The startup will primarily deploy these funds to expand its loan book to Rs 500 crore (around $75 million) by FY 2019, in new hiring, and to build a robust technology backbone, said a company statement.
Founded by Nirav Choksi, CEO and Ram Kewalramani, CFO in 2017, CredAble provides digital vendor financing solutions to blue-chip corporates that enable their vendors gain access to working capital. The startup claims to have so far enabled over Rs 108 crore in supply chain financing across 41,000 transactions helping over 9,000 vendors streamline their monthly working capital requirements.
“CredAble will look to continue to expand within its current focus area, while developing value propositions across additional ecosystems such as manufacturing, etc. The company also intends to develop additional products to further enhance the supply chain financing space. CredAble will also look at international markets in the long term,” Choksi said.
The company’s Receivables Xchange (RX) platform for large companies helps their vendors to gain instant access to working capital.
“We clearly believe that the supply chain financing platform is poised for exponential growth. Nirav, Ram and their team bring a very unique combination of operating expertise and structured finance experience to the table that will enable them to build an extremely valuable business,” Vishal Ootam, founder of Alpha Capital, said.
Mumbai-based Alpha typically invests with entrepreneurs who have at least 10+ years of operating experience. Over the last year, Alpha has made investments in companies including InCred Finance, a new age NBFC, and Food Link Services Pvt. Ltd. a banqueting and catering companies.
CredAble is the latest Indian startup to receive funding in the online lending segment. Last month, fintech startup CredRight raised $1.3 million in a pre-Series A round of funding from seed-stage investor Accion Venture Lab and early-stage venture capital firm YourNest, along with a clutch of angel investors. UK private equity firm Actis in investing up to $220 million equity capital in Indian NBFC Profectus Capital, founded by former CEO of Reliance Commercial Finance, KV Srinivasan.
In April, digital lending firm Capital Float raised $22 million in equity funding from Amazon Inc., taking the total equity funding in the company to $107 million. Venture capital major Sequoia India invested $6 million in Jaipur-based Finova Capital in March. Other companies operating in the space include Namaste Credit, Lendingkart, FlexiLoans, Shubh Loans, KNAB Finance and Stashfin.