Platform facilitating working capital loans for small and medium enterprises CredAble has disbursed a record USD 3 billion (Rs 22,500 crore) in the financial year 2021-22, and expects to double the amount during the next fiscal year thanks to more customer acquisitions and strong demand for short-term lending business, said co-founder and CEO Nirav Choksi.
The company said it disbursed a record $3 billion in working capital loans to 1,50,000 cash-strapped small businesses over the past 12 months.
The credit disbursement comes at a time when the MSME sector, which contributes 40% of India’s total exports, continues to struggle financially, with only 16% eligible for formal credit, said the society.
“We saw the growth coming primarily from two perspectives. First, we added a lot of new customers, and we also saw several new banks adopting the platform as their platform of choice. dramatically speed up the platform.
“Very importantly, we launched a new high-end platform focused on small businesses. We saw a huge amount of new pulls and small businesses that also needed working capital,” Choksi said.
Businesses want to ensure adequate access to working capital lending. These loans range from as little as Rs 5 lakh to as big as Rs 50 crore. So, a combination of all these factors has led to this kind of growth on the CredAble platform, he added.
“We expect to double the amount of disbursements in the next fiscal year.
We are experiencing tremendous growth in the high end… We are adding 15,000 new customers every week. At this rate, the number of users will also more than double. We will have around 500,000 users by next fiscal year,” Choksi said.
The Mumbai-based, tech-enabled loan disbursement platform completed its five years of operation this month and is in “very rapid” expansion mode by partnering with more clients.
“For the next 12 months, we will focus on very aggressive growth. Ours is a platform facilitating very short-term, receivables-based working capital lending. Credit risk is very well managed as we work in partnership with very large banks and suppliers,” said the co-founder. CredAble provides an infrastructure for short-term loans.
