Deep Singh, CrediLinq.ai - The Future of Business eCommerce (S3E35)

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CrediLinq is a technology infrastructure company that is enabling B2B platforms to offer embedded finance to their customers.

B2B PayLater for buyers and GMV Financing for sellers is a huge opportunity to both improve conversion, increase average order volumes and dramatically reduce operational burden. The future of B2B payments and purchasing will very much look like the current consumer level experience – and CrediLinq is accelerating that change.

CrediLinq.Ai is helmed by Deep Singh , a passionate banker-turned-entrepreneur. He is a specialist in corporate and commercial finance with a hunger for innovation. He was previously Chief Capital Officer at a US$1.3 billion private credit firm and left behind his corporate career to start CrediLinq. He aims to use his 17 years of rich experience in credit to support the growth of SMEs and help asset allocators achieve superior risk-adjusted returns.

This episode is available on Spotify , Apple Podcasts , YouTube , Amazon Music , Google Podcasts , and many other major platforms through our PodLink .

The following is a summary of the conversation produced with Claude.

Deep Singh has over 18 years of experience in credit, banking, finance, and corporate credit. He founded CrediLinq with the aim of using transactional data and AI to provide capital and financing solutions to small and medium businesses (SMBs), which generate 60-75% of GDP globally, but often struggle to access credit from traditional banks.

CrediLinq enables B2B platforms to launch embedded finance products by providing the technology infrastructure for lending. It partners with e-commerce, procurement, supply chain, and payment platforms, leveraging their transactional data to assess creditworthiness and provide financing solutions tailored to the platform's users (merchants, buyers, sellers, etc.).

CrediLinq's AI-driven algorithms analyze data points like transaction history, sales volumes, margins, inventory levels, and cash flow to predict business performance and extend loans ranging from $100 to $1 million. This data-driven approach eliminates the need for traditional financial statements, making it easier to serve SMBs.

Key Advantages:

1. Lower cost of acquisition and servicing: CrediLinq's automated, data-driven processes significantly reduces the cost of acquiring and servicing SMB customers compared to traditional banks.

2. Contextual learning: By working across multiple platforms and industries, CrediLinq's algorithms gain contextual insights, enabling better credit decisions.

3. Adaptability: CrediLinq's technology can be tailored to specific industries and geographies, accommodating their unique requirements.

In addition, CrediLinq operates a credit hedge fund licensed by the Monetary Authority of Singapore, which raises equity and debt capital from institutional and individual accredited investors. This capital is used to fund the loans originated through CrediLinq's technology, aligning the company's interests with those of its investors.

The credit fund has generated 16% net returns to investors, demonstrating the viability of data-driven credit as an asset class. CrediLinq takes a diversified approach, spreading investments across geographies and platforms to mitigate risk.

CrediLinq is already live in Singapore, Hong Kong, Australia, Malaysia, and Indonesia, with plans to expand globally. The company is nearing profitability and preparing for a Series A funding round in Q1 or Q2 of 2024 to accelerate growth and global distribution.

CrediLinq's scalability stems from the repeatability and profitability of its product, as well as its ability to leverage talent in the market. The company sees the trend towards embedded finance accelerating, driven by the adoption of online platforms and the limitations of traditional banks in serving SMBs.

Overall, the interview highlights CrediLinq's innovative approach to SMB lending, leveraging data and AI to address the credit gap and provide embedded financing solutions to B2B platforms globally.