[Product Roadmap] How this fintech startup enables Rs 1,000 Cr transactions a month

A product roadmap clarifies the why, what, and how behind what a tech startup is building. This week, we feature CredAble, a B2B supply chain finance company.

Logistics might be crucial to the operations of any large business, yet the sector most often faces a working capital crunch, with almost no quick financing options at its disposal.

While running a transportation business for corporate employees, Ram Kewalramani understood what was causing the fund shortage: a time lag between raising an invoice and disbursing it.  

Ram got together with his friend, Nirav Choksi, who had experience building and scaling businesses in the technology and finance domains, to address the problem. 

In 2017, they started CredAble, a business-to-business (B2B) supply chain finance company that partners with corporate entities to provide a scalable supplier and dealer/distributor financing platform. 

“Our solutions are domain-agnostic and today we work with ecommerce, media, FMCG, manufacturing, and other domains,” says Ram. 

Large corporate entities, he says, have thousands of suppliers and dealers that are critical to their supply chain. Growth of these suppliers and dealers is critical to the growth of the large companies.

“For this, the suppliers and dealers are always in need of funds, which is difficult for them to source,” says Ram. “Our platform provides short-term working capital solutions backed by invoices, proof of deliveries, and purchase orders raised between corporate-supplier and corporate-dealer.” 

Suppliers, dealers, and distributors in the logistics sector are typically micro, small and medium enterprises (MSME), which have working capital requirements ranging from Rs 5 lakh to Rs 1 crore, according to several startups in the space.

Considering their working capital requirements, transactions enabled by CredAble worth Rs 1,000 crore a month, according to Ram, is a significant figure. 

By early 2019, the platform was also able to shorten the waiting period for funding from three months —the time usually taken by non-banks and banks — to just a day, like most other lending platforms.

CredAble’s competitors include NeoGrowth Credit, Vivriti Capital, Shubh Loans, Happy Loans, Lendingkart, and Indifi Technologies. 

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