Amazon India has had a lot of tough times recently. The company is suffering from the new FDI policy which has caused the American company a lot of trouble. The company is trying to cope up with the same and enable the sellers on its websites while doing this. The new FDI policy is something which caught hold of every e-commerce policy in the country and creates a synergy between the online and the offline markets.
This is why the companies are trying to enable the sellers with more cash and encourage people to sell on Amazon India’s platform. Currently, the company is looking to raise money for its sellers and it is doing via a crowdfunding initiative which goes by the name of Ketto.
Ketto is a platform which is co-founded by a Bollywood actor Kunal Kapoor and a businessman Varun Sheth. The platform is a normal crowdfunding platform used to raise funds from a crowd which will help people get a move on. The platform charges a commission of 5% on average and came into limelight when a lot of regional moviemakers used the platform to raise funds to tell their stories. Since this, many filmmakers use such platforms to do the same.
Ketto has now partnered with Amazon which will charge a 2.5% fee for initiating a fundraiser. Enabling sellers is something Amazon has been working on silently and strongly. That being said, the company has been demanding more sellers from the ground level staff. A seller can earn funding from the crowd starting from INR 50 thousand which can go up to whatever amount.
That being said, Gopal Pillai, Vice President of Amazon India’s Seller Services said that India has a huge base of SMEs and the availability of funds is equally a big problem. That said, the company is working on the funds part as it will help the sellers get the necessary funding to start selling certain products.
Gopal said, “India has a huge and thriving base of SMEs in the country but the availability of funds is one of the major barriers for their business growth and innovation.” Zaheer Adenwala who happens to be the CTO of Ketto said that crowdfunding can without a doubt play a vital role in an entrepreneur’s business cycle.
He said, “Crowdfunding can definitely play a pivotal role in helping entrepreneurs, especially businesses that foster either social impact or practical innovation.” That said, Amazon and Ketto might form a partnership that may get Amazon out of the seller problems the company is facing.