CreditEnable (“the Company”), a transformational AI-driven SME credit business is pleased to announce the opening of a $2 million USD pre-series A round.
CreditEnable is building a managed marketplace for SME credit. The Company’s revenue-generating, rapidly growing marketplace benefits lenders and borrowers by improving the creditworthiness of SMEs and increasing their access to affordable credit, while simultaneously enabling lenders to dramatically improve the speed of identifying, assessing and on-boarding higher quality borrowers while reducing the risk of default.
“The SME credit market globally is notoriously inefficient, leaving millions of SMEs unable to unlock growth capital at a reasonable price. According to the World Bank, there is a $8.1 trillion of SME credit available every year, but $4.5 trillion doesn’t get issued to SMEs leaving an enormous credit gap that CreditEnable has been created to narrow. The demand and supply exist, but the market is not transacting efficiently. That is where CreditEnable comes in“, says Nadia Sood, CEO and Founder.
The firm had earlier successfully closed a seed round of $5 million, attracting globally renown early-stage fintech investors such as Cris Conde, Executive In Residence with Accel Partners and former CEO of Sun Gard (https://www.accel.com/team/cris-conde), Alter Global (www.alter.global), Floreat (www.floreat.com) and Astia (www.astia.org).
The seed investment enabled the Company to complete the development of the first-generation of its managed marketplace platform; successfully launch into the Indian market; secure its first 20 paying lender customers, who collectively have SME loan books totalling more than $71 billion; and launch its demand generation strategy which is currently resulting in more than 5,000 SME loan applications a month.
The new investment round will allow CreditEnable to develop and launch a second-generation product for both lenders and borrowers, accelerate its successful direct marketing outreach to SMEs, and increase the Company’s already impressive traction with a growing client base of lenders which includes some of the biggest banks in India.
The company was recently named one of the ‘Most Influential Financial Technology Companies’ by Financial Technologist and one of the top 50 firms in the world delivering innovation to financially-underserved communities by Visa. The Company’s track record of success convinced CAIT, the Confederation of All India Traders, to establish an exclusive strategic partnership with CreditEnable, an alliance that creates exclusive access to some 70 million small and medium sized enterprises in India.
Commenting on the opening of the firm’s pre-series A round, Nadia Sood added: “We are very excited that within days of opening this investment round, we have already secured new investors such as Alan Morgan, Chairman of Adfisco (www.adfisco.com), former head of McKinsey’s financial services practice in UK, Europe and the Middle East and Cofounder of MMC Ventures, and Chris Slater, Co-Founder of Simply business, the world’s first quote-and-buy system for small business insurance. (https://www.simplybusiness.co.uk) Both have been attracted by the success and scalability of the platform, the momentum in the business, and the sheer scale of the opportunity we have ahead of us.”
Commenting on his investment, Alan Morgan said, “I was impressed with the calibre of the team at CreditEnable and the systematic way they are going about building modular solutions to an increasingly automated process of getting insightful granular data and then using that both to tailor specific opportunities for the borrower whilst reducing friction and improving underwriting with the lender.”