New Delhi, 18h May 2022: Fashinza, a B2B, new-age product development and production management platform enabling fashion brands and manufacturers to produce better, together, has joined hands with Stride One, SaraLoan and other fintech lenders to empower apparel manufacturing SMEs with an over $15 million supplier-financing program. The lack of requisite working capital has been a significant challenge and a roadblock for SME suppliers and manufacturers in fulfilling large orders from big fashion labels. The supplier finance program from Fashinza and the fintech lenders will help SMEs to receive their payments on due dates or early payments. This will help SMEs scale their business without capital limitation.
The supplier-financing program, offered by Fashinza in partnership with Stride One, SaraLoan (Blacksoil’s fintech arm) and other fintech lenders, will help manufacturers to focus on production without financial stress, and enable brands to focus on their operations and sales without their cash getting stuck in production. Also the long-term benefits for SMEs are the ability to scale up capacity and to get new opportunities to grow their business faster.
According to Abhishek Sharma, Co-Founder and COO, Fashinza: “India’s contribution to apparel manufacturing and the global fashion industry is undisputed. While there is immense scope to grow for SMEs, availability of working capital remains a challenge. Our financing program for SMEs is an enabler and is empowering small manufacturers. We work closely with suppliers and have found that when the working capital is taken into account, they are able to work on bigger projects with bigger labels and scale their business.”
“Fashinza is solving the cash flow problem of apparel manufacturers by offering supplier financing limits via fintech partners like Stride One and SaraLoan. Supplier financing is a win-win solution for both Fashinza and manufactures. Manufacturers get paid on time or request for early payment by paying a nominal interest on actuals. Supplier financing program will act as a catalyst to exponentially grow Fashinza’s supplier partners’ business,” says Akshay Poshatwar, AVP – Financial Services & Strategy, Fashinza.
“In our endeavor to provide customized financing solutions, we have designed robust and flexible financial programs for Fashinza that meet their working capital needs. Through this partnership, Stride One continues its focus on creating disruptive supply chain financing solutions for new-age businesses, along with digitizing the onboarding process of vendors,” says Sameer Mahajan, CBO, Stride One.
“We are excited to work with Fashinza as they are helping highly unstructured apparel manufactures by providing them a tech backbone to help them get more business. By working with Fashinza, SaraLoan has been able to provide working capital to these manufacturers to help fulfill orders generated on the Fashinza platform. The solution offered by SaraLoan is flexible and manufacturers can draw as per demand and pay interest only on the amount utilized,” says Ashutosh Kumar, Chief Business Officer, SaraLoan.