Supply Chain focused Fintech Startup CredAble raises $30 million led by Plutus Management LLP & Others
Plutus Management LLP and current investor Oaks Asset Management led a $30 million Series B capital round for CredAble, a fintech business focused on supply chain financing. The funds will be used to develop a new product and expand the company's technology infrastructure, according to cofounder and CEO Nirav Choksi.
The funding comes at a time when fintech companies are gaining more investor interest than ever before, with the industry attracting the most cash so far this year. The company has raised $50 million to date, including the most recent round.
It raised $14.8 million (Rs 35 crore) in a Series A round from Alpha Capital in 2018 and $4.5 million (Rs 30 crore) in a bridge financing 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, CredAble is an AI-powered technology platform that enables working capital financing across organisational ecosystems using technology, digital Know Your Customer (KYC) and onboarding, deep Enterprise Resource Planning (ERP), and bank connections. It was founded in 2017 by Choksi and Ram Kewalramani.
CredAble offers corporates complete working capital finance solutions in the areas of payables and receivables financing, debt capital markets, and financing for small and medium businesses.
“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.
The corporation disbursed Rs 3,500 crore in September. “We expect to close the current financial year at Rs 5,000 crore of disbursements per month,” Choksi added.
The company does not make loans off its own books, but it does assist 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.
The small company ecosystem, which is mainly deprived of credit and growth, contributes more than 30% of India's GDP.
According to Choksi, CredAble's new product intends to promote inclusive growth for small businesses by providing cash management, payment, and credit solutions that will help small business owners grow and operate their firms more efficiently.
“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.
According to Vishal Ootam, cofounder and CEO of Oaks Asset Management, CredAble is solving a major problem by bringing the whole unorganised vendor base, suppliers, and retailers into mainstream banking and finance. "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 funding comes at a time when fintech companies are gaining more investor interest than ever before, with the industry attracting the most cash so far this year. The company has raised $50 million to date, including the most recent round.
It raised $14.8 million (Rs 35 crore) in a Series A round from Alpha Capital in 2018 and $4.5 million (Rs 30 crore) in a bridge financing 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, CredAble is an AI-powered technology platform that enables working capital financing across organisational ecosystems using technology, digital Know Your Customer (KYC) and onboarding, deep Enterprise Resource Planning (ERP), and bank connections. It was founded in 2017 by Choksi and Ram Kewalramani.
CredAble offers corporates complete working capital finance solutions in the areas of payables and receivables financing, debt capital markets, and financing for small and medium businesses.
“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.
The corporation disbursed Rs 3,500 crore in September. “We expect to close the current financial year at Rs 5,000 crore of disbursements per month,” Choksi added.
The company does not make loans off its own books, but it does assist 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.
The small company ecosystem, which is mainly deprived of credit and growth, contributes more than 30% of India's GDP.
According to Choksi, CredAble's new product intends to promote inclusive growth for small businesses by providing cash management, payment, and credit solutions that will help small business owners grow and operate their firms more efficiently.
“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.
According to Vishal Ootam, cofounder and CEO of Oaks Asset Management, CredAble is solving a major problem by bringing the whole unorganised vendor base, suppliers, and retailers into mainstream banking and finance. "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.
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