SBI likely to invest $150 Mn in B2B e-commerce platform for MSMEs
Parul July 8, 2020
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According to news reports, State Bank of India (SBI) is likely to invest $100 Mn to $150 Mn (INR 750 Cr to INR 1000 Cr) to set up its latest B2B ecommerce marketplace, for the micro, small and medium enterprises (MSMEs).
As per the SBI MD, Challa Sreenivasulu Setty, Bharat Craft will be an ecommerce and technology-driven platform which will allow SBI customers to sell their products.
In fact, the state-run bank is likely to design the platform using the China-based Alibaba and Alipay model to route transactions, despite the government pushing public sector units (PSUs) and private entities to boycott Chinese companies.
SBI believes that the regulatory clearances may come soon as the B2B marketplace will not earn any revenue but will only help customers banking with its business. The bank will also leverage on its mobile banking offering YONO SBI which allows customers to bank, shop, travel, pay bills, recharge, invest, transfer money, book and travel movie tickets and more.
SBI hopes that its latest B2B venture will allow it to manage the financing of small businesses better and give them a greater grip over receivables.