Indian digital lender CredAble banks $4.5m from existing backers

Mumbai-based fintech startup CredAble said it has raised US$4.5 million in follow-on funding from existing investors including Oaks Asset Management and V’Ocean Investment.

With the latest injection, the company has raised nearly US$20 million in total funding to date. This comes after it secured US$14.8 million from private equity firm Alpha Central in its series A round in 2018.

CredAble CEO and co-founder Nirav Choksi / Photo credit: CredAble

CredAble provides large-scale funding programs for vendors that work with major corporate clients. Its platform also allows companies to offer customized early payment programs for their suppliers and vendors.

The startup said it plans to use the new funds to pursue growth and finance its own non-banking financial company (NBFC).

Its CEO and co-founder Nirav Choksi said in a statement that CredAble has seen an uptick in its platform’s usage during the last six months.

“We have enabled over 25 billion rupees (US$335.7 million) in vendor and dealer/distributor financing over the Covid period. This interim fund-raise will further boost disbursements given the varied opportunities that we currently have,” he added.

Choksi founded CredAble in 2017 after leading Equentia Natural Resources, a multi-commodity trading and structured finance company he also helped establish. He started the company with Ram Kewalramani, who previously bought over and restructured a logistics firm along with a private equity investor.

Other Indian NBFCs raking in funding this week include Finova Capital, which raised US$55 million in a round led by Sequoia, and FlexiLoans, a startup that raised US$20.3 million from the Falguni and Sanjay Nayar’s family office.