In India, there are plenty of small and medium businesses which are facing issues because of late payment of invoices which creates a lot of hassle in working capital. In this context, KredEx, a Bangalore based startup has emerged as a knight in shining armor for such businesses. It assists these businesses by providing them with discounted unpaid invoices and helps in acquiring short term working capital. The financers involved in the whole process charge a minimal service fee and provide a working capital advance calculated on the basis of a certain percentage of the invoice value. Small and medium businesses are finding this opportunity as very beneficial because it spares them from the hassle and chaos of loans that require collateral and long term commitments. In addition, the financers also get their share of benefits by grabbing risk mitigated short term investment opportunities.
KredEx serves as a connecting bridge between businesses and financers. Founded in the year 2015 by IIT and Stanford alumni Manish Kumar, Puneet Agarwal and Anurag jain, this startup has been quick in grabbing success by acquiring a fund of US$6.25 million in series A funding round carried out by Sequoia India. Prime Venture Partners, the existing investor of KredEx was also a part of this funding round.
Working capital is very crucial for the long term growth and sustainability of any business and late payments often create major hindrance in development. In 2015, around 97% of Indian SME’s reported facing issues in context of late invoice payments and approx 56% had to face working capital issues due to unavailability of credits. This is where KredEx provides SMEs with a cash flow by unblocking cash tied up with the invoices which normally takes 1 to 3 months to get cleared off. Furthermore, it also helps financers in acquiring investment opportunities irrespective of uncertainties of stock market.
KredEx provides hassle free, fast and secure transaction platform based on a proprietary credit risk assessment model backed up with high end technology.