CSC and Adani Capital have Agreed to Provide Working Capital to 6,000 Sellers

According to people familiar with the development, the Common Service Centres (CSC) and Adani Capital have signed an agreement to provide flexible working capital of up to Rs 5 lakh per month to all 6000 retailers in the CSC network. The CSC Grameen e-Store is a rural e-commerce venture run by these retailers.

According to one of them, the CSC, a special purpose vehicle (SPV) of the Ministry of Electronics and Information Technology, and Adani Capital, the non-banking financial company (NBFC) arm of Adani Group, reached an agreement last month.

“The idea is to enable the retailer to have enough liquidity to order in bulk from the distributor of companies rather than having to wait for the order to cross a certain threshold and then place the orders. Adani Capital will extend working capital to the retailers at a reasonable rate,” the official quoted above said.
A retailer working with the CSC can request a loan of up to Rs 5 lakh per month from Adani Capital as part of the agreement and use the funds to place orders with the larger distributors. Previously, retailers had to collect and wait for order values to exceed Rs 1 lakh before placing orders with distributors.