Fintech platform CredAble disburses record $3 bn to 1,50,000 SMEs in 12 months
Credit and Finance for MSMEs: Working capital financing platform CredAble on Wednesday said it has disbursed a record $3 billion to cash-strapped 1,50,000 small and medium enterprises (SMEs) in the past 12 months. The disbursements were enabled via capital sourced from over 30 financial partners including private banks, non-banking financial companies (NBFCs), and large multinationals. The company said it disburses working capital at a monthly run rate of approximately $450-500 million.
“We have designed a comprehensive infrastructure to cater to the end-to-end ‘order to cash’ cycle needs and solve the growing working capital challenges of businesses of all sizes. Our in-house developed 360° tech-enabled solutions suite, enables us to roll out scalable working capital products that are tailor-made for different business models,” said Nirav Choksi, Co-Founder and CEO, CredAble in a statement.
The company said it is witnessing over 500 per cent year-on-year growth, offering value-added financing and growth solutions such as UpScale designed to cater to the needs of SMEs. Ram Kewalramani, Co-Founder and Managing Director, CredAble said, “By automating credit and cash flow management and giving businesses an in-depth view of their financial health and operations, our platform helps SMEs make smart business decisions and get instant access to a host of growth tools.”
CredAble competes with Lendingkart, Razorpay, Kinara Capital, Indifi, and others to offer working capital solutions to small businesses. In October last year, the company had partnered with DBS Bank India to cater to the capital requirements for the day-to-day operations of MSMEs in the corporate supply chain. Founded in 2017, CredAble has so far raised $51.8 million in funding from OAKS Asset Management, Plutus Wealth Management, V Ocean Investments, and others, as per Crunchbase.
Working capital financing as an alternative lending model based on business cash flows has emerged as a viable option for SMEs to address challenges related to operational expenses. The digital lending market is likely to grow from $75 billion in 2018 to $270 billion in the current year and $350 billion in 2023, according to estimates from the Boston Consulting Group.