CEO and Cofounder Anand Nagaraj explained, 'We believe this approach helps us in recovering repayments easily as we have a direct relationship with the debtor/payer. Most of the others in this space work with the SMEs to try and get an assignment of receivables/sales.' This highlights CredibleX's strategic advantage in utilizing partnerships with aggregators, enabling easier repayment mechanisms.
In the Middle East, non-dilutive finance options like Revenue-Based Financing (RBF) are becoming increasingly attractive due to SMEs struggling to secure traditional bank financing. This trend is evident as startups such as CredibleX and its competitors gain traction in addressing the needs of this underserved market.
CredibleX has raised a $55 million Seed financing round to capitalize on the growing demand for revenue-based financing among SMEs in the MENA region, showcasing a robust environment for alternative funding models.
The CEO noted that RBF is particularly effective in high-income regions like the UAE due to the limited access to traditional funding methods for SMEs, pointing to a significant opportunity for growth in this financial model.
#revenue-based-financing #startup-funding #mena-region #small-and-medium-enterprises #alternative-financing
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