Small and Medium Enterprise, Reevoy, an invoice factoring start-up, on Thursday, has raised undisclosed funds from 25 global investors.
Amongst the investors, Policy Bazaar Co-founder- Alok Bansal, Aspiring Minds Co-founder Himanshu Aggarwal, OYO Ex-COO Gaurav Ajmera, AngelBay Founder Sorabh Agarwal, Fitso Co-founders Saurabh Aggarwal, Naman Sharma, Rahool Sureka, and Aadit Prasad, Director of Castlelake, UK are some few names.
The London-based startup will utilize the raised funds for building technology, hiring talent, and growing factoring operations in the UK and India. In a statement, the Co-founder of Reevoy said, “SMEs contribute approximately 30 per cent towards India’s global trade, whereas the share of banking credit is approximately 15 per cent. Lack of credit leads to SMEs losing orders and not being able to scale their business beyond collateralized lines of credit.”
MBA graduates and IIT Delhi alumni- Ankur Khetan, Ishan Dadhich, and Mohit Agarwal founded Reevoy in mid-2020 intending to make finance easy and accessible to Indian SMEs. Reevoy offers SMEs a simple and fast solution addressing the working capital gap. It enables them to progress and concentrate on core business, leaving aside the cash-flow worries.
“The credit problem in India is a glaring one. While the factoring penetration is around 5% globally, India’s factoring penetration isn’t even 0.5 per cent as of today. I believe 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,” said Alok Bansal, co-founder of Policy Bazaar, addressing the investment made in Reevoy.
Earlier in February, Reserve Bank of India (RBI) Governor Shaktikanta Das, called MSMEs, an emerging growth engine of the economy. MSMEs have a large network of about 6.33 crore enterprises which are contributing to 30% of GDP and approximately 50% to exports. However, in present times, the credit gap of MSMEs is pegged at around USD 240 billion (Rs 17 lakh crore).
As per the funding alert published on Yourstory, Himanshu Aggarwal, Co-founder and CEO, Aspiring Minds, talking on Reevoy’s potential impact in the SME lending space 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.” He further said, “The progress Reevoy has made in the last three months is testament to the drive, rigour, and professionalism of Ankur, Ishan, and Mohit.”