Technology for MSMEs: Supply chain financing platform CredAble’s credit and cash flow management app UpScale has onboarded over 2 lakh businesses since its launch in November 2021, the company said on Monday in a statement. The number of invoices processed by the app so far stood at over 1 million amounting to more than Rs 10,000 crore. UpScale said its proprietary technology has analyzed credit reports submitted by 700 lenders and bank statements’ transaction amount of Rs 5,000 crore. The app has partnerships with over 10 banks and non-banking financial companies (NBFCs) to offer digital credit to businesses including MSMEs.
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“In India, only 16 per cent of MSMEs have access to formal credit, thus creating a gap of $350 billion. MSMEs in India are required to improve their finances and grow at a rapid scale swiftly. At CredAble we try our best to bridge the gap between the challenges faced by the MSMEs and their full potential,” said Nirav Choksi, Co-founder & CEO, CredAble. Unlike other business apps that focus either on payments or cash flow management, UpScale focuses on combining trade, credit, and payments to provide small businesses with a unique growth solution,” the company said.
In April, UpScale launched a set of tools for faster vendor verification for businesses that included GST number verification, PAN number verification, GST to PAN number verification, and bank account verification, etc. The company had recently added a GST verification tool that validates the GSTIN numbers of businesses or customers and provides users with features like GSTIN confirmation, PAN number verification linked to the GST number, and GST returns filing status.
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“We are extremely thrilled that in such a short time span we’ve been able to service more than 200,000 businesses by combining trade, credit, and payments for growth at scale. At the same time, users have provided us with the most relevant feedback in terms of their challenges and what could be the potential solution. This led us to come up with a unique feature like the GST Super Search Tool that authenticates the businesses they partner with, in only a couple of seconds,” said Nitin Sharma, CPTO & MD (UpScale), CredAble.
Digital lending is among the fastest growing channels of credit access to small businesses as the working capital issue has been one of the key areas of concern for growth. Online lending in India jumped from $9 billion in 2012 to nearly $110 billion in 2019 and is likely to grow to around $350 billion by 2023, according to market and consumer data company Statista. CredAble has raised $58.8 million in five funding rounds so far including the latest $9 million round led by Axis Bank earlier this month.
