Trade Finance Advice

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KredX – Enabling Streamlined Cash Flow for Businesses

So, here I am. Back with another interesting coverage of an upcoming FinTech business. The company in the spotlight today will be KredX – the largest supply chain financing platform in India.

KredX was founded in 2015 by a young and savvy entrepreneur, Manish Kumar. What started as a small venture with just 3 employees, the company grew to a passionate team of 50+ professionals in 2 years. Today the company has more than 170 employees working from nearly 8 locations across the country. An impressive growth story, isn’t it?

Having closely watched the company’s progress right from its inception days, it became quite apparent to me that the company held a lot of promise. It is, therefore, no surprise to me that what started out as a small business venture for invoice discounting and solving simple cash flow problems has since grown into a powerhouse of innovation, with a wide range of products and services for businesses and investors all over the world.

In my opinion, the company has understood the pulse of the problem businesses have at hand. They understand the kind of cash flow issues that companies normally run into. With this in mind, they offer invoice discounting to businesses with cash flow issues, as well as a unique investment option for global investors. The company’s offerings include a host of services such as cash flow management, enterprise finance, working capital, and much more.

In short, their mission is to empower every business in India with tailored supply chain finance solutions to overcome their cash flow obligations.

But why trade finance, one may ask? Let us explore the seed of thought that grew the idea called KredX.

The Trade Finance Gap – A Challenge and an Opportunity

I’m certain you would agree with me that small businesses have difficulty getting trade financing. As a result, most businesses are not able to grow as much as they could. According to my learnings from various forums and publications, the global gap in trade finance gap is estimated to be worth USD 1.6 trillion. For developing economies in Asia, the shortfall is estimated to be worth USD 692 billion. If businesses are to reach their full trading potential, there ought to be a solution to this huge problem.

And this is the market that modern fintech companies like KredX are tapping into. Yes. Companies like KredX are empowering SMEs with a type of trade finance called invoice financing. This is a great way for companies to get the cash they need to grow their business.

Invoice financing means that a company can get cash quickly and easily based on the invoices they have outstanding. The best part is that there’s no collateral required, and the process is completely digital. This makes it a great option for businesses that need working capital quickly and easily.

Prices are transparent, so you’ll always know what you’re getting into. And, because this financing is based on future growth, not past performance, it’s a great option for businesses that are looking to expand. KredX leads this space in India with its array of invoice discounting solutions and services, helping companies attain their financial objectives.

If you are an investor, KredX has a host of solutions to help you maximize your investments. KredX helps you to diversify your portfolios by investing in accepted bills. This lowers your risks and guarantees you a profit anywhere between 12 and 20% a year.

With such a comprehensive range of services, I should say that KredX is growing in stature as the go-to company for unique, custom supply chain finance solutions.

In fact, in the words of its CEO, Manish Kumar, a young and savvy new-age entrepreneur, KredX could soon be the next UPI as far as trade finance is concerned. This is the vision that Manish Kumar and his team at KredX are working towards. A person with such tall aspirations, he continues to be an influence on budding financial entrepreneurs as well.

A Popular Finfluencer

While talking about KredX, I could not help but share a few of my observations about its CEO, Manish Kumar – a powerful “finfluencer” that fintech startups are looking upto. I have seen him quite active on LinkedIn and Twitter, sharing his insights on a host of trade finance subjects. Someone who’s not shy about making public statements, he’s also seen delivering keynote addresses and participating in expert panels in industry webinars and events.

Under his leadership, the company has progressed by leaps and bounds, and its solutions have so far reached 6000 MSMEs. Manish Kumar strongly believes there is a continuous trade gap between buyers and sellers; this is the space that KredX tries to bridge with its innovative solutions. Addressing this gap with a slew of collateral-free working capital solutions, KredX has been powering the growth potential of numerous MSMEs in India.

In fact, my research revealed that MSMEs that have signed up on the KredX platform could increase their returns by at least 56% year-on-year, generating nearly 1.5 lakh jobs in the process.

Manish Kumar is truly a man on a mission with clarity in his thoughts and deeds. I strongly recommend that start-up founders pay attention to his advice – “Very often, new entrepreneurs spend years perfecting a product before actually launching it. In the startup world, time is more important than perfection. What is perfect now may not be perfect tomorrow.”

Simple, yet profound!

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