CashFlo x Zydus Group: Revolutionizing Vendor Financing for a Pharma Giant

INDUSTRY

Pharmaceutical

PRODUCTS USED

Dynamic vendor Discounting

KEY SUCCESS METRIC

High ROI, risk free returns achieved on discounted invoices

TURNOVER

~INR 18,000 Crore

Objective

Zydus had 2 focus areas for wanting to adopt CashFlo’s vendor financing product: to boost vendor relationships by providing easy access to liquidity when needed and secondly, to provide its entire vendor base with a tech-enabled solution to easily and dynamically get access to capital. To provide them with choice and power that comes with dynamic rates. While boosting vendor relationships, they were also looking to put to use their unutilised bank lines and treasury surplus to boost ROI. Vendor financing came across as a risk-free avenue of returns that could not be ignored. It was the perfect solution for a cash-rich conglomerate. There were many win-wins they could foresee. Lastly, Zydus wanted a tech-enabled platform that could scale seamlessly and cover its entire vendor base.

Solution Provided

Facing the dual challenges of enhancing vendor relationships and optimizing its vendor base's access to capital, Zydus turned to CashFlo's vendor financing solution. CashFlo exhibited the highest level of vendor participation, effectively capitalizing on arbitrage opportunities, and efficiently discounting a substantial volume of invoices. By establishing an adept on-ground vendor onboarding team, CashFlo seamlessly integrated with Zydus, cultivating strong vendor relationships and facilitating platform adoption. Offering customized Value-Added Services (VAS) exclusively for Zydus' vendors, CashFlo went beyond conventional invoice discounting, extending financial guidance and support. This personalized approach positioned CashFlo as a valued partner to vendors. Introducing innovative practices like WhatsApp-based and pre-approval discounting for green channel vendors streamlined processes, expedited transactions, and simplified the discounting experience, leading to increased vendor participation. CashFlo successfully addressed Zydus' liquidity needs, empowering suppliers to rely on the platform for funding requirements and fostering a symbiotic relationship where vendors now actively seek more business opportunities.

CashFlo’s revolutionary approach democratizes access to credit, bridging the gap for smaller suppliers who lack strong credit histories or collateral. With just a single click, they gain easy access to funding, leveling the playing field and treating them equally alongside larger suppliers. This not only empowers our suppliers but also strengthens our buyer-seller relationships in invaluable ways. Beyond the financial advantages, the emphasis on relationships is often underestimated but proves vital for long-term sustainability. CashFlo's impact has been profound, addressing our liquidity needs while fostering a mutually beneficial ecosystem that thrives on trust and growth.