CredAble Company Profile

Background

CredAble, established in 2017, is India's largest working capital technology platform, dedicated to enhancing financial inclusion by providing tailored working capital solutions to businesses. The company's mission is to make "CredAble" synonymous with "Working Capital," aiming to triple the availability of working capital and significantly contribute to India's GDP growth.

Key Strategic Focus

CredAble specializes in offering comprehensive working capital and liquidity programs for enterprise supply chains. Leveraging its expertise in trade finance, strategic partnerships with capital providers, and a robust technology platform, the company addresses the working capital needs of large, mid-sized, and emerging corporates, as well as MSMEs and financial institutions. By integrating AI-powered technology, CredAble efficiently caters to the liquidity requirements of India Inc., enabling over USD 6 billion in working capital annually.

Financials and Funding

As of August 2022, CredAble has raised a total of $58.59 million in funding. The most recent funding round, a Corporate Round on August 2, 2022, secured $9 million, led by Axis Bank and OAKS Asset Management. Previous funding rounds include a Series B round in October 2021, led by OAKS Asset Management and Plutus Wealth Management, and a Series A round in June 2018, led by Alpha Capital.

Technological Platform and Innovation

CredAble's proprietary technology platform is designed to provide scalable, intuitive user experiences, robust data security, and advanced data analytics. The platform offers a full spectrum of working capital programs catering to both payables and receivables cycles, with multi-funder capabilities through partnerships with leading global financial institutions. It features flexible product structuring with off-balance sheet opportunities and digital trade finance with automated transaction documentation, integrating seamlessly with all leading ERPs. The platform's deep trade finance expertise allows for customized working capital financing programs tailored to each client's needs.

Leadership Team

Nirav Choksi, Co-founder & CEO: With over 25 years of experience across IT services, commodity trading, and trade finance, Nirav has incubated and scaled businesses, raised debt and equity financing, and built multi-disciplinary global teams.

Ram Kewalramani, Co-founder & Managing Director: Bringing over 18 years of experience, Ram was previously the CEO of a large logistics business, focusing on raising working capital and addressing challenges in traditional banking approaches.

Rajiv Ramnarayan, Founding Partner and Board Advisor: Rajiv contributes strategic insights and advisory support to CredAble's growth and development.

Competitor Profile

Market Insights and Dynamics

India faces a significant working capital gap, with approximately 75 million MSMEs, of which only 16% have access to formal credit, creating a USD 350 billion credit gap. The COVID-19 pandemic exacerbated this issue, as major financial institutions reduced MSME credit lines, diverting resources to larger corporates. Fintech companies like CredAble are poised to become essential in bridging this working capital gap for India Inc.

Competitor Analysis

CredAble operates in a competitive landscape with several key players:

KredX: Specializes in invoice discounting and working capital solutions for businesses.

Taulia: Provides supply chain finance and working capital management solutions globally.

Demica: Offers working capital solutions, including supply chain finance and receivables finance.

CreditFair: Focuses on providing credit solutions to consumers and businesses.

ZestMoney: Provides consumer lending solutions, enabling purchases through EMI without credit cards.

Aye Finance: Offers business loans to micro and small enterprises.

These competitors focus on various aspects of working capital and credit solutions, each bringing unique technologies and approaches to the market.

Strategic Collaborations and Partnerships

CredAble has established significant partnerships to enhance its market position and innovation capacity. Notably, the company raised $9 million in a Corporate Round on August 2, 2022, led by Axis Bank and OAKS Asset Management, indicating strong collaboration with leading financial institutions.

Operational Insights

CredAble's strategic approach involves partnering with large corporates to enable working capital for their entire supply chain ecosystem. This "Anchor down" approach has led to successful onboarding of multiple large and multinational clients, often through referrals and word-of-mouth, demonstrating the effectiveness of their solutions.

Strategic Opportunities and Future Directions

CredAble aims to cover all aspects of working capital by enabling true financial inclusion for millions of MSMEs. The company plans to expand its outreach across all metro cities in India, with a goal to disburse in excess of USD 1 billion per month, eventually reaching USD 2 billion per month.