Floreat, the independent and privately held investment group, has completed an investment into fintech firm CreditEnable.
The investment by Floreat’s Principal Investment Fund I Limited, headed up by Jeff Sinclair, comes as the firm continues its fintech venture strategy.
CreditEnable, which was recently named as one of the Inclusive Fintech 501 by MetLife foundation and Visa Inc, provides technology and credit analytics solutions for Small and Medium Enterprise (SME) lenders. Focusing on expanding access and usage in underserviced areas, the firm develops credit profiling tools for SME borrowers to enable them to secure affordable debt.
Based in London with offices in Mumbai, the firm occupies the rapidly growing fintech space. It has commercial relationships with multiple lenders who represent billions of dollars in SME loan books and has recently partnered with the Confederation of All India Traders, which represents 70 million SMEs in India, to attempt the largest mobilisation initiative in securing affordable credit for SMEs. While the current focus is on India, over time the firm plans to have a global focus.
The firm is also working with the Mayor of London’s office as part of its International Business Programme.
Jeff Sinclair, Managing Director at Floreat Principal Investing, noted the importance of SMEs to India’s economic growth and the positive impact companies such as CreditEnable can have.
“Millions of creditworthy SME firms in developing countries are underserved by the formal financial sector. This represents a $4.5 trillion global SME credit gap in developing economies (with India representing $221 billion)” he said.
CreditEnable is therefore occupying a space with huge potential for growth, whilst also working to increase the efficiencies for these firms to secure affordable debt, grow their businesses, and in turn improve socio-economic conditions across India.”
“We continue to believe some of the most compelling growth opportunities remain in the venture capital space, and our high conviction investment philosophy allows us to back these new firms with the capital they need to grow.”
Commenting on the investment Nadia Sood, CEO & Co-founder at CreditEnable, said: “We are delighted that Floreat has invested into CreditEnable. There is a significant opportunity to bring efficiencies through technology into the SME credit market globally. We are pleased that Floreat has recognised the work we are doing to capitalise on this opportunity. We look forward to working closely with Jeff and his team which have an impressive track record of working closely with the expansion of new firms such as ours.
In October of last year, Floreat’s Principal Investment Fund I Limited announced investments in two additional fintech firms: artificial intelligence firm Senseon and regulation technology firm Encompass.