals, which will give you higher margins and a high scope of diligent marketing. Technological experts can help you deliver your business on these portals and you can stretch it to any extent this festive season.
- Expand your product range.
During festivals, every businessman can be more innovative and add to his normal range of products. He can introduce new products that can be used for gifting or consumption purposes that sell hugely during this festive season. This will attract more customers and eventually give him a much better business opportunity instead of just relying on his general range of products.
- Use social media for marketing purposes.
Social media applications are one of the trending marketing hubs these days, wherein word of mouth and customer testimonials spread like wildfire. The product photos, listings, and customer feedback received on products can be shared on social media platforms, and many times, these kinds of techniques come without any charge.
- Offer special discounts.
On festive occasions, almost everyone comes out of their homes and is on a shopping spree, this is the best time to lure a huge number of customers by offering great discounts. One can introduce techniques like:
- Festive-special combos
- Buy 1 get 1 free
- A standard 10-50% off
- New customer discount
Shopping is a mega-event for Indian and International customers during festivals, and this is the time when businesses of all sizes thrive. By taking financial assistance in the form of small business loans from SMEcorner, MSMEs have the advantage of expanding their businesses and product range. e Shopping is also a trend that is targeted and following by several customers and retailers. One can gain huge profits just by being financially independent with the help of free-flowing funds, which can be capitalized by SMEcorner and by harnessing the power of the internet. This will surely result in a spike in business profitability. Another important factor to take into consideration is to target the audience and the specific customer who will buy the product without any qualms. It’s the time for celebration and what could be better than an abundant, prosperous, and profitable MSME business.