Oiling The Working Capital Engine for SME Growth Looking at adding new products and staying India focused
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For the SME sector that contributes to 45% of the industrial production, 40% to exports and also significantly to the country's GDP, Manish Kumar, founder and CEO, KredX explains the genesis behind starting KredX. "KredX stemmed out of the need to help businesses overcome working capital challenges by encashing their unpaid invoices, enabling a seamless supply chain operation right from SMEs to larger corporates. Over the last six years, we have been able to serve the business ecosystem through our product suite consisting of invoice discounting, BNPL for B2B payments and AP/AR management through Capvel. We have also recently forayed into global trade financing."
KredXis India's largest supply chain finance platform that assists businesses to avail collateral-free working capital within 24-72 hours instead of a customary payment tenure of 30-90 days.
"Together with Venture Capital Fundswe have recently started working with VC funds, incubators and venture debt funds to identify and fund the companies that are in need of growth capital and can be primed for an equity round at a later stage. Till date, more than two million transactions have been processed and 23,000+ businesses have increased their capital velocity more than 10* in a year on an average," he says about their latest offering.
On KredX's differentiation factorsaysKumar, "What sets KredX ahead is the use of cutting-edge technology with credit underwriting and data analytics capabilities to enable a seamless process. We provide a unique alternative financing solution for businesses while offering an innovative alternative investment option for investors that ensures healthy portfolio diversification."
With the KredX score, a proprietary risk mechanism, they establish the credibility of the MSME.
He adds, "We have a "KredX Invest' app that allows investors to buy and track deals seamlessly at the touch of a button."
Stating the tech innovation that powers the delivery of their services, says Kumar, "Kredx offers a platform where physical invoices can be read and assessed better with the help of advanced digitisation and technology. Legacy systems can also be easily integrated within our systems. Using the latest trends available from IndiaStack to neobanks to ML, we provide hassle-free experiences to our clients. Furthermore, the core underwriting skill set has been replaced by deep decision models that help provide speed and transparency required for MSME credit space."
He doesn't' seem to have any qualms on the stringent regulations surrounding fintech ops.Says Kumar, "Directly and indirectly we have enabled more than 1,00,000 jobs in India. We have also been able to work with regulators directly to highlight issues and use technology for faster and quicker offerings to businesses that ultimately impact the GDP of the country."
On learnings from building a fintech he says, "Execution forms the crux of any business. Managing and recognising the right time to release your product will be the key factor in determining your success. Money is the core component and should be allocated wisely to ensure optimum business operations."
"Additionally, keeping customers happy is the foundation of any business."
Starting a fintech also demands a great deal of tenacity on the part of the founder. "It is important to not lose faith in the idea. Whatever you are working on, work because you have that passion and you believe in it, and not for the money or any other agenda."
On their expansion plans, he says,"We are currently adding more products to our suite and continue helping businesses and investors with our path-breaking technology."
"We will continue to focus on pan-India penetration with an increased emphasis on rural areas, thereby creating employment opportunities. We have recently launched our services in the Middle East through our strategic partner LAMAA, and plan to expand to all GCC countries."
"We have also set up an office in Singapore that provides innovative supply chain financing offerings.As we continue to grow,we aim to deliver exceptional "trade finance' opportunities to our clients operating in the major trade hubs and routes with the help of our soon-to-be-launched trade finance products."