In a region where traditional bank loans are a significant challenge for small and medium-sized enterprises (SMEs), revenue-based financing (RBF) is reshaping opportunities—and the MENA region is embracing it wholeheartedly.
CredibleX, the latest innovator in the space, has closed a $55 million seed round led by Abu Dhabi’s Further Ventures, aiming to expand its reach in this booming market.
The appeal of RBF lies in its adaptability and speed, making it an ideal solution for businesses in ecosystems like MENA, where SMEs often rely on platforms like delivery services and e-commerce aggregators.
For instance, restaurants using Talabat can apply for financing through the platform, providing historical sales data for evaluation.
CredibleX quickly approves loans—often within 24 hours—and collects repayments directly through integrated platform partnerships, streamlining the entire process.
The Backdrop of Growth
CredibleX joins a wave of RBF pioneers in the region, such as FlapKap and Flow48, which made significant strides in 2023.
Globally, companies like Modifi and Drip Capital have shown the scalability of this model, with substantial funding totals in their arsenal.
CredibleX distinguishes itself by partnering with 37 aggregators to connect with SMEs within specific vertical ecosystems, reinforcing its tailored approach to business growth.
Since launching in March 2024, CredibleX has provided over AED 100 million (approximately $27 million) in funding to SMEs.
Its model thrives in high-income markets like the UAE, where accessing traditional financing can be challenging due to limited support from Development Finance Institutions.
A Veteran Team with a Vision
Anand Nagaraj, CEO and co-founder, explained that their strategy involves working directly with SMEs’ payers, allowing for smoother repayment processes.
“Our approach helps us in recovering repayments easily as we have a direct relationship with the debtor/payer,” Nagaraj stated.
With a background at Citi and experience founding Invoice Bazaar, a supply chain finance platform, Nagaraj brings a wealth of expertise to CredibleX.
The seed round includes equity funding from Further Ventures and debt contributions from providers like Kilgour Williams Capital.
With backing from major players, including ADQ and Mastercard, CredibleX is poised to redefine SME financing in the MENA region.
Its commitment to empowering businesses through innovative financing models positions it as a leader in the evolving landscape of non-dilutive funding.
By addressing the unique challenges faced by MENA SMEs, CredibleX highlights how innovation and strategic partnerships can create new pathways for growth and success.
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