During FY 2021-22, CredAble has disbursed a record $3 billion to cash-strapped businesses, which includes large and mid, emerging corporates; vendors and dealers of large enterprises; micro, small and medium enterprises (MSMEs); and financial institutions. This comes at a time when the MSME sector which contributes 40% to total exports in India continues to find itself in financial distress with only 16% of them eligible for formal credit.
Speaking on the development, Nirav Choksi, Co-Founder and CEO, CredAble said, “Working capital financing remains a challenge for most businesses, especially for the MSMEs that are faced with unending funding woes and reeling from the subsequent liquidity crunch brought on by the pandemic. Explaining the need to transform the working capital landscape in the country and the next-generation initiatives taken by CredAble.”
“As India’s only holistic working capital tech platform, we have designed a comprehensive infrastructure to cater to the end-to-end ‘order to cash’ cycle needs and solve the growing working capital challenges of businesses of all sizes. Our in-house developed 360° tech-enabled solutions suite, enables us to roll out scalable working capital products that are tailor-made for different business models. During this $3 billion disbursement, more than 30 financial institutions came on board to effectuate the transactions. And, I am elated that, with the utmost support of our team and financial partners, we have been able to fulfill the purpose of providing businesses access to just-in-time working capital, and have also helped them tap into exponential growth and pursue strategic investments,” he added.
The 63-million-units strong MSME sector, has a vital role in fueling the economic growth of the country, especially at the time when India aspires to be a $5-trillion economy. Expressing how CredAble is empowering the backbone of the nation, Ram Kewalramani, Co-Founder and Managing Director of CredAble said, “Over the years, we have realized that credit and cash flow management remains a challenge for most businesses, especially SMEs. In our $3 billion disbursements, we facilitated an easy and adequate flow of credit to over 1,50,000 small and medium businesses to not just keep them afloat but enable them to reach their full potential. Currently, the sector which contributes 29% to the national GDP – has the potential to create 111 million new jobs over the next four to five years. Our platform offers value-added financing and growth solutions such as UpScale, an all-inclusive solution that is designed to cater to the needs of SMEs all over India. By automating credit and cash flow management and giving businesses an in-depth view of their financial health and operations, our platform helps SMEs make smart business decisions and get instant access to a host of growth tools. Besides, our liquidity programs are not just limited to MSMEs but continue to exponentially increase working capital flows by intermediating between corporates, vendors, and banks who experience a double-digit growth on our platform.”
CredAble sourced capital from both its own non-banking financial company (NBFC) as well as a network of financial partners. Commenting on the same, Choksi added, “Traditional financial institutions and FinTech partnerships have come a long way in the past 5 years. These associations, especially help small businesses in the farthest corners to avail credit requirements in a seamless, agile, and reasonable manner. 97% of the $3 billion disbursements were honored with these strategic partnerships and we believe that FinTechs and traditional financial institutions are allies in the true sense to create a win-win situation for all the stakeholders involved.”