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Ahmedabad, June 1 Bengaluru-based supply chain finance platform, KredX, has become the first fintech player to commence commercial operations from the International Financial Services Centre (IFSC) in GIFT City, Gandhinagar.
KredX GTX (global trade exchange), a wholly-owned subsidiary of KredX, has completed the regulatory sandbox stage with transactions worth $2 million. Three other fintech players were also granted ‘in-principle’ nod by the regulator, International Financial Services Centre Authority (IFSCA), to operate on the International Trade Financing Services platform (ITFS).
KredX GTX is looking to execute export financing worth $200 million for its Gujarat-based clients. “We are the first fintech player to get an IFSCA licence to operate the KredX GTX platform. We will expand our operations to other States as well. Our target is to do $2 billion worth of transactions in the next 18 months,” said Anurag Jain, Founder and Executive Director, KredX.
Set up in 2015, KredX’s . domestic operations have crossed $6 billion in transactions, with over 300 corporate clients across India.
Sachin Nigam, Director, Global Trade - KredX GTX said, “The traditional system of extending export credit was lengthy, inefficient and time consuming. Export financing calls for both accessibility and timeliness. GTX addresses these issues with its digital platform, which has a number of financing institutions and banks on board.”
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EXIM Bank posts net profit of ₹1,556 crore for FY23An exporter - Indian or foreign - once registered on the KredX GTX platform, is verified based on the parameters set by the company. After the invoice is uploaded, the financers make bids. In the third step, the exporter chooses the bid with the best rates of finance. The agreement is signed and the funds are disbursed.
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The move will encourage other funds to relocate to the jurisdiction and expand their service offerings, according to Sachin Samant, President of Banking & Financial Institutions Group & Structured Finance at Kotak Bank.The traditional post-shipment funding process is time-consuming and requires collaterals, with non-negotiable rates. On the other hand, the KredX GTX platform ensures transparent bidding for the invoices, bringing down the rates. Digitalisation and reduced documentation ensure that enterprises get credit faster. For the financers, the acquisition cost is reduced and the transactions are covered by insurance hence the risk of default is reduced.
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