Ecommerce marketplace Solv wants to raise its BNPL loan offerings, snaps $40 million

New Delhi: Solv has raised $40 Mn in Series A funding led by SBI Holdings. SC Ventures, an existing investor, also participated in the round. Solv has already raised approximately $80 million in total funding.

Solv intends to use the new cash to establish other high-margin product categories and grow to over 300 Indian locations. It also intends to use the new funds to accelerate the expansion of buy now, pay later (BNPL) loans. Solv also intends to expand its anchor-led retailer loans to 50,000 or more stores. Read More: Pizza chain staff pushes homeless children out of shop, heartbreaking video goes viral, netizens slam outlet -Watch

Solv, which was founded in 2019, is an emarketplace for suppliers and buyers in India's MSMEs. It sells groceries and fast-moving consumer goods (FMCG), ready-made clothes, electronics and accessories, home furnishings, and footwear and accessories. Read More: Massive layoffs at Udaan! Company fires 180 employees to cut costs

It currently claims to be present in over 200 cities and to serve over 19,000 zip codes. Furthermore, it now has over 220,000 KYC-verified MSME members on its platform.

To assist small enterprises, the Solv platform provides a comprehensive suite of financial solutions for business expansion, supply chain financing, and merchant BNPL. In addition, the Bengaluru-based business has created a Solv scoring system to provide an alternative credit score to allow thin-filed MSMEs customers obtain loans on-demand.

Amit Bansal, CEO, Solv “At Solv, we are passionate about improving livelihoods of millions of underserved MSMEs in India and globally. In a year ravaged by Covid-19, Solv has been able to establish itself as a dependable partner to 220,000+ MSMEs. The learnings in India, and the resultant development in product, technology and platform is also enabling us to create workable models for MSMEs in other geographies across the world.  At this critical juncture of Solv’s journey, we are humbled to welcome on board SBI Holdings as a long-term partner. This strategic partnership and investment will give us significant tailwinds and help us become a dominant B2B player over the next 12-18 months.” 

Bansal believes that this investment will provide substantial tailwinds for Solv and help it become a dominating B2B player over the next 12-18 months.

Solv achieved a $260 million+ GMV run-rate in the first half of 2022, with over 60% average repeat purchases. It now aspires to attain a $500 million GMV run-rate by December 2022, as well as favourable unit economics.