Fintech startup CredAble has successfully raised Rs 30 crore ($3.6 million) in debt funding from the Small Industries Development Bank of India (SIDBI). This significant financial boost will enable CredAble to enhance its operations and provide more affordable financing solutions to micro, small, and medium enterprises (MSMEs), as well as women-led businesses in India.
Founded in 2017 by Nirav Choksi and Ram Kewalramani, CredAble is a prominent player in the fintech space, offering working capital to a diverse range of clients, including large, mid-sized, and emerging corporates, MSMEs, and financial institutions. The company’s innovative approach extends beyond traditional banking and loan products, focusing on building a robust working capital infrastructure that digitizes corporate-led financing and underwriting processes.
CredAble’s platform boasts a substantial user base, serving over 125 corporate customers, more than 3,50,000 small business borrowers, and over 35 large financial institutions and banks. This extensive network underscores the company’s commitment to addressing the financing needs of businesses across India.
A notable initiative by CredAble is its dedicated fund of Rs 200 crore aimed at supporting women-led enterprises. Over the past ten months, this initiative has benefitted more than 50 businesses, showcasing CredAble’s commitment to fostering gender diversity and empowerment in the entrepreneurial ecosystem.
In addition to the recent funding from SIDBI, CredAble secured $10 million in a funding round in March from Singapore-based Equentia Natural Resources, bringing its total funding to nearly $60 million to date. These investments reflect strong investor confidence in CredAble’s business model and growth potential.
Financially, CredAble has demonstrated remarkable growth, with its revenue from operations increasing by 2.78 times to Rs 13.94 crore in FY23, up from Rs 4.92 crore in FY22. However, this rapid expansion has also led to an increase in losses, which surged 3.37 times to Rs 22.40 crore in FY23, compared to Rs 6.53 crore in the previous fiscal year.
With the new funds from SIDBI, CredAble is well-positioned to further scale its operations, extend its reach to more MSMEs and women-led businesses, and continue driving financial inclusion and economic growth in India.
