Sunday, July 3, 2022
Techiexpert.com
No Result
View All Result
  • Login
  • Register
Exclusive Videos
  • Tech news
  • Startup news
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Social Media
  • Tech news
  • Startup news
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Social Media
No Result
View All Result
TechiExpert
No Result
View All Result

Amidst a raging second wave, SMBs witnessed a 7% increase in customers: OkCredit

Srikanth by Srikanth
June 2, 2021
in Tech news
Reading Time: 4 mins read
Amidst a raging second wave, SMBs witnessed a 7% increase in customers: OkCredit
11
SHARES
142
VIEWS
Share on FacebookShare on Twitter

In a new report that shows the pulse of small and micro business across India, OkCredit has revealed that the latest surge in infections has not been as catastrophic for SMBs as last year. 

OkCredit is a popular bookkeeping app that digitises books or the “bahi- khata” for small businesses. It has more than 2.7 crore registered merchants on the platform across 95% pincodes, giving it a close peek into the SMB economy.

The primary reason for this moderate impact has been absence of a national lockdown this year as compared to a harsh lockdown in March 2020 which forced several businesses to shut down. 

This year however, states have taken a more relaxed approach towards lockdowns keeping the economy in mind.

Amidst a raging second wave, SMBs witnessed a 7% increase in customers: OkCredit 1

According to the study, medical stores witnessed a sharp 32% transaction growth this year in comparison to an 18% decline in the corresponding period of last year due to a sudden increase in demand for medical supplies and rapid adoption of digital bookkeeping applications by pharmacy stores. The data has been taken for last week of March 2021 up till May 2021.

Electronics, Fruits, vegetables and dairy were other categories to register a 5% uptick each in transactions. The number of customers per merchant has actually increased indicating that more and more merchants are resorting to digital bookkeeping and enrolling customers when compared to the previous wave. 

At a lot of locations, state government gave prior notice before implementing the lockdown. This gave merchants time to prepare in advance by adding customers digitally.

Amidst a raging second wave, SMBs witnessed a 7% increase in customers: OkCredit 2

Kirana stores have seen 7% increase in customers and so have fruit/vegetable dairy shops, mobile recharge stores and electronics stores. The increment in the number of customers per merchant in essential services, implies that a lot of customers might have stocked up goods prior to the lockdown announcement.  Within the number of customers, the active customers has seen a drop of only 16% vis-a-vis 40% in 2020. Active customers in the case of groceries have increased by 6% when compared to pre-covid period last year. 

However, there is still a drop of 6% when compared to Feb’21.  There could be two reasons for this decline- for one, this might be because of many customers moving to online retail and second many grocery stores are finding it difficult to procure stocks.

“While the impact has not been as disastrous as last year, the fact remains that small and micro businesses are struggling. For some of them cashflows have been severely affected and for others customers have moved online. Besides, the scare of the virus has ensured that a lot of them remain shut. We need a calibrated policy approach from the government to support these small and ultra-small entrepreneurs”, said Harsh Pokharna, Co-founder and CEO, OkCredit 

That businesses this year have been more resilient and have learnt lessons from the first wave is also evident in the data on transacting merchants. 

During the 2020 lockdown, there was a 32% decline in the number of transacting merchants, compared to just 9% this year. Categories where this decline has been minimal are medical stores, kirana, hardware, electronics, repair services and Fruit/vegetable/ dairy.

The unorganised retail in India runs on credit. For buyers, it is about convenience to buy whenever they want and for merchants it’s an effective customer retention tool. 

Due to pre-announcement of lockdown the business had time to prepare and as a result outstanding credit amount has decreased by 50% during the second wave. Last year, the abrupt lockdown meant that businesses had huge outstanding credit, squeezing their cash flows and pushing them to bankruptcy.

Tier 3 towns have been least impacted, as was also observed during the first wave, with close to 66% transactions remaining active as compared to 36% last year.

Chart, bar chartDescription automatically generated
Tags: FintechOkCreditTech Trends
Share4Tweet3Share1Pin2

Related Posts

Telemedicine Business
Tech news

Telemedicine or e-medicine: What is it?

Ways Data Analysis has changed customer reward programs
Tech news

Ways Data Analysis has changed customer reward programs

Digital Learning face recognition
Tech news

Here’s why Deep Learning might not be enough for celebrity face recognition

VPS Helps Forex Trading
Tech news

Staying Safe When Trading on a Trading App

Mozilla launches Thinderbird for android
Tech news

Mozilla launches Thinderbird for android

Most Read

  • How to Track Someone’s iPhone by Phone Number?

    How to Track Someone’s iPhone by Phone Number?

    485 shares
    Share 194 Tweet 121
  • Top 5 car automation trends to know

    261 shares
    Share 104 Tweet 65
  • Is Parody Coin investment a Good Investment?

    97 shares
    Share 39 Tweet 24
  • What is windows modules installer ? How to Enable/Disable

    1244 shares
    Share 498 Tweet 311
  • Tips to Reduce Your Website Hosting Costs

    881 shares
    Share 352 Tweet 220
  • How to Track Activities an Instagram account?

    87 shares
    Share 35 Tweet 22

Recent Stories

Doing Cleanup: 5 Types of Links You Should Disavow

Backlinks
Share4Tweet3Share1Pin1

Hyperlocal marketplace Urvann raises Rs. 3 Cr in Seed Round led by IPV

Hyperlocal marketplace Urvann raises Rs. 3 Cr in Seed Round led by IPV
Share5Tweet3Share1Pin2

Does domain extensions impact SEO standards

Does domain extension impact SEO standards
Share5Tweet3Share1Pin2

How Enterprise Blockchain can enable Privacy Preservation

How Enterprise Blockchain can enable Privacy Preservation
Share5Tweet3Share1Pin1
  • Terms of use
  • Privacy Policy
  • About Us
  • Contact us
  • Write For Us
  • Cookie Policy

© 2022 All Rights Reserved

No Result
View All Result
  • Tech news
  • Startup news
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Social Media

© 2022 All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Cookie Law Notice
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT