On June 27, Small business marketplace Solv said it had raised $40 million (approximately Rs 310 crore) in funding led by Japan’s SBI Holdings. The Bengaluru-based company will deploy the funds to expand its Buy Now Pay Later (BNPL) offering, launch more high-margin products and expand its geographic reach.

SBI Holdings CEO Yoshitaka Kitao said it was one of the region’s financial services firm’s largest investments. Kitao said Solv would become a global tech giant helping micro, small and medium enterprises (MSMEs), adding that his company and Solv share the same goals.

Solv CEO Amit Bansal said the company served 2.2 lakh MSMEs in a year hit by Covid-19 in the country and would use its experience in India to create a viable model for the global market.

He described the investment in SBI Holdings as a long-term strategic partnership that will help Solv establish itself as a dominant player in the B2B market over the next year and a half.

Solv enables MSMEs to trade in categories such as grocery and fast-moving consumer goods (FMCG), ready-to-wear, electronics and accessories, homewares, footwear and accessories, operating in over 200 cities serving more than 2.2 lakh MSMEs.

The 18-month-old company aims to reach $500 million in total merchandise sales in India by 2022, reaching $260 million in the first half.