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Tag: MSME

  • New Trends in Eligibility for Loan Against Property Applications Revealed

    New Trends in Eligibility for Loan Against Property Applications Revealed

    In today’s evolving financial ecosystem, a loan against property (LAP) has become one of the most reliable instruments for accessing large sums of money. Whether it is for expanding a business, funding higher education, meeting medical emergencies, or consolidating debts, property-backed loans provide borrowers with high-value financing at relatively lower interest rates compared to unsecured loans. However, just as financial institutions continue to innovate their offerings, they are also redefining the way they assess and approve applications. The eligibility for loan against property is no longer confined to traditional metrics like income and property value alone. New trends are reshaping the approval landscape, giving more individuals and businesses an opportunity to secure funding. This article delves into the latest changes in eligibility criteria, what borrowers should prepare for, and how these evolving trends can impact loan approval in the future.

    Traditional Eligibility Framework: A Quick Recap

    Traditionally, lenders considered a few fundamental aspects when evaluating a borrower’s eligibility:

    1.    Age of the Applicant – Salaried individuals typically had to fall within the age bracket of 25–60 years, while self-employed professionals could go up to 65 years.  
    2.    Income Stability – Proof of steady income through salary slips, bank statements, or audited financials for self-employed individuals.  
    3.    Property Valuation – The loan amount was primarily linked to the property’s current market value, usually allowing borrowers to avail 50–70% of its worth when applying for a property loan.  
    4.    Credit Score – A healthy CIBIL score above 700 was considered essential for approval.

    While these parameters remain important, lenders today are incorporating additional considerations to provide a more holistic assessment.

    New Trends in Eligibility for Loan Against Property

    1. Digital Footprint Consideration  
    Financial institutions are increasingly analyzing digital financial behavior to assess creditworthiness. Online transaction patterns, timely payment of utility bills, and digital credit records are being factored in alongside traditional credit scores. This trend benefits applicants with limited credit history but strong digital financial discipline.

    2. Expanded Age Limits  
    Many lenders are becoming more flexible with age restrictions. For instance, older self-employed applicants beyond 65 are being considered, especially if they have a strong business cash flow or adequate property value. This inclusivity reflects the reality of longer working lives and entrepreneurship beyond retirement age.

    3. Inclusion of Non-Salaried Income Sources  
    Previously, income from part-time work, rental earnings, or freelance engagements was often ignored. Today, lenders are accepting diverse income streams, acknowledging the gig economy and multiple-income households. This shift broadens the pool of eligible applicants significantly.

    4. Higher Loan-to-Value (LTV) Ratios  
    Some financial institutions are now willing to sanction loans of up to 75–80% of a property’s value, especially in urban areas with high real estate demand. This helps borrowers unlock greater liquidity from their assets.

    5. Customized Eligibility for Women Borrowers  
    To encourage financial independence, lenders are introducing relaxed terms for women applicants. These may include lower interest rates, flexible repayment options, and quicker approval timelines.

    6. Focus on Business Potential for Self-Employed Individuals  
    Instead of just looking at past income records, lenders are increasingly evaluating the future potential of businesses. For example, start-ups or MSMEs with strong growth prospects and healthy order books may find it easier to secure loans even without long financial histories.

    7. Use of Alternate Data for Credit Assessment  
    Lenders are gradually embracing alternative data, such as rental payment history, insurance premium payments, or mobile wallet usage. This trend especially benefits first-time borrowers or those with thin credit profiles.

    8. Green Property Preference  
    Sustainability trends are making their way into financial services too. Borrowers pledging eco-friendly or energy-efficient properties are being rewarded with better terms, reflecting a global push toward sustainable finance.

    What Borrowers Should Keep in Mind

    As eligibility norms diversify, borrowers should proactively prepare to enhance their chances of approval:

    ●    Maintain a Clean Financial Record: Pay EMIs, credit card dues, and utility bills on time to build a positive financial footprint.  
    ●    Document All Income Sources: Whether rental, freelance, or part-time, having verifiable documentation for all streams strengthens your application.  
    ●    Leverage Technology: Use digital payment methods and maintain transparent financial transactions, as these are now being tracked by lenders.  
    ●    Choose the Right Property: If your property is in a prime location or adheres to green-building standards, it may help you negotiate better terms.  
    ●    Check Your LTV Ratio: Be aware of the current market value of your property and how much of it you can realistically expect as a loan.

