Tracing India’s Advertisement Giant’s Journey With KredX
Founded in 2008 with headquarters in Bangalore, this advertising giant is a pioneer in the classified advertisement sector. It aims to empower every person in the country to independently connect with buyers and sellers online. The company wants to continue working towards building the future of trading and e-commerce and wants to add something that is game-changing and worthwhile to the experience of its users.
Snapshot of the company
Product: Classified Advertisement
On The KredX Platform Since 23 January 2019
Invoice Amount Discounted Till Date: ₹30 Cr
A Quick Glimpse Of Their Journey So Far With KredX
Being a pioneer in the classified advertisements segment, the company has a huge and diversified clientele on a daily basis. In such cases, the payment cycle can be spread over a few weeks. To accelerate the growth of any business, it is critical to deal with large vendors whose payment timelines may vary, ultimately impacting their liquidity.
The company approached various financial institutions in search of solutions that could help address their needs but there were several challenges with the offerings, primarily the time involved in the process. Some other added drawbacks were:
- Lower funding limit as per existing norms and procedures
- The company was required to furnish collaterals and financial history to avail traditional offerings
- Other forms of short term and long term borrowing were expensive
- Challenges availing funds for liquidity and growth
The KredX Offering
To secure growth prospects the company with the help of KredX, effectively repurpose their capital needs for better allocation of liquidity. KredX offered sourcing credit without any added debt responsibility in a way which assisted them to operate seamlessly.
- Vendors raise invoices against the company payable within 60 days
- Discounted invoices are listed on KredX’s platform for 90 days, thereby giving the company liquidity of 60 + 90 days, i.e., 5 months
- KredX’s investors buy the invoices at a pre-decided rate as per the terms and conditions and the funds are disbursed to the vendors within 24-72 hours
- At the end of 90 days, the company pays the amount back to KredX Investors
- Recourse is on the company
With KredX, the company was able to accelerate its growth and expansion with an increase in liquidity and effectively repurposing their capital to better suit the requirement. The business found the solutions of sourcing credit without an added debt responsibility attached to the proposition feasible.
How We Helped
The business witnessed exponential growth in the market. Our platform assisted the company in accelerating their payment cycles and subsequently increase its bottom line. The number of enterprises dealing with the company also grew manyfold within this timeframe.
KredX assisted in increasing the opportunities from a revenue perspective as the service providers could bear overhead costs. Substantial growth parameters are laid down due to timely retention of revenue leading to meeting the goals and objectives of the company, further enhancing the growth.
How the Investor Benefits
By investing in deals raised to this company, the investors on the KredX platform were able to
- Strengthen their portfolio with maximum returns within 90 days
- Make above-market returns at 12-20% IRR
- Earn higher returns in 30-90 days at low risk
This not only leads to better investment opportunities but also gave investors a chance to be involved directly in the growth of the advertising company and its vendors.