CredFlow Secures NBFC Licence to Expand Cash-Flow Based SME Lending

CredFlow, a cash-flow management and lending platform focused on small and medium enterprises, has received a key regulatory boost after its subsidiary, Cashpositive Finance, secured a non-deposit taking non-banking finance company (NBFC) licence from the Reserve Bank of India.

The approval allows CredFlow to lend directly from its own balance sheet, moving beyond its earlier reliance on partner-led lending and loan service provider (LSP) arrangements. The shift is expected to give the company greater control over underwriting, credit product design and collections as it expands its working capital financing offerings for SMEs.

Direct Lending Marks Strategic Shift

With the NBFC licence in place, CredFlow has already begun disbursing loans from its own books. Founder and chief executive officer Kunal Aggarwal said the company is targeting an asset book of around ₹100 crore within the current financial year.

According to Aggarwal, operating under its own licence provides flexibility to structure products more closely aligned with SME cash-flow patterns and sector-specific needs. The company also plans to explore co-lending partnerships with banks and other NBFCs to scale faster while managing risk.

Data-Driven Credit Assessment

CredFlow began as a software-as-a-service platform helping SMEs manage receivables, monitor cash flows and shorten working capital cycles. Over time, it built a large data repository using GST-verified invoices, banking integrations and enterprise resource planning (ERP) systems.

The company claims visibility into invoices worth over $800 billion across more than six million SMEs. This data-driven approach enables more accurate credit assessment, particularly for manufacturers, traders and distributors who often face delays in accessing formal finance.

Such visibility into transactions and receivables also complements structured bookkeeping services in india, which play a critical role in improving transparency, compliance and credit readiness for small businesses.

New Credit Products in the Pipeline

Following the licence approval, CredFlow plans to introduce a range of new lending products. These include purchase invoice discounting, unsecured and partially secured term loans, manufacturing expansion finance and other structured SME credit offerings.

The company is backed by investors such as Omidyar Network India and Stellaris Venture Partners. In recent years, it has expanded through acquisitions and funding rounds, including the purchase of Y Combinator-backed TechBiz and a $3.7 million fundraise in 2024.

MSME Lending Under Pressure

The move comes at a time when the MSME lending segment is facing stress, particularly in unsecured loans. Several digital lenders have struggled with valuation cuts and liquidity issues amid tighter regulatory scrutiny.

Against this backdrop, CredFlow’s NBFC licence positions it to exercise tighter risk controls and build a more sustainable lending model grounded in real cash-flow data rather than purely credit scores.