    The Future of Loan Against Property Eligibility

    The landscape of eligibility for loan against property is expected to evolve even further with the adoption of Artificial Intelligence (AI) and Machine Learning (ML) in credit assessment. Predictive analytics will allow lenders to forecast repayment capacity with greater precision, reducing risks and enabling faster approvals. Additionally, blockchain technology could bring unprecedented transparency in property valuation and ownership verification, making the process smoother for borrowers and lenders alike.

    Financial inclusion is at the heart of these changes. By moving beyond rigid eligibility norms, lenders are ensuring that more individuals and businesses—especially those in the unorganized sector or with unconventional income structures—gain access to much-needed financing.

    Conclusion

    The changing trends in eligibility for loan against property applications signify a broader shift in the financial industry toward inclusivity, innovation, and customer-centric approaches. From recognizing non-traditional income sources to considering digital footprints and even the eco-friendliness of pledged properties, lenders are adapting to the realities of modern financial life.

    For borrowers, this means greater opportunities—but also a greater responsibility to maintain transparency, financial discipline, and proper documentation. By staying informed about these evolving trends, individuals and businesses can better position themselves to secure property-backed loans with favorable terms, unlocking the full potential of their assets in the process.  
     

  • Poonawalla Fincorp goes full throttle: 24/7 digital loans now open for MSMEs

    Poonawalla Fincorp goes full throttle: 24/7 digital loans now open for MSMEs

    MUMBAI: Poonawalla Fincorp is giving Indian MSMEs a serious leg-up with a slick new digital tool in their financial arsenal—‘Business Loan 24/7,’ a fully online, branch-free business loan available any time of day, all days of the week.

    This isn’t just another fintech gimmick. It’s a proper game-changer. Backed by a pioneering digital risk assessment model and designed specifically for micro, small, and medium enterprises, the new loan product promises instant approval, flexible repayment, and a completely paperless ride from start to finish.

    “We believe that with India’s $4 trillion economy, MSMEs will be one of the most robust credit growth segments over the next 10 years, and our assumptions are based on India’s strong financial infrastructure—credit bureau data, GST information, account aggregators, and strong risk analytics. This product, which we will gradually build into the portfolio in a sensible, risk-calibrated manner, will be an industry,” says Poonawalla Fincorp managing director &n chief executive officer Arvind Kapil. 

    PFL’s digital model taps into India’s public digital infrastructure to vet borrowers using data-driven insights, not just legacy credit parameters. That means smarter risk assessment, faster decisioning, and credit that’s tailored—not templated.

    This move follows the successful rollout of PFL’s earlier 24/7 loan product for salaried professionals. With MSMEs now in its sights, the non-banking finance company wants to become the go-to lender for India’s credit-hungry entrepreneurs—especially in tier two and tier  three  towns where access to capital still moves at snail mail speed.

    Part of the Cyrus Poonawalla Group, PFL boasts a ?35,631 crore loan book and a presence in 18 states and two union territories. With this new offering, it’s revving up to drive deeper into India’s growth engine—one digital disbursement at a time.

  • Zee 24 Taas’ Udyog Sammelan ignites Maharashtra’s entrepreneurial spirit

    Zee 24 Taas’ Udyog Sammelan ignites Maharashtra’s entrepreneurial spirit

    MUMBAI: Maharashtra’s business landscape is evolving, and Zee 24 Taas is ensuring entrepreneurs don’t miss a beat. The channel will telecast the Udyog Sammelan, a premier entrepreneurial event, on 8 Feb at 2:30 pm, 9 Feb at 3:30 pm, 10 Feb at 3:30 pm, and 11 Feb at 3:30 pm. If you’re an entrepreneur—or just dream of being your own boss—this is one event you won’t want to miss!

    With the theme ‘Empowering Maharashtra’s Next-Gen Entrepreneurs’, the summit dissected key business challenges and solutions, covering everything from funding access and government policies to digital transformation and industrial innovation. The event placed a spotlight on agribusiness, technology, manufacturing, and services, showing how young visionaries are reshaping Maharashtra’s economic fabric.

