Technology for MSMEs: CredAble’s credit and cash flow management app, supply chain finance platform, UpScale, has onboarded more than 2,000 businesses since its launch in November 2021, the company said in a statement on Monday. . The number of invoices processed by the app so far stood at over a million, or more than Rs 10,000 crore. UpScale said its proprietary technology analyzed credit reports submitted by 700 lenders and bank statement transaction amount of Rs 5,000 crore. The app has partnerships with over 10 banks and non-bank financial companies (NBFCs) to offer digital credit to businesses, including MSMEs.
“In India, only 16% of MSMEs have access to formal credit, creating a $350 billion gap. MSMEs in India are bound to improve their finances and scale up rapidly. At CredAble, we do our best to bridge the gap between the challenges faced by MSMEs and their full potential,” said Nirav Choksi, co-founder and CEO of CredAble. Unlike other business apps that either focus on payments or cash flow management, UpScale focuses on combining commerce, credit, and payments to provide small businesses with a single growth solution,” the company said.
In April, UpScale launched a set of tools for faster supplier verification for businesses which 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 companies or customers and provides users with features such as GSTIN confirmation, verification of the PAN number linked to the GST number and the filing status of GST declarations .
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“We are extremely pleased that in such a short time we have been able to serve over 200,000 businesses by combining commerce, credit and payments for growth at scale. At the same time, users provided us with the most relevant feedback in terms of their challenges and what the potential solution might be. This led us to offer a unique feature such as the awesome GST lookup tool that authenticates the companies they partner with, in just seconds,” said Nitin Sharma, CPTO & MD (UpScale), CredAble.
Digital loans are among the fastest growing channels of access to credit for small businesses, as the issue of working capital has been one of the main areas of concern for growth. Online lending in India grew from $9 billion in 2012 to almost $110 billion in 2019 and is expected to reach around $350 billion by 2023, according to market and consumer data firm Statista. CredAble has raised $58.8m in five funding rounds so far, including the latest $9m round led by Axis Bank earlier this month.
Also read: Over Rs 1,500 crore invested in MSMEs via Self Reliant India fund: Govt