Powerplay Credit, a procurement-linked working capital solution, has been launched by construction technology platform Powerplay to address persistent cash flow challenges faced by contractors during active project execution.
The rollout of Powerplay Credit comes amid rising infrastructure and real estate activity across India, where contractors often manage multiple sites while navigating prolonged payment cycles.
The solution is currently live across key construction markets in South India, with the company planning to expand Powerplay Credit to other regions of the country in 2026 following early on-ground validation.
Powerplay Credit targets project-level cash flow gaps
India’s construction sector is witnessing heightened momentum across infrastructure development, housing, industrial corridors, renewable energy, and urban redevelopment projects.
However, contractors continue to face structural funding challenges due to stage-based billing systems, delayed receivables, and extended payment timelines, particularly in large corporate and government-led projects.
These constraints frequently result in stalled work, material shortages, and reliance on informal and high-cost credit sources.
Powerplay Credit has been designed to directly address these issues by embedding credit into the material procurement process rather than offering it as a standalone loan.
The credit facility is capped at the project level and can only be utilised for verified raw material purchases routed through the Powerplay marketplace.
There is no direct cash disbursement to contractors, ensuring procurement remains aligned with approved project specifications and execution requirements.
According to the company, this structure ensures that Powerplay Credit is used strictly for construction execution while reducing the risk of fund diversion.
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Software-led design enables data-driven credit deployment
Unlike traditional construction financing products, Powerplay Credit is software-led and powered by real-time project data captured on the Powerplay platform. This includes live insights into site activity, material consumption, procurement patterns, and execution progress.
By leveraging this data-driven approach, Powerplay Credit enables the provision of collateral-free and zero-interest credit, while maintaining tight control over end use and execution risk.
The company stated that this structure allows credit decisions to be linked directly to on-ground project realities rather than static documentation.
Commenting on the launch, Iesh Dixit, CEO of Powerplay, highlighted the scale of India’s infrastructure and housing requirements over the next decade. He noted that while the country currently builds around 9 million homes, demand is expected to reach nearly 90 million, alongside significant expansion in hospitals, schools, roads, and railway capacity.
“Contractors are expected to deliver this scale while operating on delayed payments and fragile cash flows. That divide between where India is and where it needs to be is exactly the gap Powerplay Credit is designed to address,” Dixit said, adding that embedding working capital into live projects helps prevent work from stalling due to slow-moving funds.
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Powerplay Credit simplifies underwriting for lenders
For banking and lending partners, Powerplay Credit reduces underwriting friction by offering access to verified, live execution data at the project level. Instead of relying on manual site visits or static paperwork, lenders gain real-time visibility into project progress, material usage, and procurement flows.
This model improves risk assessment, shortens decision cycles, and lowers monitoring costs, while ensuring that credit is deployed exclusively for construction-related execution.
Musthaqheem A, Chief of Staff (Leading Commerce Practice) at Powerplay, said that contractors have traditionally been forced to choose between delayed material procurement or expensive informal credit.
“By integrating our marketplace with project-linked financing, we’re eliminating that trade-off entirely,” he said, adding that Powerplay Credit allows contractors to procure materials on time without collateral or extensive paperwork.
Focus on small and mid-sized contractors
Powerplay Credit is targeted at both small and mid-sized contractors. Smaller firms, which often fall outside formal banking eligibility, gain access to structured credit, while mid-sized contractors benefit from a scalable model that supports multiple parallel projects.
Vendor participation within the credit flow remains optional, offering operational flexibility while maintaining transaction-level visibility. Risk management is embedded into the product design, with credit restricted to raw materials, linked to live projects, and continuously monitored through execution data.
According to the company, this approach enables Powerplay Credit to maintain financial discipline while offering collateral-free, zero-interest working capital tailored to the realities of construction project execution.
