Bizom Partners with Accion and Mastercard to Transform Kirana Credit
by Aftab Sheikh
Nov 21 2024 | 03 min read
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The thread that runs common across all consumer classes in India, be it rich or poor, is the power of credit.
And behind every “register me likh lena” purchase at Kiranas, lies a bigger question—who gives credit to these stores?
While the consumer can ask for credit at their favourite Kirana store, the problem still lies that the small retailer does not generate enough cash flow to stock up good for future sales.
Kirana’s Credit Struggle: A Crisis Unveiled
Quick commerce has reshaped the retail landscape, offering unmatched convenience, product variety, and seamless fulfilment. But behind its rapid rise lies a growing struggle for India’s 13 million Kirana stores.
Credit-starved and battling tight cash flows, these small retailers often lack the resources to match the vast assortments and aggressive pricing of online platforms.
According to Datum, 82% of consumers now purchase at least a quarter of their groceries online, with 5% abandoning Kiranas entirely.
This shift isn’t just about convenience—it’s a wake-up call for Kiranas to modernise and compete. Yet, with informal credit systems breaking under pressure, how can they keep up?
Another similar situation that the small retailers faced was the COVID-19 pandemic. Lockdowns disrupted supply chains and forced consumers to embrace online shopping.
For Kiranas, the crisis underscored an urgent truth: digitisation and credit access are no longer optional.
In the pre-pandemic period, the share of consumer credit went up from around 23% in 2012 to 32% by 2020. There had also been a parallel decline in the share of credit to businesses, from 68% to 60%.
Small retailers in Mumbai quoted some distributors, as a norm, did not accept cash beyond Rs. 15,000 – 20,000, and even refused to accept cheques.
The only way out was rushing to register for RTGS facilities – a process that could take a long while. So, the retailers looked for a backup line of credit.
At Bizom, we believe this must change!
Together with Accion and Mastercard, we’re embedding credit access directly into our retail ecosystem through our Distiman App, which is revolutionising the way Kirana stores operate.
This will empower Kirana store owners by providing them with the ability to make payments directly to distributors and sub-distributors through credit, helping to stabilise their cash flow and grow their businesses.
This digital transformation ensures that distributors not only enjoy better cash flow management but also that Kirana owners benefit from increased financial stability.
We’re proud to stand at the intersection of technology, social impact, and economic transformation.
Together with our partners, we’re building the foundation for a future where every kirana owner can dream bigger, scale faster, and contribute to India’s growth story.
