In Startup50 2016: KredX, an invoice discounting marketplace, was a deserving winner in the Enterprise Tech category for creating a disruptive business in the lending industry wherein creditworthy SMEs can raise short-term working capital against unpaid invoices through HNI investors and financial institutions
Founders: Manish Kumar, (In Pic), Anurag Jain (In Pic) And Puneet Agarwal
In 2015, three IITians, Manish Kumar, Puneet Agarwal and Anurag Jain, established KredX with the aim of easing cash flow for business owners through a disruptive business model. In October 2016, the company raised its Series-A of US $6.25 million in a round led by Sequoia Capital with participation from its existing investor, Prime Venture Partners. In its first year of operations, KredX has helped raise capital against over 1,000 invoices and posts a healthy monthly growth rate of between 20 per cent to 30 per cent. With its Series-A, the company wants to strengthen its functions of data, technology and sales.
KredX, through its platform, helps SMEs unlock cash that is tied-up in invoices by way of raising short-term working capital against them for a tenure of 30 days to 60 days. While SMEs benefit from better working capital management, investors have the access to high-yield, risk-mitigated investment opportunities thereby creating a win-win proposition for both. By being a pure marketplace, KredX is transforming informal lending into an organised space with a game changing business model.
Inclusion for small businesses
In the lending journey thus far, banks and financial institutions have provided capital loans but the focus has primarily been on the manufacturing industries. Where KredX has changed the game is by bringing these services to SMEs.
In a niche
One of the biggest factors in KredX’s favour is that it is solving a single problem in a niche area and that, as investors and entrepreneurs note, gives a business great clarity. In the near future, it aims to be a one-stop shop for everyone involved in bill discounting thereby drawing banks and NBFCs to use its platform. In the longer term, the company views the invoice discounting market as a $100 billion opportunity.
(Series-A raised in October 2016 from Sequoia Capital with participation from existing investor, Prime Venture Partners)
(The number of invoices that KredX has helped raised working capital against)
(KredX aims to achieve a 30 per cent growth in revenues in FY 2017)