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Sidbi Signs MoU With Snapdeal

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The Small Industries Development Bank of India (Sidbi) signed a Memorandum of Understanding with Snapdeal, an e-commerce major in India, to provide financial support to its MSME vendors. The MoU was signed by Dr Kshatrapati Shivaji, CMD, Sidbi and Kunal Bahl, CEO, Snapdeal on July 14, 2015 at Sidbi office in Mumbai.

E-commerce is the buzz word in the global as well as domestic market. The MSMEs find e-commerce platforms like Snapdeal as a promising ground for increasing their business opportunities. The e-commerce sector in India has become four times its size, from $3.8 billion in 2009 to $17 billion in 2014, growing at a CAGR of 37 per cent. The sector is expected to cross the $100 billion mark within the next five years, contributing over 4% to India’s GDP.

Small Industries Development Bank of India (SIDBI), set up under an Act of Parliament, has been consistently promoting, financing and developing the Micro, Small & Medium Enterprise (MSME) sector since its inception on April 02, 1990. SIDBI continued its business model aimed at addressing the financial and non-financial gaps in the MSME eco-system. Some niche financial gaps addressed by the Bank are equity / risk capital, receivable finance, sustainable finance which includes energy efficiency (EE)/ clean production (CP) technology and services sector financing.

Over the years, Sidbi has pioneered a number of innovative financial products and set up new institutions to cater to the diverse credit and non-credit needs of MSMEs.  In its efforts to include larger number of MSMEs in its fold, Sidbi tied up with a number of intermediaries to increase its outreach.  MoU with e-commerce giant ‘Snapdeal’ is one such effort in this direction.

The innovative financial products are growth capital / risk capital, receivable financing / reverse factoring, energy efficiency financing, micro finance etc. Snapdeal promoted by Kunal Bahl along with Rohit Bansal, is one of the India’s most impactful digital commerce ecosystem, that creates life changing experiences for buyers and sellers. In its journey till now, Snapdeal has partnered with several global investors and individuals such as Softbank, Blackrock, Temasek and eBay Inc., Premji Invest, Intel Capital, Ratan Tata, etc

For addressing the problem of lack of required financial assistance, Sidbi and Snapdeal have joined hands to enable latter’s MSME vendors to scale up their online business through financial support from Sidbi.

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