Close Menu
TechBrunchTechBrunch
  • Home
  • AI
  • Apps
  • Crypto
  • Security
  • Startups
  • TechCrunch
  • Venture

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

Everyone in high tech has an opinion about Soham Parekh

July 3, 2025

All stages of TechCrunch regain early release prices for limited time

July 3, 2025

Not everyone is excited about DMs on the thread

July 3, 2025
Facebook X (Twitter) Instagram
TechBrunchTechBrunch
  • Home
  • AI

    OpenAI seeks to extend human lifespans with the help of longevity startups

    January 17, 2025

    Farewell to the $200 million woolly mammoth and TikTok

    January 17, 2025

    Nord Security founder launches Nexos.ai to help enterprises move AI projects from pilot to production

    January 17, 2025

    Data proves it remains difficult for startups to raise capital, even though VCs invested $75 billion in the fourth quarter

    January 16, 2025

    Apple suspends AI notification summaries for news after generating false alerts

    January 16, 2025
  • Apps

    Not everyone is excited about DMs on the thread

    July 3, 2025

    Meta has found another way to engage you: message that message first

    July 3, 2025

    Everything you need to know about Flash, Blueski-based Instagram alternatives

    July 3, 2025

    Substack brings new updates to live streaming as it increases video push

    July 2, 2025

    Amazon shuts down the Freevee app in August

    July 2, 2025
  • Crypto

    Vitalik Buterin reserves for Sam Altman's global project

    June 28, 2025

    Calci will close a $185 million round as rival Polymeruk reportedly seeks $200 million

    June 25, 2025

    Stablecoin Evangelist: Katie Haun's Battle of Digital Dollars

    June 22, 2025

    Hackers steal and destroy millions of Iran's biggest crypto exchanges

    June 18, 2025

    Unique, a new social media app

    June 17, 2025
  • Security

    Ransomware Gang Hunter International says it's shut down

    July 3, 2025

    India's biggest finance says hackers have accessed customer data from insurance units

    July 2, 2025

    Data breaches reveal that Catwatchful's “Stalkerware” is spying on thousands of phones

    July 2, 2025

    Hacking, Leaking, Exposure: Do not use stalkerware apps

    July 2, 2025

    Qantas Hacks lead to theft of personal data for 6 million passengers

    July 2, 2025
  • Startups

    7 days left: Founders and VCs save over $300 on all stage passes

    March 24, 2025

    AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

    March 24, 2025

    20 Hottest Open Source Startups of 2024

    March 22, 2025

    Andrill may build a weapons factory in the UK

    March 21, 2025

    Startup Weekly: Wiz bets paid off at M&A Rich Week

    March 21, 2025
  • TechCrunch

    OpenSea takes a long-term view with a focus on UX despite NFT sales remaining low

    February 8, 2024

    AI will save software companies' growth dreams

    February 8, 2024

    B2B and B2C are not about who buys, but how you sell

    February 5, 2024

    It's time for venture capital to break away from fast fashion

    February 3, 2024

    a16z's Chris Dixon believes it's time to focus on blockchain use cases rather than speculation

    February 2, 2024
  • Venture

    Everyone in high tech has an opinion about Soham Parekh

    July 3, 2025

    All stages of TechCrunch regain early release prices for limited time

    July 3, 2025

    Kristen Craft brings fresh fundraising strategies to every stage

    July 3, 2025

    The Y Combinator alumni have launched a new $34 million fund dedicated to YC startups.

    July 3, 2025

    Learn how to tighten a cap table with TC All Stage 2025

    July 3, 2025
TechBrunchTechBrunch

Revenue-based lending startups continue to raise capital in MENA, and the model is working well

TechBrunchBy TechBrunchDecember 24, 20243 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Telegram Email


In an era when raising venture capital has become more difficult, many companies are turning to non-dilutive revenue-based financing (RBF) as an alternative. As a result, many startups sprung up to meet the challenge, especially in the MENA region, which adopted the model like a duck to water. The latest is CredibleX, which raised $55 million in a seed financing round led by Abu Dhabi-based Further Ventures to capitalize on the burgeoning market for revenue financing in the Middle East.

