SME loan market CreditEnable raises fresh funds

CreditEnable, based in London and Mumbai, looks to improve its technology platform and expand its user base in the coming months

CreditEnable claims to leverage data analytics and AI to deliver a hassle-free lending experience for private sector banks, NBFCs and financial lenders

India has around 1,263 digital lending startups, of which more than 147 are backed by venture capital funding, Inc42 analysis More

London and Mumbai-based business lending startup CreditEnable announced on Tuesday (January 19) that it had raised $ 2 million in pre-Series A funding led by startup incubator Venture Catalysts, along with its UK arm JPIN Venture Catalysts. Previously, the company had also raised $ 5 million in a funding round from investors such as SunGard CEO, Cris Conde, Alter Global and Astia and Floreat.

With the latest funding, the company said it will use the fund to improve its technology platform, while expanding its customer base across the country, thereby removing bottlenecks in India’s SME lending landscape.

Founded by seasoned investors Nadia Sood and Varun Sahni in 2017, CreditEnable is a credit marketplace that uses data analytics and AI to help SMEs obtain different types of business loans. In addition, the company claimed to help lending entities improve their approval rates to over 70% and disburse loans faster at competitive interest rates.

Some of its clients include private sector banks, NBFCs and financial lenders including IDFC, First Bank, ICICI, Bajaj and international financial institutions like Deutsche Bank and DBS among more than 20 lending partners. The platform offers business loans from INR 10 Lakh to INR 30 Cr with lending rates starting at 9%.

The rise of business loan applications

“In 2020 alone, $ 4.5 trillion in available financing has not been made to suitable borrowers, meaning today’s announcement fills a critical gap that is hampering the growth of SMEs,” CreditEnable revealed in a press release.

CreditEnable co-founder Sood said the Covid-19 pandemic has dramatically accelerated the adoption of digitization in financial services. “Obtaining affordable financing in the large-scale SME segment will be critical to our global economic recovery,” she added.

Venture Catalysts co-founder Apoorv Ranjan Sharma added that CreditEnable is well positioned to fill the biggest gaps in the Indian lending market, especially in the current pandemic environment where demand for business loans has increased.

CreditEnable is not alone in this space – other players in space include NeoGroth, DMI Finance, Flexi Loans, AYE, U GRO Capital, Lendingkart, Capital Float, Indifi, Novac, among others.

According to Inc42 More, India has about 1,263 digital lending startups, 12% of which are backed by venture capital funds. In addition, the report declared With an influx of venture capital into B2B lending startups increasing at a CAGR (2015-2019) of 72%, digital lending remains the most favored category in the lending technology segment.

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