Sequoia leads $6m round for India's KredX

Existing investor Prime Venture Partners, which contributed $750,000 in seed funding to KredX earlier this year, also participated in the round. The company will use the new capital to improve its internal processes, ranging from sales functions to the technology and data back-end, according to media reports linked from the company's Twitter feed.

KredX provides a space for small and medium-sized enterprises (SMEs) to sell unpaid invoices to individual investors at a discount in order to raise short-term working capital. These invoices typically take 30-90 days to clear, but KredX claims its customers can find buyers within a week after beginning the listing process.

The company claims to have enabled around 3,000 transactions worth INR100,000-INR10 million ($1,500-$150,000) since its founding last year. It focuses on invoices from blue-chip companies and examines each one before listing to mitigate risk. Buyers on the platform include banks, non-banking finance companies, wealth management firms and retail investors.

While banks and institutional lenders do provide similar services focused mainly on manufacturing enterprises, KredX aims to target a wider range of industries. Sectors where it has the biggest exposure include technology services, logistics and retail.

Indian financial technology companies have attracted considerable interest from VC investors, notably the electronic and online payments space. It has provided two recent exits for Sequoia with the acquisition of FreeCharge by online marketplace Snapdeal and Citrus Pay by Netherlands-based PayU.

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