Mumbai-based startup CredAble on Tuesday announced that it has raised Rs 100 crore in a Series-A round of funding led by Alpha Capital.
According to a statement released to the press, the startup will be deploying these funds to expand the company’s loan book and hire more people to build a robust technology backbone.
Founded by Nirav Choksi and Ram Kewalramani in 2017, CredAble combines technology, financing, deep learning and analytics to create innovative financing products. CredAble claims that it has enabled over Rs 108 crore in supply chain financing, which has helped over 9,000 vendors with their working capital requirements.
In 2017, the company raised $2.5 million in seed funding.
CredAble collaborates with corporates to provide financing solutions to enable vendors gain instant access to working capital. It claims that this drives significant EBIDTA-margin enhancements to the corporates in the process. Nirav stated,
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.
Alpha Capital is an investment management firm based in Mumbai and founded by Vishal Ootam and Vivek Anand.
Vishal, Co-founder and CEO, said, “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.”
A report by McKinsey in 2016 stated that the digital finance market in India will be worth $700 billion by 2025. This is expected to create 21 million jobs in India. CredAble competes with Capital Float, which has raised $117 million, LendingKart, which has raised $156.1 million, and AYE Finance, which raised $68.4 million, among others. Startups like Paybee, which digitises B2B collections in the distributor-retailer value chain, also work in the same space.