Sequoia-backed fintech startup KredX raises $26m from Tiger Global, others

Invoice discounting firm KredX has raised US$26 million in a series B funding round led by Tiger Global Management, with participation from existing investors.

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Proceeds from the funding round will be deployed toward hiring across functions including senior leadership, product development, intellectual property, strategic acquisitions, and creating a niche in the supply chain finance ecosystem, the company said.

Founded in 2015, the Bengaluru-headquartered startup connects institutional and individual investors with high-growth businesses looking for working capital through invoice discounting. Through its platform, KredX helps business owners raise funds by selling their unpaid invoices. It aims to use its data analytics and credit underwriting capabilities to remove operational inefficiencies around the invoice discounting space.

“We have recently launched capex discounting as a unique way to fund growth capital for the companies as well,” said Manish Kumar, founder and CEO of KredX.

The company claims it has processed over 500,000 invoices, helping more than 5,000 suppliers through 10,000 investors across 36 locations in the country.

It expects to double its transaction volume, which has already crossed US$2.4 billion, in the next 12 months, KredX founder and executive director Anurag Jain said.

The company has so far completed three rounds of fundraising. In 2016, it secured US$6.3 million from Sequoia India and Prime Venture Partners in a series A funding round, following its US$750,000 seed raise.

In 2017, it acquired New York-based software company Hummigbill for an undisclosed amount to enhance its accounts receivable capabilities.