Its in talks with different NBFCs to give merchant loans. Company is planning to engage with multiple NBFCs to give out working capital loans to its partner restaurants.
As part of the deal, Zomato will only work as Loan service provider (LSP). The company will source loans from its partners and disburse the amount to potential borrowers, in exchange for a fee or per the arrangement.
This could also mean that Zomato will be responsible for collections from the end users.
Zomato started lending back in 2021 but paused because wanted to give loans via their own NBFC license. The company though is still looking for its own NBFC license but in the meantime has decided to restart this again under a partnership model.
Swiggy on other hand also has the same programme via partnering with NBFCs and they claim to have over 8k restaurants that availed the loans, with over ₹450 crore being disbursed since 2017.
Source - Money control
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