Tiger Global May Invest $20 Mn In Invoice Discounting Fintech KredX

New York-based Tiger Global Management is in advanced talks to acquire minority stake in invoice discounting platform KredX. The investment firm is planning to pump $20 Mn in the Bengaluru-based fintech, according to a media report.

Inc42 has reached out to Tiger Global Management and KredX. The report will be updated if and when they revert.

KredX, founded by IIT and Stanford alumni Manish Kumar, Anurag Jai and Puneet Agarwal, connects creditworthy small to medium enterprises (SMEs) with investors looking for an investment opportunity.

Business-owners, who are looking for an advance on their invoices, use KredX to sell these unpaid invoices. Investors looking to invest money for short term of 30 to 90 days on an average, can also earn attractive returns on their investment by purchasing these future cash flows.

Since its launch in 2015, the company has processed more than 3 Lakh invoices and has served up to 5K business. Moreover, within a year of its launch, the company had managed to process 1K invoices. The platform also has 10K investors on board to fund SMEs.

The company serves in more than 100 cities across India and it has its offices in 7 Indian cities, including Mumbai, Chennai, Delhi, Ahmedabad, Indore, Kolkata and Bengaluru.
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In October 2016, the Bengaluru-based startup raised $6 Mn (INR 40 Cr) as part of its Series A funding led by Sequoia Capital India. Other investors included early-stage investment firm Prime Venture Partners.

In April 2018, the company also raised $750K from Prime Venture Partners. A year later in March, the company had also acquired US-based accounts receivables management software startup Hummingbird.

Other players in this segment include LenDenClub, Loanzen, KountMoney, Faircent, LoanCircle and Capzest, among others. Last month, P2P lending startup Faircent had raised a fresh round of funding from Das Capital and GunosyCapital. Other investors participating in the round included Starharbor Asia and M&S Partners.

Till now, Faircent has raised more than $5.4 Mn in total funding through 3one4 Capital, Aarin Capital, TV Mohandas Pai, who is the chairman of Manipal Global Education, and Brand Capital.

KredX is Tiger Global’s 20 investment in India since October 2018. Recently, the New York-based investment firm had invested $25 Mn in Indian digital stockbroking firm Upstox. Others companies that Tiger has invested in the last one year includes foodtech startup Wow! Momos, fintech startup OkCredit, edtech startup Vedantu and agritech startup Ninjacart,kred among others.