CredAble disburses $3 billion in disbursements in the last 12 months

CredAble, a working capital technology platform, has disbursed USD 3 billion to 1,50,000 small and medium-sized enterprises to help them overcome cash-flow issues.

CredAble, a working capital tech platform, announced that it had disbursed $3 billion to cash-strapped businesses, including large and mid-sized emerging corporations; large enterprise vendors and dealers; micro, small and medium enterprises (MSMEs); and financial institutions during the fiscal year 21-22.

The MSME sector, which has 63 million units, is critical to the country’s economic growth, especially as India strives to become a $5 trillion economy. The MSME sector in India, which accounts for 40% of total exports, is nevertheless in financial difficulty, with only 16% of MSME businesses eligible for formal financing. Working capital finance is still a problem for most businesses, which are dealing with never-ending funding issues and a liquidity bottleneck caused by the pandemic.

Nirav Choksi, CredAble’s Co-Founder and CEO, explained the need to improve the country’s working capital ecosystem and the company’s next-generation projects, saying,“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.”

CredAble raised funds from a network of financial partners as well as its own non-banking financial corporation (NBFC).  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. In fact, 97% of the $3 billion disbursements were honoured 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.”

The company works with more than 30 financial institutions (FIs), including large multinational corporations, Indian private banks, and non-bank financial institutions (NBFIs), to disburse working capital at a monthly run-rate of around USD 450-500 million.