CredibleX, which provides working capital loans to small and medium-sized enterprises, operates in a market where MENA competitors such as FlapKap and Flow48 will scale up and raise capital in 2023. Capital ($528.1 million to date), and Incomlend ($25 million to date), not to mention other companies such as Modifi (which has raised $353.6 million to date) and Drip.

So what's going on here?

While it remains difficult for SMEs in MENA to access working capital through traditional banking channels, CredibleX has found its way to market. We partner with leading aggregators to track small businesses in vertical ecosystems.

CEO and co-founder Anand Nagaraj told TechCrunch: Most other companies in this space work with small businesses to try to get their accounts receivable/sales quota. ”

In particular, revenue-based lending works very well for small and medium-sized enterprises in high-income countries like the UAE and similar countries. This is because it is difficult to obtain loans from so-called development finance institutions, which are primarily set up to invest in projects at low cost. An economically developed country.

The way this platform works is very “MENA regional” given the explosion of platforms established for service-based industries such as restaurants, and the MENA has millions of them. .

For example: Small businesses, such as restaurants, use platforms like Talabat (acquired by Delivery Hero for $158.52 million in 2015) to deliver food and want access to RBF. Once you apply for a loan through the Talabat platform integrated with CredibleX, upload your historical sales data and ratings, CredibleX will make all credit decisions for loan issuance within 24 hours.

The restaurant then repays the loan through Talabat making payments directly to CredibleX (CredibleX also has similar relationships with 37 other similar partners).

The company started operations in March 2024 and claims to have issued more than Dh100 million (US$27 million) to small and medium-sized enterprises.

Nagaraj previously worked at Citi and went on to found Invoice Bazaar, a supply chain finance platform that helps small and medium-sized businesses supplying goods to large corporations get early payments. After exiting that startup in 2021, Nagaraj launched CredibleX with co-founders Ahmad Malik and Hassan Reda.

Nagaraj explained: “Our approach will help us reach more SMEs and will certainly help if the situation worsens in terms of recovering repayments from SMEs.” CredibleX is the CEO of Abu Dhabi Global Market But it is fully regulated by the FSRA.

This seed round consists of equity from Further Ventures and debt from various providers including Kilgour Williams Capital. Additionally, Ventures has LPs including ADQ and Mastercard.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

7 days left: Founders and VCs save over $300 on all stage passes

March 24, 2025

AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

March 24, 2025

20 Hottest Open Source Startups of 2024

March 22, 2025

Andrill may build a weapons factory in the UK

March 21, 2025

Startup Weekly: Wiz bets paid off at M&A Rich Week

March 21, 2025

Wayve CEO shares his key elements for scaling autonomous driving technology

March 21, 2025

Leave A Reply Cancel Reply

Top Reviews
Editors Picks

7 days left: Founders and VCs save over $300 on all stage passes

March 24, 2025

AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

March 24, 2025

20 Hottest Open Source Startups of 2024

March 22, 2025

Andrill may build a weapons factory in the UK

March 21, 2025
About Us
About Us

Welcome to Tech Brunch, your go-to destination for cutting-edge insights, news, and analysis in the fields of Artificial Intelligence (AI), Cryptocurrency, Technology, and Startups. At Tech Brunch, we are passionate about exploring the latest trends, innovations, and developments shaping the future of these dynamic industries.

Our Picks

Everyone in high tech has an opinion about Soham Parekh

July 3, 2025

All stages of TechCrunch regain early release prices for limited time

July 3, 2025

Not everyone is excited about DMs on the thread

July 3, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

© 2025 TechBrunch. Designed by TechBrunch.
  • Home
  • About Tech Brunch
  • Advertise with Tech Brunch
  • Contact us
  • DMCA Notice
  • Privacy Policy
  • Terms of Use

Type above and press Enter to search. Press Esc to cancel.