Solv- India’s Fastest Growing B2B platform raises US$40 MN in Series A funding led by SBI Holdings Inc., Japan
- Solv will use the funds to launch additional high-margin product categories and expand to 300+ cities in India
- The fresh funding will also drive expansion of BNPL (Buy now pay later) loans, particularly in the NTC (new-to-credit) segment
- Solv also plans to expand its anchor-led retailer finance to additional 50,000+ retailer-base
- Solv is building a global tech-stack from India to help expand operations in multiple countries in Africa & South-east Asia
- Within 18+ months of launch in India, Solv has become India’s fastest growing B2B marketplace, with a 220,000+ KYC-verified MSME base and a 10x+ growth of GMV with ~60% repeats
- Solv targets half a billion-dollar GMV run-rate & positive unit economics by exit December 2022, from the India market alone
Bengaluru, 27 June 2022 : Solv, India’s trusted B2B digital marketplace for Micro, Small and Medium Enterprises (MSMEs) has raised US$40 million (INR 300 crore+) in its latest round of funding led by marquee investor, the SBI Holdings (Japan), with participation from SC Ventures, which has been an incubator and early-stage investor of Solv. This round of fund-raise takes Solv’s total funding to nearly US$80 MN.
Commenting on the investment, Yoshitaka Kitao, CEO, SBI Holdings, said “We are excited to lead Solv’s Series-A fund-raise, one of our largest investments in the region. We are confident that Solv will become a global technology powerhouse and play a defining role in turbo-charging the growth of underserved MSMEs. Their purpose deeply aligns with our philosophy of becoming the leader in creating and cultivating the core industries of the 21st century. Our investment in Solv is a reinforcement of our commitment to developing economies, especially India.”
Established in 1999, the SBI Group has formed the world’s first and leading Internet-based financial conglomerate, providing financial services in a broad range of fields including securities, banking and insurance. In addition to Financial Service Business, the Group also has Asset Management Business, focusing primarily on investment in venture companies.
Commenting on leading Solv’s growth to the next stage, Amit Bansal, CEO, Solv, said “At Solv, we are passionate about improving livelihoods of millions of underserved MSMEs in India and globally. In a year ravaged by Covid-19, Solv has been able to establish itself as a dependable partner to 220K+ MSMEs. The learnings in India, and the resultant development in product, technology and platform is also enabling us to create workable models for MSMEs in other geographies across the world. At this critical juncture of Solv’s journey, we are humbled to welcome on board SBI Holdings as a long-term partner. This strategic partnership & investment will give us significant tailwinds and help us become a dominant B2B player over the next 12-18 months.”
Supporting Solv’s funding, Alex Manson, Head, SC Ventures, said “The team’s obsession for the customer and their discipline of execution is impressive. Solv’s rapid growth since launch demonstrates the huge market potential in the B2B space. The partnership with SBI Holdings will help us accelerate growth of Solv in India and expand its footprint globally.”
Solv enables MSMEs to trade in categories such as grocery and fast-moving consumer goods (FMCG), readymade apparels, electronic and accessories, home furnishings and footwear and accessories, of which Softlines are the high margin and the fastest growing segments. Solv is currently present in around 200+ cities in India, servicing 19,000+ pin codes and has been growing rapidly in India with 220,000+ KYC-verified MSMEs users on its platform within 18+ months of commercial launch. Solv has gained a strong reputation among users as a ‘trusted platform for trade’, clocking US$260 million+ GMV run-rate in the first half of 2022 with about 60% average repeated purchases. The network effect on its platform has resulted in a very strong GMV growth of 50%+ quarter-on-quarter.
Solv’s growth has been driven by constant innovation on its platform and roll-out of new tech-led features and products for its MSME users.
- To ease financing for the MSME segment, Solv has expanded its network of Financial Institution (FI) partners on the credit platform to include major non-banking financial company (NBFCs) and new-age fintechs, who provide easy access to collateral-free working capital to MSMEs
- Solv’s supply chain finance platform was piloted in 2021 with 9 anchor partners
- Bolstering Solv’s financial services offering is its proprietary alternate credit score, Solv Score which uses alternate data, to help thin-filed MSME customers avail credit on-demand
- Solv also announced the launch of Buy Now Pay Later (BNPL) on its platform to ensure smooth flow of working capital to thousands of MSMEs, even during the pandemic
Solv targets half a billion-dollar GMV run-rate & positive unit economics by exit December 2022, from the India market alone.