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Sachet Loan Surge: D2C Brands Borrow INR 243+ Crores to Meet Early End of Season Sale Frenzy: Instamojo #D2CDecoded Report | ||
Bengaluru, Karnataka, India
Sachet Loans, a service first introduced by Instamojo in 2020, are small ticket cash advance loans which a business takes to manage its liquidity during high demand periods. Sachet Loans saw a peak during the pandemic with businesses borrowing a total of INR 252 crores during the 2020-21 period. However, with the growing number of end of season sales, the demand for these sachet loans seem to have persisted.
Here are some interesting insights on Sachet Loan disbursement trends from the second edition of Instamojo’s #D2CDecoded Report:
Sachet Loans has become the new normal post-COVID for D2C brands, recording a growth of 43% since 2019-20
Early End of Season Sales drive growth of Sachet Loans contributing to over 40% of overall loan disbursement volumes
There is a positive correlation between Sachet Loans and Business Growth. For every 1% increase in Sachet Loan borrowing, businesses saw sales grow by 0.5%
The positive correlation between Sachet Loans and Business Growth
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