Bangalore, April 13, 2016: Prime Venture Partners, today announced a $750,000 investment in KredX, an invoice-discounting platform that connects credit-worthy MSMEs looking to raise working capital (against their unpaid invoices) to individual financiers looking for opportunities to earn above-average financial returns. Launched by IIT & Stanford alumni; Manish Kumar, Anurag Jain & Puneet Agarwal in 2015, KredX (previously known as Mandii) enables the growth of MSMEs by unlocking cash tied up in customer invoices that would otherwise be paid in 30 to 90 days.
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy by providing large employment opportunities and allowing equitable distribution of national income and wealth. However, these MSMEs often struggle to keep their cash flow intact and can hardly withstand the burden of late payments. They are in dire need for working capital to sustain continued growth and production. In parallel, retail financiers are looking for opportunities to invest in financial instruments that can provide them better returns in short term with relatively lower risk.
KredX addresses both these issues by enabling MSMEs to raise working capital finance by discounting their unpaid invoices from corporates to a network of financiers on KredX`s platform. By doing so, it offers financiers access to risk-mitigated, high yield & short-term investment opportunities. In developing this breakthrough solution, KredX has partnered with leading banks, accounting firms and law firms to ensure all aspects of the service are fully compliant with regulations and ensure consumer protection at all times.
KredX has developed a proprietary credit risk assessment model for borrowers and technology platform that ensures fast, hassle-free and secured transactions. For financiers, KredX provides complete trade services starting from sourcing curated invoices to conducting due diligence using its proprietary credit underwriting algorithms. It also manages complete paperwork for the financier and borrowers. KredX has already processed over 1000 invoices (ranging from INR 1 lacs to INR 1cr) since its initial, by-invitation only launch, and is now launching its service commercially.
“Invoice discounting is a lifeline to SMEs but has never been organized and democratized. KredX will organize this largely unstructured market using technology, data and statistics. Working with the Prime Venture Partners team gives us not just capital but also the specialized and collaborative company building effort required to bring a sophisticated and highly nuanced product offering to market, and we are delighted to be part of their portfolio.”
“KredX has conceptualized an alternative asset class with low risk and high returns for sophisticated retail investors who had limited options available for debt instruments in the market. Our investors are delighted with the offering as they never thought something like this existed which is so simple and transparent!”
“Alternate financing and lending platforms are going to transform the way businesses and individuals gain access to capital. KredX is using technology to solve an obvious pain point for over 21 million MSMEs in India with hundreds of unpaid invoices. The core competency required for any credit product to scale is risk modeling. KredX is assembling an incredible team of experts in Data Science, AI and Machine Learning that will play a key role in scaling the business. We are excited to be a part of this journey.”
“I was trying to get loans from banks from quite sometime as I was facing problem due to high growth of my company and cash stuck in account receivables (A/Rs). But even while having current accounts with various banks, I was unable to secure any form of loans from banks. This is when KredX came to our rescue. They enable me to use my A/Rs into a solution to raise working capital and on top of that, they made the process so simple and fast for me. Now, I just focus on my business, get clients, raise invoices and discount them on KredX. The whole process is so democratic, as the rates are getting determined by the trade’s demand and supply.”
“KredX offers an amazing short-term investment product that provided me a double digit return. They also take care of all the hassles involved in paperwork, due diligence and follow up on payments from the borrower. Kudos to the team for coming up with such an innovative product!”
Prime Venture Partners is a Bangalore-based seed fund led by serial entrepreneurs Sanjay Swamy, Shripati Acharya and Amit Somani. The fund is focused on building category-creating companies that are attracting large markets and are using technology in disruptive ways. The fund is addressing a much-needed gap in the Indian startup ecosystem by bringing a combination of first-hand entrepreneurial experience, operating expertise and meaningful capital. Prime Venture Partners’ portfolio includes innovative and exciting startups such as KredX, LoveCycles, ZipDial (acquired by Twitter), Ezetap, SmartOwner, Synup, HackerEarth, happay, Nimble Wireless and Vidgyor. Website: www.primevp.in