Credit will be provided through acquisition cards. Arzooo aims to roll out over a lakh of these cards over the next 12 months
Bengaluru: HDFC Bank partners with retail technology platform Arzooo to launch shopping cards designed exclusively for offline retailers. The goal is to roll out more than a lakh of these credit cards over the next 12 months.
The initiative will immediately benefit the over 40,000 retail partners already on the Arzooo platform in addition to several other small and medium-sized retailers, as they will now have easy access to capital.
“The availability of working capital is of paramount importance to our retailers as it gives them room for growth. Through this partnership with HDFC Bank, we look forward to combining our platform and HDFC’s expertise to create a robust ecosystem to scale offline retailers,” said Tushar Deshpande, Vice President of Arzooo.
The main 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. In addition, this card is integrated into the Arzooo mobile application for ease of use when paying.
Arzooo believes there is a huge untapped market in Tier II cities and below, especially for white goods demand. To unlock opportunities, retailers would need easy access to credit, which Arzooo aims to provide through its collaboration with HDFC Bank.
During this year’s festive season, Arzooo handed out Rs. 100 Crore worth of credit to retailers. There has been an 800% growth in the number of retailers taking out credit this year through Arzooo Credit. Additionally, sales on the platform increased by 400% due to access to capital headroom and an increase in demand.