Mumbai-based supply chain financing startup CredAble has raised $14.8 Mn (INR 100 Cr) in a Series A funding round from Alpha Capital.
The startup will primarily deploy these funds to expand its loan book and to accelerate its growth plans by looking at new hirings and building a robust technology backbone.
Nirav Choksi, co-founder and CEO, CredAble said, “CredAble will look to continue to expand within its current focus area, while developing value propositions across additional ecosystems such as manufacturing, etc. We will also look at international markets in the long term.”
Founded by Nirav Choksi, CEO, and Ram Kewalramani, CFO, in 2017, CredAble is a fintech platform that aims to disrupt supply chain financing in Asia. CredAble 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 in corporates in the process.
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.
Credable claims to have enabled over $16.02 Mn (INR 108 Cr) in supply chain financing across 41,000 transactions so far. This has further helped over 9,000 vendors streamline their monthly working capital requirements.
Commenting on the investment, Vishal Ootam, founder of Alpha Capital, said, “We clearly believe that the supply chain financing platform (Credable) is poised for exponential growth. Nirav, Ram, and their team bring a very unique combination of operating expertise and structured finance experience to the table that will enable them to build an extremely valuable business.”
Alpha Capital is an investment management firm based in Mumbai that was founded by Vishal Ootam and Vivek Anand.
The primary mandate at Alpha Capital is to invest in scalable entrepreneur-led businesses in India. Alpha typically invests in startups by entrepreneurs who have at least more than 10 years of operating experience behind them with a career of at least 15-20 years ahead of them.
Over the last year, Alpha Capital has made investments in InCred Finance (a new age NBFC) and Food Link Services Pvt Ltd, one of India’s leading banqueting and catering companies.
The advent of technology in the Indian finance sector has initiated transformation in many sub-sectors including supply chain financing. Earlier, in November 2017, Bank of Baroda also came up with digital supply chain financing solutions to accelerate working capital loan opportunities for small and medium enterprises and large corporate clients.
Other players operating in this space are Hyderabad-based fintech startup CredRight, Capital Float, and LendingKart, among others.