SnapBizz, Samhita-CGF’s REVIVE Alliance and Nielsen to empower India’s small merchants with financial and digital capabilities
New Delhi: To uplift the aspirations of India’s small merchants and help them benefit from the nation’s digitization movement, SnapBizz, India’s leading retail digitization company, Samhita-CGF’s REVIVE Alliance, a blended finance facility restoring COVID-19 affected livelihoods of informal workers and entrepreneurs, Nielsen, a global measurement and data analytics company, and Leading National Banks are enabling the digitisation of small kiranas and other retailers, to stimulate the adoption of digital tools & practices among the small kirana merchants to improve business outcomes and profitability.
The collaborative has kicked off with a pilot rollout poised for an aggressive scale up and is supported by noteworthy philanthropic, development and corporate organisations – Nielsen, TRRAIN (Trust for Retailers & Retail Associates of India), Michael & Susan Dell Foundation (MSDF), United States Agency for International Development (USAID), British High Commission, New Delhi and United Nations Development Programme (UNDP).
The initiative targets small and local merchants in the lower income bracket, having a net income of INR 20-25k a month, and aims to ease their access to working capital and supply chain challenges. SnapBizz, with a goal of digitising a million small merchants, will provide the digital solution for local merchants. Samhita-CGF, through the REVIVE Alliance, a blended finance platform supported by United States Agency for International Development (USAID), MSDF, Omidyar Network India, British High Commission and UNDP, will provide financial assistance, through Returnable Grants and incentives, for small kirana merchants to access the digital solution & training. TRRAIN will support the initiative through self-help videos for merchants on modern retail practices. Nielsen will provide store acquisition and data evaluation support in the program. Further, National Banks and SnapBizz are collaborating in the roll-out and subsidizing the digital solution for the program.
The solution will give comprehensive support to the merchants – to manage their stores efficiently and effectively, help the store go online with their own storefront, give them access to suppliers of goods and working capital finance. The solution will enable merchants to sell more & acquire new customers by going online and enabling home deliveries, manage the store billing, inventory, accounting and compliance and optimise the access and supply of goods and money. They would also be provided with financial incentives such as a digital adoption reward of INR 1,000 at the end of four months by Samhita-CGF and the REVIVE Alliance and other performance rewards and ongoing incentives and promotions from Banks and Brands. The initiative is also expected to open newer in-store promotion avenues for FMCG brands by allowing them to collaborate with local merchants and drive targeted promotions.
The Returnable Grant, a zero-interest credit instrument provided by Samhita-CGF’s REVIVE Alliance, will be revolved to support each incoming merchant in adopting the technology. The merchants would be expected to return the money in instalments once they see success. Once returned, the money would be used to fund a new batch of merchants, creating a system where funds would be used and reused, driving a multiplier impact to the fund invested.
Prem Kumar, Founder & CEO, SnapBizz adds “Many Kiranas have gone digital in recent months and their stores have gone online by accepting online payments, ordering supplies online, managing inventory, etc. However, there are still millions of Kiranas that continue to work without any digitization or technological help which puts them at a huge disadvantage and hinders their growth tremendously. Our collaboration with Samhita-CGF and National Banks is to ensure that every Kirana has a fighting chance to face the growing world of e-commerce and online marketing. We are privileged to have partnered with these organizations as it brings us closer to our vision of driving inclusive growth and integrating small merchants with the larger ecosystem. We are working together towards a digitally enabled India for all segments of the society.”
Priya Naik, CEO & Founder, Samhita says
“ Small kiranas are the backbone of the retail business, and they’ve been at the frontline during the COVID-19 crisis, staying open through lockdowns and providing households in their localities with essential goods, with great risk to their business and health.
The REVIVE Alliance is proud to partner with SnapBizz and leading national banks to help incentivize and accelerate the digitisation and business growth of small kiranas by providing Returnable Grants.
The collaboration will enable small kiranas to build resilience, compete with modern commerce and even thrive in the post COVID-19 era, ensuring that local economies and livelihoods are strengthened and empowered.”