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    CredAble bags $30 million in Series B funding

    Synopsis

    The funding comes amid growing investor interest in fintech companies, with the sector attracting the most capital in the year to date.

    CredETtech
    Mumbai: CredAble, a fintech startup focused on supply chain financing, has raised $30 million in its Series B funding round co-led by Plutus Management LLP and existing investor Oaks Asset Management.

    The funding comes amid growing investor interest in fintech companies, with the sector attracting the most capital in the year to date.

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    The Mumbai-based company will use the funds to launch its new product and to strengthen its tech platform, said cofounder and chief executive Nirav Choksi.

    The company has so far raised $40 million including the latest round. It received Rs 35 crore as part of its Series A round in 2018 from Alpha Capital, and a bridge round to Series B, of Rs 30 crore, from Oaks Asset Management last year.

    “Considering the inbound investor interest, we might look at opportunistically raising more capital as an extended Series B funding round. However, we haven’t decided anything yet,” Choksi said.

    Founded in 2017 by Choksi and Ram Kewalramani, CredAble is an AI-powered technology platform enabling working capital financing across enterprise ecosystems using technology, digital Know Your Customer (KYC) and onboarding, deep Enterprise Resource Planning (ERP) and bank integrations.

    CredAble provides comprehensive working capital financing solutions to corporates in the areas of payable and receivables financing, debt capital markets and financing for small and medium enterprises.

    “Our current revenue run rate for FY22 is Rs 25 crore and we expect it to be around Rs 100 crore by the end of FY23,” Choksi said.

    In September, the company disbursed Rs 3,500 crore. “We expect to close the current financial year at Rs 5,000 crore of disbursements per month,” Choksi said.

    The company does not lend from its own balance sheet but helps non-banks and banks with customer acquisition and origination. “Till date, the company has only put 2% of the overall loan books out of its own balance sheet,” Choksi said.

    More than 30% of India’s GDP is contributed by the small business ecosystem which is largely starved of credit and growth.

    CredAble’s new product aims to create inclusive growth for small businesses by providing them with cash management, payment and credit tools that will enable small business owners to grow and manage their businesses efficiently, Choksi said.

    “CredAble is leveraging technology to solve the massive gap in working capital financing, which makes it a highly scalable and inclusive platform, said Arpit Khandelwal, managing partner, Plutus Wealth Management LLP. “It is focusing on various under-penetrated segments within working capital financing through a very simplistic yet holistic and win-win approach for its various partners, including borrowers,” Khandelwal said.

    CredAble is solving a huge problem by bringing in the entire unorganized vendor bases and suppliers and retailers into mainstream banking and finance, said Vishal Ootam, cofounder and CEO of Oaks Asset Management. “This will help them get access to institutional financing and also help them scale and meet with the pace of growth of their clients,” Ootam said.
    The Economic Times

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