Festivity brings back cheer to small businesses: Report

NEW DELHI: Festive season has fetched much needed respite to the micro, small and medium enterprise sector. These sectors have witnessed faster recovery, particularly sale of sweets, reveals data gathered by OkCredit, the pioneers in digital bookkeeping apps which are fast becoming a new rage among unorganized retailers and traders in India.
Based on the behavior of users, OkCredit gathered data of how the businesses performed during the festive season. According to the data, sales of sweets have gone up by 60% during this Diwali compared to year 2019. This indicates the fervor associated with the festival overcame the fear of pandemic. For other items such as rangoli and lamps the sale has been the same as that of the previous year.
OkCredit data indicates that the growth in transaction on the app was led by kirana and small businesses. These contributed to nearly 55% of this growth even as the overall transactions on the app during the festive period accounted for 12% of the transactions for the year 2020.
OkCredit also witnessed an increase in ticket size for jewelry by 16% from the preceding months during the festive season. This is in sharp contrast to the overall trend of shrinkage in ticket size by 22% in general and increase in number of transactions by 47% on OkCredit app during Diwali/ festive season this year in comparison to the same period last year. This signals that merchants are lending smaller amounts which can be accounted to the shrinkage in overall economic activity.
On the business transaction side, the transaction bookkeeping value for OkCredit rose by 13% during this year’s festive season / week when compared with 2019. The company also witnessed highest growth in terms of new merchant addition in Karnataka indicating a growth of 14% during the festive season.
Diwali is known as the end of the financial year with the second day of Diwali marking the beginning of the next fiscal year. OkCredit, during the festive season, settled over two million accounts with 80% of accounts being settled in Tier 3 cities. This highlights the empowering role modern bookkeeping solutions are playing and the trend of micro retail players from small towns and hinterlands embracing digital bookkeeping solutions more than ever before, as it makes their book-keeping task simpler, digitized and secure.

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