Founded in 2006, this company is India’s first large format specialist retail chain for consumer electronics and durables with a pan-India presence. The company currently has 125 stores spread across 25 cities in India.
Snapshot Of The Company
On The KredX Platform Since: August 2017
A Quick Glimpse Of Their Journey With KredX
The treasury surplus of the company was deployed in low-risk, low yield or high-risk, high yield instruments available in the market, resulting in a less-than-optimal situation for the company. With only ~6-8% in annualised returns, the deployed funds were exposed to risk due to market volatility. Further, the company also had trouble managing its suppliers, thereby declining supplier satisfaction rate.
KredX Value Proposition
The company implemented KredX’s Early Payments Technology – KredX Early, and Invoice Discounting Marketplace, to tackle the challenges, wherein:
- Suppliers raised invoices to the company
- The company received a discount on the invoice value from the supplier for early payments via KredX Early
- It deployed treasury income to make early payment for some suppliers
- The company treasury made risk-free income ~16%
- Supplier benefited from faster cash cycles
Following a dip in the treasury surplus, the company opted to not use their own surplus to discount supplier invoices and requested KredX to help their suppliers through our invoice discounting marketplace offering, wherein:
- Suppliers now discount invoices raised to the company on the KredX Early platform
- KredX lists these discounted invoices on our marketplace platform
- External investors purchase these invoices
- Suppliers receive funds in the defined tenure
Impact Of The Revised Offering
KredX aided the company with a facility which extended the credit period of the company, thereby increasing their liquidity while also addressing their suppliers’ cash cycles.
- Credit period extension resulting in an increase in RoCE for the company
- Maintained cash flow balance throughout the company-supplier ecosystem
- Provided the company with an end-to-end supplier management
- 100% supplier satisfaction
Upon implementing KredX products, the company has been able to effectively manage their cash flow through credit period extension while taking care of their suppliers’ requirements. Given their trust and working relationship, KredX was able to create a feasible opportunity and offered its product line as services to a variety of businesses spread across various sectors.