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BW Businessworld

Streamlining MSME's: Anurag Jain, Co-founder & ED, KredX

MSMEs are the backbone of the economy contributing around 40 per cent to the GDP growth.

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Instrumental and passionate, Anurag Jain, Co-Founder and Executive Director of KredX, has a vision bring a change in the MSME sector through cut-throat technology. Talking about his journey, Jain informed that moving out of the comfort zone after his decade long stay in Kolkata wasn’t easy. However, the decision of moving to Bangalore with a new vision and leaving behind the support structure was a crucial decision. “This was one of the most important decisions which helped us work as a close-knit team and scale up the company,” added Jain.

“MSMEs are the backbone of the economy contributing more than 40 per cent to the GDP growth of India,” said Anurag Jain. He says that invoice discounting roughly comprises of 8-10 per cent of the working capital gap and is growing at a rapid pace of almost 15-20 per cent every year. Adding to this, Jain, winner of BW Businessworld’s 40 Under 40, elucidated, “Since the last 4.5 years, KredX has been instrumental in discounting more than three lakh invoices for MSMEs helping them unlock thousands of crores stuck in unpaid invoices across India.” Catering to the fintech sector, KredX runs an online bill discounting platform helping vendors of large corporates discount their invoices through our technology platform by a network of investors like retail investors, family offices, funds, HUFs, NBFCs, etc. Jain informs that working capital gap for MSMEs has been estimated to be around more than $250 billion which has stalled the giant wheel and if MSMEs can get access to this capital it can work wonders for the economy.

Anurag has a vision of building an inspiring new product line which can separately be built into a multi-million dollar business was his idea. “It originated out of a customer need and evolved into a new product line which complemented our existing offering,” stated Jain.  

For Anurag execution is the key. “A lot of ideas die a slow death for the want of execution and implementation on the ground. Execution is my speciality on the table and I believe in the concept of getting things done,” says the young entrepreneur. Highlighting KredX’s impact, Jain added that they have directly or indirectly contributed to creating 10,000 jobs and have helped more than 5,000 vendors to run their business smoothly.

In the era of disrupting and cut-throat technology, KredX’s tech team is at par with the advancements of the industry.  On being afloat in the industry, Anurag informs, “As an individual, I am a coder by heart and am a part of multiple industry forums which gives me enough exposure to the latest in the field of technology.”

Jain being a true leader at heart stated, “I believe we need to be cognizant of the risk we are taking up in our portfolio and run through proper due diligence as we are also the custodian of our investor’s money.” With a decent growth of 2-3X every year, the company falls under the purview of RBI. 

With economic doldrums engulfing most of the start-ups and industries, KredX is quite safe of its flares. On this, Jain added, “The current slowdown has not affected as much as we are just a platform and do not have a books portfolio. We are also don’t require to capitalise ourselves as we have access to a big pool of ‘on-demand’ funds from our investors and it prevents us from rushing into an otherwise bad investment.”

Jain as a visionary person does see some stress in the market. He states, “We are holding on our plans to grow aggressively for a few quarters for the dust to settle as there might be new skeletons emerging out of the current crisis.”    

Tags assigned to this article:
msme sector KredX nbfcs