How Arvind Limited scaled a program to provide working capital access to their vendors on their own terms

Arvind Limited provided instant working capital access to its vast network of vendors, with minimal manual overhead from all stakeholders.

The Challenge

Arvind Limited had, over many years built a large network of apparel manufacturers and other vendors. Many of these were key strategic vendors of Arvind Limited, with relationships built and nurtured over time.

Arvind Limited recognized that this network constituted not just a valuable asset, but also a key competitive advantage. This asset need to be both protected and nurtured. A key constraint in a manufacturing-focused industry was access to working capital, at affordable rates, without excess effort. Arvind Limited wanted to make working capital accessible for their vendors, reduce risk, create manufacturing capacity and keep their vendors financially secure.

At the same time, Arvind Limited did not want to execute a program which reached only few key vendors, as these vendors typically were already extremely well run and had ready access to working capital already. The true beneficiaries would have to be the many SMEs who supplied to Arvind Limited.

Arvind Limited was ready to implement an innovative solution to provide working capital at scale, without manual intervention.

The Solution

CashFlo deployed its proprietary dynamic vendor financing platform across Arvind Limited’s supply chain. CashFlo’s platform brought a key innovation – the platform facilitated an AI-powered real-time auction to determine which vendor needs the capital the most. This democratized access to funding in the entire vendor base, and any vendor, no matter how small, could access funds in a 100% automated, on-demand fashion.

This allowed vendors the flexibility to obtain liquidity on their terms, and for Arvind Limited to deliver funding at an entire supply chain level, and cater to each vendor’s unique needs without any manual efforts.

“This is a novel solution and we are excited to be partnering with CashFlo for this innovative vendor financing offering. Our vendors love the flexibility offered by CashFlo to choose their own rate for discounting. We have not had to undertake any direct discussions with vendors – entire process of negotiation is automated by the auction platform. We are now looking to scale this up to our entire vendor base rapidly”

  -Head of Product & Sourcing, Fabrics Business
Arvind Limited

The Result

The benefits to vendors was substantial – where before working capital would be stuck at rate discussions, automated and flexible liquidity allowed greater vendor coverage, at rates which were highly competitive compared to other borrowing channels, leading to unparalleled vendor delight. Access to ready working capital has “changed the game” for many SMEs, allowing them diversify and expand their business and manufacturing capacity, and maintain financial health even throug the COVID19 lockdown.

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