Paytm has tied up with Capital Float, an online loan provider for small and medium enterprises (SMEs), to offer business loans to e-commerce merchants. The initiative is part of an effort to increase the sellers on its platform to 100,000, from the current 50,000, by the end of this year.
Paytm, which started as a mobile payment service provider, entered the e-commerce space in 2014, competing with Flipkart and Snapdeal. Paytm has 80 million registered users and has been getting 60 million orders per month.
Other online marketplaces, including Snapdeal, Flipkart and Amazon, too have been using new-age NBFCs (non-banking finance companies) like Lendingkart, Capital Float and NeoGrowth to address the working capital requirements of sellers on their platforms. All of them are also using these tie-ups to expand their seller base. In June, Flipkart, launched a campaign to increase its seller base to 1 lakh by December-end. Snapdeal, which has a seller base of more than 100,000, hopes to grow this number to 10 lakh in the next three years.