We are nearing the long 2024 festive season and it is the time of the year for businesses across the country to gear up and grab this opportunity to maximize their sales and revenue, especially the Medium and Small Businesses (MSMEs).

However, despite this golden opportunity businesses struggle in this period and after that to maintain the cash flow due to the lack of working capital. KredX, India's largest supply chain finance platform, unveils the 3rd Edition of its Working Capital Festive Season Report, highlighting evolving trends and rising working capital demand. To address this, KredX has allocated an additional 2,000 crores to support businesses ahead of the festive period.

The report mentions that the sectors that demand for more working capital ahead of this festive season are e-commerce, manufacturing and logistics. In the e-commerce industry, there is a significant demand for working capital in consumer appliances, fashion & apparel, and FMCG. With the rise in storage keep units across all e-commerce platforms, it is encouraging to note that this demand is more from the tier 2 and 3 cities across the countries covering almost 20,000 pincodes

Bigger states such as Maharashtra, Karnataka, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, and Delhi NCR are core regions that are expected to generate the 50-60% of the demand, especially from their tier 1 cities. Once known as the manufacturing hubs, Hyderabad and Kolkata are now seeing a growth of almost 200% in their e-commerce sector, whereas the metro cities are showing a growth of 100-150% in the sector. Talking about the 2 and 3 cities in Uttar Pradesh, Andhra Pradesh and Telangana the growth is an unbelievable 500%.

“If the forecasting of the growth during this 2024 festive season remains as predicted then this year is very crucial for businesses. Which means having the right financial support to the MSMEs can make all the difference,” said Manish Kumar, CEO of KredX. “We very well understand the challenges businesses face during peak festive seasons. Our goal is to provide them with the necessary working capital to thrive and maintain the cash flow. This allocation reflects our dedication to enabling businesses and encouraging their continued growth.”

With seamless access to quick and hassle-free working capital, KredX leads the industry with its innovative financial solutions tailored for small and medium businesses. This significant allocation of 2,000 crores marks a pivotal step in empowering businesses to overcome financial challenges and maximize their growth potential.
For more details on KredX’s festive working capital solutions, please visit the KredX website.

About KredX: KredX is India’s foremost integrated cash flow solutions provider, offering a spectrum of financial services including invoice discounting, working capital loans, and trade finance. Utilizing state-of-the-art technology, KredX simplifies the financial landscape for businesses, facilitating seamless realization of their growth aspirations."