The online food delivery and ordering platform, Swiggy has decided to join hands with fintech company Indifi Technologies to provide working capital loans for its partner restaurant under Swiggy Capital Assist.
With more than 18000 restaurants under its belt, the online food delivery platform will provide capital especially to the restaurants who are running small- and medium- scale business. A spokesperson from the company informed IDG that Swiggy is focusing on small- and medium- scale restaurants, who looking for funds to expand their business in the market. The process is relatively simpler as there is just a form to fill and then Indifi will complete the credit evaluation within 24 hours and the entire loan will be given in a week’s time without initial deposits at a fair interest rate.
“Our restaurant partners are at the heart of our success. Through Swiggy Capital Assist, we want to leverage our credibility to provide fair and hassle-free financing options to our restaurant partners, much like our seamless delivery service,” said Sriharsha Majety, CEO, Swiggy. “With this program, our objective is to enable small and medium scale restaurants to get quick access to capital, expand their presence, and continue on their journey to greater success.”
The program will provide the company’s restaurant partners seamless access to additional working capital, helping them grow and expand their business, Swiggy said in a statement.
When CIO reached out to Swiggy it responded, “As India’s largest food ordering and delivery platform, we have worked closely with our restaurant partners to achieve success in our joint vision of providing a complete food ordering and delivery solution from the best neighborhood restaurants. Restaurant partners lie at the heart of our success, and we understand that a small loan can take them a long way. Swiggy is committed to providing various value-added services to our partners, and this partner financing programme is one among the many steps in that direction.”
“Indifi’s partnership with Swiggy creates a seamless financing platform for restaurant owners, as well as the data infrastructure to enable strong credit quality for lenders,” said Siddharth Mahanot, COO, Indifi in a statement.
Since launching its pilot in mid-September, the program has received over 200 applications from restaurant partners across the eight Swiggy cities, namely Delhi, Mumbai, Bangalore, NCR, Hyderabad, Kolkata, Pune and Chennai.
“As a self-employed new restaurateur, it was a challenge to get a loan as banks require a lot of documentation for any substantial personal loan, let alone business loans when you don’t have a collateral to provide,” said Amit Roy, owner of Peetuk, Mumbai. “Once I applied through Swiggy Capital Assist, I was surprised by the swift processing of my loan in under two weeks, that too at a nominal interest rate. With this loan, we have opened our fourth outlet, and will surely approach Swiggy when we’re ready for the fifth.”
“Swiggy has had a tremendously positive impact on our business over the last two years,” said Reevu Wangi, owner of Momo I am, Kolkata. “We were unable to secure sufficient capital through traditional funding methods, and this infusion of capital through Swiggy Capital Assist has come at the right moment for us. The loan will enable us to execute our plans for opening more outlets of Momo I am in the city.”