Business-to-business (B2B) ecommerce platform for industrial goods Moglix on Monday announced its entry into the supply chain financing space with the launch Credlix.
The financing service is currently accessible to over 15,000 suppliers mainly in the MSME (micro, small and medium enterprises) sector. The platform aims to give suppliers access to collateral-free credit from enterprise buyers and banks/NBFCs through invoice discounting. Customers will be able to request for early payments from enterprise buyers at lower discount rates to keep their supply chain running.
According to Moglix, Credlix will let suppliers monitor all stages of invoice discounting. From credit application and credit risk assessment to payment approval and final disbursement, the platform will manage all of their early payment requests.
“MSMEs in India account for 11 crore jobs and 29% of the country's GDP. Unclogging the cash flow through the supply chain will be integral to fostering winning partnerships between MSME suppliers and large enterprise buyers and realizing the Government of India’s vision for Aatmanirbhar Bharat. Credlix is on track to provide invoice discounting of Rs 1,000 crores over the next 12 months and is aiming to touch Rs 10,000 Crores discounting value over the next 3 years by scaling up to include more banks, suppliers, and geographies,” Rahul Garg, founder and CEO, Moglix said in a statement.
The offline credit underwriting system makes the credit cycle more risk-prone, and slower. The risk of NPAs and bad debts compels creditors to charge a higher cost for credit. “Around 35% of MSMEs in India receive payments after 3 months of delivering their manufactured goods,” the startup noted in a statement.
Credlix’s technology-driven supply chain financing system will make it easier for suppliers to get just-in-time payments.
Founded by Garg in 2015, Moglix last raised $60 million in a Series D round led by Tiger Global Management. It competes with Bizongo for packaging solutions business, and Industrybuying -- whose controlling stake in SME business was acquired by Japanese company MonotaRO for $15 million.