CredAble records a two-fold increase in loan disbursements in 2023
CredAble, a fintech offering working capital finance to MSMEs, recorded a two-fold increase in loan disbursements amounting to Rs 45,000 crore in the calendar year 2023 (CY23) on the back of increased partnerships with banks, corporations, and the acquisition of new customers.
The fintech firm facilitated the disbursements of over Rs 22,500 crore in the calendar year 2022 (CY22).
“We have partnered with more banks and corporations this year. Vendors, dealers, and distributors in their ecosystem were financed via this ecosystem. We also acquired small and medium enterprises (SMEs) directly on our balance sheet from our own non-banking financial company (NBFC),” said Nirav Choksi, co-founder and CEO, CredAble, in an interaction with Business Standard.
Choksi explained that earlier, SMEs relied on long-term loans as they were unable to source short-term financing for their businesses.
“Most banks and NBFCs would not do short-term working capital financing as they were focused on long-term business loans. As a result, a lot of SMEs were forced to take these loans when they needed short-term loans because when businesses are growing, they need working capital for a short period of time,” he added.
Meanwhile, Choksi added the company may look at raising funds via a Series C round by mid-2024.
“The only visibility that we will need from a capital perspective is when we want to do inorganic acquisitions going forward. We look to raise a round sometime in June this year. It may range between $50-75 million,” he added.
On the trade finance front, the company enabled transactions worth Rs 5,000 crore in 2023. CredAble said its non-banking financial company (NBFC) processed invoices amounting to Rs 900 crore, while clocking Rs 2,000 crore in disbursement value in the past one year.
The company, which has a customer base of 2.5 lakh small and medium enterprises (SMEs), said it earns nearly 40 per cent of its revenue from its banking-as-a-service-tech licence. It provides technology to platforms such as fintechs and banks, enabling them to disburse working capital loans to customers.
“We charge a tech licence fee for all the platforms such as large corporations or banks. Another form of revenue we make is from lending off our own balance sheet. Forty per cent of our revenue comes from tech licensing, whereas 60 per cent comes from lending,” Choksi added.
The company added that they hope to grow by 100 per cent during the ongoing year.
“Our target for the next calendar year is ambitious yet achievable – a 100 per cent increase in SME transactions, while maintaining cost-effectiveness. As we deepen our domestic relationships, we anticipate substantial growth in our annual disbursements, supporting India’s thriving MSME segment,” said Ram Kewalramani, co-founder & MD, CredAble.
Established in 2017, the Mumbai-based fintech has collaborated with over 35 financial institutions, with a presence across seven countries.
First Published: Jan 14 2024 | 6:30 PM IST