UAE ministers have hailed progress in expanding access to finance for smaller businesses after Abu Dhabi-based embedded finance startup CredibleX announced it has raised US$55mn in a seed funding round. 

CredibleX, whose embedded finance platform allows UAE-based companies to apply for credit facilities, says it has already disbursed more than US$27mn since launching a pilot eight months ago, and that the funding will accelerate its growth further. 

The round was led by Abu Dhabi-headquartered venture capital firm Further Ventures, which is providing seed equity investment, with participation in debt from Kilgour Williams Capital, Berkley Square Finance and several other providers. 

“This significant milestone underscores the need for innovative financing solutions that empower SMEs,” says CredibleX co-founder and chief executive Anand Nagaraj.

“We believe that access to capital is one of the biggest challenges facing small businesses, and our goal is to change that.” 

Alia Al Mazrouei, the UAE’s Minister of State for entrepreneurship and SMEs, hails the company’s progress as “a testament to how technology can empower small businesses and contribute to the growth of the economy”. 

Its attempt to expand access to finance “is aligned with the UAE’s broader vision of becoming a global leader in entrepreneurship and innovation”, she says.  

“By providing easy access to capital, CredibleX is contributing to the growth and diversification of the SME sector, which remains a critical pillar of the UAE economy.” 

The company works with more than 35 distribution partners, including the Dubai Multi Commodities Centre, Network International and National General Insurance, and says it has already provided financing opportunities for more than 100,000 SMEs. 

Network International’s chief executive, Nandan Mer, says integrating CredibleX’s platform has provided SME partners “with quick and easy access to much-needed capital”. 

“This collaboration aligns perfectly with our commitment to supporting the growth of small businesses in the UAE,” he says. 

CredibleX announced in August it had partnered with counter-fraud platform Haifin, which uses blockchain to detect duplicate financing attempts, to mitigate the risk of fraud. 

The same month, it also agreed a strategic partnership with Fracxn, which provides instant financing solutions for SMEs, and in July, revealed it was participating in Mastercard’s Start Path programme, which provides support to startups looking to scale their business.