wordpress blog stats
Connect with us

Hi, what are you looking for?

FinTech startup Kredx raises $6M in Series A funding led by Sequoia

digital-payments-cmn

Invoice discounting platform, KredX has raised about $6 million as Series A investment led by Sequoia Capital and existing investor, Prime Venture Partners, reports Inc42.com. The funds will be used to strengthen its technology, data and sales functions within the company. The report also states that the company had raised $750K from Prime Venture Partners earlier in April 2016.

Started by Manish Kumar, Anurag Jain and Puneet Agarwal in 2015, KredX is an online discounting platform that allows business owners to raise funds for their working capital needs by selling their unpaid invoices raised on blue chip companies.

Both SMEs and investors can sell and buy on the platform respectively after registering themselves on the platform. Investors can buy the listed invoices of SMEs at a discount of 12-20%. KredX accepts investors looking to invest a minimum of Rs. 3 lakhs per deal for short term (30-90 days). Investors may be individuals, proprietors, institutional investors, banks, NBFCs, NRI investors and other financial institutions. The company does not guarantee any specific rate of returns to the investors.

In July 2016, Bank of Baroda partnered with Kredx apart from six other FinTech companies in an attempt to acquire more customers and offer new products to existing customers.

“Other financial services” FDI

Earlier this week, Fintech companies classified under “other financial services” were permitted 100% foreign direct investment (FDI) through the automatic route, as opposed to the approval route earlier. Earlier, only non-banking finance companies (NBFCs) under 18 categories engaged in activities such as stock broking, investment advisory etc were permitted 100% FDI through the automatic route.

As such, Kredx’s proposition does not have a proper classification and regulators will have to update themselves on their business.

Investments in FinTech

Fintech startup LoanTap that offers loans for salaried professionals raised $ 3 million in a Series A round of funding from HNIs including Abhishek Pandey and Jaysukh Sapra in August.

In June 2016,  Lendingkart, an online platform for lending to small businesses and entrepreneurs, raised Rs 205 crore ($32 million) in a series B round of funding led by Bertelsmann India Investments (BII) and Darrin Capital Management.

Capital Float, an online lending platform, raised $25 million in a series B round of funding led by Creation Investments Capital Management, LLC, with significant participation from existing investors SAIF Partners, Sequoia India, and Aspada in May this year.

In October 2015, online fundraising platform LetsVenture raised an undisclosed amount in its Series A round of funding led by Accel Partners and Anupam Mittal, with participation from Nandan Nilekani, Rishad Premji, Kunal Bahl, Rohit Bansal, Girish Mathrubootham, Amit Ranjan and Singapore Angels among others.

Online credit management service CreditMantri raised Series A funding worth $2.5 million from IDG Ventures, Elevar Equity and Accion Venture Lab in October last year.

 

 

You May Also Like

News

Indian fintechs adapted to the post-pandemic business environment much better than their global counterparts in terms of easing customer on-boarding norms, building new products...

News

The Securities and Exchange Board of India (SEBI) has revised the framework for its innovation sandbox allowing individuals, in addition to fintech companies  to...

News

Ant Group Co. has agreed to a restructuring plan with Chinese regulators, through which the fintech giant will be housed within a financial holding...

News

The Asian Development Bank is looking to invest Rs 1,000 crore into the newly proposed fintech hub at the International Financial Services Centre at...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