KredX views Rs 200-Rs 500 crore collection to emerging startups
KredX, an invoice discounting platform is planning to partner with venture capital funds to create a Rs 200-Rs 500 crore corpus that will lend to emerging startups.
“…for a lot of startups that are struggling to raise equity capital, revenue-based financing is the only option to unlock the next stage of growth and hence, it is becoming a preferred choice for a lot of early-stage founders,” said Manish Kumar, co-founder and CEO, KredX.
In revenue-based financing, lenders disburse a certain amount of loans to the business, instead of an agreed percentage of the gross revenue, for a fixed tenure.
“We have now started working with VC funds, incubators and venture debt funds to identify the companies that are in need of growth capital that we can fund and can be primed for an equity round at a later stage,” Kumar said
The fund will look to disburse between Rs 5 lakh and Rs 3 crore to such companies for two to 18 months, he added.
In April, the Tiger Global backed company said it had forayed into revenue-based financing to lend to small and medium businesses through its network of lenders.
Through its revenue-based financing product, KredX has been disbursing loans to several brands that sell on e-commerce platforms like Amazon, Flipkart and Myntra over the past two years.
Till now, KredX has helped more than 25,000 businesses and has facilitated disbursements worth Rs 7,000 crore.
As smaller businesses do not generally have security to offer and equity dilution is costly, such small-ticket loans help with their working capital requirements. Several startups like GetVantage, Velocity and N+1 Capital have entered into the space of demand for such capital.
KredX was founded in 2015 by Kumar and Anurag Jain and helps business meet their short-term working capital needs by facilitating discounting of their unpaid invoices.
It provides small revenue-based loans to small and medium enterprises especially in the direct to consumer and Software as a Service sector.
“…for a lot of startups that are struggling to raise equity capital, revenue-based financing is the only option to unlock the next stage of growth and hence, it is becoming a preferred choice for a lot of early-stage founders,” said Manish Kumar, co-founder and CEO, KredX.
In revenue-based financing, lenders disburse a certain amount of loans to the business, instead of an agreed percentage of the gross revenue, for a fixed tenure.
“We have now started working with VC funds, incubators and venture debt funds to identify the companies that are in need of growth capital that we can fund and can be primed for an equity round at a later stage,” Kumar said
The fund will look to disburse between Rs 5 lakh and Rs 3 crore to such companies for two to 18 months, he added.
In April, the Tiger Global backed company said it had forayed into revenue-based financing to lend to small and medium businesses through its network of lenders.
Through its revenue-based financing product, KredX has been disbursing loans to several brands that sell on e-commerce platforms like Amazon, Flipkart and Myntra over the past two years.
Till now, KredX has helped more than 25,000 businesses and has facilitated disbursements worth Rs 7,000 crore.
As smaller businesses do not generally have security to offer and equity dilution is costly, such small-ticket loans help with their working capital requirements. Several startups like GetVantage, Velocity and N+1 Capital have entered into the space of demand for such capital.
KredX was founded in 2015 by Kumar and Anurag Jain and helps business meet their short-term working capital needs by facilitating discounting of their unpaid invoices.
It provides small revenue-based loans to small and medium enterprises especially in the direct to consumer and Software as a Service sector.
