KredX raises 6.25 million from Sequoia India

KredX, India’s first invoice discounting marketplace, has secured USD 6.25 million in Series A funding round led by Sequoia India. Existing investor Prime Venture Partners, also participated in this round. The fundings will be used to strengthen the technology, data and sales functions within the company.

Founded in 2015 by IIT & Stanford alumni Manish Kumar, Anurag Jain & Puneet Agarwal, the platform helps businesses meet their short-term working capital needs by discounting their unpaid invoices (raised against blue-chip companies) to a network of buyers/financiers including banks, NBFCs, wealth managers and retail investors.

“Access to working capital for sustained growth and production is critical to businesses and late payments are often a huge bottleneck. Last year, almost 97% of the Indian SMEs reported having experienced late payment of their invoices while 56% dealt with working capital issues due to late payment or unavailability of credit. Additionally, most of the existing working capital arrangements today require collaterals and long-term commitments and businesses have no control on rates,” said Manish Kumar, CEO and Co-Founder of KredX.

KredX helps MSMEs maintain their cash flow by unlocking the cash tied up in invoices that otherwise takes an average of 30 to 90 days to be cleared. On the other hand, it offers financiers access to risk mitigated, high yield and short-term investment opportunities that are not tied to the uncertainties of the stock market.

“We aim to connect financiers and businesses in a mutually beneficial manner by helping MSMEs unlock the value of their invoices and boost cash flow, while providing an investment opportunity for financiers to channelize their funds optimally,” said Anurag Jain, Co-Founder of KredX.

The team has developed a proprietary credit risk assessment model for its borrowers along with back-end technology that ensures secure, hassle-free and fast platform for transactions. For financiers, KredX provides complete trade services starting from sourcing curated invoices to conducting due diligence using its proprietary credit underwriting algorithms.