Bharat Super Shop
Published on: Dec 15, 2023
Bharat Super Shop is a platform developed to provide banking and lending services to small
merchants in India. The door-step services to the small merchants include:
- An instant current account opening
- QR/UPI handle
- Working capital loans and
- Insurance services.
Here is a sneak peek into the growth story starting from scratch in the year 2019 to cumulative loan
disbursements of Rs.12,500+ Crs until Sept 2023, serving 1 million merchants across 547 cities.
Bharat Super Shop’s Growth Journey:
In 2019, BFIL conceived a simple plan on lending to the 'missing middle class' of India, i.e. small
merchants. This ambitious journey commenced as a pilot program during 2019-20, with an initial merchant
base of 8,000 and a loan book of Rs. 11 crores by March 2020.
The unexpected COVID-19 pandemic presented a challenging yet defining moment for the business.
Impressively, BFIL came out of the pandemic very strong with less than 2% credit costs, hence this model
was proved successful.
The below figures help us know YOY growth
| FY |
Units |
FY-19 |
FY-20 |
FY-21 |
FY-22 |
FY-23 |
FY-24-H1 |
| No of cities |
|
1 |
4 |
110 |
304 |
503 |
547 |
| No of Merchants |
lacs |
0.01 |
0.1 |
1.7 |
5.5 |
10.2 |
12.7 |
| No of loans disbursed |
|
|
|
|
|
|
|
| For the period |
lacs |
0.01 |
0.1 |
0.9 |
5.1 |
9.3 |
5.7 |
| Cumulative |
lacs |
0.01 |
0.1 |
1.1 |
6.2 |
15.5 |
21.2 |
| Disbursement amount |
|
|
|
|
|
|
|
| For the period |
crs |
3 |
31 |
476 |
2,744 |
5,612 |
3,717 |
| Cumulative |
crs |
3 |
34 |
510 |
3,254 |
8,866 |
12,583 |
| |
|
|
|
|
|
|
|
| Advances |
crs |
1 |
11 |
376 |
1,943 |
4,020 |
4,903 |
Empowering Merchants:
Bharat Super Shop has a unique value proposition for merchants such as
- Doorstep facility for
- Opening an instant Current Account
- Enabling QR for digital transactions between merchants and their customers
- Offering working capital Loans
- Digital Collections
- Small Weekly Loan instalments (Easy to pay from daily cash flows)
This approach is all about making financial services more accessible and convenient for small
businesses.
Why Merchants Matter in the Micro Business Revolution?
Merchants, especially those in the micro and small business sector, play a crucial role in the
Indian economy. The statistics indicate that:
- 94% of MSMEs are operated by sole proprietors.
- 46% of MSMEs are retailers.
- 95% of MSMEs are micro in size.
About 98% of MSMEs in India are micro units, many of which are nano units, such as kirana
stores, small clothing shops, restaurants, mobile phone stores, beauty parlours etc.often
lacking clear income documentation.
However, the majority of these small business owners have smartphones, which opens the
door to paperless banking and borrowing. This is where microfinance institutions like Bharat
Super Shop come into play by providing access to funds and financial services.
The Bharat Super Shop Advantage:
BFIL extends services to small businesses and shops primarily in Tier II and Tier III cities. The
offerings include:
- Mobile banking and banking through WhatsApp
- Opening current accounts and recurring deposits, from the comfort of one's home/shop
These services are made possible through asset and liability product solutions from IndusInd
Bank, offered by Bharat Financial Inclusion Limited (BFIL). This partnership offers a wide array
of financial services to its customers.
BFIL Growth Journey:
BFIL started the journey of providing microloans to its clients and later merged with IndusInd
Bank in 2019. While BFIL continues to be a market leader in the microfinance space,
expanding its portfolio to loans for businesses and saving options such as recurring deposits
and fixed deposits. The hallmark of BFIL success is the commitment to making these services
accessible.
Bharat super shop offers individual loans for working capital to small stores with daily cash
flows, through this BFIL provides a lifeline to those in need. The length and amount of the loan
are flexible, tailored to each customer's profile.
Embracing Digitalization:
BFIL’s significant growth is attributed to early adoption of digitalization, continuous product
innovation and user-friendly services. A streamlined process and technological advancements
have enabled paperless transactions, making it easier for customers to conduct their business
seamlessly. 96% of our loan collections are digital which is possible by making use of current
accounts for conducting their business transactions through UPI/QR.
References:
https://www.bfil.co.in/about-us.php
https://www.bfil.co.in/blogs.php
https://www.bfil.co.in/products.php
https://timesofindia.indiatimes.com/blogs/voices/unlocking-growth-in-msme-credit/
