Fintech firm CredAble has secured Rs 30 crore in debt funding from SIDBI (Small Industries Development Bank of India). This funding will help CredAble expand its operations and provide affordable financing solutions to Micro, Small, and Medium Enterprises (MSMEs) and women-led businesses across India.
What is CredAble?
Founded in 2017 by Nirav Choksi and Ram Kewalramani, CredAble focuses on offering working capital solutions. Their services cater to a variety of clients, including large, mid-sized, and emerging corporations, as well as MSMEs and financial institutions. CredAble aims to go beyond traditional banking, providing digitized corporate financing and underwriting through its comprehensive working capital infrastructure.
Support for Women-led Enterprises
CredAble is committed to supporting women-led enterprises. Recently, the company allocated Rs 200 crore specifically to support these businesses, aiding over 50 women-led enterprises across India in just 10 months. This initiative is part of CredAble’s broader strategy to diversify its product lines and expand its financing scope to include a more varied portfolio of businesses.
Growth and Impact
CredAble’s platform currently serves over 125 corporate customers, more than 350,000 small business borrowers, and over 35 large financial institutions and banks. The firm disburses over $8 billion annually in working capital for its diverse clientele. In March, CredAble raised $10 million from Singapore-based Equentia Natural Resources, contributing to a total of nearly $60 million raised to date. The company employs adaptive AI and ML algorithms and has developed a robust risk-management platform to support its underwriting processes.
Financial Performance
CredAble has experienced significant growth in recent years. Its revenue from operations increased 2.78 times, reaching Rs 13.94 crore in FY23, up from Rs 4.92 crore in FY22. However, the firm also saw its losses rise 3.37 times to Rs 22.40 crore in FY23, compared to Rs 6.53 crore in FY22.
Future Outlook
Manu Prakash, MD and Head of Partnerships & FI Coverage, expressed optimism about the MSME sector’s growth over the next five years. He stated, “From providing affordable financing to scaling up their operations, we’re focused on meeting the growing demands of small and medium-sized businesses.”
CredAble’s recent Rs 30 Crore funding from SIDBI marks a significant step in its mission to support MSMEs and women-led enterprises, reinforcing its role as a key player in India’s fintech landscape.