    Udyog Sammelan wasn’t just talk—it was about action. Here’s what the state’s key decision-makers had to say:

    1    Industries minister Uday Samant announced that 20 acres out of every 100 acres acquired will be reserved for MSME startups, setting the stage for Navi Mumbai’s rise as a semiconductor and data centre hub.

    2    Minister of ports development Nitesh Narayan Rane revealed that Vadavan Port is set to become Asia’s largest, propelling Maharashtra into a new era of economic expansion. “Our vision is to make Konkan an industrial hub,” he declared.

    3    Minister of skill development & entrepreneurship, Mangal Prabhat Lodha stressed the importance of employee respect in building successful industries. He also announced the integration of 438 ITIs into industry operations and the launch of a Private Participation Policy.

    Zee 24 Taas editor Kamlesh Sutar underscored the importance of the initiative, stating, “The Udyog Sammelan was not just a conference—it was a catalyst for Maharashtra’s entrepreneurial growth. By bringing together industry leaders and innovators, we are ensuring that these powerful insights reach a larger audience, enabling entrepreneurs to unlock new opportunities.”

    Zee Media Corporation Ltd CEO Karan Abhishek Singh echoed this sentiment, adding, “At Zee Media, we thrive on fostering meaningful partnerships that drive impact. This telecast is our commitment to supporting the business community, sparking new ideas, and creating a robust ecosystem for Maharashtra’s entrepreneurs.”

    The Udyog Sammelan telecast is more than just another business discussion—it’s a masterclass in navigating today’s rapidly evolving business landscape. Whether you’re an established entrepreneur, a startup enthusiast, or just someone curious about where Maharashtra’s industries are headed, this broadcast is packed with actionable insights, strategic guidance, and success stories that can inspire and inform your next big move.

  • TRAI releases consultation paper on ‘Digital Inclusion in the Era of Emerging Technologies’

    TRAI releases consultation paper on ‘Digital Inclusion in the Era of Emerging Technologies’

    Mumbai: The Telecom Regulatory Authority of India (TRAI) has released a consultation Paper on “Digital Inclusion in the Era of Emerging Technologies” on 14 September 2023. The consultation paper has aimed to explore and address the challenges and opportunities presented by the rapid advancement of emerging technologies, with a focus on ensuring inclusivity for all segments of society and industries particularly Micro Small and Medium Enterprises (MSMEs).

    In the consultation paper, TRAI has emphasised the need for a robust policy framework and collaborative efforts among stakeholders to ensure participation of individuals in digital economic activities. The authority has also analysed various gaps in digital inclusion present in the country such as the mobile internet usage gap, rural urban internet penetration disparities, gender gaps in internet access, etc. as well as gaps identified from some global indices. Proactively prioritising inclusion can create an ecosystem that benefits every individual, fostering a more equitable and accessible digital economy.

    TRAI has also identified various challenges being faced by the Micro, Small and Medium Enterprises (MSME) sector in the country from the adoption of new and emerging digital technology solutions. As the MSME sector contributes significantly towards the nation’s economy, it is imperative that the MSMEs are empowered to contribute more towards the digital economy through new emerging technology solutions, especially the micro-enterprises as the majority of the MSMEs are micro-enterprises.

    The consultation paper, for seeking inputs from the stakeholders, has been placed on TRAI’s website (www.trai.gov.in). Written comments on the issues for consultation are invited from the stakeholders by 16 October 2023 and counter comments by 31 October 2023.

     

  • Zee Digital to host its second edition of MSME National Summit & Awards 2022

    Zee Digital to host its second edition of MSME National Summit & Awards 2022

    Mumbai: Zee Group’s digital media publishing arm, Zee Media Digital, announced the second edition of the MSME National Summit & Awards 2022. The event is scheduled for 27 August 2022, from 11:00 a.m. to 4:00 p.m.

    After witnessing the enormous success of the first edition of the MSME National Summit and Awards, the second edition aims to be bigger and better. The second edition aims to reinstate the importance of MSMEs for our economy and their role in defining the trajectory of the nation’s development, especially post Covid-19.

    The event will be inaugurated by the minister of state for commerce & industry, government of India, Anupriya Patel, followed by panel discussions on “Smart Manufacturing and Working Capital Issues & Funding for SMEs” by various MSME industry leaders.

