Having built a brand synonymous with the best from the world of premium beer it has witnessed unprecedented growth since its launch in 2015. A Sequoia-funded company, it also raised a whopping $50 million from a Belgian investment firm. With a widespread presence in 22 Indian cities and the US, the company aims at becoming a global premium beer brand. In July 2017, the CEO announced the brand’s entry into five new markets—the UK, Singapore, Hong Kong, Thailand, and the United Arab Emirates—by next summer through distribution partnerships.
We at KredX are proud to be associated with this domestic beer brand that has made the niche concept of premium beer a mainstay among Urban India, in bridging the gap between their payables and receivables and being a part of their growth story.
Snapshot Of The FMCG Business
Product: The brand has a range of premium beers marketed under its name.
On The KredX Platform Since 29 August 2017
Invoice Discounted Till Date: ₹12 Cr
A Quick Glimpse Of The FMCG Company’s Journey So Far With KredX
Since the beverage brand, whose receivables timeline is 60 days, works with large vendors whose payment timelines are 30 days or less it impacted their liquidity.
Though the young company approached Banks & NBFCs, there were several challenges with their offerings, some of which were:
- Lower funding limit as per existing norms and procedures
- The requirement for collaterals though the business is not a traditional setup
- Challenges availing funds for liquidity and growth since the business was relatively new
- Expensive when exploring other forms of short-term and long-term borrowing
We offered them a customised ‘Payables Financing’ product for the company’s vendors through our platform giving them 90 days of additional working capital, wherein:
- Vendors raise invoice against beer brand payable within 60 days
- KredX does payables financing and pays vendors on time
- Discounted invoices are listed on KredX’s platform for 90 days
- KredX’s Investors purchase the invoices as per terms and conditions
- At the end of 90 days, KredX Investors receive the principal amount invested + profit earned
How We Helped
Our platform enabled the Indian premium beer maker to extend its credit periods while at the same time ensuring that payment cycles were accelerated for its vendors. The number of vendors dealing with the company also grew manifold within this time frame.
Through beer makers’ business with KredX, the company was able to secure growth and expansion with increased liquidity without impacting its balance sheet. While we created tailor-made processes and structured solutions suited specifically for the company and its vendors, the company was able to effectively re-purpose its capital for its growth requirements. Today, investors directly reach out to us requesting to invest in beer brands’ invoices – that in itself is a testimonial of the deepening relationship between KredX and the beer maker.