Credable: CredAble pays $3 billion to 1,50,000 SMEs in one year

CredAble disbursed $3 billion to cash-strapped companies in fiscal year 2021-22. This includes emerging large and mid-sized companies; large business vendors and resellers; micro, small and medium enterprise (MSME); and financial institutions. This comes at a time when the MSME sector, which contributes 40% of India’s total exports, continues to struggle financially with only 16% eligible for formal credit.

Founded in 2017, CredAble was designed to solve India Inc’s working capital problems using technology solutions. Today, the company has a working capital infrastructure with solutions to meet the growing needs of businesses large and small, as well as large financial institutions.

Financing working capital remains a challenge for most businesses, especially for MSMEs who face endless financing problems and are reeling from the consequent cash crunch caused by the pandemic. Explaining the need to transform the working capital landscape in the country and the next generation initiatives taken by CredAble, Nirav Choksi, co-founder and CEO, CredAble said in a statement: “We have designed an infrastructure to meet the needs end to end. – ending the needs of the “order to pay” cycle and solving the growing working capital problems of companies of all sizes. During this $3 billion disbursement, more than 30 financial institutions joined to carry out the transactions.

The 63 million strong MSME sector plays a vital role in the country’s economic growth, especially as India aspires to become a $5 trillion economy. In a statement, Ram Kewalramani, co-founder and managing director of CredAble, said: “Over the years, we have realized that managing credit and cash flow remains a challenge for most businesses, especially SMEs. In our $3 billion disbursement, we have facilitated easy and adequate flow of credit to over 1,50,000 small and medium-sized businesses to not only keep them afloat, but to enable them to reach their full potential. Currently, the sector, which contributes 29% of 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 designed to meet the needs of SMEs across India. By automating credit and cash flow management and giving businesses an in-depth view of their financial health and operations, our platform helps SMBs make smart business decisions and instantly access a host of growth. Furthermore, our liquidity programs are not just limited to MSMEs, but continue to exponentially increase working capital flows by intermediating between businesses, suppliers and banks experiencing double-digit growth. on our platform.

CredAble has secured capital from its own Non-Banking Finance 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 last 5 years. These associations especially help small businesses in the most remote corners to benefit from credit requirements in a transparent way. In fact, 97% of the $3 billion disbursements have been honored through these strategic partnerships and we believe FinTechs and traditional financial institutions are literal allies in creating a win-win situation for all stakeholders involved. “, he added in the press release. .

CredAble is at the forefront of shaping the future of working capital management. The company works with 30 FI partners, including large multinationals, Indian private banks and NBFCs, disbursing working capital at a monthly rate of around $450-500 million.

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