Founded in 2016, Vyapar enables businesses to raise and track GST invoices through its app. It also helps business owners check inventory instantly and also file their GST returns seamlessly. This suite of services helps businesses digitize their previously scattered and informal data. The digitization allows the businesses to leverage this digitized data to gain access to better financial services including credit products. The company’s app has already clocked more than 8 million downloads.
Vyapar is now looking to offer credit to its merchant ecosystem by embedding loan products in its app itself. This will allow MSMEs to apply and access formal credit while helping it become a focal point for managing business finances for small and medium enterprises.
To enable this, Vyapar has partnered with FinBox, a credit infrastructure provider. Through FinBox’s proprietary Embedded Finance Stack, Vyapar has started offering business loans to the merchants in its ecosystem. Everything from application, underwriting to disbursement is handled in-app as part of this partnership, providing a frictionless experience to the borrowers.
Embedded Finance stack helps companies become a lending company by solving the most complex parts of the digital lending value chain and bringing them together on a low-code platform. By embedding credit onto their platforms, apps such as Vyapar are serving their MSME customers better by offering them credit products seamlessly inside their ecosystem and on optimal terms. And when it comes to the MSMEs themselves, they gain access to seamless formal credit at competitive rates and through a completely digital process with minimal or no paperwork.
“The objective with this partnership was to offer a seamless experience to our customers for availing business loans and other credit products. FinBox has helped kickstart this journey with a product that can scale as our user base and credit portfolio grows in the future” said Sumit Agarwal, CEO of Vyapar, in a statement.
In a statement, FinBox, CEO, Rajat Deshpande said, “Vyapar is leveraging FinBox’s credit infrastructure to offer innovative credit products to businesses on its platform and helping MSMEs access financial services in a secure manner. The Rs 25 trillion credit gap for Indian MSMEs can only be bridged with digitization of credit and democratisation of access.”
According to UK venture investment firm Anthemis, the global embedded finance market will be worth a remarkable $7 trillion by 2030. In the words of venture capital firm Andreessen Horowitz, it allows every company to become a FinTech company through easy-to-integrate APIs. When it comes to MSME focused businesses, such as Vyapar, in particular, Embedded Finance allows them to increase their customer lifetime value, monetize their customer base, and vertically scale their product offering.
As an increasing number of companies looking to build credit and FinTech products, they are looking at platforms such as FinBox to quickly build and launch credit offerings such as business loans, BNPL or credit cards. Embedded Finance infrastructure providers play a key role in enabling the democratization of financial services as banking moves away from traditional banking channels and gets more integrated in the apps and products that consumers love and use every day.