    The event will also host leadership talks by IIM Lucknow Incubator director and professor of strategic management Dr. Anadi Saran Pande; and UNCTAD, Empretec India Foundation national director Arnab Chakrabortty.

    Some of the dignitaries who will be gracing the event are IamSMEofIndia chairman Rajive Chawla; MCCIA director general Prashant Girbane; Paragon Apparels MD & Alcis Sports founder Roshan Baid; Dawar Group chairman Puran Dawar; M1Xchange CEO Sundeep Mohindru, among others.

    Speaking of the event, CRO-digital Shridhar Mishra said, “The MSME sector was hard hit during the pandemic, yet the initiatives undertaken by the government gave them the much-needed thrust for revival. Today, the MSME sector has an instrumental contribution to the economy, and it is important to recognize the same. This summit is an attempt to recognize the same.”

    The event will be promoted across all social media, microsites, and content hubs. Special workshops will also be conducted as a part of the promotional event. The entire event is to be hosted on the Zee Business Facebook page.

  • ET Now concludes the 9th season of Leaders of Tomorrow Awards and Conclave

    ET Now concludes the 9th season of Leaders of Tomorrow Awards and Conclave

    Mumbai: ET Now has recently concluded the ninth season of ‘Leaders of Tomorrow Awards and Conclave’ which celebrates the success stories of India’s most innovative and resilient MSMEs and start-ups. This year’s event was driven by the theme ’Survive. Revive. Thrive’.

    The event witnessed a distinguished line-up of speakers including principal economic advisor to GoI, Sanjeev Sanyal; IDFC First Bank MD and CEO V Vaidyanathan; BSE MD and CEO Ashish Chauhan, and HSBC India former country head Naina Lal Kidwai amongst others, who discussed the challenges faced by the small businesses and the way forward for India’s small enterprises and start-ups.

    The distinguished jury of industry luminaries included Naina Lal Kidwai; Mahindra & Mahindra former MD Pawan Goenka; BSE head of SME Ajay Thakur; True Beacon & Zerodha co-founder and CIO Nikhil Kamath; Vinati Organics MD Vinati Saraf Mutreja; Growthstory investor partner and serial entrepreneur K Ganesh; Persistent Systems chairman Anand Deshpande; ASSOCHAM president and TCI MD Vineet Agarwal, and JBM Group vice-chairman Nishant Arya.

    The event culminated in an exciting finale wherein the best MSMEs and startups were awarded. EF Polymer was named ‘Start-Up Entrepreneur of the Year’ and Keetronics India clinched ‘MSME Entrepreneur of the Year’.

    “ET Now has been championing India’s growth story with a focused purpose of helping Indians rise with India. This mission reflects in our flagship property, Leaders of Tomorrow that empowers, enables and celebrates the spirit of small businesses and start-ups that are together powering the rise of a strong new India,” said Times Network MD and CEO MK Anand. “It is heartening to witness stories of several enterprising small businesses who not only showed resilience but rose through the adversities to innovate, reimagine and reinvent during the turbulent past two years. I firmly believe that Leaders of Tomorrow will continue to inspire more and more Indians to take the plunge and create new stories of entrepreneurial success.”

    “The Indian economy has bounced back after the first and second wave because the underlying human consumption is very strong in India,” said IDFC First Bank’s V Vaidyanathan. “All the major indicators of the economy – GDP, house sales, car and two-wheeler sales, and FMCG products’ consumption have been marking an upward trend. The power of an economy lies in its credit. The Indian banking industry’s current outstanding total credit is over 120 lakh crores, out of which about 50 lakh crore is for entrepreneurs. After 75 years, small entrepreneur credit is growing by 25-30 per cent per year. SMEs are being benefited tremendously by the power of leverage, which was earlier reserved for large corporations.”

    Highlighting the need for entrepreneurs to shift to an organised environment from an unorganised one, he said, “Migration from unorganised to organised is the need of the hour. The Indian retail industry or kirana market is a trillion-dollar market, out of which 80-84 per cent is unorganised and only four per cent is online. Every industry is now becoming organised, offline to online. For entrepreneurs, this is an opportunity to ride the new bandwagon and not just be spectators. The leaders of tomorrow need to have a digital play.”

