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How Sharma Distributors Reduced Payment Delays by 60% with KreddyPay

January 28, 2024 8 min read Case Study

Company: Sharma Distributors Pvt. Ltd.
Industry: FMCG Distribution
Location: Delhi NCR
Retailer Network: 320+ retailers

The Challenge

Sharma Distributors, a second-generation family business, had been operating in the Delhi NCR region for over 25 years. With a network of 320+ retailers spanning grocery stores, general stores, and mini supermarkets, managing payment collections had become a nightmare.

Before KreddyPay, their challenges included:

  • Average collection cycle of 45 days - Many retailers would delay payments, citing cash flow issues
  • 3 full-time staff dedicated to collections - Phone calls, visits, and manual reconciliation consumed valuable resources
  • ₹12 lakhs average outstanding - Always tied up in receivables, limiting working capital
  • No real-time visibility - The owner couldn't tell which invoices were paid without asking the accounts team
  • Disputes over payments - "I already paid" claims were common, leading to relationship strain

"We were spending more time collecting money than growing our business. Our salespeople had become collection agents."

— Rajesh Sharma, Managing Director

The Solution

Sharma Distributors implemented KreddyPay in August 2023. The onboarding process was completed in just 2 days, with all retailers receiving training on how to use the payment links.

Key features they implemented:

  • Digital invoice creation - All invoices now generated with automatic payment links
  • WhatsApp reminders - Automated payment reminders sent 3 days before and on due date
  • UPI payment collection - Retailers could pay instantly via any UPI app
  • Real-time dashboard - Management could see payment status anytime, anywhere
  • Partial payment tracking - Retailers paying in installments were tracked automatically

The Results

Within 6 months of implementing KreddyPay, Sharma Distributors saw remarkable improvements:

60%
Reduction in Payment Delays
18 Days
New Average Collection Cycle
₹8L
Saved in Working Capital

Additional benefits included:

  • 2 collection staff reassigned to sales roles, generating additional revenue
  • Zero payment disputes - Every transaction has a clear digital trail
  • 85% retailers now pay via UPI - Faster, more convenient for everyone
  • Improved retailer relationships - Less awkward collection conversations

"KreddyPay didn't just solve our collection problem - it transformed how we do business. Our retailers love the convenience, and we love the cash flow."

— Rajesh Sharma, Managing Director

Key Takeaways

The Sharma Distributors case study highlights several important lessons for FMCG distributors:

  • Digital payments reduce friction - When payment is one tap away, retailers pay faster
  • Automation saves resources - Automated reminders work better than manual follow-ups
  • Visibility drives accountability - When everyone can see payment status, disputes disappear
  • There's no right size to start - Whether you have 50 retailers or 500, digital collections help

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