mjunction services limited, India’s largest B2B eCommerce company, has jointly designed and launched a unique working capital finance programme with Tata Steel. The programme – christened U₹JA – provides unsecured finance to buyers purchasing material from Tata Steel’s distributors.
U₹JA aims to energise the entire Tata Steel distribution channel by creating additional liquidity in the ecosystem. Instead of extending credit to buyers, the distributors will now be able to sell on cash. It will make additional funds available to the buyers, ultimately increasing their purchasing power for Tata Steel products.
mjunction CEO Mr Vinaya Varma said, “mjunction has been facilitating online finance business for several years now. However, this is the first time in the country that a programme has been designed specially for end consumers of a steel manufacturing company.”
“mjunction’s eFinance platform, that provides onboarding, transacting, monitoring and reporting services will be well leveraged to make this programme a success,” he added.
Mr Sanjay S. Sahni, Chief of Marketing & Sales – Branded Products & Retail, Marketing & Sales, Tata Steel, said: “Tata Steel has always been a pioneer in customer centric initiatives for its Emerging Corporate Accounts (ECAs). We were the first to introduce supply chain finance for our channel partners which has been running successfully for the last 18 years. U₹JA is a step further in this journey, taking supply chain finance solution to the end customer. This digitally enabled platform solution will effectively connect ECAs to potential lenders, thereby enabling access to finance at competitive rates. I believe the initiative has the potential to set a new norm for steel consuming segments. We expect to touch over 600 customers through this initiative within a year’s time.”