Digital Banking Startup Credable Raises $2.5 Million Seed Round to Expand Offerings

Mumbai-based digital Banking Platform that is driving the future of banking by embedding financial services in businesses across emerging markets Credable, has raised a $2.5 million seed round to expand its offerings to emerging markets.

Speaking on the latest seed raised, the company’s CEO Nadeem Juma disclosed that Credable is seeking to offer banking services to the unbanked while planning to become the unit for emerging markets as it has rolled out plans to expand its offerings to large markets where the regulatory environment is conducive and businesses with profitable channels across MENAP and West Africa.

In his words,

“The problem we’re trying to solve is that a huge population of underbanked customers need banking services to improve their livelihoods. They are in different channels that they use every day, like telco-led mobile money, e-commerce platforms, and gig economy apps.

“Rather than try to create a new channel to bank these customers, we aim to enable these channels through a B2B2C offering that provides the customers with the banking services they need in the channels they’re already in.”

He further added that Africa’s most populous nations Nigeria, and Pakistan are at the top of its list of markets it seeks to expand its offerings.

Last May, Credable launched two products in East Africa, a 30-day term loan product in partnership with Vodacom M-Pesa in Tanzania and a short-term lending product for Diamond Trust Bank in Kenya.

The startup is committed to working capital and eradicating credit challenges faced by small and medium-scale enterprises (SMEs) in the new digital world. It aims to create inclusive growth for small businesses by providing them with cash management, payment, credit, and growth tools that will enable small business owners to efficiently grow and manage their businesses.”

Credable also hopes to address one financial malpractice which is predatory microlending, which typically involves imposing unfair and deceptive loan terms on end consumers.

Investors King understands that the startup handholds its business customers through product design, development, and management and works with them to ensure the product is relevant to its end consumers.

The platform syncs in with the existing accounting software and bank accounts of a business and provides real-time data that helps them make informed decisions to manage financial operations like collection and payments and avail instant, collateral-free access to working capital financing along with other growth tools.