Indifi Technologies, an enabler for SME funding in India, allies with Travel Boutique Online (popularly known as TBO), in a bid to enhance businesses for travel agents. Through this association, Indifi is providing working capital to the travel agents,who are unable to scale their businesses due to financial limitations. This mutually benefitting alliance provides the travel agents with the right amount of finances, supporting them to conduct more business. Furthermore, a proper transaction behavior will help Indifi make a superior assessment of the travel agents’ business, thereby allowing lenders to make informed credit decisions.
Adding insights to the association, Ankush, Co-founder and CEO Travel Boutique Online commented, “While airlines have moved to a weeklypayment settlement cycle, corporate customers continue to work on credit with travel agents, thereby creating a working capital gap for travel agents. Our partnership with Indifi allows us to bring a solution for our travel agent network”.
Commenting on the partnership, Alok Mittal, Co-founder and CEO, Indifi Technologies said, “Although the last few years have witnessed a significant amount of investment in startups and SMEs in India, many investors and lenders have not been able to provide working capital solutionsdue to lack of credible data. By bringing in the transaction behavior of travel agents, we enable lenders to effectively address this segment”
Mr. Rajiv Verma, Proprietor of Business Travels, Delhiand one of the earliest adopters of the facility mentioned, “The product launched by Indifi is very relevant for the people in this industry and is being offered at competitive interest rates. I like the flexibility of the credit line product which works much better for this segment in comparison to term loan offered by most banks and NBFCs.”
Putting things in perspective, the settlement cycle for travel agents, i.e. the time within which travel agents are required to pay to airlines after booking tickets, has been shrinking with time. Currently, it is 7 days for scheduled airlines, whereas low cost carriers charge at the time of booking itself. On the contrary, a corporate customer generally takes 30-45 days to pay travel agents for the tickets booked. This creates a working capital gap, which limits the travel agency’s ability to grow. It is the ability to bridge this gap, which has won Indifi Technologies the trust of more than 50 Travel Agency partners who have benefitted from the platform.
The association is meant to counter these shortcomings of the industry. Furthermore, in terms of credit assessment, a reliable analysis of the travel agent’s earnings has never been factored in credit decision making process. However, this association will allow a proper analysis of the earnings of the agents to make a comprehensive credit decision.