Fintech platform CredAble said it has received fresh funding of $9 million (or Rs 55 crore) through an equity infusion from Axis Bank and its existing investor Oaks Asset Management to expand growth.
“This investment reiterates CredAble’s commitment towards empowering small businesses and becoming the preferred working capital solution provider to its growing list of enterprise customers and financial institution alliances, many of which are long-standing relationships,” the platform stated in a release.
Prior to this, Axis Bank, in a regulatory filing, had said it would acquire 8,921 equity shares, equivalent to 5.09 per cent, of face value of Rs 10 each, for Rs 55 crore in CredAble.
The acquisition is expected to be completed by September 30, 2022, the lender added.
Nirav Choksi, co-founder and CEO, CredAble, said, “This direct investment by Axis Bank and the continued support from existing investors validates CredAble’s journey thus far to help India solve its working capital woes. The incoming investors and CredAble are aligned in their vision of what CredAble has stood for and what it can accomplish in the foreseeable future.”
CredAble enables working capital financing for vendors, distributors, dealers and retailers. The platform also said that the deal “endorses the value of fintech and bank partnerships and their collaborative efforts to create world-class customer experiences that solve real credit and business needs for India Inc.”
Incorporated in July 2018, CredAble had a total income of Rs 8.35 crore in 2021-22 (FY22). In FY21, its income stood at Rs 2.46 crore and Rs 27.64 crore in 2019-20.
CredAble is the trade name for Equentia SCF Technologies Pvt Ltd and its wholly owned subsidiary, Equentia Financial Service Pvt Ltd, according to its website.
Meanwhile, shares of Axis Bank settled 1.17 per cent lower at Rs 721.75 today.