Mumbai-based fintech startup CredAble has raised INR 33.18 Cr ($4.5 Mn) from existing investors Oaks Assets Management (formerly Alpha Capital) and V’Ocean Investment.
While V’Ocean’s Funds have been credited, the funds from Oaks Asset Management are expected by the first week of November. Founders have also invested their own funds in this round. The company says that the funds are going to be used for growth and further capitalising CredAble’s non-banking financial company (NBFC).
According to filings with the Ministry of Corporate Affairs (MCA) accessed by Inc42, the company has issued 22,684 Compulsorily Convertible Preference Shares (CCPS) at a face value of INR 10 per share and a premium of INR 7,990 per share to several investors.
The company has issued 18,273 shares to V’Ocean Investment Limited, aggregating to a total amount of INR 14.61 Cr. The remaining shares have been distributed among 18 individuals.
Founded in 2017 by Nirav Choksi, CEO and Ram Kewalramani, COO, CredAble is a fintech platform that aims to disrupt supply chain financing in Asia. The company combines technology, financing, deep learning and analytics to create innovative financing products dynamically.
CredAble collaborates with leading blue-chip corporates to provide digital vendor financing solutions that enable their vendors to gain instant access to working capital and drives significant EBIDTA margin enhancements for corporates in the process.
The company last raised funding in 2018 for its Series A round worth $14.8 Mn from Alpha Capital, a private equity investment firm based in Chicago, Illinois. According to data available on Crunchbase, the company has, to date, raised $17.3 Mn from two funding rounds.
According to analysts, with an average delay of more than 35 days, 41.2% of suppliers in India responded that payment delays result in additional measures to correct cash flows. “Financing this gap can become very expensive and time – consuming. This presented an opportunity for the client and suppliers to devise a funding solution which would represent a ‘win-win’ outcome for both parties,” Choksi told Inc42 last year.
With its proprietary Receivables Xchange (RX) platform and “just-in-time” working capital financing solutions, CredAble aims to triple the available working capital in India over the next five years.
The startup’s RX platform gives vendors access to hassle-free early payment for their receivables in exchange for a trade discount and enables banks and other financial institutions to bid for payables and lend to the vendors.
Update — October 26, 2020: The earlier version of the article erroneously reported the funding amount as INR 18.14 Cr. The same has been rectified.