Credit will be offered through purchase cards. Arzooo aims to roll out over one lakh such cards over the next 12 months
Bengaluru: HDFC Bank partners with retail tech platform Arzooo to launch purchase cards that have been exclusively designed for offline retailers. The aim is to roll out over one lakh such credit cards over the next 12 months.
The initiative will immediately benefit over 40,000 retail partners already on the Arzooo platform in addition to several other small and mid-sized retailers as they will now have easy access to capital.
“The availability of working capital is of prime importance to our retailers as it gives them headroom for growth. Through this partnership with HDFC Bank, we look forward to combining our platform and HDFC’s expertise to create a robust ecosystem for scaling offline retailers,” Tushar Deshpande, Vice-President of Arzooo said.
The key feature of this card is that it offers interest-free credit for up to a month and a credit limit of up to Rs1 crore. Furthermore, this card is integrated with the Arzooo mobile application for ease of use during checkout.
Arzooo believes there is a huge untapped market in the tier II and below cities especially for the demand of white goods. To unlock the opportunities, retailers would need easy access to credit, which Arzooo aims to provide with its collaboration with HDFC Bank.
During this year’s festive season, Arzooo disbursed Rs. 100 Crore worth credit to retailers. There was growth of 800% in the number of retailers that took credit this year through Arzooo Credit. Also, the sales on the platform grew by 400% due to access to capital headroom and an increase in demand.
