CredAble disburses $3 billion to 1,50,000 MSMEs in one year – The Economic Times

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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.

CredAble has disbursed $3 billion to cash-strapped businesses, during FY 2021-22. This includes large and mid, emerging corporates; vendors and dealers of large enterprises; micro, small and medium enterprise (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.

Founded in 2017, CredAble was built to solve working capital challenges for India Inc using technology-enabled solutions. Today, the company boasts of a working capital infrastructure with solutions catering to the growing needs of businesses, both big and small as well as large financial institutions.

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, Nirav Choksi, Co-Founder and CEO, CredAble in a statement said, “We have designed an 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. During this $3 billion disbursement, more than 30 financial institutions came on board to effectuate the transactions.”

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. In a statement, Ram Kewalramani, Co-Founder and Managing Director of CredAble said, “Over the years, we have realised that credit and cash flow management remains a challenge for most businesses, especially SMEs. In our $3 billion disbursement, 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 programmes 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 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,” he added in the statement.

CredAble is at the forefront of shaping the future of working capital management. The company works with 30 FI partners including large MNCs and Indian Private Banks and NBFCs, disbursing working capital at a monthly run-rate of approximately $450-500 million.

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