Powerplay, India’s construction technology platform, has announced the rollout of Powerplay Credit, a project-linked working capital solution aimed at easing cash flow constraints faced by contractors during active project execution.
The solution is already live in the major construction markets in SOUTH INDIA, where the contractors usually carry out multiple projects at the same time and face extended payments cycles. After the preliminary on-ground test and validation, the company has announced the rollout as it is growing the adoption in the region and will extend the solution to other regions in 2026.
This new entrant comes against the backdrop of intensified activity within the Indian construction industry, which is fueled by projects related to infrastructure development, residential construction, development projects related to industrial corridors, solar and other renewable energy projects, and urban re-development projects. Even as the number of projects goes up, the construction companies are also facing challenges related to the mode of billing, delay in receivables, and extension of repayment periods, especially with regard to contracts entered into with corporations and the government.
Powerplay Credit has been designed as a procurement-linked solution rather than a standalone loan product. Credit is capped at the individual project level and can be used only for verified raw material purchases routed through the Powerplay marketplace. There is no direct cash disbursement to contractors, and all procurement is aligned with approved project specifications. According to the company, this structure ensures that credit is deployed strictly for execution-related needs while reducing the risk of fund diversion.
At its core, Powerplay Credit is software-led. The solution leverages real-time project data already captured on the Powerplay platform, including site activity, material consumption, procurement behaviour and execution progress. This data-driven approach allows the company to offer collateral-free and zero-interest credit while maintaining tight control over end use and execution risk.
Iesh Dixit, Chief Executive Officer of Powerplay, has highlighted the widening gap between India’s current construction output and the scale of infrastructure required over the next decade. He has pointed out that while the country currently builds around nine million homes annually, future demand is estimated to be several times higher. Similar capacity expansion is required across healthcare, education, roads and railways. According to Dixit, contractors are expected to deliver this scale despite operating under delayed payments and fragile cash flows, a gap that Powerplay Credit is designed to address by embedding working capital directly into live projects so execution does not stall due to slow-moving funds.
For banking and lending partners, Powerplay Credit reduces underwriting friction by replacing static documentation and manual site verification with verified, live execution data at the project level. This improves risk visibility, shortens decision cycles and lowers monitoring costs, while ensuring that credit deployment remains tightly linked to construction activity.
Musthaqheem A, Chief of Staff for the Leading Commerce Practice at Powerplay, has noted that contractors have historically been forced to choose between delayed material procurement and expensive informal credit. By integrating its marketplace with project-linked financing, Powerplay aims to remove this trade-off, enabling contractors to procure materials on time and at the right price without the paperwork and collateral requirements that have traditionally limited access to formal credit.
The solution is targeted at both small and mid-sized contractors. Smaller firms, which often fall outside formal banking eligibility, gain access to structured working capital, while mid-sized contractors benefit from a model that can scale across multiple parallel projects. Vendor participation in the credit flow remains optional, providing operational flexibility while maintaining transaction-level transparency.
Risk management within Powerplay Credit is driven primarily through product design rather than collateral or extensive documentation. Credit usage is restricted to raw materials, linked to live projects and continuously monitored through execution data, allowing the platform to maintain financial discipline while supporting uninterrupted project delivery.
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