SME finance startup Reevoy on Thursday secured undisclosed funds from 25 angel investors. These include Alok Bansal (Co-founder, PolicyBazaar), Gaurav Ajmera (ex-COO, OYO), Sorabh Agarwal (Founder, AngelBay), Rahool Sureka (Co-founders, Fitso), Himanshu Aggarwal (Co-founder, Aspiring Minds), Saurabh Aggarwal, Naman Sharma, and Aadit Prasad (Director, Castlelake, UK), among others.
The London-based startup, which assists Indian SMEs in exports gain collateral-free working capital to factor invoices, will utilize the funds to develop new technology, recruit talent, and expand its operations across the UK and India, it said in a statement.
Commenting on the development, 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 established by IIT Delhi alumnus and experienced trade finance professionals Ankur Khetan, Ishan Dadhich, and Mohit Agarwal in late-2020, to address 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 do not have enough working capital to fulfill these large orders, and hence, end up losing them. Reevoy is resolving this very issue.
Co-founder Ankur says, “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 collateralized 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 revolutionize access to capital for export-oriented SMEs.”
“The progress Reevoy has made in the last three months is testament to the drive, rigor, and professionalism of Ankur, Ishan, and Mohit,” he added.