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Prime Venture Partners, a Bangalore-based seed fund, on Wednesday announced a $750,000 investment in KredX, an invoice-discounting platform.
This platform connects creditworthy 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 and 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.
Manish Kumar, co-founder & CEO, KredX, told BusinessLine that KredX worked as a marketplace and does not fund bill discounting from out of its own books.
“As a platform, KredX just facilitates access (for individual financiers) to fund the bills at discounted rates”, Kumar said.
KredX has already processed over 1000 invoices (ranging from Rs 1 lakh to Rs 1 crore) since its initial, by-invitation only launch, he said.
The returns on the Bills discounted averaged at 14 per cent, Kumar said.
Amit Somani, Managing Partner, Prime Venture Partners, said that the seed investment into KredX came in the form of preferred shares and not common equity.
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.
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