CredAvenue joins the unicorn club with $137 mn Series B funding

BL Bengaluru Bureau | Updated on: Mar 06, 2022

To utilise funds to expand the India business and the key global markets

Fintech start-up CredAvenue has joined the unicorn club with a Series B funding round of $137 million from New York-based global private equity and venture capital firm Insight Partners, B Capital Group, and Dragoneer, along with the participation from existing investors.

As a result, the company’s post-money valuation has grown to $1.3 billion. CredAvenue intends to use the funds to expand the business in India, along with key global markets, organically and inorganically, by acquiring diverse companies for the forward and backward services and products integration. The company will also use the funds to enhance its technological capabilities by investing in deep technology innovations, AI, ML, and data analytics.

CredAvenue has reported a cumulative Gross Turnover Volume (GTV) of over $12 billion. The company has also recently acquired Spocto, a collect-tech company with global footprints, to broaden its offerings.

Gaurav Kumar, Founder & CEO, CredAvenue, said, “I would like to extend a warm welcome to our new investor partners as we embark on this mission to deepen the Indian debt market. We have a once-in-a-lifetime opportunity to transform the global debt and collections market through a combination of the marketplace, operating system and fulfilment. CredAvenue, which has a solution for every stage of the debt product life cycle, expect to catapult on a hyper-growth trajectory over the next few years to make a difference for all Indian debt market participants and bring unprecedented transformation, akin to the equity markets of the 1990s, to the way a typical debt lifecycle is handled in India. We are paving the way for India’s debt market to realise its full potential, and we plan to soon being a leading player in the global debt markets with our unique and diversified product suites.”

“By leveraging a next-gen business intelligence and data-collection platform, CredAvenue enables efficient match-making and minimises manual and recurring efforts in underwriting, executing and monitoring debt. With CredAvenue’s best in class founding team, the company has already achieved incredible growth and key bank logos and partnerships in just 15 months. We look forward to partnering with CredAvenue as they continue to scale up,” said Nikhil Sachdev, Managing Director at Insight Partners. Sachdev will be joining CredAvenue’s board.

“We are excited about CredAvenue’s value proposition of bringing investors and borrowers on a single-window ecosystem to discover, facilitate and track debt products. I have had the privilege of knowing Gaurav for several years, and it’s exciting to back the strong team that is digitising Indian debt markets. Debt in India is still under-penetrated as a percentage of GDP at ~60 per cent. This creates a massive opportunity for a leading player like CredAvenue,” said Kabir Narang, Founding General Partner at B Capital Group.

CredAvenue is an enterprise debt marketplace that connects enterprises with lenders and investors. The company has a portfolio of five platforms catering to every requirement of both borrowers and investors - CredLoan (Loan Platform) - Term Lending and working capital solutions for enterprises, CredCoLend (Origination platform) - For banks and NBFCs for co-lending partnerships 3. Plutus (Bond Platform) - Bond Issuance and Investment for institutional and retail participants, CredSCF (Supply Chain Platform) - Trade Financing solutions and CredPool (Pool Platform) - End to end securitisation and portfolio buyouts In addition, the company also offers portfolio management and monitoring services as a SaaS offering to its borrowers and lenders. Currently, CredAvenue claims to have over 2,300 corporates, 750 Lenders and has facilitated debt volumes of over ₹90,000 crore.

Published on March 06, 2022
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