Powerplay Launches Procurement-Linked Credit Amid Rising Cash Flow Pressures in Construction

New Delhi, January 09, 2026: Construction tech platform Powerplay has announced the rollout of Powerplay Credit, a project-linked working capital solution designed to address cash flow constraints faced by contractors during active project execution.

Powerplay Credit is currently live across key construction markets in South India, where contractors typically manage multiple sites and face prolonged payment cycles. Following early on-ground validation, the company is now formally announcing the rollout as it scales adoption across the region, with plans to expand to other parts of the country in 2026.

The launch comes at a time when India’s construction sector is experiencing increased activity across infrastructure, housing, industrial corridors, renewable energy, and urban redevelopment. Contractors are often dealing with longer payment cycles, stage-based billing structures, and delayed receivables, particularly on large corporate and government projects. These pressures often lead to stalled sites, material shortages, and increased dependence on informal sources of credit.

Powerplay Credit is embedded directly into material procurement rather than being offered as a standalone loan. Credit is capped at the project level and can only be used for verified raw material purchases routed through the Powerplay marketplace. There is no cash disbursement to contractors, and procurement is aligned with approved project specifications. According to the company, this structure ensures that credit is used strictly for execution-related requirements and reduces the risk of diversion.

Unlike traditional construction financing products, Powerplay Credit is software-led at its core. The solution is powered by real-time project data already captured on the Powerplay platform, including site activity, material consumption, procurement patterns, and execution progress. This data-driven structure enables Powerplay to offer collateral-free, zero-interest credit while tightly controlling end use and reducing execution risk.

Commenting on the rollout, Powerplay CEO Iesh Dixit said, “If you look at where India is today versus where it needs to be over the next decade, the gap is stark. We currently build around 9 million homes, but the country will need close to 90 million. Hospital beds need to almost triple, schools need to double, and road and railway capacity needs to expand significantly within the same timeframe.

“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, by embedding working capital and commerce into live projects so work doesn’t stall simply because money isn’t moving fast enough.”

For banking partners, Powerplay Credit significantly reduces underwriting friction. Instead of relying on static documentation or manual site verification, lenders gain access to verified, live execution data at the project level. This improves risk visibility, shortens decision cycles, and lowers the cost of monitoring, while ensuring credit is deployed strictly for construction execution.

Musthaqheem A, Chief of Staff (Leading Commerce Practice), Powerplay, said: “For years, contractors have had to choose between delayed materials or expensive informal credit. By integrating our marketplace with project-linked financing, we’re eliminating that trade-off entirely. Contractors can now procure materials on time, at the right price, with embedded working capital, all without the paperwork and collateral requirements that have traditionally locked them out of formal credit.”

The solution is aimed 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 model that scales across parallel projects. Vendor participation in the credit flow is optional, allowing operational flexibility while retaining clear transaction-level visibility.

The risk management is driven through product design rather than collateral or extensive documentation. Credit usage is restricted to raw materials, linked to live projects, and monitored through execution data. This approach allows it to offer collateral-free and zero-interest credit while maintaining operational and financial discipline.