Simpl, an online checkout platform, has partnered with a revenue-based finance company, Klub, to provide easy access to credit to direct-to-customer (D2C) merchants. This will support them in meeting their working capital requirements by enabling credit access at affordable interest rates with flexible terms in a digital fashion. 

Simpl aims to tackle the challenge faced by D2C merchants experiencing hyper-growth by including capital-as-a-service in its booster package for partner merchants. This initiative will enable long-term value creation and help resolve a major pain point for many digitally native companies in India. 

With this partnership, Simpl is also expanding its 'Booster Package', which provides exclusive access to services from various D2C enablers such as brand building, credit access, digital marketing and e-commerce consulting that helps boost business. These initiatives aim to create an ecosystem of D2C merchants offering customers a seamless payment experience. 

According to the 'Beyond E-commerce 3.0' report by Kalaari Capital, at least 50 million new users have been added to the Indian e-commerce platforms over the last two years due to the pandemic's rapid digitization. Also, India is anticipated to have 1.1 billion internet users by 2025, with 30 per cent engaging in online shopping. 

This opens up a massive opportunity for D2C merchants that are expected to generate $50 billion in sales by 2025. Therefore, they must get support on multiple fronts including credit access, discoverability and seamless payments.

Commenting on the partnership, Nitya Sharma, co-founder and CEO of Simpl, said, "We are delighted to announce the expansion of our Booster Package to provide credit access to the D2C community in partnership with Klub to support them in their working capital requirements. This continues our efforts to boost the D2C ecosystem in India and emerge as a preferred partner for the fast-growing community in establishing their businesses".   

"Our innovative embedded capital product is a plug 'n play lending solution that seamlessly integrates with our partners' platforms. We are excited to partner with Simpl in offering quick and flexible financing options to its growing community of D2C merchants to support them in meeting their growing business requirements. And with a range of capital partners to choose from, including banks, NBFCs, and our credit fund, we ensure merchants get the best possible financing solutions," said Anurakt Jain, co-founder and CEO at Klub. 

As part of its efforts to support the D2C ecosystem, Klub aims to disburse loans worth Rs 200 crore over the next six months to small businesses nationwide.

Klub raised $20 million in seed funding from Sequoia Capital India's growth program Surge, US-based Alter Global, Japan-based GMO VenturePartners, and 9Unicorns in 2021.