Invoice financing startup KredX secures $6.25m

Lending startup KredX has raised $6.25m in a Series A round led by Sequoia Capital India.

The round also saw existing backer Prime Venture Partners participate.

The Bangalore-based startup aims to provide small businesses with short-term working capital by selling unpaid invoices to banks, financial services firms, wealth managers and retail investors at a discounted price.

The invoice buyers receive a discount of between 12% to 20% and are paid back the full value for the invoice.

The company focuses on unpaid invoices from blue-chip companies and says it has facilitated some 3,000 since launching in 2015.

KredX says the capital will be used to strengthen its technology, data and sales operations.

It previously raised $750,000 in an April seed round from Prime Venture Partners.

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