The success journey of CredAble: A Technology-enabled Fintech Startup

CredAble is a Fintech startup established in March 2017 by Nirav Choksi and Ram Kewalramani. The Mumbai-based startup provides liquidity programs for enterprise supply chains. With a world-class technology platform, trade finance expertise, and partnerships with capital providers, CredAble provides post-and pre-invoice financing to companies that are in need of working capital. 

Nirav Choksi has over twenty years of entrepreneurial experience in various domains like technology, structured trade finance, commodity trading, and mining. Ram has around sixteen years of experience in investment banking and logistics. He encountered a large working capital gap during his logistic stint. He observed that the company’s average receivables were in excess of ninety days, whereas the company had to pay its vendors weekly. Not just the logistics industry but a large number of services-driven businesses too faced the same problem. Ram and Nirav decided to address this issue with CredAble, by leveraging technology.

Two Core Platforms to Support The Business Supply Chain

To support the business supply chain, there are two parallelly working technology platforms. One is the CredAble platform which facilitates funding at the post-invoice stage, for enterprise clients. On the other hand, Just-In-Time Financing “Smart Contract” platform provides pre-invoice funding to suppliers. Approved invoices are uploaded in the CredAble’s platform, which is then integrated with the corporate ERP system. Corporate entities, suppliers and banks have access to this platform. It allows the suppliers to receive payment upfront for a trade discount, which is then financed by the corporate treasury or banks. 

There are three interfaces for distributors. The bank, corporate and the distributor. Through the platform for distributor, the bank processes finance and the corporate decides whether to extend the credit period for the distributors. CredAble works on a success fee-based model. It does not take any upfront or registration costs for either the corporate or for its suppliers and distributors.

The Maze of Challenges Along The Way

CredAble’s non-traditional supply chain finance programmes took time to gain widespread acceptance. Long turnaround time in technology integration and long sales cycle were two of the other challenges faced by the startup. CredAble uses an omnichannel approach to reach its target audience. It includes trade consortiums, one-on-one sales, use of digital media and emails, print media and BTL activities. Partner banks and other financial institutions help CredAble to get a holistic supply of new business.

The founders plan to stay ahead of the curve by product innovation, building a sales framework to accelerate enterprise sales cycles, and by attracting and retaining top talent. The startup is working to add multiple programmes to optimise balance sheets. These programs not only target direct vendors and distributors but also dealers, resellers, retailers and sub-vendors. It has reduced cash-to-cash cycles by an average of 30-45 days. 

The Business

CredAble has more than 30 clients now and its team size has expanded from 3 to 70 employees. Its initial investment was Rs. 10 crores and it has raised Rs. 100 crore in Series A funding from Alpha Capital. Now the startup has an annual revenue of  Rs. 65 crore. The startup claims to have processed more than Rs. 300 crore worth of transactions per month, and is now looking to increase the number of transactions by tenfold, over the next eighteen months. They are on the course to close $2 bn worth of deal flow on their platforms in the next 12 months.

CredAble is now delivering large scale supply chain funding programmes to enterprises in order to help them face working capital challenges. It provides technology-enabled funding to drive the business supply chain forward. CredAble is helping SMEs to re-imagine supply chain finance and exponentially increase capital availability within enterprise supply chains.

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