CredAble Disburses $3 Billion To 1,50,000 SMEs In Last 12 Months
During FY 2021-22, CredAble, a working capital tech platform has disbursed a record $3 billion to cash-strapped businesses, which includes large and mid, emerging corporates; vendors and dealers of large enterprises; micro, small and medium enterprise (MSMEs); and financial institutions. This comes at a time when the MSME sector which contributes 40 per cent to total exports in India continues to find itself in financial distress with only 16 per cent of them eligible for formal credit.
Founded in 2017, CredAble was built to solve working capital challenges for India Inc. using technology-enabled solutions. Today, the company boasts of a working capital infrastructure with solutions catering to the growing needs of businesses, both big and small as well as large financial institutions.
Working capital financing remains a challenge for most businesses, especially for the MSMEs that are faced with unending funding woes and reeling from the subsequent liquidity crunch brought on by the pandemic. Explaining the need to transform the working capital landscape in the country and the next-generation initiatives taken by CredAble, Nirav Choksi, Co-Founder and CEO, CredAble said, “As India’s only holistic working capital tech platform, we have designed a comprehensive infrastructure to cater to the end-to-end ‘order to cash’ cycle needs and solve the growing working capital challenges of businesses of all sizes. Our in-house developed 360° tech-enabled solutions suite, enables us to roll out scalable working capital products that are tailor-made for different business models. During this $3 billion disbursement, more than 30 financial institutions came on board to effectuate the transactions. And, I am elated that, with the utmost support of our team and financial partners, we have been able to fulfill the purpose of providing businesses access to just-in-time working capital, and have also helped them tap into exponential growth and pursue strategic investments.”
The 63-million-units strong MSME sector, has a vital role in fueling the economic growth of the country, especially at the time when India aspires to be a $5-trillion economy. Expressing how CredAble is empowering the backbone of the nation, Mr. Ram Kewalramani, Co-Founder and Managing Director of CredAble said, “Over the years, we have realised that credit and cash flow management remains a challenge for most businesses, especially SMEs. In our $3 billion disbursement, we facilitated an easy and adequate flow of credit to over 1,50,000 small and medium businesses to not just keep them afloat but enable them to reach their full potential. Currently, the sector which contributes 29 per cent to the national GDP – has the potential to create 111 million new jobs over the next four to five years. Our platform offers value-added financing and growth solutions such as UpScale, an all-inclusive solution that is designed to cater to the needs of SMEs all over India. By automating credit and cash flow management and giving businesses an in-depth view of their financial health and operations, our platform helps SMEs make smart business decisions and get instant access to a host of growth tools. Besides, our liquidity programmes are not just limited to MSMEs but continue to exponentially increase working capital flows by intermediating between corporates, vendors and banks who experience a double-digit growth on our platform.”
CredAble sourced capital from both its own non-banking financial company (NBFC) as well as a network of financial partners. Commenting on the same, Choksi added, “Traditional financial institutions and FinTech partnerships have come a long way in the past 5 years. These associations, especially help small businesses in the farthest corners to avail credit requirements in a seamless, agile and reasonable manner. In fact, 97 per cent of the $3 billion disbursements were honoured with these strategic partnerships and we believe that FinTechs and traditional financial institutions are allies in the true sense to create a win-win situation for all the stakeholders involved.”
With key FI partnerships and a stalwart clientele, CredAble is at the forefront of shaping the future of working capital management. The company works with 30+ FI partners including large MNCs & Indian Private Banks and NBFCs, disbursing working capital at a monthly run rate of approximately USD 450-500 million.
