Kirana stores (small grocery and general shops in India) account for approximately 88% of the country's retail sector and make a significant contribution to its GDP. However, they struggle with limited access to working capital and formal financing, making it difficult to sustain and grow their businesses.
Even when formal credit is available, it is typically standardised and fails to align with the unique cash flow patterns of Kirana stores, leaving many without suitable financial solutions.
Aye Finance, an Indian non-banking financial company, decides to change that.
With TRANSFORM’s support, Aye Finance developed and tested an underwriting model designed to improve access to credit for small businesses like Kirana stores.
The model is integrated into Aye Finance’s Buy Now, Pay Later (BNPL) product, enabling shopkeepers to access credit for supplies, manage cash flow and grow their businesses.
Watch the video to see how they're doing so!
