CapitalXB: 10 Key Things You Must Know

Overview

CapitalXB is an innovative financial services company based in Mumbai, India, established in 2023 with a mission to empower small and medium enterprises (SMEs) with much-needed financial solutions. In an economy where the trade finance gap for SMEs runs into hundreds of billions, CapitalXB aims to bridge this divide by offering tailored loans, factoring services, and trade finance products that facilitate better cash flow and support growth. Leveraging advanced technologies like AI and strategic partnerships, CapitalXB is not only transforming financing for domestic SMEs but is also enabling cross-border trade finance solutions. This article explores ten key aspects of CapitalXB, shedding light on its origin, operations, innovation, and impact within the financial ecosystem.

1. Founding and Background

CapitalXB was founded in 2023 by Taranjit Jaswal and Ajitabh Bharti, both with extensive experience in global banking and fintech sectors, including leadership roles at Barclays. The company was established in Mumbai with the goal of addressing the large and persistent trade financing gap faced by Indian SMEs. Recognizing the challenges these businesses encounter, CapitalXB provides customized financing options designed to scale with the client's growth trajectory. The founders’ vision is to become the preferred financing partner for manufacturing and exporting enterprises driving India's economic development.

2. Focus on SME Trade Finance

The cornerstone of CapitalXB’s business is addressing the significant trade finance shortfall faced by Indian SMEs, estimated at approximately $525 billion. CapitalXB's products include invoice discounting, factoring, supply chain financing, and export factoring tailored to MSMEs. By focusing on transaction strength and business fundamentals rather than just conventional credit scores, CapitalXB empowers these businesses to access working capital efficiently. This focus supports supply chains throughout the economy, reduces financing bottlenecks, and facilitates economic multiplication effects.

3. Regulatory Standing and Licensing

CapitalXB operates as a licensed Non-Banking Financial Company-Factor (NBFC-Factor), regulated under Reserve Bank of India (RBI) guidelines. A key milestone was its acquisition of the Authorised Dealer Category III license from the RBI, a first for a technology-driven export finance firm in India. This regulatory approval enables CapitalXB to provide export factoring services in foreign currencies, empowering Indian MSMEs to engage confidently in global trade with access to compliant, scalable, and collateral-light financing solutions.

4. Strategic Use of Technology and AI

CapitalXB is notable for integrating artificial intelligence and digital automation in its lending and recovery processes. The company collaborates with AI-oriented platforms like Biz2X to leverage agentic AI for credit decisioning and conversational AI for supplier engagement. This technological focus helps accelerate lending decisions, automate credit evaluation, and optimize debt recovery while ensuring ethics and compliance. The fusion of AI and human oversight enables faster access to finance for underserved businesses and pushes forward digital transformation in financial services.

5. Key Market Segments and Clients

CapitalXB serves diverse industries including chemicals, textiles, logistics, consumer goods, and manufacturing. Its client base primarily consists of SMEs looking to optimize their cash flow through invoice discounting and factoring. By enabling faster invoice realization, CapitalXB supports operational liquidity, thereby helping SMEs manage growth more sustainably. Its presence on the RBI-regulated Trade Receivables Discounting System (TReDS) platform further enhances timely access to working capital for these enterprises.

6. Significant Funding and Growth Plans

In 2025, CapitalXB successfully raised $15 million in a seed funding round led by Nicolas Walewski, an investor with deep expertise in investment firms based in London. This capital injection combines equity and debt to expand CapitalXB’s lending book, enhance its technology infrastructure, and build out its operational team. The funding aims to scale the company’s reach to SMEs across India’s manufacturing and trade sectors, narrowing the country’s trade finance gap and supporting economic growth through innovation.

7. Innovative Partnerships

CapitalXB has forged strategic partnerships that bolster its capability to serve SMEs more effectively. One notable collaboration is with Biz2X, a digital lending platform that provides AI-powered credit evaluation and supplier financing tools. This partnership enables CapitalXB to build an integrated, automated SME finance ecosystem that improves operational efficiency and reduces turnaround times for working capital access, driving financial inclusion for traditionally underserved businesses.

8. Role in India’s Export Ecosystem

CapitalXB plays a pivotal role in supporting India’s MSME exporters, who contribute nearly half of the country’s global trade. The company addresses critical challenges such as long payment cycles and cumbersome paper-based financing processes by introducing digital export factoring solutions in multiple currencies. Supported by its RBI-approved licensing, CapitalXB is facilitating smoother international trade finance workflows, helping exporters scale globally with greater financial agility and security.

9. Competitive Landscape

Operating within the financial services sector, CapitalXB faces competition from well-established players on platforms like TReDS, including Amazon-backed M1xchange, Axis Bank-backed A.TREDS Ltd, and Receivables Exchange of India Ltd. Despite robust competition, CapitalXB differentiates itself through its technology-first approach, focus on underserved SMEs, and specialized products like export factoring and working capital optimization. Its innovative risk transfer transactions under RBI guidelines also set new precedents in India’s evolving credit market.

10. Commitment to Financial Inclusion and ESG

Beyond technology and finance, CapitalXB maintains a strong commitment to financial inclusion and environmental, social, and governance (ESG) principles. The company’s model emphasizes responsible lending that empowers MSMEs without overburdening them with collateral demands. By combining diligent data governance, automation, and compliance, CapitalXB supports sustainable business growth and builds a resilient financial ecosystem that benefits both enterprises and the wider economy.

Conclusion

CapitalXB is carving out a significant niche in India's trade finance ecosystem by providing innovative, technology-led financial solutions designed specifically for SMEs. Since its inception in 2023, the company has leveraged strategic funding, AI-powered partnerships, and regulatory endorsements to offer flexible, faster, and more inclusive financing options to businesses. By focusing on underserved exporters and domestic MSMEs, CapitalXB contributes directly to addressing India’s massive trade finance deficiency while enhancing economic growth and supply chain robustness. As the company continues to evolve, it raises compelling prospects for how digital innovation can sustainably transform SME finance. How CapitalXB adapts to rising competition and advances in AI will be pivotal in shaping the future of SME lending and export finance in India.