CredAble will likely launch an initial public offering in the next three years, says Co-founder and Chief Executive Officer Nirav Choksi.In the meantime, the company may do a funding round in the next eight-to-nine months.
“We will probably go public in the next three years. We will look to raise funding maybe 8-9 months from now,” Choksi said.
On Wednesday, the working capital technology platform announced its expansion into Singapore, United Arab Emirates, UK, Australia, Philippines, Indonesia, South East Asia, Middle East, Australia, and US.
“CredAble is now in a unique position to help global financial institutions seize revenue opportunities by offering them a state-of-the art banking as a service platform to build and launch their own regulatory compliant working capital financing solutions,” Choksi said.
Founded in March 2017 by Nirav Choksi and Ram Kewalramani, the company provides application programming interface -driven working capital technology and banking-as-a-service offerings to banks and large corporates. These offerings range from pre- to -post-shipment financing, embedded finance, and beyond banking services for small and medium-sized enterprises (SME).
Additionally, the company also provides post-invoice discounting and short-term working capital finance products to SMEs through its non-banking financial company (NBFC) subsidiary Equentia Financial Service.
“We provide the technology infrastructure, which is licensed individually to either banks or to large corporates. When we license a product to a large corporate, only their vendors, dealers, or banks participate on the platform,” he said.
“We provide the technology rail infrastructure through which, we can digitize working capital financing,” he added.
Currently, CredAble’s platform hosts over 125 corporate customers, over 300,000 small business borrowers, and over 35 large financial institutions and banks. The company is backed by the likes of Oaks Asset Management, Plutus Wealth Management and Axis Bank.
Currently, around 60% of the company’s revenue comes from the lending business. But, Choksi expects banking-as-a service and the product business to comprise over 50% of the overall revenue in the next two-to-three years.
While Choksi did not disclose CredAble’s revenue in 2022-23(April-March), it has disbursed around Rs 50,000 crore loans on the platform in 2022-23(April-March). The company has disbursed around Rs 1200 crore on its balance sheet.
In this financial year, the company will likely hit Rs 4,500-crore disbursements on the balance sheet, and Rs 65,000-70,000 crore disbursements on the platform.