    Sanjeev Sanyal stated, “As the Indian economy revives post-pandemic, we observed that the impact in the second wave was much lesser as compared to the first wave. Things are stabilising and industries are opening up now and we realise that demand is not a constraint in India. Globally, this is a serious issue, but India has been able to overcome this as our fiscal resources are strong. Our supply sector reforms are unparalleled. During the first wave, we focused on framework reforms like GST, Aadhar, labour reforms, and farm laws, however, the second wave reforms are more sectoral in nature like deregulation, monetisation, and privatisation of industries.”

    Talking about the third wave reforms which are currently in the pipeline, Sanyal further said, “Our thrust during the third wave reforms would be to get the Indian state to do what it should be doing which includes, delivery of justice, enforcement of contract, and upgradation of municipal services. We plan to give access to world-class infrastructure to poorer sections of the society to foster innovations. I do not believe in rigid planning, rather focus on growth strategy that is based on flexibility and resilience. One big example of this is ‘Atmanirbhar Bharat’ which focuses on leveraging our inner strengths. We as a nation need to give ourselves enough credit. Today, we delivered over 20 million Covid-19 jabs and I feel this is incredible, we have the capacity to deliver at this high level.”

  • On MSME Day, OkCredit gives a shout-out to local biz with #PaasHaiToKhaasHai campaign

    Mumbai: The COVID-19 crisis and the resultant containment measures have not impacted everyone in the same way. Among the private sector, Micro, Small, and Medium-sized Enterprises (MSMEs), especially those led by vulnerable groups such as women, youth, and economically deprived communities, suffered the most.

    Micro, small and medium-sized enterprises account for a staggering 90 per cent of all businesses and over 50 per cent of jobs worldwide, as per estimates. They play a key role in stimulating economic growth and providing employment, particularly in developing countries like ours.

    As a mark of recognition to the gigantic contribution these smaller businesses make to the global economy- often away from the spotlight- 27 June is celebrated as MSME Day or Micro, Small, and Medium-sized Enterprises Day internationally.

    This MSME Day, OkCredit- the digital book-keeping app for small business owners – attempted to bring back the joy of neighbourhood shopping. The company encouraged consumers to shop in their friendly neighbourhood stores through a heart-warming creative that reminds us of the big role these local stores played in our lives before the boom of e-commerce.

    The short film talks about the time when a trip to the market encompassed a plethora of pleasant experiences, tugging at our heartstrings with nostalgia-inducing nuggets like the shopkeeper giving one candy instead of small change. It urges us to bring back those days gone by for ‘applying a discount code is not half as fun as haggling’ at a store where the neighbourhood came together to hang around and discuss the day’s events. Through poetic narration, it captures all those little moments, comparing the fun, intimate feel that local shopping provides as opposed to the cold experience of surfing e-commerce sites while looking for offers.

    While social commerce may be all the rage right now, OkCredit’s campaign shows that it began years ago at the original social network- i.e. the Kirana shops on our street corners.

     
     
     

     
     
     
     
     

     
     

     
     
     

     
     

    A post shared by OkCredit (@okcreditofc)

    The poetic lines have been credited to the company’s ‘in-house poet’ associate director- growth, Ayush Jain. If neighbourhood shopping is your favourite way of buying essentials, while observing the world around you, then this is for you.

    Earlier this month, OkCredit had launched the #UdharAbhiBaakiHai digital campaign to help small and medium businesses recover from a severe cash crunch, wrought on by the pandemic. The digital campaign urged customers to clear their pending dues to help small businesses and kiranas to tide over the financial crisis.

     
     
     

     
     
     
     
     

     
     

     
     
     

     
     

    A post shared by OkCredit (@okcreditofc)

    OkCredit currently has over 2.4 crore registered users, these include over 100 types of businesses such as kirana store owners, mobile recharge shops, medical stores, apparel amongst others.

  • eBay signs MoU with Uttar Pradesh govt for ‘One District One Product’ program

    eBay signs MoU with Uttar Pradesh govt for ‘One District One Product’ program

    NEW DELHI:  eBay today signed an MoU with the government of Uttar Pradesh for its ‘One District One Product’ program. The MoU will enable MSMEs in Uttar Pradesh to leverage eBay’s cross border platform and sell internationally across 190 countries. As part of the MoU, eBay will not only promote local art and crafts but will also help in skill development and self-employment.

