Fintech firm CredAble on Wednesday said it has raised USD 30 million (about Rs 225.4 crore) in a Series B funding round, co-led by Plutus Wealth Management LLP and its associates and existing investor Oaks Asset Management.
The funds raised in this round will be used to enhance CredAble’s platform to innovate and penetrate deeper into the ecosystem, to provide working capital solutions that are tailor-made for small businesses, and to create innovative debt capital market products for corporates and financial institutions, a statement said. Total funds raised by CredAble in equity financing stands at about USD 40 million to date.
CredAble provides working capital financing solutions to leading corporates across Asia in areas of payable and receivables financing, debt capital markets and SME financing by leveraging its trade finance expertise, partnerships with capital providers and in-house technology platform. Last month, CredAble disbursed Rs 3,500 crore to more than one lakh small businesses, and expects to disburse higher amounts in the coming months, the statement said.
We are very excited to have Plutus on board as our partner as we embark on the next chapter of our growth story. Plutus have shown tremendous faith in our vision and the team at CredAble as we continue to build India’s largest working capital platform,” CredAble co-founder and CEO Nirav Choksi said. He added that the fundraise will enable the company to address the working capital needs of its customers exponentially and add value to financial institutional partners.
Choksi said CredAble has ambitious plans to address the working capital requirements for the small business ecosystem and create true financial inclusion. More than 30 per cent of the GDP is contributed by the small business ecosystem, which is largely credit and growth starved, he noted.
“Being a tech-first company, CredAble will use these funds to continue to build technology to enable straight-through processed working capital solutions and launch our SME Growth and Credit Platform, which aims to create inclusive growth for small businesses by providing them with cash management, payment and credit tools that will enable small business owners to efficiently grow and manage their businesses, he added.