Bengaluru-based invoice-discounting platform KredX has raised about $6 Mn (INR 40 Cr) Series A funding led by Sequoia Capital India along with existing backer, early-stage investment firm Prime Venture Partners.
KredX was founded in 2015 by IIT & Stanford alumni Manish Kumar, Anurag Jain, and Puneet Agarwal in 2015. It is an online invoice discounting platform that connects credit-worthy SMEs looking to raise working capital, to individual investors looking for opportunities to earn above-average returns.
The startup will utilise the funding to strengthen its technology, data, and sales functions within the company. According to a company statement, it has enabled around 3,000 transactions with a focus on unpaid invoices from ‘blue-chip companies,’ till date.
Related Article: Tiger Global May Invest $20 Mn In Invoice Discounting Fintech KredX
Business-owners looking for an advance on their invoices, raised on blue chip/creditworthy institutions, use KredX to sell these unpaid invoices. Investors looking to invest money for short term (30-90 days on an average) can earn attractive returns on their investment by purchasing these future cash flows.
Prior to this, KredX had raised $750K from Prime Venture Partners in April 2016. Prime Venture Partners is a Bengaluru-based seed fund led by serial entrepreneurs Sanjay Swamy, Shripati Acharya and Amit Somani.
Earlier this month, online lending platform FlexiLoans raised about $15 Mn (INR100 Cr) from Sanjay Nayar, CEO of KKR India; Vikram Sud, former Head of Operations and Technology at Citibank; Anil Jaggia, Chief Investment Officer at HDFC Bank; and Narayan Seshadri, former MD at KPMG’s advisory business.
The development was reported by ET.