Seamless Supply Chain Finance

Deep insights emerge from this fireside chat at NBFC's Tomorrow Conclave.

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Manoj: Please give an overview of the supply chain finance business at Profectus.

Rahul: Profectus Capital has essentially adopted an anchor-led or a corporate-led model wherein we tie-up with larger corporates. We have tie-ups with Tata Solar, Reddington, Ingram Micro, etc. Through these tie-ups, we funding their distributors for purchases of stocks from all these anchors. We essentially play a very vital role of moving stocks down the entire supply chain from the anchor to the distributors. We have about `4.5 bn of portfolio in supply chain financing, which is spread over 22+ anchor corporates with whom we have tieups. We started supply chain financing in 2019. During the pandemic, we were able to support all our distributor clients with credit to ensure a smooth flow of goods into the marketplace, which really helped them in a very big way to avoid supply chain disruption.

Manoj: What does the SCF business need more of these days – data or technology something else?

Rahul: Supply chain finance, as compared to any other line of business as far as financing is concerned, is a very operationally heavy business. In a typical mortgage loan, you disburse once and then you keep getting the repayments. Whereas in SCF, the underlying product is a rotating limit, which means there are a lot of transactions. That is where technology plays a very important role. We have to make the operation easy for the customer. We have to build a very fast paced and flexible solution – that is the main challenge.

Manoj: What has been Uncia's experience in engaging with NBFC clients? How much do they value speed, flexibility, operational support? What have been their ask from an IT company like yours?