Risk Disclosure
Understand the risks before you invest
Invoice discounting offers attractive returns — but it carries real risks. Read this disclosure carefully before committing capital.
Important Disclaimer
Invoice-backed investments are exposed primarily to credit and repayment risk, including the possibility of delayed or partial repayment by the borrower. Returns and repayment are not guaranteed. Security and collection mechanisms are intended to reduce risk but may not fully prevent loss. Investors should review the deal details, risk assessment and transaction documents before investing.
Credit / Default Risk
HighThe primary risk in invoice discounting is borrower default — the failure of a borrower or their buyer to repay the financed invoice on time. Despite rigorous credit evaluation by Kredy, default cannot be fully eliminated. In the event of default, Vridi initiates recovery proceedings, but full recovery is not guaranteed.
Concentration Risk
MediumInvesting a disproportionate portion of your capital in deals from a single borrower, buyer, or industry sector amplifies the impact of any one default. We strongly recommend diversifying your investments across multiple deals, borrowers, and risk ratings.
Liquidity Risk
MediumInvestments are locked for the duration of the deal tenure (typically 30–120 days). There is no secondary market to sell your position before maturity. Invest only capital you can afford to have illiquid for the deal's full tenure.
Fraud Risk
LowDespite verification of invoices and borrower identity, there remains a residual risk of invoice fraud — where invoices do not correspond to genuine trade transactions. Vridi mitigates this through GST data verification and buyer confirmation where possible.
Regulatory Risk
LowChanges in RBI, Income Tax, or other applicable regulations may impact the structure, tax treatment, or availability of invoice discounting products. We monitor regulatory developments and will notify investors of material changes.
Platform Risk
LowIn the event Vridi ceases operations, funds held in escrow are ring-fenced and would continue to be managed by the licensed trustee. However, platform shutdown could delay deal management and communication.
Platform Disclaimer
Vridi is a technology platform that facilitates invoice discounting transactions between verified investors and credit-evaluated borrowers. Vridi is not a bank, NBFC, or SEBI-registered intermediary, and participation on the platform does not constitute a regulated investment product. Vridi does not guarantee returns or the repayment of principal on any deal.
Tax Disclaimer
Returns earned on invoice discounting are taxable as income from other sources under the Income Tax Act, 1961. TDS may be deducted at applicable rates. Investors are advised to consult their tax advisors for specific guidance.
Investor Suitability
Invoice discounting is appropriate for investors who understand credit risk, can tolerate illiquidity for deal tenures, and have a balanced portfolio that includes more liquid assets. It may not be suitable as a primary or sole investment vehicle.