SME finance startup Reevoy on Thursday raised undisclosed funds from 25 angel investors.
These include Alok Bansal (Co-founder, PolicyBazaar), Himanshu Aggarwal (Co-founder, Aspiring Minds), Gaurav Ajmera (ex-COO, OYO), Sorabh Agarwal (Founder, AngelBay), Saurabh Aggarwal, Naman Sharma, Rahool Sureka (Co-founders, Fitso), and Aadit Prasad (Director, Castlelake, UK), among others.
The London-based startup — which helps Indian SMEs in exports seek collateral-free working capital to factor invoices — will be using the funds to build new technology, hire talent, and grow its operations across the UK and India, it said in a statement
Speaking on the investment, Alok Bansal, Co-founder of Policybazaar, said, “The credit problem in India is a glaring one. While the factoring penetration is around 5 percent globally, India’s factoring penetration isn’t even 0.5 percent as of today. Reevoy is out to tackle a problem which needs immediate attention, and the product will contribute towards the ease of doing business for SMEs involved in exports.”
Reevoy was founded by IIT Delhi alumnus and experienced trade finance professionals Ankur Khetan, Ishan Dadhich, and Mohit Agarwal in late-2020, with the aim of addressing the working capital funding gap faced by Indian SMEs.
Global companies like TJX and Zara source from hundreds of Indian SMEs every year. But, most suppliers don’t have enough working capital to service these large orders, and hence, end up losing them. Reevoy is solving this very pain point.
Co-founder Ankur explains, “SMEs contribute about 30 percent towards India’s global trade, whereas the share of banking credit is about 15 percent. Lack of credit leads to SMEs losing orders and not being able to scale their business beyond collateralised lines of credit.”
Speaking of Reevoy’s potential impact in the SME lending space, Himanshu Aggarwal, Co-founder and CEO, Aspiring Minds, said,
“Access to timely capital is critical for India’s manufacturing sector to grow and our current financial institutions aren’t equipped to fill the gap. Reevoy, with its foundation in technology and data, can revolutionise access to capital for export-oriented SMEs.“
“The progress Reevoy has made in the last three months is testament to the drive, rigour, and professionalism of Ankur, Ishan, and Mohit,” he added.