    This association will enable ODOP sellers and traders to seamlessly undertake e-commerce retail exports to over 190 markets in the world through a globally established marketplace platform.

    To empower indigenous crafts and goods and support them with a competitive edge, eBay will offer special schemes (pricing and other benefits) curated specifically for sellers and traders associated with the ODOP cell. In addition to this, eBay will train and provide sellers with requisite knowledge and skill-set about various aspects of online retail including listing products online, shipping policies, and product descriptions amongst others to undertake transactions with audiences across the globe.

    Government of UP additional chief secretary (ACS), MSME & export promotion Navneet Sehgal said, “the government is working to catalyze entrepreneurship and creating an ecosystem that promotes better market for outputs, such as handicrafts, leather products, wood & metal craft. At the same time, the MSME sector needs a bridge to swiftly tap hitherto unexplored opportunities and sell indigenous products in the international market.  This is where the role of companies like eBay becomes pivotal. By leveraging partnerships with rural MSMEs and artisans, eBay, like our other eCommerce partners can help ODOP aligned artisans explore endless opportunities across the spectrum of indigenous skills. In order to achieve ‘Make in India’ greater heights, partnerships like these will play an important role in amplifying the multi-sectoral role that MSMEs can play. I hope eBay will also help us to become a global hub for exports of handicrafts and other goods”.

    eBay India country manager Vidmay Naini said, “We are delighted to partner with the Government of Uttar Pradesh’s One District One Product program. Being a true marketplace, eBay has always recognized the immense potential and scope of MSMEs and artisans from across Indian markets. Through this association, we are delighted to introduce the sellers and artisans from Uttar Pradesh to a world full of opportunities across the globe. We will work in conjunction with the state government to further bring about modifications in policies hereby boosting e-commerce retail trade from Uttar Pradesh.”

    “We are strongly in favor of the Hon’ble Prime Minister’s appeal to be local for vocal and promote Indian entrepreneurs globally,” added Vidmay Naini.

    eBay will work closely with Government of Uttar Pradesh ODOP team to onboard sellers and expand their business globally. The association will also allow eBay access to relevant government bodies, industry, and trade associations and initiate meaningful dialogue to ease the norms for e-commerce retail exports in India.

  • MSME sector under the yoke of COVID-19 lockdown; agencies bear the brunt

    MSME sector under the yoke of COVID-19 lockdown; agencies bear the brunt

    NEW DELHI/MUMBAI: India, just like the rest of the world, is staring at a bleak economic future on account of the nationwide lockdown caused by COVID-19. Already its GDP growth is at a decadal low. Adding to the cup of woes, productions are now being shut and many businesses are expecting a substantial dipping of numbers in their cash registers. The fear of an extension of the ongoing 21-day lockdown is making things worse.

    The MSME sector, which has been bearing the brunt of dipping demands for the past couple of quarters, has found itself in a dark spot.

    SBICap Securities institutional equity research head Rajiv Sharma notes that leveraged SMEs with outstanding debts will be vulnerable. Because of current projects getting delayed or cancelled, a payment crunch is expected.

    Sharma, however, notes that smaller agencies can be smarter to leverage the digital side. “Small agencies can still find some business on the digital side if they have made that transition,” he says. The recently-released BARC data shows that digital viewership is spurting because of the lockdown with the first week showing smartphone time spent up by 6.2 per cent.

    With its own prospects impacted, these businesses are pushing their agency partners over the edge as well. Many independent agencies have been complaining about delayed payments and closing of ongoing projects because of the lockdown, putting great pressure on their businesses.

    The Media Ant co-founder Samir Chaudhary admits that business loss across the spectrum is inevitable, especially for services-based companies where manpower is low. He, too, is expecting at least two months worth of turnover loss, as the agency is experiencing a stretch in its payment cycles.

    Founder-director of Punjab-based OOH agency, Kanhiya Advertisers, Deepak Singla feels that business is almost shut these days. “All ongoing campaigns have been dropped with the announcement of the curfew and lockdown and payments have either been cancelled or delayed indefinitely,” he tells Indiantelevision.com.

    Singla says that he can’t calculate the loss right now, but is expecting that bigger problems will arise once the market reopens. “Lots of business houses will wipe out. Indian Outdoor Advertising Association is working on arranging a meeting with government officials regarding some relaxations as we don’t fall under the purview of any benefits announced by the finance minister,” he adds.

