When you start any business the first point to consider is your working capital. Since after all, it is the essence of any business. With the initiative of the Indian Government to promote and boost start-ups, starting businesses has become easier. Yet, sustaining it is difficult. About 32% of eCommerce start-ups fail due to the lack of working capital, as per Small Business Trends.

To help with this problem, as a businessman you could acquire financial loans. Sometimes getting loans from banks isn’t always feasible or an option. In this case, here we have for you a list of a few working capital lenders for your eCommerce business in India.

What is eCommerce Financing?

eCommerce financing is a form of financial aid for those eCommerce businesses that require it. This can be offered, as different types of business loans to eCommerce sellers. Businesses can use these funds to keep their operations running and well stabilized.

eCommerce businesses can use this to pay off any business-related obligations which could include manufacturing and maintaining inventory, paying employee salaries, marketing expenses, and so forth.

Why Do Sellers Need eCommerce Financing?

For an eCommerce business, working capital is needed for daily functioning. Settlements by marketplaces are done mostly fortnightly for businesses that sell products online. During this period, the business still needs to cover and deal with its operational costs and keep the business running. 

Traditional bank loans are difficult for start-ups to acquire. This is because they do have experience and reputation as compared to other well-established businesses. However, there is a solution to this problem. This is where eCommerce financing options come in handy.

Besides this, effective management and knowledge of working capital can help your eCommerce business.  Working capital management can:

You can effectively manage your financial capital by:

Parties Involved in eCommerce Financing

While applying for an eCommerce financing solution you need to know the details. And also make sure you understand the whole concept. Hence to cover the basics, you need to know the parties involved in this. To start off, there are four parties involved here, namely:

How Does eCommerce Financing Work?

Although the working of eCommerce financing differs from institute to institute, the basic working is similar.

Step 1: Firstly, a seller would have to approach the lending institute.

Step 2: Secondly the credit team from the financial institution will evaluate your application and determine whether they should provide the seller with working capital.

Step 3:  After the team has determined that you are eligible for the loan, they might provide you with payment options. This includes the frequency of repayment (monthly, every 15 days) etc. Moreover, if the amount would be automatically debited from your account or would you have to manually transfer it.

Step 4: When you are granted finance for your eCommerce business you need to repay the amount along with the determined interest. Failure of which can negatively affect your credit score.

Step 5: Once you have completely reimbursed the amount, there would be a small increase in the credit score.

Please Note: That some eCommerce financing loans can strictly be used for a particular set of business needs while others are much relaxed.

Top 5 Working Capital Lenders for eCommerce


KredX is one of India’s leading working capital solutions. They provide eCommerce sellers with a tailor-made financing solution. This is an off-balance sheet solution that businesses can use towards unpaid invoices to acquire immediate financing aid.

KredX was set up in 2015 by Kumar and Anurag Jain. And since then they have been providing short-term working capital to businesses. It first started off as an invoice discounting platform but now evolved to a working capital requirements lender. They are situated in Bengaluru and have branches almost all over the country.  Furthermore, they have helped 23000+ businesses in their journey.

Check out their site to grow your business here.



LendingKart aims to make it easy to acquire working capital for all entrepreneurs. So this allows sellers to focus on their businesses rather than on the finances of the business. This fin-tech startup, unlike other lenders, does not focus on past financial statements or tax returns to determine the credit profile of the seller. Their main focus is on the current year’s cash flow.

LendingKart was founded by Harshvardhan Lunia and Mukul Sachan in 2014 and has its headquarters in Ahmedabad. They cater to eCommerce sellers across the country. To date, this company has disbursed 100000+ loans and supported 89000+ businesses. Get in touch with them for a loan by filling out this application.


Capital Float

Capital Float formerly known as Zen Lefin Private Limited specializes in “Buy Now, Pay Later” and Credit platform to a variety of businesses. They aim to provide every customer with their cutting-edge financial products and help them grow and break their limits. This lending institution provides sellers with loans as low as INR Rs. 1 lakh and high up to INR Rs. 3 crores. Making the online seller’s financial products, specially designed to cater to the needs of eCommerce businesses.

Founded back in 2013 by Gaurav Hinduja and Sashank Rishyasringa and is headquartered in Bangaluru. The documents you need to apply for this loan is your bank statements and KYC documents of the applicant and the organization. Click here to acquire financing capital for your business.



FlexiLoans started with the motive to solve problems that small businesses face by allowing them quick, flexible, and adequate funds for their business. Therefore they aim to give loans, in just one click.

Geolocated in Mumbai and founded in 2016 by Indian School of Business alums Abhishek Kothari, Deepak Jain, Manish Lunia, and Ritesh Jain. They have said to have disbursed more than 10000+ loans. The only eligibility criteria are that the minimum business vintage should be 1 year and the monthly business sales should be a minimum of Rs. 2,00,000. Apply for your loan here.



Indifi provides eCommerce sellers with loans to ensure that they can grow their business without any collateral. Besides this minimum documentation is needed as well which makes the whole process of acquiring the loan easier. This platform works as a way for you to reach out to multiple lenders, hence increasing your chances of loan approval. Also, you are able to pick a loan tenure, repayment mode, and schedule it as per your liking.

The minds behind this platform are Alok Mittal and Siddharth Mahanot. They started this business back in 2015 and from then have disbursed 25000+ loans to businesses. If you are a seller who needs financial aid, you can fill out this form.


How Working Capital Can Grow Your eCommerce Business

When you are dealing with a business, be it eCommerce or otherwise, there are bound to be periods when business is slow. For these moments well-managed working capital funds come into play. Therefore, here are a few tips on how you can grow your eCommerce business with working capital:


That was the list of the top working capital lenders for eCommerce businesses in India. Finding the best option for you can help your business flourish with a good amount of financial capital at your disposal. You will no longer need to worry about the lack of funding while making decisions.

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