Mumbai-based fintech startup CredAble has raised $30 Mn from Plutus Wealth Management and existing investor Oaks Assets Management (formerly Alpha Capital).
The fintech startup aims to use the funds to enhance its platform to provide tailor-made working capital solutions for small businesses and for building innovative debt capital market products for corporates and financial institutions.
“CredAble will also use these funds to launch the SME Growth and Credit Platform. The platform aims to create inclusive growth for small businesses by providing them with cash management, payment and credit tools. It will enable small business owners to efficiently grow and manage their businesses,” cofounder Nirav Choksi said in a statement.
Including the latest round, the startup has so far raised $50 Mn. Inc42 had exclusively reported about CredAble’s INR 33.18 Cr in a bridge round in 2020. It has previously raised INR 100 Cr ($14.8 Mn) from Alpha Capital in Series A and $2.5 Mn in a seed round.
Founded in March 2017 by Choksi and Ram Kewalramani, the AI-based working capital financing platform went live in October 2018. Since then, it claims to have processed more than INR 300 Cr worth of monthly transactions.
The startup does not lend from its balance sheet but helps non-banks and banks with customer acquisition. Its current loan book comprises less than 2% of the overall loan books out of its balance sheet.
In September 2021, the startup claims to have disbursed INR 3,500 Cr to 100K+ small businesses and foresees an even higher disbursement in the coming months.
“We expect to close the current financial year at INR 5,000 Cr of disbursements per month,” Choksi said.
Currently, CredAble hosts 50+ corporate customers, 25+ financial institutions and banks.
The Changing Landscape Of Digital Lending Industry
Digital lending is one of the fastest-growing segments in India’s evolving fintech industry. As per a Statista report, India’s digital lending market grew from $9 Bn in 2012 to $150 Bn in 2020, slated to reach $350 Bn by 2023.
According to Inc42 Plus analysis, within fintech, lending is amongst the hottest sectors right now. In Q3 2021, fintech startups raised $2.7 Bn in funding. Out of the total 79 deals reported in fintech, about 35% or 28 were recorded by the lending tech sector. The sector attracted $547 Mn in funding.
After the startup funding and acquisitions ecosystem saw a record-breaking Q3, the beginning of Q4 2021 saw IPO-bound Paytm acquire a 100% stake in Mumbai-based digital lending startup CreditMate.
Recently, Chennai-based CredAvenue, which connects enterprises with lenders and investors, raised $90 Mn in Series A funding led by Sequoia Capital, taking the startup’s valuation to $410 Mn. BNPL startup Capital Float also raised $50 Mn in equity funding to strengthen and scale the platform and expand its partner ecosystem. Corporate retail financing startup Progcap also raised $30 Mn equity capital in Series C funding.
Some of the other lending startups in the retail financing ecosystem include Indifi, StashFin, Ftcash, and CashE.