    CIDROY and Dronsena co-founder AMJ Ramaraju, who has been developing an AI-tech for billboards that can make OOH advertising similar to digital with targeting and counting of reach and impressions, says, “We were all set with the working prototype for showing demos and getting leads, but then things turned out not as we thought due to COVID-19.”

    He was in touch with many small agencies in Goa and pan-media aggregator The Media Ant as well, but with the current hiccup, he is now expecting a loss of Rs 2-3 lakh in March-April. If the situation continues, the month of May might see an additional loss of around Rs 8-10 lakh.

    Another freelancer and founder of a small-time agency in New Delhi, on condition of anonymity, admitted that many clients have stopped payments causing great stress on the business.

    Elaborating on the sales cycle, Sharma notes, “Every month contributes to eight to nine per cent of sales. This 21-day lockdown is about six to seven per cent of sales. If you are a seasonal business or a cyclical business, there will be a gradual loss. We are talking about at least 10 per cent revenue pressure.”  

    Reviewing the situation, Elara Capital VP – research analyst (media) Karan Taurani feels that smaller agencies might be shutting shops by the end of the lockdown.

    “The amount of support in the market, liquidity and advertising condition is very poor. So, the advertising industry is going to be highly competitive. The larger ones have the scale and they can definitely give a tough competition to smaller ones. Whenever there is a liquidity crunch and poor ad spend, the competition intensifies. You will see a smaller player having a more negative impact. So, there will be some small players with niche offerings who will survive but the larger portion will wind up,” points out Taurani.

    Sharma agrees with this viewpoint. “India may have one to two bad quarters, not more. If the lockdown extends, more businesses will collapse and that will lead to layoffs, direct and indirect,” he says grimly.

    There is one glimmer of hope though. “I don’t see any kind of layoff in the near term for at least the next three to six months. They will save other costs and protect employee interest,” says Taurani.

    Chaudhary supports the prediction as he notes, “If the situation improves by April end, most of the agencies with sound fundamentals will recover. However, if the lockdown goes beyond April we will be forced to downsize or cut costs.”

    SBICap’s Sharma is hopeful that the government will announce relief measures for SMEs in the coming days. With the government’s relief package for banks and EMI payments, it can serve as a temporary fix for agencies and employees.

    An extension of the lockdown might offer a big blow to the smaller agencies, which form the core of extensive regional and targeted marketing. Only time will tell, how will they fare in adversities, but they are expecting some government initiatives to rescue them.

  • ShopClues unveils express payout for merchants

    MUMBAI: ShopClues, one of India’s first and largest managed marketplaces, has always been at the forefront of innovation for its merchants and has, in the past, launched an array of services to help enhance its merchants’ business online. Building on its merchant-focused portfolio, the platform has now launched the Express Payout service, which allows a merchant to get up to 80% of their pending payment in advance.

    While ShopClues maintains regular payout cycles which are best-in-industry, merchants often need on-demand cash flow to ensure stock availability, manage payments and overheads etc. ShopClues’ Express Payout service aims to benefit any merchant who requires advance payment before the scheduled payment date. The merchants can choose to receive any amount up to 80% of their due payment with a small service charge. The requested payment is processed within eight hours by ShopClues.

    The platform had recently also launched a range of financial services designed exclusively for its merchants. These services include the Reach PoS, a software mobile POS which facilitates hassle-free digital transactions for offline retailers; and Capital Wings, a loan program which facilitates quick and hassle-free loans to scale up their business. With the Express Payout option, ShopClues intends to create a complete financial services package that caters to the needs of varied merchants on the marketplace. The merchants can choose the services that they need to grow and enhance their business and also receive guidance from the ShopClues team.

    Shopclues AVP – Seller Services Ganesh Balakrishnan said, “Shopclues’ goal is to provide a level-playing field for its half a million sellers, 80% of whom are MSMEs from Tier 2 and 3 cities and towns. A majority of the merchants on the platform sell unstructured and unbranded products, and usually are in need of regular cash flow to keep their business running.”

    The Express Payout service was launched to a small group of merchants last month, wherein over 70% of the merchants chose to avail the service. It has since been launched for all merchants on the platform and in three weeks has catered to over 2000 payout requests.