Big Players Helping Small Companies to Survive Corona-led Downturn

When small companies are searching for new modes to afloat their business, meanwhile, the giant companies, particularly the Internet-based companies are emerging with new means
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • May 01,2020
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  • 16 Mins Read

The shift from traditional buying to online purchasing can be witnessed amid lockdown. In a similar vein, small and medium-sized enterprises (SMEs) are changing their course and coming on board to e-commerce platforms. Adopting the Internet and technology have become a key for survival now. During lockdown, when small companies are searching for new modes to afloat their business, meanwhile, the giant companies, particularly the Internet-based companies are emerging with new means. 

One such company is the e-commerce platform, Quick eSelling. The company says that over 5000 retailers have begun selling their products online through its platform in less than two weeks, reported Press Trust of India. 

Over half of the global demographic is staying at home complying to the governments’ directives across the world. This practice, in turn, surged online procurements for daily essentials. Owing to lockdown restrictions, online purchase throughout all verticals, particularly grocery and pharmaceuticals have leapt up. According to the data from E-commerce Consumer Sales, essential categories such as F&B, medical and baby products, and household items have noticed a growth rate of more than 250 per cent.

According to the Commerce Insight’s report, the US online orders surged by 56 per cent and the online grocery sales, in the month of March, was incremented by 233 per cent as compared to the previous year. While the online orders in the Asia-Pacific region have seen a growth rate of 78 per cent and on the other hand, the online supermarkets in the United Kingdom (UK) increased 221 per cent.

Quick eSelling Draws a Helping Hand toward Retailers

In the current scenario, Quick eSelling has decided to bring some ease to the retailers. The e-commerce platform has proclaimed to make its offerings cost-free to the retailers to ensure constant supply of essential goods.

"This initiative aims to help millions of people across the globe to stay safe and maintain social distance to stop the spread of COVID-19", Shrenik Gandhi, Co-founder of Quick eSelling, said in the company’s official statement. 

To stimulate startups and retailers, the e-commerce solution provider has waived off the transaction fee charges until 30th June 2020. The company asserts to have helped thousands of retailers to establish their online stores via its e-commerce platform in less than a fortnight. It also informs that the entrepreneurs beyond 100 nations comprising the UK, US, Canada, India, Middle East and Other Southeast Asian nations have registered and are presently making their primary sales. 

To follow the governments’ directives, the entire economy is almost shut, streets are deserted and shops are closed temporarily, in turn, hinting financial risk posing to the country. Amid rising tensions, the e-commerce business model is serving the purpose and giving back to the community. 

Once the pandemic is over, masses may hesitate to go outside until a vaccine comes out. Consequently, precautionary measures like staying indoors, performing social distancing and doing online procurements. 

Besides addressing the current problems, an e-commerce entity outweighs traditional brick and mortar businesses as it provides commodities to the customers at their convenience. This element is missing in the traditional businesses.As one of the early movers in the venture debt segment, and looking to revolutionize funding in India, Vector Capital has launched a fund with a focus to provide capital to new and innovative VC funded start-ups. The Vector Capital investment thesis is to focus on ventures in Consumer Internet, Enterprise SAAS, Education & Healthcare, BFSI, and Retail & Hospitality Sectors.

Vector Capital is a venture debt company, which offers funded start-ups an alternative, less expensive, more efficient method of acquiring speedy capital for their operations and imminent scaling. Established in September 2019 and headquartered in Delhi NCR, Vector Capital has funded some leading ventures, and it is driven by a deep conviction that money without empathy is just money and not desirable.

"We consider ourselves a boutique, profoundly engaging firm that creates value by building relationships with our mantra being 'fast capital'," says Sidharth Agarwal, CEO of Vector Capital. "We founded Vector Capital based on values of thought leadership, connecting our venture partners to our global & local network for their business growth, and, most of all, giving them a tailor-made credit solution that works for them." 

In November 2019, Vector Capital has lent venture debt for INR 10 million to Nextenders, a web-based procurement and tendering solutions company, for a period of one year to help the company extend its working capital runway for its new Philippines project.

Nextenders along with its Philippines partner Nextix had jointly bid for the tender for Acquisition and Customisation of an Electronic Government Procurement System in Philippines.

“Venture debt has supported us to efficiently and quickly raise and manage our short-term and project based working capital requirements, allowing us to focus on project execution. Not having to worry about EMIs is a great benefit, as we are able to link the venture debt repayment with project milestone payments" says Tapan Mehta, CEO of Nextenders.

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