Fintech startup CredAble scores $10 Mn in new round

Mumbai-based fintech startup CredAble has secured $10 million in a new funding round led by Singapore-based investment firm Equentia Natural Resources. This marks the company’s first fundraising activity in 15 months and brings its total capital raised to over $55 million since its inception in 2017.

In Short:

• CredAble, a Mumbai-based fintech startup, secures $10M in a new funding round led by Singapore-based Equentia Natural Resources.
• The company plans to use the funds for working capital requirements, growth, and expansion.
• CredAble has been valued at $177 million post-allotment.

What is CredAble?

CredAble is a Mumbai-based fintech startup founded in 2017. It provides working capital solutions to large, mid, and emerging corporates, as well as micro, small, and medium enterprises (MSMEs), and financial institutions. With over 125 enterprise customers and more than 3 lakh small business borrowers, it has disbursed Rs 45,000 crore of working capital in 2023. The company recently raised $10 million in a funding round led by Singapore-based Equentia Natural Resources.

CredAble’s Business Model

CredAble, established in 2017, operates on a business model that focuses on providing working capital to a diverse range of businesses. This includes large corporations, mid-sized and emerging companies, as well as micro, small, and medium enterprises (MSMEs). Additionally, it extends its services to financial institutions. By addressing the working capital needs of these entities, CredAble plays a crucial role in facilitating their growth and operational efficiency. This unique approach has positioned CredAble as a significant player in the fintech space.

How will CredAble Use the $10 million Investment?

CredAble plans to strategically use the $10 million investment to achieve several key objectives:

1. Meet working capital needs: The fresh funds will ensure CredAble has sufficient resources to cater to the growing working capital requirements of its clients.
2. Fuel growth initiatives: The company plans to leverage the investment to expand its product offerings, explore new market opportunities, and enhance its technological infrastructure.
3. Support general corporate operations: The funding will also be used to cover essential operational costs and ensure the smooth functioning of the company.

Financial Status of CredAble

CredAble has witnessed significant growth in recent years. They reported a 2.78 times increase in operational revenue in FY23 compared to FY22, reaching Rs 13.94 crore. However, this rapid expansion has also increased losses, which surged 3.37 times in FY23 compared to the previous year. This highlights the company’s prioritization of growth and investment in expansion strategies.

Services offered by CredAble

CredAble’s core offerings include:

1. Supply chain financing: Facilitating payments between buyers and suppliers, improving cash flow for both parties.
2. Trade finance: Providing financing for domestic and international trade transactions.
3. Invoice discounting: Enabling businesses to receive immediate payment for outstanding invoices at a discounted rate.
4. Purchase order financing: Offering financing to businesses based on confirmed purchase orders.

Who is Equentia Natural Resources?

Equentia Natural Resources is a Singapore-based investment firm with a diversified portfolio across various sectors. While details about their specific investment focus are limited, their involvement in CredAble’s funding round signifies their confidence in the company’s potential and the broader Indian fintech market.

What this Means for CredAble and the Indian fintech sector

This funding round holds significant importance for both CredAble and the Indian fintech landscape:

• For CredAble: This fresh capital injection strengthens the company’s financial position, allowing it to pursue its ambitious growth plans and solidify its market position.
• For the Indian fintech sector: This investment serves as a positive signal for the Indian fintech industry, showcasing the growing investor confidence in the sector’s potential and its ability to foster innovative solutions for businesses and individuals.

Conclusion

CredAble’s successful fundraising round marks a significant milestone in the company’s journey. The $10 million investment from Equentia Natural Resources provides the necessary fuel for CredAble to pursue its growth ambitions and further contribute to the evolution of India’s dynamic fintech landscape.

FAQs

How much funding has CredAble raised in the latest round?

CredAble has raised $10 million in the latest funding round.

Who is the CEO of CredAble?

Nirav Choksi is the CEO and Co-founder of CredAble.

Is CredAble in profit?

As of FY23, CredAble reported a surge in losses to Rs 22.40 crore, despite a 2.78X growth in revenue.

Who led the latest funding round for CredAble?

The latest funding round for CredAble was led by Singapore-based Equentia Natural Resources.